• Legal system, currency, language

    Constitutional. The official currency is the Kwanza (AOA). The official language is Portuguese.

  • Corporate presence requirements & payroll set-up

    A foreign entity may engage employees in Angola with proper payroll registrations, subject to business, corporate and tax considerations. The employer is responsible for withholding from an employee's pay, and delivering to the tax authority, income tax and contributions to Angolan social security. The level of income tax is defined by the government and varies in line with the employee's salary.

  • Pre-hire checks


    Immigration compliance and pre-hire medical examinations.


    Reference and education checks are permissible.

  • Immigration

    Criminal and medical checks must be issued by competent authorities, a criminal record must be issued by the home country and a medical certificate must be issued by a doctor in the employee’s home country.

    The visa/work permit requirements for overseas nationals to work in Angola are having a recognized travel document valid for the Angolan territory for at least 6 months, being of legal age, not being included in the national list of undesirable persons prohibited from entering into the national territory, not constituting a danger to public order or to social security interests, complying with all health regulations established by the Ministry of Health for entry into the national territory, having an employment contract or promissory employment contract, having a certificate of professional and educational qualifications and curriculum vitae, and obtaining a positive opinion of the competent Ministry.

  • Hiring options


    Indefinite-term contract (which is the rule), fixed-term or open-term (ie, a term contract whose termination date has not yet been defined, but that will be terminated as soon as the underlying need for contracting is no longer verified – for example, as a contract to cover absence), part-time contract, telework contract and contract under service commission regime – a particular type of contract for high-level employees which provides flexibility for termination and is not common. The parties may execute an employment contract for a fixed term or open term, which must be done in writing.  Part-time, fixed-term and open-term employees may not be discriminated against due to their status.

    Independent contractor

    Independent contractors may be engaged directly by the company or via a personal services company. Engagement may be subject to misclassification exposure. The factors that tend to indicate an individual is an employee (rather than, for example, a self-employed independent contractor) are the existence of a work schedule, the scheduling of vacation, the worker’s legal subordination to the company, the company’s authority, direction and disciplinary powers, control of punctuality and attendance over the individual, integration into the structure of the company and use of work tools belonging to the company, among others.

    In the event of misclassification, the relationship may be converted into an employment relationship on a permanent basis, and the employer may be liable to pay a fine for non-compliance.

    Agency worker

    Agency workers may only be engaged to fulfill a temporary need for work. The agency work contract duration depends on the underlying reason for hiring and does not typically exceed 24 months. Agency workers have the right to equal treatment to employees in relation to pay and other regular benefits.

  • Employment contracts & policies

    Employment contracts

    Written employment contracts are common but not mandatory, except for fixed-term, part-time, telework and service commission regime contracts as well as contracts with foreign employees and underage employees. Employment contracts cannot contain conditions that are less favorable to employees than mandatory employment legislation.

    Probationary periods


    Employment contracts for an unlimited period of time may be subject to a probation period corresponding to the first 60 days of performance of work; the parties may, by written agreement, reduce or waive this period.

    The parties may extend the probation period, in writing, to up to 4 months in case of employees who perform highly technical, complex work that is difficult to evaluate, and to up to 6 months in case of employees who perform management duties.

    In an employment contract for a limited period of time, the parties may set forth a probation period in writing, and its duration cannot exceed 15 days in case of non-qualified employees, or 30 days in case of qualified employees. Angolan law does not define qualified and non-qualified, but the common practice is that qualified employees correspond to positions that involve technical complexity, a high degree of responsibility or special qualifications as well as those carrying out functions of trust.


    Employers with more than 50 employees must, in order to organize the work and labor discipline, draft and approve employee handbooks, guidelines, instructions, service orders and work rules defining rules for the technical organization of work, performance of work and work discipline, delegation of powers, employee job descriptions, safety, hygiene and health protection of work, performance indicators, a remuneration system, working hours for the several sections of the company or work center, control of entrances and exits and circulation within the premises of the company, and surveillance and control of production.

    Employers with 50 or fewer employees may, but are not required to, implement employee handbooks on the matters described above.

    Third-party approval

    Whenever the employee’s handbook or any other rules and regulations establish rules on performance and discipline, remuneration systems, work performance or safety, hygiene and health protection at work, the employer must forward such regulations for information and registration purposes to the General Labor Inspectorate.

  • Language requirements

    Portuguese. Nevertheless, employment contracts and other documents may be drafted in a bilingual template.

  • Working time, time off work & minimum wage

    Employees entitled to minimum employment rights

    All employees are entitled to minimum employment rights.

    Working hours

    Maximum daily and weekly working hours are 8 hours per day and 44 hours per week. Overtime pay is required for hours worked in excess of these limits. These limits are inapplicable to employees who perform direction and leadership duties, duties of inspection, or provide direct support to the employer (ie, employees who may be exempt from a work schedule). In case the employee usually performs their work outside the company's premises, an exemption regime may also be agreed upon by the parties, in which case those limits shall not apply. Typically, employees under the exemption regime are entitled to an exemption bonus.


    Overtime may occur with an extraordinary increase in workload, to prevent serious damage or if due to majeure force. It is subject to the following maximum limits: (a) 2 hours per day, (b) 40 hours per month and (c) 200 hours per year.

    Overtime must be compensated with additional payment (ie, an increase of hourly rates) up to 30 hours per month: 50 percent, 30 percent, 20 percent and 10 percent depending on whether it is a large, medium, small or micro company dependent on number of employees and turnover. A company which is a subsidiary or branch of a company with headquarters abroad always qualifies as a large company. Overtime that exceeds that limit is paid for each hour at an additional 75 percent, 45 percent, 20 percent and 10 percent depending on whether it is a large, medium, small or micro company.


    The minimum wage is established by Presidential Decree. It is set out as a general minimum wage, but there is also a minimum wage for trade and extractive industry groups, transport services and manufacturing groups and agriculture groups. Under the Decree currently in force, the general minimum wage is AOA32,181.15. The following sector-specific minimum wages also apply:

    • Trade and extractive industry groups: AOA48,271.73
    • Transport services and manufacturing groups: AOA40,226.44 and
    • Agriculture groups: AOA32,181.15.


    Minimum 22 working days per year, plus 12 public national holidays.

    Sick leave & pay

    Employees are entitled to take off as much time as they need for sick leave. For large and medium companies: In case of incapacity to work due to illness or common accident, pay is required in the amount corresponding to 100 percent of the base salary for a period of 2 months. For as long as the employee is not entitled to protection in case of illness or common accident from the social security authorities, the employer must pay to the employee 50 percent of salary from the 3rd to the 12th month.

    In case of small and micro companies: The employee is paid, in case of illness or common accident, the amount of 50 percent of the base salary within 90 days, after which the contract is terminated by expiration if the condition of illness remains.

    Maternity/parental leave & pay

    A pregnant employee is entitled to a paid maternity leave of 3 months. The amount of the maternity allowance is equal to the average of the 2 best monthly salaries from the 6 months preceding the commencement of the maternity leave. The maternity allowance is paid directly by the employer to the employee and, subsequently, the Social Security services reimburse the employer in full. Fathers are not entitled to any leave on the birth of a child; it is only considered as a justifiable reason for absence from work for 1 day.

    Other leave/time off work

    Employees may also be entitled to leave for other purposes, such as for their wedding; fulfillment of legal or military obligations which must be performed within the normal working period; attendance to tests by working students; attendance of training, professional proficiency, professional qualification or job conversion courses authorized by the employer; participation in cultural or sporting activities, either in representation of the country or the company or in official contests; the performance of necessary and urgent action in the exercise of leading tasks in labor unions as a union representative or as a member of the employee’s representative body; or the  participation of the employee as a candidate to general or municipal elections approved by the competent authority.

  • Discrimination & harassment

    Discrimination based on the following protected characteristics is prohibited: race, color, gender, ethnic origin, marital status, origin or social rank, religious beliefs, political opinion, union affiliation and language.

  • Whistleblowing

    There is no special provision in this regard in Angola. Protection is only granted in the course of criminal action at the request of a whistleblower or by decision of the Public Prosecutor's Office.

  • Benefits & pensions

    Both employer and employee must pay contributions to social security in Angola to cover various employee benefits (eg, maternity leave payment and retirement pension). The employer must withhold the contribution due by the employee and deliver both contributions (ie, employer and employee) to social security every month.

    Current general rates are 3 percent of the gross wage for the employee and 8 percent for the employer.

    Employees with a minimum contributory period (ie, 35 years) qualify for a retirement pension at age 60 or in cases of total incapacity.

    Employers have no legal obligation to provide complementary or supplementary social benefits in addition to the social coverage provided for by the social public scheme. However, some companies – mostly large companies or multinational companies who have their own schemes worldwide – set up and provide private complementary health and pension schemes to their employees.

  • Data privacy

    The Data Privacy Law No. 22/11, June 17 governs Angolan data privacy and determines, in general terms, how to collect, use, disclose, store and give access to "personal information."

    There is no specific regulation on employee data privacy.

  • Rules in transactions/business transfers

    Provided that the same business activity is maintained, the new employer takes the position of the former employer in the employment contracts and takes their position in respect of the rights and obligations arising from the employment relationships. This is the case even if the employment contract is terminated before the transfer. The new employer takes their position as the employer of such former employees in respect of due and non-paid credits. All credits, rights and obligations of the employer arising from the execution and implementation of the employment contract, its violation or termination are subject to a statute of limitations of 1 year starting on the day following the day of termination of the contract. Employees keep the same seniority and acquired rights which they had in the service of their former employer.

    The new employer undertakes the obligations of the former employer limited to those incurred during the 12 months prior to the modification, provided that, up to 22 business days prior to the modification, the new employer gives notice to the employees that they must claim their credits up to the 2nd business day prior to the date scheduled for such modification. Within 22 business days following the modification of employer, the employees have the right to terminate the employment contract with prior notice, but this does not confer any right to compensation.

  • Employee representation

    Employee representative bodies are permissible but not mandatory.

    Trade unions are not common in Angola.

    In order to carry out their duties, trade union representatives are entitled to 4 paid hours a month but must notify the employer in advance of the date and number of days they require for the exercise of trade union functions. Employers are obliged to provide a suitable place for workers' meetings whenever this is requested by the union representatives. Special protections against dismissal are granted to employees who perform, or have performed, duties as union representatives, either as leaders or delegates, or members of the employees’ representative body performing union-related activities.

  • Termination


    Unilateral termination by the employer: dismissal based on objective grounds (ie, redundancy reasons); disciplinary dismissal with just cause (ie, based on serious breach of the employee's duties).

    Termination without cause (with notice): only for employees hired under an employment contract of service commission regime (a particular type of contract for high-level employees which provides flexibility for termination but is not common).

    Other termination causes: mutual agreement, termination by the employee (ie, termination with notice or constructive dismissal with just cause), expiration (ie, fixed-term and open-term contracts or retirement).

    Employees subject to termination laws

    All employees.

    Restricted or prohibited terminations

    Special protection against dismissal is granted to employees who perform, or have performed, duties as union representatives, either as leaders or delegates, or members of the employees’ representative body performing activities; women covered by the regime of maternity protection; war veterans as per the definition provided by the applicable law; employees under the legal age; employees with a reduced work capacity or with a disability degree equal or higher than 20 percent.

    As a general rule, a copy of the notice served on the employee must be forwarded to General Labor Inspectorate.

    Third-party approval for termination/termination documents

    Except in respect of protected employees, third-party approval is not required to terminate an employment.

    Mass layoff rules

    If economic, technological or structural circumstances occur, which may be clearly demonstrated and which involve an internal reorganization or conversion, or the reduction or the shutting down of activities, which makes it necessary to eliminate or significantly change job positions, the employer may terminate the employment contracts of the employees who perform such job positions.

    Collective dismissal rules are triggered if the dismissal involves at least 20 employees.

    Information to the General Labour Inspectorate is required. However, there is no need to obtain approval for termination.

    The General Labor Inspectorate may undertake the diligence deemed necessary for clarification of the situation and, in case of a collective dismissal, during the period in which the evaluation of the General Labor Inspectorate occurs, the employer may promote a meeting with the representative body or with the committee appointed for the purpose of exchange of information and clarification and may forward the conclusions of the meetings to the General Labor Inspectorate.


    For individual dismissals based on objective grounds (up to 20 employees): the employer must forward, at least 30 days in advance, prior notice of dismissal to the employee or employees who occupy the job positions to be extinguished or transformed.

    For collective dismissal: the prior notice is 60 days.

    Notice periods in case of term contract: 15 business days if its duration is equal to or higher than 3 months.

    Statutory right to pay in lieu of notice or garden leave

    Payment in lieu of notice is permitted (and required if the notice period is not honored).

    Garden leave is allowed during the notice period.


    Fair dismissal based on objective grounds (redundancy/collective dismissal):

    • Large companies: compensation corresponds to 1 base salary for each year of effective service up to the limit of 5 and an additional 50 percent of the base salary multiplied by the number of years of service that exceed such limit
    • Medium companies: compensation corresponds to 1 base salary for each year of effective service up to the limit of 3 and an additional 40 percent of the base salary multiplied by the number of years of service which exceed such limit
    • Small companies: compensation corresponds to 2 base salary and an additional 30 percent of the base salary multiplied by the number of years of service which exceed the limit of 2 years
    • Micro companies: compensation corresponds to 2 base salary and an additional 20 percent of the base salary multiplied by the number of years of service which exceed the limit of 2 years


      Fair disciplinary dismissal: no severance.

      Higher severance payments may be agreed and are usual as a way to avoid litigation.

  • Post-termination restraints

    A clause of the employment contract which restricts the activity of the employee for a period of time, which may not exceed 3 years from the termination of the contract, is lawful if the following conditions are met: (a) such clause is included, in writing, in the employment contract, or in its addendum; (b) the activity performed may cause real damage to the employer and may be considered as unfair competition; (c) the employee is paid a salary during the period of restriction of work: the corresponding amount will be included in the contract or its addendum, and it must be taken into account, in its calculation, the fact that the employer may have incurred in significant expenses in the professional training of the employee.

    A clause which requires an employee who benefits from professional improvement or higher level education at the expense of the employer to remain at the service of the same employer for a certain period of time, provided that such period does not exceed 1 year, in case of training of professional improvement and up to 3 years in case of courses of high level education, is also lawful if established in writing. In this case, the employee may release themselves from remaining at the employer’s service by repaying to the employer the amount of the expenses incurred by the employer, in proportion to the remaining time until the term of the agreed period. The employer that hires the employee within the period of restriction of activity in the company is jointly liable for the damages caused by the employee or for the amount not returned by the employee.

  • Waivers

    In principle, statutory rights cannot be waived and any waiver of such rights will be null and void.

  • Remedies


    Fine corresponding to 5 to 10 times the average salary paid by the company.

    Unfair Dismissal

    The employee may challenge the validity of the dismissal before the labor courts.

    If the relevant court declares the dismissal to be unlawful, by final judgment, the employer must immediately re-instate the employee in the same job position and benefiting from the same previous conditions, or, alternatively, shall indemnify the employee (compensation is different depending on whether it is a large, medium, small or micro company and the cause of dismissal).

    In addition to re-instatement or the compensation, the employee is entitled to the base salaries they would have received if they had continued to perform work, until the date on which the employee finds a new job or up to the date of final judgment, whichever comes first, with a maximum limit of 6 months of base salary for large companies, 4 months to medium companies and 2 months for small and micro companies.

    Failure to inform and consult

    Not applicable.

  • Criminal sanctions

    Typically, non-compliance with employment laws leads to administrative proceedings which may lead to the payment of fines. If such non-compliance is based on violation of rights that deserve protection under criminal law, it may also lead to this type of judicial proceedings.

  • Key contacts
    João Guedes
    João Guedes
    Partner DLA Piper [email protected] View bio
    Daniela Rosa
    Daniela Rosa
    Senior Associate DLA Piper [email protected] View bio
    Islândia Ribeiro
    Islândia Ribeiro
    Senior Associate DLA Piper Africa [email protected] T +244 923 612 525 View bio

Benefits & pensions


Both employer and employee must pay contributions to social security in Angola to cover various employee benefits (eg, maternity leave payment and retirement pension). The employer must withhold the contribution due by the employee and deliver both contributions (ie, employer and employee) to social security every month.

Current general rates are 3 percent of the gross wage for the employee and 8 percent for the employer.

Employees with a minimum contributory period (ie, 35 years) qualify for a retirement pension at age 60 or in cases of total incapacity.

Employers have no legal obligation to provide complementary or supplementary social benefits in addition to the social coverage provided for by the social public scheme. However, some companies – mostly large companies or multinational companies who have their own schemes worldwide – set up and provide private complementary health and pension schemes to their employees.


The Social Security National Administration (Administración Nacional de la Seguridad Social or ANSES) is the authority in charge of the administration of the social security system in Argentina, called Sistema Integrado de Jubilaciones y Pensiones (SIJP). Employers and employees are required to make contributions to the SIJP which provides for old-age pension and disability benefits.

To qualify for a state-funded pension distribution, male employees must be 65 years old, while female employees must be 60 years old. In both cases, in order to qualify for pension the employee must have contributed to the SIJP for a minimum of 30 years.

Employers do not have a legal obligation to provide a private pension scheme for employees, as the employees are entitled to state pensions.


Under the Superannuation Guarantee scheme, employers are effectively required to contribute 10 percent of employees' "ordinary time earnings" to employee superannuation funds. There is a minimum monthly wage that  should be paid before an employee is entitled to the 10 percent and a maximum contribution base. However, from July 1, 2022, the monthly wage threshold will be removed, meaning all employees – irrespective of their monthly wage – will be entitled to the 10 percent (subject to other eligibility requirements). Most employers make regular contributions to the employee superannuation fund rather than making lump sum quarterly or annual contributions.

Australian law additionally requires that all employers maintain adequate workers' compensation insurance for the benefit of workers injured during the course of their employment.


Currently, no benefits required above those covered under social insurance contributions.


Bahraini nationals are entitled to a state retirement pension, and certain contributions on a monthly basis must be made by the employer and employee to the relevant authority. Typically, expatriate employees have their own individual pension arrangements. Some employers also provide contributions depending on the employer's policy and employee hierarchy, although there is no legal obligation to do so. In addition, a 3-percent contribution to social security is implemented on expatriate employees (2 percent of which is paid by the employer and 1 percent by the employee).


Currently, no benefits obligatory above those covered under social insurance contributions. Sectorial pension schemes within some joint committees. Strict legal framework with regard to complementary pension schemes.


All Brazilian employees must be enrolled with the Brazilian Social Security System, which provides for pension and disability benefits as well as public health coverage.

Employees must be granted transportation vouchers and benefits set out in collective bargaining agreements. The granting of meal vouchers and a private health plan is common.


Employers are not required to provide benefits or pensions other than those provided through social security contributions (ie, Canada Pension Plan/Quebec Pension Plan and Employment Insurance regimes) and, in most jurisdictions, workers' compensation insurance. Many Canadian employers do, however, provide health and welfare benefits and some form of retirement savings program. In Quebec, employers are required to make a Registered Retirement Savings Plan available to employees through a third-party provider but are not required to contribute on behalf of the employee.


The employer is required to withhold from the salary the following amounts for social security purposes:

  • 10 percent for retirement savings (salary capped at 84.3 UF Unidades de Fomento – approximately USD3,170)

  • 7 percent for health insurance (salary capped at 84.3 UF Unidades de Fomento – approximately USD3,170)

  • 0.6 percent for unemployment insurance (salary capped at 126.6 UF Unidades de Fomento – approximately USD4,750). In case of fixed-term employment contracts, there are differences.

Contributions for retirement, disability, death and health insurance are not mandatory in the following circumstances:

  • Foreign staff with technical skills or university diplomas who prove that they have protection abroad for contingencies of health, old-age retirement, disablement and death or
  • Seconded workers from a country with which there is a social security treaty in force between Chile and the host country.

However, in both cases above, contributions for unemployment insurance and work accident and professional diseases insurance are still mandatory.

In addition, employers are required to contribute to a mandatory work accident and professional diseases insurance that compensates and/or protects workers when they are injured on the job or are diagnosed with occupation-related diseases. This insurance is fully funded by the company. Moreover, employees also pay contributions for disability and survival insurance, insurance for the accompaniment of children with serious illnesses and unemployment insurance. 

Employers have no legal obligation to provide fringe benefits, other than benefits which may be voluntarily agreed upon in individual or collective agreements. There is no legal obligation to provide catering facilities, meals and transportation. However, it is a common practice to pay modest allowances in compensation for such perks.

Additionally, the labor reforms that took effect in April 2017 bar employers from extending benefits negotiated as a part of collective bargaining agreement to non-union employees without obtaining the union's consent.


Employers and employees are required to contribute to certain mandatory social insurance and housing fund schemes in China. Social insurance includes pension, medical insurance, unemployment insurance, work-related injury insurance and maternity insurance. Employers are also required to contribute to social insurance for employees who are foreigners or Hong Kong, Macau and Taiwan residents. The minimum contributions required by employers and employees are determined by the local labor and social security bureaus.

On January 17, 2023, the Ministry of Human Resources and Social Security issued the Measures for the Administration of Supervisory Reports with Respect to Social Insurance Funds, which came into force on May 1, 2023.  Any organization or individual can report an institution, entity, or individual for suspected fraudulent obtainment, illegal obtainment, misappropriation or embezzlement of social insurance funds, to a human resources and social security administrative department.


Employees in Colombia must be enrolled in the social security system (for pension, health and labor risks), and employers have the obligation to make the corresponding monthly contributions on time.

If foreign employees are covered by the pension system in their home country, they are not obligated to be enrolled in the pension system or to pay monthly contributions to the Colombian pension system.

Social security contributions and payroll taxes must be paid as follows:

Contributions1 Rate Employer Employee
Pension 16 percent 12 percent 4 percent
Health 12.5 percent 8.5 percent for employees who earn more than 10 minimum wages. 4 percent
Solidarity pension Fund 1 to 2 percent N/A  1 to 2 percent
Professional Risks2 0.348 to 8.7 percent 0.348 to 8.7 percent N/A
Payroll Taxes3 4 percent or 9 percent depending on whether employees earn more than 10 minimum wages. 4 percent or 9 percent depending on whether employees earn more than 10 minimum wages. N/A
1The basis to calculate contributions to the social security system (pensions, solidarity pension fund, health and labor risks) is the ordinary monthly salary earned by the employee. However, if the monthly salary exceeds 25 times the minimum wage (for the year 2024: COP32.5 million; approximately USD8,400), contributions to the social security system will be calculated on the maximum basis of 25 times the minimum wage. However, the maximum basis may be 45 times the minimum wage when the real growth of the Colombian economy is higher than 4 percent during the last 3 fiscal years and the fiscal spending on pensions is less than 2 percentage points of the GDP. Non-salary payments agreed between the employer and the employee are not included in the basis to calculate social security contributions, if such payments do not exceed 40 percent of the employee’s compensation. If these non-salary payments exceed 40 percent, the difference will be subject to social security contributions.
In case of employees earning integral salary, 70 percent of salary will be the basis to calculate contributions to the social security system. However, if 70 percent of the integral salary is more than 25 times the minimum wage, contributions to the social security system will be calculated on the maximum basis of 25 times the minimum wage.
2The contribution to the Solidarity Pension Fund only applies for employees who earn more than 4 times the legal minimum wage. This payment is equivalent to 1 percent of the monthly salary, but in the case of employees earning more than 16 times the minimum wage, the rate is increased as follows: between 16 and 17 times the minimum wage, an extra 0.2 percent; between 17 and 18 times the minimum wage, an extra 0.4 percent; between 18 and 19 times the minimum wage, an extra 0.6 percent; between 19 to 20 times the minimum wage, an extra 0.8 percent; and between 20 and 25 times the minimum wage, an extra 1 percent. Contributions to the solidarity fund also have the cap of 25 times the minimum wage.
3Contributions to SENA, ICBF, Family Compensation Fund (payroll taxes) shall be calculated based on the ordinary monthly salary earned by the employee, including any paid rest, such as vacation. For employees who earn less than 10 times the minimum wage, contributions to ICBF and SENA do not apply. In case of employees earning integral salary, 70 percent of salary is the basis for this contribution. Non-salary payments are excluded from payroll taxes. Payroll taxes do not have a ceiling.

Czech Republic

Obligatory state pension insurance scheme, part of the state social security system. No additional benefits required.


All employees must pay tax and labor market contributions, which are deducted from the employee's gross salary. These deductions fund state benefits.

There is a mandatory Danish Labor Market Supplementary Pension (ATP) to which an employer pays DKK 189.35 per month for full-time employees and employees pay DKK 94.65 per month. There is no requirement to contribute to additional pension schemes unless this requirement is specified in a collective agreement, individual employment contract or imposed by the employer's internal guidelines.


A statutory and mandatory earnings-related pension scheme accrues pension for all employees who are at least age 17 (as of 2017). Additional collective pension scheme rights may be agreed upon in a CBA. Collective and individual additional pension schemes are also possible, either where unilaterally provided by the employer or agreed contractually as a term of employment.

Employees are often entitled to fringe benefits, such as lunch, mobile phone or car benefits.


State social system provides for social security, welfare and pension coverage. In addition, since January 1, 2016, employers must offer healthcare insurance coverage to all employees. All employers, regardless of the size of the company, including small and medium enterprises (SMEs) and associations, are covered (with some rare exceptions).

CBAs and/or employment contracts may provide for additional mandatory benefits (eg, complimentary welfare coverage for all employees and a supra-complimentary pension plan). CBAs may also provide for minimum benefits entitlements (eg, minimum welfare contribution rates and affiliation with insurance bodies).

Retirement upon the employee's initiative: initial entitlement to base retirement set at the age of 62 for employees born January 1st, 1955, or later; for those born between July 1, 1951 and December 31, 1954, the legal retirement age is gradually increased. Recently a project of law sets the age of 64 years old for employees born on September 1er 1968 or later.

Retirement upon the employer's initiative: restricted under 70 years old. "Clause couperet," (i.e., clauses under which the employment relationship will automatically terminate at a specific age limit) are prohibited under French labor law.


No benefits required beyond those covered under social insurance contributions. Employers are required to provide all employees with an option to enroll in a deferred salary pension insurance plan.

Hong Kong, SAR

Subject to certain exemptions (eg, for an individual from overseas who enters Hong Kong for employment and who holds an employment visa with a validity period of less than 13 months or is covered by an overseas retirement scheme), once an employee has been employed for 60 days, the employer is required to enroll the employee into a Mandatory Provident Fund (MPF) scheme. Generally, both the employer and the employee are required to contribute a minimum of 5 percent of the employee's "relevant income" up to a capped maximum amount of HKD1,500 (which may be adjusted occasionally), except employee’s contribution is not required if “relevant income” is less than HKD7,100. Relevant income includes wages, salaries, leave pay, fee, commission, bonus, gratuity, housing allowance, housing benefits, any perquisite or allowance. It does not include any non-monetary benefits, statutory severance payments or statutory long-service payments.


The benefits offered to an employee will usually depend on their seniority within the company. At manager or director level, employees are likely to be offered, for example, a company car and/or mobile telephone.

It is usual to provide employees with a range of optional fringe benefits (eg, contribution to a pension or healthcare fund, contribution to travel expenses, food vouchers or vouchers for holiday) on the basis of the respective Fringe Benefit Policy. Commonly, up to a predefined maximum amount, employees may select from the options offered in line with their own preferences.

The Hungarian pension system consists of 2 pillars:

  • The state pillar, or the social security pension scheme, and
  • The private pillars that may be a privately managed pension scheme with voluntary contributions, or a pension advance-saving account kept by a bank or an employer's pension scheme, which are nonexistent in practice.



Benefits depend on a number of factors, such as the size of the employer, the industry and the employee’s length of service, including:

  • Payment of Gratuity Act, 1972 provides for a lump sum amount payable on termination of employment after 5 years of service. In case of termination due to death or disablement, the employee will be entitled to the lump sum amount irrespective of length of service. The rate of gratuity payable is calculated at the rate of 15 days' wages for every completed year of service or part thereof in excess of 6 months and is currently is capped at INR 2 million. The IR Code introduces a provision for fixed-term employees to be eligible for gratuity, upon rendering service for a period of 1 year. Further, the IR Code also seeks to provide fixed-term employees with all the benefits akin to permanent workers (including gratuity), except for notice upon conclusion of a fixed period and retrenchment compensation.
  • Health benefits: The ESI Act provides for comprehensive medical care to eligible employees and their families. It also provides for cash benefits during sickness and maternity and monthly payments in case of death or disablement. The ESI Act is intended to be subsumed under the SS Code.
  • The ECA provides for the payment of compensation to an employee or their family in cases of employment-related injuries, death and temporary or permanent disability, and similar provisions have been included in the SS Code. The SS Code, when in force, will replace the ECA.
  • Payment of Bonus Act, 1965 envisages payment of bonus to employees earning less than INR 21,000 per month. This statute is intended to be replaced by the Wage Code. The Wage Code provides that the wage threshold for eligibility is to be determined by the government. Such threshold is yet to be notified.


Pensions in India may be divided into 3 categories:

  • Government pensions covering government employees
  • Pension schemes governed by Employees' Provident Fund and
  • Miscellaneous Provisions Act, 1952 (EPF Act) Voluntary pensions

It is mandatory for every Indian employee drawing a monthly salary capped at INR 15,000 per month to be enrolled under the Employees' Provident Fund Scheme (EPFS). It is mandatory for expatriate workers to be enrolled under the EPFS, irrespective of their salary (except for expatriates contributing to a social security program of their country of origin which has a reciprocal social security agreement with India). Further, the EPF Act is intended to be subsumed under the SS Code. Under the SS Code, the central government is empowered to frame schemes for provident funds, pensions and deposit-linked insurances, and establish specific funds thereunder. In respect to the deposit-linked insurance scheme, the employer is required to pay an amount, up to a maximum of 1 percent of the wages or such other percentage of wages as may be notified by the central government. The applicability threshold under the SS Code will be as notified.


It is mandatory for every company or individual employer to register its employees with the SJSN programs, subject to the minimum number of employees below. The SJSN programs are divided into 2 main categories:

  • Public health security, which is applicable for all Indonesian citizens and
  • Social security, which covers occupational accident security, death security, old-age security, pension security and loss of job security.

The programs are run by the Social Security Agency (BPJS). The public health security program is managed by BPJS Kesehatan, whereas the social security programs, including occupational accident, death, pension, old-age and loss of job securities, are managed by BPJS Ketenagakerjaan. Employers should register their employees with the BPJS Ketenagakerjaan social security programs which are relevant to the employer's business scale. All employers should register their employees with the BPJS Kesehatan public health security program regardless of the number of employees in their company. The SJSN programs also extend to cover foreign employees who work in Indonesia for at least 6 months. For the loss of job security, the benefits of the program includes cash, access to job market information and job training.


No compulsory benefits beyond those covered by social insurance contributions. Proposed legislation is expected to provide a new auto-enrollment pension scheme in Ireland by late 2024, however the timing is currently uncertain.


Mandatory pension with minimum contributions (including distributions towards severance pay). Employees are also entitled to transportation expenses. Employees working over a year are entitled to recuperation pay, based on seniority (starting at 5 days) and payable on a monthly or annual basis, according to the employer's preference. Recuperation pay is much like vacation pay in other jurisdictions and is intended to be used for vacation or recuperation purposes and is normally paid between June and September. An additional benefit known as "Education Fund" is common, and provides tax breaks for employer and employee disbursements set aside for at least 6 years.


Enrollment in the social security public system and public insurance of employees is mandatory for all employers.

In addition to the ordinary social security and insurance, collective bargaining agreements provide for supplementary forms of social security or healthcare insurance.


There are 4 main types of social security systems with current rates as follows:

  • Workers' accident compensation insurance: between 0.25 percent and 6.2 percent of the employee’s annual earnings depending on the business in which an employee engages (as of January 2024).

  • Employment insurance: 1.35 percent of the employee’s annual earnings, of which the employee pays 0.6 percent and the employer pays the remaining 0.95 percent. Some businesses are excepted from this requirement (April 2023 to March 2024).

  • Health Insurance and nursing care insurance: Exact costs vary according to prefecture. In Tokyo, 11.82 of an employee’s annual earnings where the employee is aged between 40 and 64. For employees outside that range, it is 10.00 percent (as of January 2024). The contribution is split between employer and employee equally.

  • Employee's pension insurance: 18.3 percent (April 2023 to March 31, 2024), which is equally borne by the employer and employee.

No obligation to provide additional benefits above those already covered, but it is fairly common to provide bonuses and retirement allowances.

Japan has a government-sponsored pension plan that generally pays employees benefits if the employee has been paying into the system for at least 10 years. All persons employed in Japan pay into the system, even foreign nationals working in Japan (subject to any social security totalization agreements).




Other than providing housing or a housing allowance, contributions to the NSSF and NHIF statutory pension and medical contribution, an employer is not mandated to provide any further benefits.

NSSF: a basic social security or pension provision that is mandatory for all employees. The employer is required to deduct the employee's contribution from the employee's income and make a matching contribution to the NSSF Fund for the employee's benefit. Currently, contributions are KES200 from the employer and KES200 from the employee.

The NSSF Act, 2013 came into force in January 2014 and sought to increase the contributions by both employers and employees to 6 percent of the employee's pensionable earning, with an equal matching contribution made by the employer. The Act was declared unconstitutional by the High Court in September 2022.

SHIF: a contribution made by the employee towards mandatory basic health insurance. The deduction is made entirely out of the employee's income with no matching contribution from the employer. The employer is mandated to deduct the contribution from the employee’s monthly income and remit it to the fund.

The SHIF deduction amount is based on the employee's gross pay at a 2.75 percent rate and should not be less than KES300 per month. PAYE deductions are on a graduated scale, up to a maximum rate of 30 percent.

The Industrial Training Levy is paid by the employer with respect to each employee at the rate of KES50 per month per employee. Pursuant to the Industrial Training (Training Levy) (Amendment) Order, 2020, an employer with fewer than 100 employees is exempt from the requirement to register with NITA for a period of 12 months with effect from the date of registration of the business.



In most cases for Kuwaiti national employees and GCC national employees, the employer is required to set up – and contribute to – a pension fund in addition to the end-of-service gratuity (EOSG) for other employees. All other employees may only be eligible to receive an EOSG on termination, calculated by reference to length of service, unless the employer contracts out of these arrangements with its employees by providing a savings scheme or pension scheme. EOSG is reduced if the employee resigns within the first 10 years of service.


Employers have no legal obligations to provide complementary or supplementary social benefits in addition to the social coverage provided for by the social public scheme.


All private sector Malaysian employees must be members of the Employees' Provident Fund (EPF), which is a government agency under the Ministry of Finance. The EPF manages employees' compulsory savings plan and retirement planning. Contributing to and registering with the EPF is mandatory for certain classes of employees, and employees for whom it is not mandatory can also voluntarily opt to contribute to and be registered with the EPF. EPF funds are derived from mandatory contributions from the employers (the rate of contribution is based on the relevant schedule of monthly wages, depending on the classification of the employee) and deductions from the employees' monthly salaries (the rate of contribution is based on the relevant schedule of monthly wages, depending on the classification of the employee).

The Employment Insurance Scheme (EIS) is a financial support scheme intended to assist employees who have lost their jobs due to retrenchments and other specific reasons. The EIS provides financial support, trainings, and other related assistance to employees for up to 6 months post-termination. Employers and employees are required to contribute 0.2 percent respectively of an employee's salary to fund the EIS.


The Social Security Law regulates employer, employee and government participation in certain federal social benefit programs through the Mexican Institute for Social Security (Instituto Mexicano del Seguro Social or IMSS). Registration of an employee with the IMSS relieves the employer from the following risks and obligations:

  • Work-injury-related risks
  • Health and maternity insurance


It is mandatory for employees to enroll in the social security fund Caisse Nationale de Sécurité Sociale, which provides health insurance and pensions. The employee's contribution is approximately 7 percent, and the employer's contribution is approximately 25 percent.


Employees must be enrolled with the social security system, which ensures minimum subsistence and material security of employees in the event of illness or incapacity, old age or the survival of their family members in the case of their death. Complementary pension funds have specific regimes and are permissible.


There are no mandatory pension obligations, except for civil servants. A retired employee who has paid contributions to the Health and Social Care fund for at least 180 months is entitled to medical treatment provided by a specified clinic.

Some companies voluntarily provide benefits, such as private health insurance coverage, provident funds, other savings plans, and employee stock option plans (ESOPs), for their employees. Voluntary benefits are not regulated and are offered through and detailed within internal company policies or other documentation; thus, information on the extent of voluntary benefits that companies are providing is scarce.


In many industries, mandatory industry wide pension funds apply. Employers who fall under the scope of such mandatory industry wide pension fund are required by law to pay pension premiums to the pension fund and register their employees with the pension fund. Such mandatory industry wide pension funds often offer defined benefit schemes. In industries without a mandatory industry wide pension fund, employers usually take out a pension scheme for their employees with an external pension provider. Such pension schemes can either be defined benefit or defined contribution schemes.

New Zealand

New Zealand has an optional superannuation saving scheme called KiwiSaver. Employers may provide a private superannuation scheme if they wish to.

New Zealanders qualify for a government pension payment at age 65.


Employees are entitled to the following benefits under the Nigerian law: life insurance, employer's contributions (minimum 10 percent of monthly salary) to the employee's retirement saving account, medical care under the National Health Insurance Scheme paid for by the employer, contribution to National Social Insurance Trust Fund for social security payments for occupational injury or disease – the employer is required to pay a monthly contribution of 1 percent of the monthly payroll of all employees.

Pension and Life Insurance

The Pension Reform Act prescribes a contributory pension scheme for organizations with 15 or more employees. An employer must deduct a minimum of 8 percent of an employee’s monthly salary and an additional minimum of 10 percent is contributed by the employer towards the employee’s pension.

The Pension Reform Act also mandates every employer to maintain at its own cost a group life insurance policy in favor of its employees, for a minimum of 3 times the annual total salary of the employee. Where the employer fails to maintain a group life insurance policy, the employer shall make arrangements to effect payment of any claims arising from the death of any staff in his or her employment.

National Health Insurance Scheme

The National Health Insurance Scheme Act and Guidelines provide that employers with 10 or more employees are required to provide healthcare at their cost for their employees, the employees’ spouse and up to 4 children below the age of 18 years, under the medical scheme run by the company with a Health Maintenance Organization. The employer shall deduct from the employee’s wages the amount payable by the employee and remit all employer and employee contributions directly to the designated health maintenance organization.


Occupational injury insurance and contributions to a mandatory occupational pension scheme are required.


The Social Security Fund (Fund) pays social service benefits to Omani and GCC national employees who have subscribed to the scheme. Private sector employers are required to enroll Omani and GCC national employees with the Fund and make monthly contributions to the Fund’s scheme.

All other employees are entitled to receive an end-of-service gratuity (EOSG) on termination calculated by reference to salary and length of service, unless the employer contracts out of these arrangements with their employees by providing a savings scheme or pension scheme. However, the other employees will be subject to the Fund’s scheme with regard to the EOSG and the work injuries, after issuance of a decision by the Chairman of the Fund.


Family allowance: Employees who have children under 18 years old or older than 18 years old and younger than 24 years old who are attending college/university or other similar educational institutions, or who have children of legal age with a certified severe disability are entitled to an additional monthly allowance payment of 10 percent of the minimum wage.

This is a single monthly allowance payment, regardless of the number of children.

Compensation for time of service: Every May and November, employers must deposit a compensation for time of service (CTS) into a special banking account in the employee’s name for all employees who work at least 4 hours per day and have a month of effective service with the company. The amount is approximately 1 month’s salary per year, though it must be calculated on the basis of the ordinary salary and all the amounts regularly paid to the employee either in cash or in kind (eg, Family Allowance). This is intended to serve as an unemployment insurance scheme for employees.

Legal bonuses: Employees are entitled to a legal bonus twice a year, during the first 2 weeks of July and December, respectively. Each bonus is equal to 1 month’s salary. Employees who are not actively employees in July or December, but have worked at least 1 month in the respective period, are entitled to receive the legal bonus pro-rated to the number of months worked.

Profit sharing: Companies with more than 20 employees must distribute part of the profits earned during the respective year to their employees. The distribution percentage depends on the company’s activities: (i) 10 percent of profits for fishing, telecommunication and manufacturing companies; (ii) 8 percent for mining, commercial companies and restaurants; and (iii) 5 percent for companies that do not fall into the first 2 categories.

The distribution of profits among the employees is made depending upon their effective working days and in proportion to the salary of each employee. The sum awarded to any individual employee may not exceed the equivalent of 18 monthly salaries. Any excess is placed in a special governmental fund.

Pension system: There are 2 systems that an employee may choose from in order to obtain pension. One is a public system; the other is a private system.

Contributions to the public system are equivalent to 13 percent of an employee’s salary. In the private system, the contribution is approximately 12 percent, but it varies depending on the pension fund, the month and the type of commission chosen by the employee.

The contribution is paid by the employee, and the employer must withhold the percentage from the employee’s salary.

Public health insurance – EsSalud: The employer must pay to EsSalud a contribution of 9 percent of the salary to cover health benefits of each employee.


13th month pay

Employers are required to pay their rank-and-file employees thirteenth-month pay, equivalent to 1/12 of the basic salary within a calendar year, regardless of the nature of their employment, provided that they worked for at least one (1) month during a calendar year.

Retirement pay

An employee, upon reaching the age of 60 years or more, but not beyond 65 years which is hereby declared the compulsory retirement age, who has served at least 5 years in the establishment is entitled to a retirement pay equivalent to at least 1/2 month salary for every year of service, a fraction thereof of at least 6 months being considered a whole year.


The state social system provides for health insurance and pension coverage.

Moreover, employees may make their own individual pension arrangements (ie, the Individual Pension Account or IKE) with an investment fund, brokerage office, bank, insurance company or private pension fund as a voluntary, supplementary way to accumulate capital for their retirement.

Employers may also establish a private pension scheme for their employees. In contrast to the individual pension arrangements, the basic contribution to the private pension scheme is financed by the employer.

As part of the reform of the pension system, on January 1, 2019, the Polish government introduced a new form of saving into the Polish legal system: the Employee Capital Plan (PPK).  PPKs allow the accumulation of additional funds for retirement, and participation is voluntary on an opt-out basis.   Contributions to Employee Capital Plan are financed by the employer (ie, 1.5 percent of the remuneration) and by the employee (ie, 2 percent of the remuneration) with limited options to increase these amounts. The establishment of a PPK is associated with a number of additional obligations for the employer, including the necessity of selecting a financial institution to manage the PPK in a given employing establishment. The 4th and final phase of introducing PPKs began on January 1, 2021, when all employers and entities from the public sector in Poland – regardless of their number of employees – became obliged to create a PPK.

There is a unified retirement age of 60 for women and 65 for men.


Both employer and employee must pay contributions to social security in Portugal to cover different protections (ie, sick leave payment, maternity leave payment, unemployment benefit and retirement pension). The employer must withhold the contribution due by the employee and deliver both contributions – employer and employee – to social security every month.

Current general rates are 11 percent of the gross wage for the employee and 23.75 percent for the employer.

Employees with a minimum contributory period (ie, 15 years) qualify for a retirement pension at age 66 and 4 months (2023/2024) (or earlier in case of involuntary long-term unemployment or for some professions) or in cases of total incapacity. Possibility of a paid pre-retirement agreement between employer and employees aged over 55.

Employers have no legal obligation to provide complementary or supplementary social benefits in addition to the social coverage provided for by the social public scheme. However, some companies – mostly large companies or multinational companies who have their own schemes worldwide – set up and provide private complementary health and pension schemes to their employees.


It is mandatory for Qatari employers that hire Qatari nationals above 18 years of age on a regular and permanent basis to enroll with the General Retirement & Social Insurance Authority and to contribute to the pension fund of the Qatari employees and additionally, deduct contributions from the employee's salary.

All employees are entitled to receive an end-of-service gratuity (EOSG) on termination, calculated by reference to length of service, unless the employer contracts out of these arrangements with its employees by providing a savings scheme or pension scheme that is at least as lucrative as the EOSG payout. There are certain conditions under the Labor Law, which if present, would absolve an employee's right to an EOSG.

Qatar has adopted a wages protection system (WPS) whereby all employees must be paid in QAR once a month directly into a local bank account, or, for some categories of workers, every 2 weeks. The requirements took effect on November 2, 2015. Firms that flout the new rules risk penalties that may include monetary fines and an imprisonment term. While the requirement to pay via WPS only applies to employers under the Labor Law, in practice, the WPS is also used by a number of employers within the QFC.


Currently, there are no general benefits applicable by law to all employees, but there are some that apply only in specific cases, such as employees working under a mobility clause.

Private pensions are not typically provided in practice as an employment benefit, but the employer has the opportunity to grant to its employees contributions to a voluntary pension. This benefit is non-taxable from the employee as follows: 1st within the limit of EUR400/employee/year and 2nd within the threshold representing 33 percent of the employee's base salary, along with other benefits subject to such threshold. By law, all employees are insured under the state statutory pension system and social security (ie, pension) contributions are currently made by employees provided they work in normal conditions. For employees who work in particular or special conditions, there is an additional contribution to the pension fund, paid by the employer.

On February 7, 2020, Romania implemented a new law on occupational retirement benefits which transposed the EU Directive 2016/2341 on the activities and supervision of institutions for occupational retirement provision (IORP).

On July 19, 2021, the template individual employment agreement regulated by the Ministry of Labor was amended to include an employer’s obligation to inform the employee about their obligation to adhere to a privately managed pension fund, in accordance with the special legislation. For clarity, the new law only adds the requirement to inform employees of their legal obligation (if they have such legal obligation) to adhere to a privately managed pension fund.

In addition, the newly regulated template individual employment agreement (in force as of December 9, 2022) provides for the employer’s right to pay the additional contributions to the employee's voluntary pension or occupational pension in accordance with the law, which is not mandatory.


Currently, there are no benefits required other than those covered under social insurance contributions.

Saudi Arabia

Medical insurance is required for all employees, their male dependents under the age of 25 and their female dependents until they marry or until their sponsorship is transferred.

Pension is only payable for Saudi and GCC nationals. Pension is paid to the General Organisation for Social Insurance (GOSI). The total cost of GOSI insurance for Saudi nationals is 22 percent, of which 10 percent is paid by the employee and the remaining 12 percent is borne by the employer. All employees additionally receive an EOSG on termination. However, where a GCC nationals is working in the KSA, the applicable contribution is the rate which would have been imposed by the GCC State where the individual holds nationality.


For employees who are Singapore citizens or permanent residents, the employer is required to make mandatory employer contributions to the CPF. Employees are also required to make mandatory employee contributions to the CPF. Contributions are based on the prevailing rates under the relevant legislation.

Benefits offered to an employee will usually depend upon their level of seniority within the organization. EA Employees are entitled to minimum standards of benefits under the applicable part of the EA. Those at the managerial and/or executive level are likely to be offered additional benefits, which are usually contractually provided for. Many organizations provide for leave pay, sick leave pay and notice requirements in excess of statutory entitlement to a wide range of employees.

Slovak Republic

No benefits required above those covered by way of social insurance contributions. There is a state pension system provided by the government.

South Africa

The contract of employment determines whether the employee is entitled to any further benefits, including subsistence, travel and pension allowances, bonuses or acting allowances.

There is no obligation on employers to provide pension fund benefits and medical aid benefits to employees.

South Korea

Employers must subscribe to mandatory social insurance programs, the National Pension, the National Health Insurance, the Unemployment Insurance and the Industrial Accident Compensation Insurance.


Minimum benefits and pensions fixed by law and covered by the Social Security Scheme. CBAs may establish further benefits or pensions complementing those set out by the public system.


In general, benefits are either introduced by the individual contract of employment or by the collective bargaining agreement. The benefits provided to an employee usually depend on their level of seniority in the organization. Common benefits, at least for persons at a more senior level, are additional paid holidays, contributions to a private pension insurance, health and life insurance, a company car or car allowance and contributions from the employer during parental leave in addition to what is paid by the Swedish state. Collective bargaining agreements typically include provisions regarding payment of pension contributions into private pension insurance. Benefits are generally subject to social security charges to be paid by the employer and taxes to be paid by the employee.


Old age, survivors and disability risks are covered by a 3-tier system:

  • first tier: mandatory social security contributions (AVS/AI);
  • second tier: mandatory occupational insurance (the employer can agree to an occupational insurance plan over and above the mandatory requirements);
  • third tier (optional and not related to the employment relationship): voluntary payments with tax exemption.

Taiwan, Republic of China

Labor and National Health Insurance systems covered through payroll deductions and contributions. There are 2 pension systems: the older LSA and New Pension Act. Foreigners are only allowed to participate in the LSA pension system, unless they are married to a Taiwanese citizen or are a permanent resident.


Statutory benefits

Workmen's Compensation Fund

Thailand has a worker's compensation scheme which requires employers to pay medical expenses, rehabilitation expenses or funeral expenses incurred by employees due to injuries, sickness, rehabilitation, disappearance or death caused by accidents arising out of and in the course of employment. The current employer contribution rate (on yearly basis) is 0.2 to 1 percent of the total salary, payable to the employees subject to the types of business and as determined by the social security office, by January 31 of each year.

Social Security Fund

Every employer is required to register with the Social Security Fund. The government, employer and employee jointly contribute to the fund every time wages are paid. The rate of contribution is 5 percent of an employee's salary, with a maximum of THB750 per month. As a member of the Social Security Fund, an employee is entitled to receive compensation benefits in non-work-related cases.

Voluntary benefits

Provident Fund

An employer may alternatively and voluntarily establish a Provident Fund, which is used to provide security to an employee in the case of death, termination of employment or resignation from the fund. The employee may contribute a minimum of 2 percent to a maximum of 15 percent of their wages depending on the policy of the service provider, and the employer normally contributes no less than the employee's contribution.


Pension regimes in Tunisia are almost exclusively administered through the state pension system, the National Social Security Administration (CNSS) in the private sector and the National Pension and Social Insurance Fund in the public sector. The pension system is a pay-as-you-go system and, in general, the retirement age is 60 and 62. The state retirement scheme provides a pension to the employee and a survivor’s pension to the employee’s spouse upon the employee’s death.


Under the Private Pension Savings and Investments System Law No. 4632, it is compulsory for employers to include employees under 45 years in a private pension plan.

Under the system, if the employer employs 5 or more employees, it must execute a private pension plan agreement with one or more pension companies. It must enroll its employees who are under the age of 45 in the relevant pension plan(s). The employer must deduct the contribution fee (ie, 3 percent of the gross salary of the employee) from the monthly salaries and deposit such fees with the pension companies.


Currently, no benefits required above those covered under social security contributions.


Employers must make regular deductions from employees' salaries for contributions to the state pension fund. Private pension plans may be implemented at employers' discretion.

United Arab Emirates

Under the Labor Law and in the ADGM, the employer is required to enroll and make contributions and employee deductions for the state pension funds for UAE national and GCC national employees. All other employees are entitled to receive an end of service gratuity on termination based on their full earnings, calculated by reference to age and length of service, unless the employer contracts out of these arrangements with its employees by providing a savings scheme or pension scheme.

Employers in the DIFC are required to register employees with a mandatory savings scheme. Employers may either register with a plan established by DIFC or establish their own plan, subject to the requirements of the DIFC.

Dubai and Abu Dhabi each have their own health insurance laws that apply across the respective emirates, including in the free zones, and which require all employers to provide compulsory health insurance to every employee. In Abu Dhabi, mandatory cover for employees extends to each employee's dependents (ie, a spouse and up to 3 children under the age of 18). In Dubai, coverage for dependants is not compulsory; however, it is common practice to extend cover to include family members.

United Kingdom

Currently, no benefits required above those covered under social insurance contributions.

There is a state pension system provided by the government with eligibility determined by the national insurance contributions that have been paid or credited. Employers are required to automatically enroll eligible workers into a pension scheme and pay minimum contributions. Workers who are automatically enrolled have a right to opt out of the scheme.

United States

The Affordable Care Act (ACA or Obamacare) requires certain employers to provide insurance for their employees or pay a penalty. By state law, employers generally must maintain workers' compensation insurance for on-the-job injuries and unemployment insurance to provide benefits to former employees in the event of a qualified involuntary termination of employment. No retirement benefits or pensions are required unless included in a written agreement (eg, a collective bargaining agreement with a labor union), but, where provided, their administration is governed by federal law.


Benefits: There are certain statutory benefits that all employees must receive, such as:

  • Profit sharing (utilidades): Employers must distribute among its employees at least 15 percent of the employer’s net profits before taxes, obtained at the end of the fiscal year, with a minimum of 30 days of salary and a maximum of 120 days of salary.
  • Food benefit: Employees are entitled to receive a monthly food benefit (Cestaticket Socialista) of VES3  (equivalent to approximately USD0.60 at the official exchange rate in force as of January 31, 2022).
  • Severance payments (prestaciones sociales): Employees are entitled to severance payment upon termination of employment, regardless of the cause for termination (see “Severance” below).

Pension: Employees are entitled to receive a lifelong state pension if they meet the following qualifying conditions:

(i) they have reached the retirement age (60 years old for men and 55 for women) and (ii) they have contributed at least 750 weeks. Employees may choose to continue working beyond the retirement age.

The pension benefit is currently set at VES7 per month (equivalent to approximately USD1.54 at the official exchange rate in force as of January 31, 2022).

It is not mandatory for employers to provide a pension scheme, but they are required to enroll employees into the Social Security System and make monthly contributions that may range from 9 percent to 11 percent of the employee’s regular salary depending on the company’s activity and risk profile.


In accordance with Decree No. 135/2020/ND-CP, the compulsory retirement age for employees working in normal conditions will be progressively adjusted to 62 years old for male employees in 2028 and 60 years old for female employees in 2035.

An employee whose ability to work is reduced; who performs particularly heavy, toxic or dangerous work; or who works in areas where the socio-economic conditions are particularly difficult may retire at an earlier age but no earlier than 5 years before the normal retirement age, unless otherwise provided by Vietnamese law.

The retirement age may be increased by up to 5 years for employees with high technical expertise or professional qualifications, or in a number of other special cases.

A retiree is entitled to a monthly pension financed by the social insurance fund if that person has reached retirement age and has been paying into the fund for at least 20 years. Men and women are entitled to the same maximum pension rates. Lower pension rates may apply to those who only partially satisfy the above requirements. A lump-sum payment may apply where an employee fails to meet the above requirements.