Benefits & pensions
The Social Security National Administration (Administración Nacional de la Seguridad Social, hereinafter 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 statefunded 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 9.5% 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 9.5% and a maximum contribution base. Most employers make regular contributions to the employee superannuation fund rather than making lump sum quarterly or annual contributions.
Australian law also 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.
In respect of Bahraini national employees, the employer is required to set up (and contribute to) a pension fund. All other employees are entitled to receive an End of Service Gratuity (EOSG) on termination calculated by reference to age and length of service unless the employer contracts out of these arrangements with their employees by providing a savings scheme or pension scheme.
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, and public health coverage.
Employees must be granted transportation vouchers and benefits set out in collective bargaining agreements. Granting meal vouchers and a private health plan is not uncommon.
Employers are not required to provide benefits or pensions other than those provided through social security contributions (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% for retirement savings (capped at 79.2 UF Unidades de Fomento - approximately US$3,250)
- 7% for health insurance and capped at 79.2 UF Unidades de Fomento - approximately US$3,250)
- 0.6% for unemployment insurance (capped at 118.9 UF Unidades de Fomento - approximately US$4,900)
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 are still mandatory.
In addition, employers, are required to contribute to a mandatory work accident & 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.
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, Hong Kong, Macau and Taiwan residents. The minimum contributions required by employers and employees are determined by the local labor and social security bureaus.
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 and to pay monthly contributions to the Colombian pension system.
Social security contributions and payroll taxes must be paid as follows:
|Health||12.5%||8.5% for employees who earn more than 10 minimum wages.||4%|
|Solidarity pension Fund||1%-2%||N/A||1%-2%|
|Professional Risks2||0.348% - 8.7%||0.348% - 8.7%||N/A|
|Payroll Taxes3||4% or 9%||4% or 9%||N/A|
1The basis to calculate contributions to the social security system (pensions, solidarity pension fund, health and professional risks) is the ordinary monthly salary earned by the employee. However, if the monthly salary exceeds 25 times the minimum wage, contributions to the social security system will be calculated on the maximum basis of 25 times the minimum wage. 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% of the employee’s compensation. If these non-salary payments exceed 40%, the difference will be subject to social security contributions.
In case of employees earning integral salary, 70% of salary will be the basis to calculate contributions to the social security system. However, if 70% 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% of the monthly salary, but in the case of employees earning more than 16 times the minimum wage, the rate will be increased as follows: between 16 and 17 times the minimum wage, an extra 0.2%; between 17 and 18 times the minimum wage, an extra 0.4%; between 18 and 19 times the minimum wage, an extra 0.6%; between 19 to 20 times the minimum wage, an extra 0.8%; and between 20 and 25 times the minimum wage, an extra 1%. 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% of salary will be the basis for this contribution. Non-salary payments are excluded from payroll taxes. Payroll taxes do not have any ceiling.
Obligatory pension insurance scheme (21.5% paid by the employer; 6.5% paid by the employee). No additional benefits required.
All employees must pay tax and labor market contributions which are deducted from the employee's gross salary. These deductions go to fund state benefits.
There is a mandatory Danish Labor Market Supplementary Pension, to which an employer pays DKK 180 per month for full-time employees, and the employees pay DKK 90 per month. There is no requirement to contribute to additional pension schemes unless this requirement is specified in a collective agreement 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 can provide for additional mandatory benefits (complementary welfare coverage for all employees, supra-complementary pension plan, etc.). CBAs can also provide for minimum benefits entitlements (minimum welfare contribution rates, insurance bodies to be affiliated to, etc.).
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 1st, 1951 and December 31st, 1954, the legal retirement age is gradually increased.
Retirement upon the employer's initiative: restricted under 70 years old. "Clause couperet," ie, clauses under which the employment relationship will automatically terminate at a specific age limit, are prohibited under French labor law.
No benefits required above 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 with the administration costs borne by the employer.
Hong Kong, SAR
Subject to certain exemptions (for example, for people from overseas who enter Hong Kong for employment and who holds an employment visa with a validity period of less than 13 months or are 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% of the employee's "relevant income" up to a capped maximum amount of HK$1,500 (which may be adjusted from time to time). 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, severance payments or long-service payments.
The benefits offered to an employee will usually depend on his or her seniority within the company. At manager or director level, employees are likely to be offered a company car and/or mobile telephone, etc.
It is usual to provide employees with a range of optional fringe benefits (eg, contribution to a pension/healthcare fund, contribution to travel expenses, food vouchers, vouchers for holiday, etc.) on the basis of the respective Fringe Benefit Policy. Commonly, up to a pre-defined maximum amount, employees can select from among the options offered in line with their own preferences.
The Hungarian pension system consists of 2 pillars:
- The state pillar is the social security pension scheme
- The private pillars, which might be a privately managed pension scheme with voluntary contributions; a pension advance-saving account kept by a bank; or an employer's pension scheme (which are non-existent 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.
- 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.
- Employees Compensation Act, 1923 provides for the payment of compensation to an employee or his family in cases of employment-related injuries, death, and temporary or permanent disability.
- Payment of Bonus Act, 1965 envisages payment of bonus to employees earning less than INR 21,000 per month.
Pension/s in India can be divided into three 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.
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, namely:
- Public health security, which is applicable for all Indonesian citizens
- Social security, which covers occupational accident security, death security, old age security and pension 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 and old age 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.
No compulsory benefits beyond those covered by social insurance contributions.
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/health care insurance.
There are 4 main types of social security systems with current rates as follows:
- Workers' Accident Compensation Insurance: from 0.25% to 8.9%, depending on business which an employee engages in, on annual earnings
- Employment Insurance: with the exception of some businesses, the employee pays 0.4% and the employer pays 0.7% on annual earnings
- Health Insurance/Nursing Care Insurance: The costs are different according to prefecture. In Tokyo, 11.55% for an employee between age 40 to 64 and 9.91% for an employee under age 40 or over 64 (as of March 2017). The employer and employee equally bear the contribution
- Employee's Pension Insurance: 18.182% (October 2016 - August 31, 2017), 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, the employer is not mandated to provide any further benefits.
NSSF – this is a basic social security / pension provision which 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, the contributions are KES 200 from the employer and KES 200 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% of the employee's pensionable earning, with an equal matching contribution being made by the employer. However, this provision is yet to come into force, owing to an ongoing suit in court objecting to the new contribution rates.
NHIF – this is 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 employees' monthly income and remit it to the fund.
NHIF deduction amount is based on the employee's gross pay with a maximum limit of KES 1,700/- per month.
PAYE deductions on a graduated scale, up to a maximum rate of 30%.
The Industrial Training Levy is paid by the employer with respect to each employee at the rate of KES 50 per month per employee.
NHDF - The Finance Act, 2018 brought about an amendment to Section 31 of the Employment Act, 2007 introducing a new section 31A which requires both the employer and employee to contribute to the National Housing Development Fund at the rate of 1.5% of the monthly basic salary up to a maximum of KES. 5,000 per month.
Employers are required to remit the contributions by the 9th day of the following month.
This provision is currently suspended by the court. Recent media reports quoted the Government as saying that contributions to the fund will be voluntary.
In most cases for Kuwaiti national employees and GCC national employees, the employer is required to set up (and contribute to) a pension fund. All other employees may be eligible 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. EOSG is reduced if the employee resigns within the first 10 years of service.
Employers have no legal obligations to provide complementary/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% respectively of an employee's salary to fund the EIS.
The Social Security Law regulates employer, employee, and government participation in different federal social benefit programs through the Mexican Institute for Social Security (Instituto Mexicano del Seguro Social (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
- Disability pension and life insurance
- Retirement, advanced age and pension
- Child care and social benefits
Companies must set aside 10% of their taxable income for employee profit sharing, in accordance with the rules established in the Mexican Income Tax Law.
Mandatory enrollment of employees in the social security fund called Caisse Nationale de Sécurité Sociale which provides health insurance and pension. Employee's contribution is approximately 7% and employer's contribution is approximately 25%.
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 industry sectors, a mandatory industry-wide pension fund applies. Employees who work in such a sector are required by law to participate in that pension fund, and their employers are required by law to pay pension premiums to the fund. In sectors without such an industry-wide pension fund, the employer usually sets up its own pension plan for its employees.
New Zealand has an optional superannuation saving scheme, "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% 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% of the monthly payroll of all the employees.
Occupational injury insurance and contributions to a mandatory occupational pension scheme are required.
The Public Authority for Social Insurance (PASI) pays social service benefits to Omani and GCC national employees who have subscribed to the scheme. Private sector employers are therefore required to make monthly contributions to the PASI 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.
13th month pay
Payment of 13th month pay equivalent to 1/12 of the basic salary of an employee within a calendar year on or before the December 24 of every year is mandatory.
Separation pay is payable as
- the employer's statutory obligation in cases of legal termination due to authorized causes under Articles 297 or 298 of the Labor Code of the Philippines
- as financial assistance as an act of social justice
- in lieu of reinstatement in illegal dismissal cases where the employee is ordered reinstated but reinstatement is not feasible or
- as an employment benefit granted in a Collective Bargaining Agreement or Company Policy
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. On January 1, 2019, a new form of saving was introduced into the Polish legal system that allows the accumulation of additional funds for retirement into employee pension plans. Contributions to employee pension plans will be financed by the employer (1.5% of the remuneration) and by the employee (2% of the remuneration) – with limited options to increase these amounts. The introduction of employee pension schemes will take place in several phases. Initially, the obligation to create a scheme will apply only to employers with at least 250 employees, but the ultimate target is that all employers in Poland will be obliged to create a scheme.
There is a unified retirement age of 60 for women and 65 for men.
Both employer and employee have to pay contributions to the Social Security in Portugal to cover different protections (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 the Social Security every month.
Current general rates are 11% of the gross wage for the employee and 23.75% for the employer.
Employees with a minimum contributory period (15 years) qualify for a retirement pension at age 66 and 5 months (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/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 nationals working for government entities or joint stock companies (public or private) to be registered with the relevant pension authority. In addition, there are other companies that have been specifically made subject to this requirement pursuant to special resolutions issued by the Council of Ministers of Qatar. Employers are required to contribute to the pension fund and deduct employee 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 two 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 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. By law, all employees are insured under the state statutory pension system and social security (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.
As of 7 February 2020, Romania will implement a new law on occupational retirement benefits which transposes the EU Directive 2016/2341 on the activities and supervision of institutions for occupational retirement provision (IORPs).
Currently, there are no benefits required other than those covered under social insurance contributions.
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 of Social Insurance (GOSI). The total cost of GOSI insurance for Saudi nationals is 22%, of which 10% is paid by the employee and the remaining 12% is borne by the employer. All employees also receive an end of service gratuity on termination. However, where a GCC nationals is working in 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 contributions to the Central Provident Fund (CPF).
Benefits offered to an employee will usually depend upon his or her 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, occupational sick pay and notice requirements in excess of statutory entitlement to a wide range of employees.
No benefits required above those covered by way of social insurance contributions. There is a state pension system provided by the government.
The contract of employment will determine whether the employee is entitled to any further benefits, including subsistence, travel and pension allowances, bonuses or acting-up allowances.
No obligation that employees should belong to a retirement fund.
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 his or her 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 death insurance; mobile telephone; company car/car allowance; and contributions from the employer during parental leave (in addition to what is paid from 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 three-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.
Labor and National Health Insurance systems covered through payroll deductions and contributions. There are 2 pension systems (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.
Workmen's Compensation Fund
Thailand has a worker's compensation scheme which requires employers to pay medical expenses, rehabilitation expenses, or funeral expenses, as the case may be, 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 0.2-1% 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% of an employee's salary, with a maximum of THB 750 per month. As a member of the Social Security Fund, an employee is entitled to receive compensation benefits in non-work-related cases.
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 can contribute a minimum of 2% to a maximum of 15% of his/her wages depending on the policy of the service provider, and the employer would normally contribute no less than the employee's contribution.
With the amendments in the Private Pension Savings and Investments System Law No. 4632, it became compulsory for employers to include employees under 45 years in a private pension plan.
Under the system, if the employer employs five 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 (i.e., 3% 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 can be implemented at employers' discretion.
United Arab Emirates
In respect of UAE national employees and GCC national employees, the employer is required to enrol in and make contributions themselves and employee deductions for the state pension funds. High earners in the UAE and GCC are entitled to an end-of-service gratuity (EOSG) for their earnings over AED 50,000. All other employees are entitled to receive an EOSG 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. The EOSG is reduced if the employee resigns within the first 5 years of service and is forfeited if the employee is summarily dismissed for one of the reasons under Article 120 of the UAE Labor Law.
Employers in the Dubai International Finance Centre Free Zone are required to register employees with a mandatory savings scheme. Employers may either register with a plan established by the Dubai International Finance Centre or establish their own plan, subject to the requirements of the Dubai International Finance Centre Free Zone.
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 three 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.
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.
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.
Venezuelan labor laws establish an obligation to deposit a "guarantee of severance" quarterly. This deposit must be made in a severance fund, a company account or bank trust, and the amount is based on the salary of the employee (see under "Severance" below).
The Workers' Food Law obligates employers to grant a balanced meal during the workday to all employees. This benefit can be delivered by installing eating facilities in locations close to the workplace, hiring companies specializing in meal supply, or granting electronic cards, coupons, or tickets to the employees. The Venezuelan government establishes a monthly amount equivalent to the value of VES200,000.00.
The compulsory retirement age is 60 years old for men and 55 years old for women. The retirement age may be increased by up to 5 years for employees with high technical expertise, for those at managerial-level positions, 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.