Employment Practices


The Netherlands to reform its pension system

On 22 December 2022, the Dutch House of Representatives approved the draft bill of the Future of Pensions Act (in Dutch: Wet toekomst pensioenen – WTP). The legislation, which goes before the Senate in January 2023, aims to implement reforms of the Dutch supplementary pension system that were agreed upon between employers, employees, and the government in 2019. The WTP introduces several important changes, notably the obligation to provide occupational pension schemes on a defined contribution (DC) basis only instead of a defined benefit (DB) provision accrual.
If the Senate approves, the WTP will come into effect on 1 July 2023. A transition period until 1 January 2027 applies for employers and pension providers to implement the changes in consultation with the employees and/or their representatives.


China launches a new voluntary private pension scheme

On 25 November 2022, the Chinese government launched the pilot phase of a voluntary tax-favored private pension scheme under the third pillar of the country’s pension system. This new scheme aims to assist China in overcoming gaps in its current pension system as the country struggles with one of the most rapidly aging populations in the world, according to the World Health Organization.


UAE introduces mandatory unemployment insurance scheme [Updated]

The United Arab Emirates (UAE) government recently introduced – for the first time – a mandatory unemployment insurance scheme. The scheme aims to protect employees who lose their jobs for reasons out of their control, by ensuring the availability of unemployment income for up to three months. The Involuntary Loss of Employment (ILOE) insurance scheme, as announced by the Minister of Human Resources and Emiratization in May 2022, came into effect 1 January 2023.

Turkey eliminates retirement age requirement  

Less than six months before the Turkish presidential election, Turkish President Tayyip Erdogan recently announced in a press conference that the minimum age requirement for retirement (age 58 for women and age 60 for men) will be eliminated. This change allows more than 2 million workers to retire immediately.

The Turkish government plans to introduce and approve a legislation in the coming weeks, and the changes are expected to enter into effect retroactively on 1 January 2023.

Australia to combine and expand parental leave entitlements

The Australian government recently announced that the existing government-paid primary caregiver parental leave and partners leave will be combined into a single 20 week leave available to, and shareable between, both parents starting from 1 July 2023. Once combined, the parental leave will increase by an additional 2 weeks every year from 1 July 2024 until it reaches 26 weeks on 1 July 2026.


Mexico to increase minimum wage

The Mexican National Commission on Minimum Wages has recently approved a significant increase to the national minimum wage. The new wage increase of 20% will be effective on 1 January 2023.