The French government recently passed amendments to the Labor Code increasing government-paid bereavement leave following the passing of an employee’s child, as well as government-paid leave that may be taken following the diagnosis of a child’s disability or serious health condition.
The amendments entered into effect on 19 July 2023.
On 12 June 2023, the National Assembly of the South African Parliament passed the National Health Insurance (NHI) Bill (the “Bill”). The Bill aims to establish a universal healthcare system supported by a National Health Insurance Fund (the “Fund”). As it stands, the Fund is expected to be financed by monthly employee payroll contributions and through general tax increases.
The Bill has advanced to the next stage and has been referred to the National Council of Provinces (NCOP) for review and possible revisions. Once final, the Bill will be sent to the President for assent.
The United Arab Emirates (UAE) government had previously introduced legislation increasing the number of UAE nationals who are working in the private sector by increasing quotas under its existing Emiratization framework. All private sector employers with at least 50 employees will be required to increase Emiratis’ proportion in the workforce to at least 10% of the workforce by 2026.
The Emiratization requirements which entered into effect on 30 June 2023 increased the Emiratization quota from a 2% to a 4% Emiratization quota.
On 1 July 2023, the Australian government increased the Superannuation Guarantee (SG) contribution rate by 0.5% to 11% of employees’ earnings. The SG rate is scheduled to increase by 0.5% each year until it reaches 12% of employees’ earnings on 1 July 2025.
European Union (EU) Directive 2023/970 on pay transparency (the “Directive”) which entered into force on 6 June 2023, requires each EU member state to pass legislation enacting the requirements as outlined in the Directive by 7 June 2026.
The goal of the directive is to further reduce or eliminate gender pay inequity within the EU through measures aimed at countering gender pay discrimination, through the collection and disclosure of pay gap data, compensation for those who have suffered pay discrimination, and penalties against employers for violations.
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.
The WTP will come into effect on 1 July 2023. A transition period until 1 January 2028, previously 1 January 2027, applies for employers and pension providers to implement the changes in consultation with the employees and/or their representatives.
The government of Uruguay has passed legislation (Law No. 20130) creating a new Common Pension System (Sistema Previsional Común) which modifies many aspects of the existing statutory pension arrangements, including increasing the state pension age, allowing retirees to continue working, and requiring greater participation in the mandatory individual account scheme. As with other countries around the world, Uruguay has recognized the rising pressure of an aging population on state-funded retirement benefits, and these modifications aim to encourage people to work longer and to reduce financial liabilities on the public system.
Effective 1 July 2023, Poland has cancelled the epidemic state of emergency along with a number of concessions that had been granted to employers. Employers have varying deadlines by which to meet the restored obligations.
The Dutch government decided at the beginning of 2023 to eliminate the premium discounts that were historically available to group health insurance plans, known locally as collectives (collectiviteitskorting). This has left some employers reconsidering the value of a group plan and whether they should consider offering other benefits to offset the loss of the premium discount.
The UK government recently announced changes in pensions, childcare, universal support scheme, and employee share plans, among others, as part of the Spring Budget 2023 to remove obstacles to participation in the workforce.
May 16th, 2024: Insights into Employee Benefits in Central and Eastern Europe.
June 25th, 2024: Global Benefits Strategy, Findings from Lockton’s Multinational Employer Survey.