Employer Contribution Increase to Australia’s Superannuation
Effective 1st July 2021, employer contributions to the superanuation guarantee will increase by 0.5% from 9.5% to 10%.
As an attempt to increase retirement funds for the Australian population, the contribution amount is due to increase every year by 0.5% until it reaches 12% in 2025.
Employers should consider how the increase impacts them, especially those who provide their employee’s compensation on a ‘super inclusive’ basis. For employee’s paid in this way, their income will reduce by 0.5% if the employer does not increase the overall package by the additional 0.5% from the 1st of July.
Employers who already contribute higher than the mandatory 9.5% contribution amount should also consider if they would like a review of their contribution rates in line with the mandatory minimum increase.
Netherlands Pension Reform Delay
The Dutch Government has postponed the reform by 1 year, with the transition period now starting January 2023.
Earlier this year, NFP shared details on the upcoming pension reform in the Netherlands.
The reform start date has been pushed back by 1 year, with the new implemtation deadline being 1st January 2027.
The reason for the delay is to allow the Social Affairs Minister sufficient time to consult on the pension law with the pension regulator and administrators as well as social partners.
NFP are happy to assist employers with this change either prior to January 2023 or during the transition period, whenever is best for the employer.
Switzerland Caregiver Leave Update
Over the past 6 months, Switzerland has introduced additional leaves to support families such as paid paternity leave and caregiver leave.
The final change comes into force on the 1st July 2021.
Effective 1st July 2021, the final change comes into force: leave to care for a sick child.
From this date, parents will be entitled to an allowance to care for their sick child if their child is considered seriously impaired due to accident or disease, and this will occur when all four of the below conditions are met:
- There is a drastic change to the child’s physical or mental condition
- The course or outcome of the change is difficult to predict, permanent or increasing impairment, or death is expected
- There is an increased need for care by the parents and
- At least one parent has to take a break from work to care for the child Leave to care for children who have suffered a minor accident or illness (e.g., a broken bone) is not covered.
The care leave allowance covers 14 weeks of care leave, which can be split between working parents as they wish, up to a maximum of 7 weeks each. The allowance payable is 80% of their salary capped at CHF 196 per day, including non-working days. The leave must be taken within a period of 18 months, beginning on the first date that the allowance is taken.
Further claims may also arise if a child falls ill with another serious illness during the claim period or if multiple children are seriously injured/ill at the same time. If a child suffers multiple illnesses during the period, they may be classed as new entitlements, so long as the new illness is not related to the main illness. Relapses after a symptom-free period count as a new entitlement.
If a child is born with a serious illness, there is no entitlement to the care allowance. In this situation, parents must use their maternity or paternity leave and allowance. Once the maternity allowance is used, entitlement for the care leave may then be appropriate.
The employee’s annual leave cannot be reduced by them taking childcare leave and they are protected from dismissal during this period.
India Labour Law Delay
India was expecting to introduce Labour Laws from 1st April 2021 however this has been delayed.
Companies should still prepare for the changes, ready for when the go-live date is released.
The labour law changes fall into 4 key areas. Some key changes have been noted below:
Occupational Health, Safety and Working Conditions Code
- For female employees working night shifts (between 7pm-6am), the company must provide transport to and from work and must ensure their safety at work.
- Federal law has defined what is considered a ‘core’ business activity to prevent and prohibit the outsourcing of employees within those roles.
- Companies can no longer require employees to keep their unused leave until the end of their employment. Employees can ask for encashment at any point during the year for their unused leaves.
Code on Wages
- The new code defines wages as at least 50% of the employee’s total gross remuneration.
- States will no longer be able to set their own minimum wage below what the federal government has released as the ‘floor wage’.
- The Equal Remuneration Act requires equal pay for male and female workers who are doing the same or similar work.
Industrial Relations Code
- Fixed-term workers are now eligible for employee benefits including pro-rata gratuity payments.
- Standing orders have expanded to all companies with over 300 workers, not just factories, mines, and plantations.
- Companies with at least 20 employees must create a grievance committee to address any grievances.
- Only employees with over 300 employees need government permission to terminate employees within the factory, mining or plantation industries.
Code on Social Security
- Social security recognises and defines ‘gig’ and ‘independent’ workers such as Uber drivers to ensure social security payments are made by the company.
- Companies under investigation for compliance with India’s Employee Provident Fund can now only be checked for the past 5 years. The review must also be completed within 2 years.
Additional changes such as 48 hours being the maximum working limit for one week have also been introduced, alongside the requirement to pay overtime once an employee has worked longer than 15 minutes over their scheduled shift.
Companies should begin preparing for the above amendments to ensure they have made the necessary changes and funds ready for when the laws are implemented.