Portugal

Trending Now

We’re watching an increasing orientation among employees to value new types of benefits which balance personal and professional life. For example meal tickets/cards, mobile phones for personal use, cafeteria, extra days of vacation and education expenses.

Average Cost for Employer Sponsored Benefits

An average cost for a Benefits Package including Medical Insurance, Life Insurance and DC Retirement scheme could be between around 10% of the annual payroll of the Company, although it can vary significantly from case to case.

This average percentage will rise if we consider the mandatory Workmen’s Compensation insurance, but it is not considered an Employee Benefit precisely because it is mandatory.

Advice

A Company setting up in Portugal should learn very quickly which benefits are more common in their particular area of activity. Retaining talent is only possible through an adequate definition of the benefits policy.

Knowing relatively well the benefits provided by Social Security is also important because for some of those it doesn’t make sense for the Company to implement private solutions.

Surprising Fact

The legal framework on what concerns fiscal matters and Social Security can be quite complex if a Company does not reach out to experts on those area. In some cases Companies tend not to make timely and effective decisions regarding benefits because they do not quite understand its fiscal implications.

Colombia

When asked to rank five common benefits in order of importance, the average Colombian employee will respond with : Death, Disability, Medical, Retirement and Unemployment Benefits.

Trending Now

Colombia is a country which has more prevalence in traditional benefits but is beginning to understand the importance of more flexible benefit packages for the employees.

Average Cost for Employer Sponsored Benefits

30%-50% of the annual salary, but depends of other variables such as age, size of the company, salary, gender, and the amount that the company will subsidize etc.

 

South Korea

When asked to rank employee benefits in order of importance South Korean employees will say Retirement, Death, Disability and Medical. Paid Time Off, though important, ranks last.

Trending now

The growing number of companies, especially multinational companies, in South Korea are aware of the importance of employee welfare, such as life and medical plan, compensation benefits or corporate pension. This is because good employee welfare will not only motivate the employees, but also keep the employees from moving to different company in similar industry. Therefore, the demand for employee benefits is increasing in South Korea.

Average cost for Employer Sponsored Benefits

The average cost is hard to define as so much depends on the number of employees, their average age and what kind of coverages are included in their plan.

Advice to Employers

Although the South Korean government provides national pension and national health care to employees, it does not provide enough benefits. Therefore, the employees expect the company to offer additional life/disability/medical plan.

Surprising Fact

It is expected that corporate pension program is going to be mandatory for all the companies in South Korea regardless of their size from 2019. Therefore, it is ideal to prepare for it in advance.

India

When asked to rank five common benefits in order of importance, the average Indian employee will responde with: Medical, Personal Accident, Term Life insurance, Group EDLI (Employee´s Deposit Linked Insurance – India´s Death Payment scheme) and Group Gratuity (retirement).

Trending now

Retirement planning has only recently become important and is becoming increasingly so.

Average costs

The average monthly cost of a typical benefits package is INR 2,500 per employee for medical insurance, 12% of salary for provident fund contribution.

Advice

Because India does not have a social security system, the majority of health, personal accident and term life are employee sponsored. It is extremely important to realize that before hiring.

Surprising fact

The fact that Indian culture very much affects employee benefits. For example, it is often assumed that parents are covered in the Group Health Policy. There is also a huge difference in the  holiday structure for each region which can be quite confusing.

 

Ireland

After health cover, employees view Risk (Life and Disability) as number 2 and Pension as number 3.

Trending Now

Medical Insurance is increasingly being promoted from a wellness perspective,  rather than simply being offered as a plan to meet medical costs when a member or employee becomes ill.

Average Cost for Employer Sponsored Benefits

The average matching employee and employer pension contributions equate to 10% of annual basic salary.  Typical medical plans cost €1,500 per adult, and these are fully subsidised by the employer. Employers also pay for risk costs (Life and Disability), which adds a further 1-2% of total salary cost.

Advice to Employers

Prior to establishing any benefits programme in Ireland we advise undertaking a sectoral benchmarking exercise as benefits can vary significantly between industries.

Suprising Fact

There is currently only one statutory Employee Benefit all employers are required to provide – this is access to a PRSA (Personal Retirement Savings Account) facility. Employers do not require to make contributions to this type of pension plan.

 

Indonesia

Trending Now

Landscape changes of Employee Benefit policies and challenges of rising costs. Since 2014, Mandatory medical benefit was implemented. Those in formal employment pay a premium equivalent to 5% of their salary, with 4% payable by employers and 1% payable by employees. This program is top of former programs which are old age, workman compensation, and death benefit. On 30 June 2015, the Indonesian government has issued Government Regulation on the mandatory pension benefit.  1% of their salary payable by employee and 2% payable by employers.

Average Cost for Employer Sponsored Benefits

The average cost for employee is around 18 – 20% of basic salary. Minimum basic salary is stated by the government and varies from province to province and industrial risk classification.

Advice

Knowledge about the culture and market practices of Indonesia is important for those entering the Indonesian market for the first time. Rules and regulations differ from province to province, so be aware of that as well.

Surprising Fact

Landscape changes of Employee Benefit policies and challenges of rising costs. Since 2014, Mandatory medical benefit was implemented. Those in formal employment pay a premium equivalent to 5% of their salary, with 4% payable by employers and 1% payable by employees. This program is top of former programs which are old age, workman compensation, and death benefit. On 30 June 2015, the Indonesian government has issued Government Regulation on the mandatory pension benefit.  1% of their salary payable by employee and 2% payable by employers.

Georgia

Trending now

Pension reform.

Advice

As with many of the former USSR countries it is important for employers first entering the Georgian market to do so with the help of an established guide and lawyer.

Surprising Fact

During the global economic downturn Georgia has demonstrated considerable resilience and growth, with its GDP expanding by 6.4% in 2010 and by 7% in 2011.

Bosnia Herzegovina

Average cost of employer sponsored benefits

At this moment there is no legislation that private insurers can offer Workers Compensation coverages. Personal Accident of the employees is obligatory in the entity Republic of Sprska, but minimum sums insured are not prescribed.

Advice to Employer

If you are a first time employer in Bosnia Herzegovina the most important thing is to build connections. The country is eager to attract foreign businesses and is open to help navigate new businesses.

Surprising Fact

Bosnia Herzegovina has a currency that cannot be exchanged anywhere else. The Bosnian Convertible Mark can only be bought inside the country.

 

Albania

Trending Now

Albania economy is moving from an agricultural economy to being supplemented by tourism and industry. Corporate international giants have settled in Albania.

Advice

It is very important before entering the Albanian market to understand the culture and to have trusted associates in the country.

Surprising Facts

Albania has been called the poorest country in Europe, but is recovering rapidly because of its natural resources and the cheap, but skilled labour.

Uzbekistan

Trending Now

Group voluntary health insurance plans, aimed at attracting and retaining the best employees.   Cover for pre-existing medical conditions (MHD policies) is becoming more popular and group plans can be customized to include additional benefits such as dental, maternity, personal accident etc.

Average Cost For Employer Sponsored Benefits

The average cost of employer sponsored benefits in Uzbekistan is between 100 – 250 American Dollars per employee per month, depending on the size of the company. Employers have to pay 25% of payroll costs towards the Unified Social Payment (social security) to the government.

Advice

If an employer is considering the inclusion of pre-existing medical conditions within a group health insurance plan, they should make sure these are very clearly identified and specified beforehand to avoid any problem. Be aware that the level of care provided in the private sector can be sub-standard and the government has significantly limited the type of services provided by the private sector.
Surprising Fact

The use of informal payments (i.e. unregistered cash payments or payments in kind such as gifts) is widespread for health services in the private sector. This is mainly due to the low official income rates for health professionals.

Uzbekistan has a fast-growing economy and the largest population in Central Asia so it offers good opportunities for investment from manufacturing and service companies. Business start-up procedures have been made easier by the government, including less financial and tax reporting and tax and custom incentives and privileges.