Archives: Countries

The pages and information for specific countries where Asinta partners can be found.

Panama

Employee Benefits In Panama

Health insurance (including both individual and corporate insurance) represents an estimated 25% of the entire insurance industry, and corporate voluntary (personal) medical insurance is the most desirable benefit. This is mainly because state-provided medical care is not deemed sufficient and corporate insurance usually provides more accessible rates than individual health insurance products.

 

Mandatory employee benefits in Panama

There are five key employee benefits required in Panama:

  • Medical coverage for employees is mandatory; the service is provided by the Social Security Entity (CSS). Independent contractors may also acquire these coverages voluntarily by contributing to the CSS.
  • CSS also includes other coverages such as worker’s compensation, short and long-term disability, and maternity leave.
  • CSS also administrates the Statutory Pension Fund, which is funded through employers’ and employees’ contributions.
  • Statutory leaves and allowances (vacations, sick leave, parental allowances, etc.) are covered by the employer up to a certain limit per year. If the employee exceeds the legal limit for sick leave, the excess may be covered by CSS in certain circumstances.
  • Additional days off are mandatory, and according to labor law, employees are granted additional days off due to work on weekends or public holidays, or this work must be at a higher rate. This is regulated by local Labor Laws.

 

Supplemental employee benefits in Panama

  • Group Life– Many employers provide this benefit as it tends to be one of the most cost-effective. The insured sum will either be a fixed sum or a multiple of the base salary—2x the annual salary would be deemed a good level of benefit. The average market benchmark for this type of benefit would include additional benefits such as double indemnity due to accidental death; dismemberment; total and permanent disability; and an advance when there is a terminal illness diagnosis.
  • Group Medical & Dental – Private medical insurance remains one of the most popular benefits due to its lower cost and great flexibility. Corporate medical plans can be tailored to suit each particular client, which also allows for flexibility regarding coverage and pricing. Private medical insurance can be divided into two sub-groups: hospitalization and complete policies. Hospitalization policies are mainly used for major medical emergencies and for elective surgeries. Complete medical insurance policies cover all other services, including outpatient, medication, maternity, and other wellness-related benefits. Dental insurance and dental plans are available in Panama but are far less common and generally a paid benefit offered to employees working in multinational companies.

 

Perks in Panama

The most diverse employee benefits in Panama are typical in multinational corporations, as well as utilities and financial services companies where you should be able to offer a little bit more than others in your field to be an attractive employer.

Panama is still a developing market regarding employee benefits and perks. Most additional benefits/perks provided by employers focus on alleviating expenses related to employees’ jobs, and the most important benefits after monetary compensation are related to health and wellness. They include:

  • Mobile phones – A majority of companies provide mobile phones for their employees for business use or provide a monthly stipend to cover these expenses.
  • Short-term disability – Multinational companies are interested in providing short-term disability coverage for their employees to supplement their life and health insurance. In accordance with current labor law, days 1-18 of sick leave are paid by the employer based on the average declared salary. While the CSS does cover additional sick leave, the process is long and bureaucratic, making this particular benefit highly appealing, albeit expensive.
  • Transportation stipends – Companies provide monthly stipends or complete reimbursements of transportation costs associated with an employee’s functions, which may include gas, maintenance, and depreciation.

 

Kampasa provided this information about employee benefits in Panama. If you need EB support in the country, please contact Asinta, and we will put you in touch with Kampasa.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

Colombia

All Colombian employees are obliged to be affiliated with one of the state benefit schemes or a private sector equivalent. The social security system aims to cover the whole population without any discrimination. The most common benefits package in the market is associated with life insurance, health programs, dental plans, and transportation for certain situations. Employee benefits in Colombia cost approximately 30% to 50% of the annual salary.

 

Benefits Trends in Colombia

The mental health of employees and their families came to the forefront during the pandemic, and therefore, we’re seeing an increased demand for mindfulness and well-being services.

This demand requires a holistic view of Human Resources’ needs, which has forced brokers to offer an integrated service between benefits and workers’ compensation. These efforts have been multiplied to achieve retention through programs focused on the prevention of mental fatigue, physical fatigue, and symptoms of burnout.

Another rising trend is cybersecurity, which has become one of the biggest vulnerabilities for organizations, especially where employees’ privacy is threatened. This new risk can be mitigated through preventive programs and policies that cover some of the possible losses.

In addition, companies are choosing flexible and personalized benefit programs based on their employees’ income and interests.

 

Mandatory Employee Benefits in Colombia

Pension

Employers pay 12% and employees 4% of their monthly wage. Contractors pay 16%. The maximum contribution per month is equal to 25 minimum monthly salaries (SMMLV). Employees who accumulate four+ minimum salaries contribute 1% to 2% more of their base income to the solidarity fund. Switching between the public and private system every five years is an option for employees. However, they must choose one plan ten years before retirement.

Survivors Benefits

Survivors receive 45% of the employee’s monthly wage and the benefit increases 2% for every 50 additional weeks over the first 500 weeks. This is up to a maximum of 75% of the employee’s basic monthly wage. For pensioners, the survivor receives 100% of what the pensioner was receiving.

Short-Term Disability

Employees collect 66.67% (2/3) of their salary for 90 days plus 50% of their salary for an additional 90 days. A 180-day extension is possible. A subsidy is provided equal to 66.67% of the insured’s earnings in the month before the onset of the disability if the disability is caused by disease. Employers are responsible for paying the sickness benefit for the first three days.

Long-Term Disability

A disability pension depends on the insured’s age at the time of the disability. For insured less than 20 years of age, they must have lost 50% of their labor capacity by a non-work-related cause and must have contributed 26 weeks of premium payments the year before the disability occurred.

Healthcare

Healthcare insurance in Colombia is compulsory and provided by either the public sector or private medical plans. The public healthcare system consists of the Contributive System (CS), which is financed by taxes paid by employers and employees, and the Subsidized System (SS) for those who are unable to pay for their healthcare.

The insurance component of the healthcare system is provided by Empresa Promotora de Salud (EPS), which are health “promoting” organizations that offer a mandatory basic healthcare plan known as Plan Obligatorio de Salud (POS).

The EPS administers the POS and must either establish its own network of medical providers and facilities or contract for these services with Intitucones Prestadoras de Salud (IPS), which are institutions that provide medical care directly to patients (e.g., hospitals, clinics, and laboratories).

Paid Time Off

Employers in Colombia must offer 15 paid days of annual leave for each year of service. In addition, there are 18 paid public holidays in Colombia. Sick leave, maternity, and other leaves are also part of paid time off in the country.

 

Supplementary Employee Benefits in Colombia

Supplemental Health Insurance

These plans complement those of the POS, improving the service and quality of the institutions. They are financed in full by the insured with resources different from those of the obligatory contributions. Within the modalities of supplemental plans are the following:

  • Health insurance policies issued by insurance companies.
  • Prepaid medical plans issued by prepaid medical entities.
  • Complementary care plans issued by the health-promoting entities.

To acquire a supplemental health plan, one must be affiliated with the compulsory health plan in the contributing regime. Employers usually extend this benefit to spouses and children.

Life Insurance

Life insurance is an appreciated benefit because it protects families from economic instability in the case of sudden death, disability, or critical illness of a family member, usually the head of the home. Through this, the insurance company agrees to pay an agreed amount (called compensation), usually 12x and 24 monthly salaries, to the beneficiaries upon death and double indemnity due to accident, disability, or critical illness of the insured.

Dental Plans

Dental insurance covers costs related to issues with teeth and gums, as well as preventive care such as annual cleanings. These dental services help employees and dependents maintain better oral health and avoid future problems. Most dental insurance plans cover almost all coverage at 100% in-network. Employers usually extend this benefit to spouses and children.

Funeral or Burial Plans

Offering a funeral insurance policy is the best way to guarantee that the deceased’s close relatives will not have to worry about the significant expense of a funeral while grieving for their loved one. Typically, the policy covers at 100% in-network, and it is voluntary in most cases.

The main coverage of a funeral insurance policy is to cover the expenses generated by funeral assistance when the insured dies. This insurance protects all individuals who have been included as dependents in the policy. Employers usually extend this benefit to spouses, children, siblings, and parents, as the cost is per family and not per individual.

Company Cars

Companies with production operations, are in remote places, or are in the restaurant industry commonly offer cars or other modes of transportation for select employees.

Small Bonuses

Employers commonly offer employees small bonuses in the form of a debit card, which employees can use for gas and groceries, for example.

 

Employee Perks

  • Additional Pension Plan – Employees want to have a higher pension when they retire and are willing to exchange salary for an additional payment into their pension plan. This has tax benefits for the employee and the employer.
  • Medical Check-Up – Employers may offer employees a yearly general check-up, including blood tests, heart exams, and body scanning, among other things.
  • Food – Some employers provide food that includes drinks, fresh fruit, and snacks.
  • Personal Loans—Employers may offer up to one month’s salary as a loan without a credit review for employees who require loans.
  • Birthday Holiday – Employees do not have to work on their birthdays.
  • Educational Support—Employers pay 50% of postgraduate costs for employees. The employees must agree to stay with the company for a set period or repay these educational expenses.

 

Related Government Websites

National Superintendent of Health

Ministry of Health

Administrator of the Integrated Platform for Payment of Contributions (PILA)

 

This information about employee benefits in Colombia is provided by Correcol, Asinta’s employee benefits consulting Partner in Colombia.

United Arab Emirates

Health Insurance

Employee benefits in the UAE revolve primarily around healthcare. Government regulations require all expatriates in Dubai (since 2017), Abu Dhabi (since 2006), and the Northern Emirates (in 2025) to have a compliant health insurance policy under the DHA (Dubai Health Authority) or HAAD (Health Authority of Abu Dhabi), respectively. The law is in full effect, and no residency visa can be granted without a compliant policy in place. For existing residents, failure to comply with the law will attract fines, and any gaps in coverage will be identified at the time of visa cancellation or renewal.

As mentioned above, the health insurance scheme was recently extended to private sector workers in the Northern Emirates – Sharjah, Ajman, Umm Al Quwain, Ras Al Khaimah, and Fujairah starting January 1, 2025. The mandate does not apply to employees with valid work permits issued before January 1, 2024. Coverage only becomes mandatory when their residency permits are due for renewal.

It is important to note that a compliant medical insurance policy does not automatically mean access to top-tier medical facilities or doctors.

Average Premium for Employer-Sponsored Benefits

Employees in Dubai earning 4,000 Dhs and less are eligible for the Essential Benefit Plan (EBP), which offers the minimum benefits and has an updated index rate for 2025 imposed by the Health Authority varying between AED 715 to AED 745(+/-25 AED) per person per annum (PPPA). Such plans are only offered by 20 authorized insurance companies referred to as ‘Participating Insurers’ (PIs).

The average premium for an Enhanced EBP solution varies between AED 900 to AED 2,500 pppa. Outside of EBP and Enhanced EBP, the premium costs quickly escalate, and a middle-market plan with regional coverage will average AED 6,500 (PPPA), and a higher-end international solution (excluding the US) will be in the range of 15,000 Dhs (PPPA).

Advice To Employers

In the UAE, expatriates are excluded from the national pension system and instead receive a lump sum end-of-service payment. As retirement benefits are a prime consideration for employees, especially those moving from country to country, it is advisable for employers entering the UAE market to be well-informed about this topic.

On the medical front, Employers are recommended to act quickly and abide by the law, as non-compliance will incur financial penalties (AED 500) per employee per month and block visa processing.

Surprising Fact

Employers are often surprised about the minimal liabilities surrounding an employee´s death or disability when in service.

 

If you need support with your employee benefits in the UAE, please contact Asinta, and we will put you in touch with the local experts at Nexus.

 

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

Uzbekistan

Mandatory employee benefits in Uzbekistan include pension, PTO, and employment insurance. Supplementary employee benefits include medical insurance, voluntary benefits, and employment insurance.

Mandatory Employee Benefits in Uzbekistan

Pension

Citizens of the Republic of Uzbekistan, foreigners, and stateless persons permanently residing in the territory of the Republic of Uzbekistan, have the right to pension payments unless otherwise provided by laws and international treaties.

By the Republic of Uzbekistan Constitution, a citizen of the Republic of Uzbekistan is guaranteed a minimum wage and pension, social security by age, in case of illness, disability, and loss of a breadwinner, and other legal grounds.

Uzbekistan has a multi-level pension system consisting of basic, mandatory, and voluntary levels.

 

The first level (basic) – A basic pension payment (from the republican budget)

The government provides the state basic pension benefit, which is granted to citizens (and to persons permanently residing in the republic’s territory) when reaching retirement age. Payments are made regardless of other pension payments.

According to the Off-budget Pension Fund data under the Ministry of Finance of the Republic of Uzbekistan, as of May 1, 2020, the total number of pensioners and recipients of benefits registered in the off-budget Pension Fund is 3 million 734 thousand 230 people.

There is a new mechanism for granting a basic pension:

  • With participation in the pension system of 10 years or less, payment is equal to 54% of the subsistence level (SL).
  • For each year worked over 10 years, the basic pension increases by 2%. For example, if a person works for 20 years, the basic pension is 74% of the PM. For 30 years, 94% of the PM, and for 33 or more years, the basic pension is 100% of the PM.

At the same time, the length of participation in the pension system includes:

  • Work experience before January 1, 1998.
  • Cumulative experience (actual pension contribution payments) after January 1, 1998.
  • Other socially significant periods such as caring for a child under 3 years (within 12 years), a disabled person, an old-age pensioner who needs outside help, an older adult who is 80+, as well as the residence time for military personnel’s spouses, employees of special agencies, and diplomatic workers.

 

The second level (mandatory) is a pension from the solidarity system (the republican budget) and the Unified Accumulative Pension Fund requiring mandatory pension and mandatory professional pension contributions.

With the transition to a funded pension system that provides for the transfer of mandatory pension contributions by all employees, each employer is obliged to carry out a regular transfer of OPV in the amount of 10% of the monthly income of the employee (not more than 75 times the minimum wage) to the employee’s individual retirement account opened in the UAPF.

Following the Law, persons who have pension savings in the UAPF have the right to pension payments:

1) When reaching the retirement age –  55 years for women/60 years for men.

2) If pension accumulations are sufficient to ensure payment not less than the minimum pension, men at 59 and women at 54 years by concluding a pension annuity contract.

3) Disabled persons of the first and second groups (if the disability is established for an indefinite period).

4) Foreigners and stateless persons who left the country for permanent residence outside the Republic of Uzbekistan, who submitted documents confirming departure.

 

The third level (voluntary) – Payments from voluntary pension contributions.

Voluntary pension contributions come from employees by their initiative to the UAPF and (or) a voluntary accumulative pension fund for themselves or third parties. The contract determines the payment rate and the payment period for pension provision at the expense of voluntary pension contributions.

Contributors of voluntary pension contributions are natural or legal people who make voluntary pension contributions at their own expense.

 

Paid Time Off

Following Article 99 of the Labor Code, pregnant women, women who gave birth to a child/children, and women, and men who adopted a newborn child/children are granted the following leave in connection with the birth of a child:

  1. Maternity leave
  2. Leave to employees who adopted a newborn child/children
  3. Leave without pay for childcare until he reaches the age of 3 years

According to Article 99 of the Code, the duration of maternity leave is 126 calendar days (70 calendar days before birth and 56 calendar days after birth). In case of complicated births or the birth of two or more children, 70 days are given. The number of annual leave days does not depend on the duration of the work, so it does not matter how long you worked for the employer.

In addition to maternity leave, optional leave without pay for childcare can be granted for up to 3 years. According to Article 99 of the Code, such leave can be received by the father or mother of the child, and if the child is left without parental care, then by the next of kin, i.e., who will be involved in the upbringing of the child.

For non-working women For working women
Types of payments and allowances
One-time state benefits for the birth of a child
One-time social payment for cases of loss of income due to pregnancy and childbirth, adoption of a newborn child (children)
Monthly social allowance for child care upon reaching one year Monthly social benefit in case of loss of income in connection with childcare upon reaching the age of one year

Working women who are participants in the compulsory social insurance system are entitled to receive social benefits (that is, for whom the employer pays social contributions).

Calculating a lump sum payment for parental leave – This social benefit is calculated only for working women. The amount is determined by social deductions for the last 12 months before the onset of social risk, regardless of the actually worked period. Payments are calculated by multiplying the previous 12 months average monthly income (from which social contributions were paid) by the corresponding number of days of leave, then subtracting 10% for pension contributions.

Employment Insurance

Employees receive a monthly insurance payment to compensate for damage related to the loss of earnings (income) in connection with the degree of loss of occupational capacity from 30% to 100% inclusively. Insurers carry out these payments.

The calculations for lost monthly earnings shall not exceed 10x minimum earnings established by the republican budget. The conclusion date for compulsory accident insurance is also a factor. The final payment amount has the social payment (in the case of loss of capacity to work) from the State social insurance fund deducted.

Compulsory pension contributions shall be held and transferred from the insurance payments made by the insurer as compensation for damage related to loss of earnings (income) to the unified retirement savings fund.

The total amount of insurance payments for the compensation of additional expenses  caused by injury to health shall not exceed the following amounts (in the monthly calculation indices, established on the relevant financial year by the Law on the republican budget):

1) Upon establishment of the degree of loss of occupational capacity from 30%-59% inclusively – 500

2) Upon establishment of the degree of loss of occupational capacity from 60%-89% inclusively – 750

3) Upon establishment of the degree of loss of occupational capacity from 90%-100% inclusively – 1000.

 

Supplementary Employee Benefits

Healthcare

Employer-sponsored health insurance is rising in popularity, and market experts believe this trend is caused by the increasing costs of medical services and prescriptions.

Voluntary Benefits

Larger employers will often provide employees with a range of voluntary benefits at discounted prices. These benefits include personal accident insurance, critical illness, and coverage for COVID-19.

Gymnasiums

Some larger employers provide ‘gym on site’ facilities, whereas smaller employers may offer gym subsidies or access to a gym with lower corporate rates. In addition, many employers choose to subsidize this benefit through wellness accounts that provide more flexibility for employees with wellness needs outside of the standard gym membership options.

Virtual Care

Virtual care lets employees reach nutritionists, naturopaths, and mental health specialists for free through their health insurance policy. An online doctor visit may have a per-appointment charge attached. Some services include prescriptions and prescription delivery through an app.

Mental Health Training

Leadership training on mental health, anti-stigma campaigns, mindfulness, and stress reduction programs are becoming common.

 

Helpful Government Websites

 

This information about mandatory and supplemental employee benefits in COUNTRY NAME comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Belarus

Mandatory employee benefits in Belarus include paid time off, sick leave, pension, unemployment benefits, health care, and compulsory insurance against industrial accidents and occupational diseases. Supplementary employee benefits include health insurance, accident insurance, psychological support, healthy lifestyle programs, education and development, and benefits that improve comfort and promote recreation. Life insurance is not a typical benefit in the country.

 

Mandatory Employee Benefits in Belarus

Paid Time Off

All employees who have an employment agreement or contract are entitled to basic paid leave of at least 24 days.

The payment amount depends on the average salary and the number of vacation days. The employer makes payment.

Sick leave

In Belarus, there is the Fund of Social Protection of Population (FSPP), which is formed from wage deductions. This fund pays sick leave.

Daily payment amounts are calculated based on a percent of the average payment for the working day. However, some organizations have tax benefits (for example, residents of a high-tech park). In such companies, the daily payment is calculated as a percentage of the minimum wage per day for the country. For example, in January 2024, the minimum wage is BYN 626 per month (approximately US$ 197), so the average daily wage is BYN 29.39 (only working days are taken into account with a five-day working week) or BYN 21.37 (all days in a month are taken into account, including non-working).

The amount of payments also depends on the type of disease and length of service with the payment of insurance contributions to the FSPP:

  • For general illness or injury with less than 10 years of work experience – The first 12 days the employee receives 80% of the average daily payment (or the minimum payment for the country per day), the next days are 100%.
  • For general illness or injury with work experience of 10 years or more – Payouts are 100% of the average daily employee payment.
  • For pregnancy and childbirth and care for a sick child up to 14 years old and a disabled child up to 18 years old, regardless of work experience – Payouts are 100% of the average daily employee payment (or from the national minimum daily payment).

Pension

The labor pension is paid by the FSPP and is paid to those who regularly made contributions to the FSPP during the working period.

In addition, a number of following conditions must be met:

  • Minimum insurance experience has been accumulated (the period during which pension contributions to the FSPP were accrued by the employer or the employee himself) – in 2024, it is 19,5 years
  • Minimum total work experience has been accumulated – in 2024, it is at least 25 years for men and at least 20 years for women
  • The retirement age has been reached—in 2024, it will be 63 for men and 58 for women.

The amount of the pension depends on the following:

  • Age
  • Seniority
  • Wages during the working age
  • Disability
  • The minimum subsistence budget

The pension amount is formed from two components:

1) Minimum pension, which is depending on age + 20% of the average salary in the country

2) Optional payment, which is formed by employment history, salary in the working-age period

In February 2024, the average pension was BYN 811 (approximately US$255), and the minimum pension was BYN 435.31 (approximately US$137).

Social leave to care for a child up to 3 years old

This social leave is paid by the FSPP.

Childcare leave can last for a maximum of 3 years. During this period, the child’s mother (or another family member who is on this leave) retains a workplace.

Monthly payments depend on the country’s average salary for the last quarter. The government recalculates this parameter twice a year, in August and February.

The childcare leave payment for the first child is 35% of the average monthly salary in the country for the last quarter; for the second onward, it is 40%.

Since February 2024, the monthly payment for the first child is BYN 724.85 (approximately US$ 228). For the second and next child, BYN 828,40 (approximately US$ 260). For a child with a disability, BYN 931.95 (approximately US$ 293).

Belarus also supports the birth rate with a childbirth payment. This payment depends on the budget of the subsistence minimum, which is 10 subsistence minimums for the first child and 14 for the second and onward. Since February 2024, the childbirth payment for the first child is BYN 4,067.4 (approximately US$1,277), and for the second and next children, BYN 5,694.36 (approximately US$1,787).

Women who are registered at the clinic for pregnancy up to 12 weeks also have an additional benefit after childbirth, which also depends on the amount of one subsistence minimum; now it is BYN 406.74 (about US$128).

Unemployment

The Republican budget pays unemployment benefits to unemployed citizens and has registered with the employment service.

The benefit is up to 2 basic units, which is 80 BYN (US$25) per month. It depends on the number of weeks of job searching and total work experience.

The unemployed, who have children under 14, a disabled child under 18 years, HIV positive child under 18, or suffering from AIDS have an additional 10% surcharge. In addition, unemployed people with three or more children or two or more disabled children have an additional 20% surcharge.

Healthcare

All citizens of the Republic of Belarus have free medical care in public health institutions. The government, using the state budget, provides it.

Compulsory insurance against industrial accidents and occupational diseases

This law provides financial protection for the property interests of employees associated with the loss of their health, professional disability, or death due to an industrial accident or occupational disease, confirmed in the manner prescribed by law.

In this case, an occupational disease is considered to be a disease caused by exposure to a harmful production factor, resulting in temporary or permanent loss of professional ability to work or death.

The Policyholder is the Employer. The only Insurer for this type of insurance is the state insurance company «Belgosstrakh».

The amount of insurance premiums is determined by multiplying the insurance rate by the employee’s payments, for which contributions to the FSPP are calculated. The insurance rate is equal to 0.1% for policyholders—state organizations and 0.6% for other policyholders.

There is no standard payout amount for this benefit. All medical expenses related to injury and its consequences, sick leave, material losses related to loss of professional ability to work, and lump sum payments related to disability and death are subject to payment. The amount of payment is calculated based on the insured’s average earnings.

 

Supplementary Employee Benefits

The employer, at its discretion, determines the list of additional benefits. Some companies limit themselves to mandatory payments and do not supplement the compensation package with perks. High-tech companies and foreign companies offer the most extensive compensation packages.

Health Insurance

Health insurance support assists employees, if necessary, in the case of a health disorder, chronic disease, and its exacerbation, or in case of an accident.

This type is most popular among additional benefits, as state health organizations providing free medical care are overloaded and often have to wait a long time for an appointment with a doctor or examination results.

The insurance program typically includes outpatient treatment. Optionally can be included inpatient or emergency care, dental care, or payment for medications for outpatient treatment.

In addition, the insurance program can include vision correction, pregnancy, and childbirth care, high-tech medical care, and preventive medical examination for the purpose of early diagnosis of disease (cancer-protect program, complexes “men’s/women’s health,” etc.).

Payment options:

  • 100% payment by the employer
  • Co-financing, for example, 50/50
  • Payment by the employer for the basic program, while employees are encouraged to improve the package at their own expense

Options for insurance packages:

  • A general program for all employees
  • Individual programs depending on the position or work experience

Health insurance is widely provided among all industries and is mostly offered by high-tech and foreign companies.

Dependent Coverage

Voluntary medical insurance for family members allows an employee to add a family member to the corporate medical program. Most often, an employee pays the cost of insurance on his or her own but at the corporate price (which is usually more profitable than insuring individuals). High-tech companies sometimes pay in full or use a co-financing system to insure employees’ children and spouses.

Medical care at the expense of the employer

  • Provides free service at the selected medical center within a certain limit
  • This option is based on cooperation agreements between the employer and the medical center. Employees can use most of the medical services and procedures at the company’s expense or at a discount.
  • This benefit is used much less often than health insurance support.

Accident Insurance

Provides payment to an employee in the event of a temporary health disorder, disability or death as a result of an accident or illness.

There are two possible programs:

  • Classic (most popular) – is used in case of insured events that occurred because of an accident (injury, bite, burn, etc.)
  • Extended – includes causing harm to life or health because of illness. This option package may contain ‘critical illness’, which provides a cash payment to the employee when first diagnosed with a critical illness (cancer, heart attack, stroke, etc.).

Accident insurance is often offered in conjunction with health insurance.

Psychological Support

Employees in Belarus highly desire psychological support benefits, but they are rarely offered.

Psychological support programs help ensure employees’ psychological well-being, increase job satisfaction, and improve organizational behavior and productivity.

As a rule, the employer fully or partially funds these programs. Programs may include face-to-face consultations with a psychologist or psychotherapist, online consultations or webinars, and training in the company’s office.

Usually, the program includes 3-6 free face-to-face or online consultations. Employees who need further psychological support can pay for additional support themselves.

Also, it is possible to give employees a discount for consultations with a psychologist or psychotherapist.

Healthy Lifestyle

These programs are widely used among high-tech companies, especially those requiring prolonged sitting positions (office workers, programmers, etc.).

The most popular implementation options are:

  • Full or partial payment by the employer for a season ticket to swimming pools, fitness, gyms, yoga classes, etc.
  • Providing employees with discounts on subscriptions to sports complexes and swimming pools with partner sports clubs
  • Organization of a gym and/or a place for meditation in the office

They can additionally include:

  • Check-up
  • Office doctor
  • Massage room in the office

Education and Development

This benefit includes the full or partial payment of programs for improving professional knowledge and skills, soft skills training, language courses, and professional conferences.

Employers also offer training for employees’ children in educational centers or classes in sports venues. Some companies organize summer health holidays and various corporate events for children.

Payment can be 100% by the employer, co-financing with employees, or providing a discount.

Convenience and Comfort

Most high-tech companies prioritize creating an employee workplace that improves work efficiency. Companies also offer canteens and tearooms or provide discounts on restaurants and cafes.

Additional options also include telephone compensation, compensation for transport costs, and parking.

Recreation and Entertainment

This benefit includes organizing corporate events and travel and can be paid entirely at the expense of the employer or maybe with the participation of employees.

Other Corporate Programs

  • Pension insurance program (rare to use). This includes the formation of capital by the employer to finance an increase in the state pension. Pension insurance is subject to tax incentives that allow additional motivation for employees to save while optimizing the tax base. Private companies rarely use such programs.
  • Life insurance (rare to use). In this case, the employer pays premiums to the insurance company, which forms a personal account for the employee. At the end of the insurance period, the employee receives payments. If an employee dies, the family receives payments.
  • Discount programs. This includes discounts on educational centers, sports clubs, medical centers, etc.
  • A home loan (rare to use).

 

Related Government Websites

 

This information about mandatory and supplemental employee benefits in Belarus comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

Poland

Mandatory employee benefits in Poland include pension (PPK), social insurance, and occupational medicine (OM). Supplementary employee benefits in Poland include private medical, life, and business travel insurance. Employee perks include gym memberships and subsidizing employees’ education.

 

Mandatory Employee Benefits in Poland

Social Insurance

The Polish social insurance system includes old-age pension insurance, disability and survivors’ pension insurance, sickness insurance, and work accident insurance. In general, this system does not enable a minimum of resources for people who become disabled during their working lives.

With disability, resulting in the inability to work, an employee receives a pension. It is minimal and insufficient to ensure a minimum standard of living.

Children of an employee who died could count on a pension after the death of a parent if a parent were insured in the Polish social security system. Such pension is minimal as well.

Maternity and paternity leave is covered by social insurance. Short-term disability is covered up to 182 days in a calendar year by the state insurance as well or 270 days – if the inability to work is due to tuberculosis or falls during pregnancy.

Mandatory requirements

Occupational Medicine (OM)

Employers should provide their employees with obligatory occupational medicine examinations because they involve tests that determine an employee’s predisposition to work in a specific position under certain conditions. In this regard, any harmful and onerous factors in a work environment are considered.

Preliminary examination – the following persons are referred: (1) new employees before the commencement of work, (2) employees who have changed their position, (3) employees whose job profile has been changed – where new risks emerge.

Periodic examinations – the following persons are referred: persons already working in a given position before their previous certificate’s validity ends. Follow-up examinations – the following persons are referred: each employee on sick leave for more than 30 days; the employee should undergo the tests to obtain a medical certificate before work recommences.

Mandatory pension (Employee Capital Plan/ PPK)

  • An Employee Capital Plan (PPK) is a method of accumulating assets for future pensions.
  • It is a new (from 2019) and mandatory autoenrollment plan
  • The legal basis for a PPK is the Act of 4th of October 2018
  • Each employer is obliged by law to set up PPK in its company
  • Should there be a delay in establishing PPK, the employer may be subject to a financial penalty of up to 1.5% of the corporate salary funds for the previous financial year
  • The law strictly regulates the PPK setup
  • The employer has approx. 90 days to set up PPK as of the DOH of the first employee

Contributions to PPK

Employer contributions

  • Basic – 1.5%
  • Optional – up to 2.5%
  • Total max basic and optional – 4%

Employee contributions

  • Basic – 2 %
  • Optional – up to 2 %
  • Total max basic and optional – 4%

State subsidies

  • Welcome subsidy – PLN 250
  • Annual subsidy – PLN 240 PLN

Useful remarks

  • Autoenrollment plan for employees between 18-55 years old
  • The employer pays contributions only for PPK participants (if the employee decides to opt out, the employer cannot pay contributions for that employee)
  • The average participation rate is approx. 46.07%
  • Matching is not applicable in PPK
  • Work council (employee representatives or trade unions) need to be involved in the selection process of the PPK vendor
  • Every 4 years, there will be an autoenrollment session for all employees who have opted out. The first autoenrollment session began February/March 2023.

Occupational health and safety training (OHS)

Employers have many obligations relating to ensuring safe and healthy working conditions. These include:

  • Holding regular OHS training courses for workers
  • Familiarizing workers with occupational health and safety provisions and rules relating to their work
  • Issuing detailed instructions and guidelines on occupational health and safety at work stations
  • Providing workers with free personal protective equipment and instructing them how to use it
  • If a new worker is employed, the employer must:
    • Provide OHS training for the worker before permitting that person to work. The worker confirms completion of general training and on-the-job training in writing in an initial
      training sheet, which is included in that person’s file
    • Familiarize the worker with occupational risks and rules of protection against hazards
    • Employees should receive an occupational medicine certificate before starting work in a given position.

 

Supplementary Employee Benefits in Poland

Private Medical Insurance

Public health care is free of charge but is also inefficient and viewed as a poor quality. The waiting period for specialist consultations may take a few weeks or several months (depending on the type of specialist). The waiting period for the advanced diagnostic may take a few weeks or even several months (depending on the kind of diagnostic).  That is why private medical care is the most common benefit in Poland. The majority (over 85%) of the employers in Poland offer such benefits to their employees. However, since 2022, private medical carriers have reported a significant increase in medical costs, affecting the premium increase for new quotations and renewal offers.

Group Life Insurance

Group risk insurance is the second most popular employee benefit among Polish employees. There are two types of group life insurance:

  • The compulsory scheme is where the employer covers the premium for the insurance. The sums insured are either fixed or salary-based. The scope of the cover is limited to a few riders.
  • The voluntary scheme is where the premium for the insurance is covered in full by the employee and deducted from the employee’s salary. The sums insured are almost always fixed but relatively low. The scope of the cover is, however, extensive and includes family benefits where benefits are paid in case of death of the spouse, death of the parents/parents-in-law, birth of a child, and critical illness of the dependents.

It is common for larger companies to have both compulsory and voluntary schemes in place simultaneously. Disability insurance (total and permanent disability for any reason and total partial disability due to accident) is part of the group life insurance plan as a supplemental agreement.

Business Travel Insurance

Although business travel insurance is not mandatory, most (95%) of companies offer it. According to Polish law, employers who send employees abroad must cover medical treatment costs, including medicines and transport costs. The BTA cover is a cheaper solution.

 

Employee Perks

Employer-sponsored gym memberships are a prevalent benefit in Poland. Most companies (89%) subsidize or pay for employees’ education, training, or language course costs.

Flexible benefits are not expected in the Polish market. Only ¼ of all employers offer these benefits.

 

This information about mandatory and supplemental employee benefits in Poland comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

Montenegro

Mandatory employee benefits in Montenegro include the state pension scheme and group personal accident insurance. Common supplementary employee benefits include healthcare. Perks are not common in the country.

 

Mandatory employee benefits in Montenegro 

Pension (State Scheme)

The law on retirement and disability insurance regulates these compulsory benefits. Retirement and disability insurance assure rights to certain benefits in cases of certain risks stipulated by law:

  • Old age
  • The risk of full loss of working ability – namely disability
  • The risk of death
  • The risk of bodily damage caused by industrial injury or occupational disease

The right to benefits (for the above-listed risks) in retirement and disability insurance are:

  • The right to old-age pension
  • The right to disability pension
  • The right to pecuniary benefit for bodily damage
  • The right to caregiver’s allowance

The listed benefits, acquired and exercised under the conditions prescribed by law, assure the material and social security of contributors.

Note that brokers are not allowed by law to service pension insurance for their clients.

Group Personal Accident Insurance

Employers must provide group personal accident insurance as well as coverage for occupational diseases and work-related diseases for all employees (by law regarding safety and health at work). This policy covers death due to accident, death due to illness, and permanent disability. Additional coverage for daily compensations, bone breakages, etc., can be added. According to market practice, all (100%) of employers provide this policy separate from payroll deductions. The market practice is that policies are based on sums insured as determined by the employer and not multiples of salary.

Long-term disability and short-term disability are provided under the government scheme.

 

Supplementary Employee Benefits 

Healthcare

There are two forms of private medical insurance (PMI) available in Montenegro. One is reimbursement PMI (known as voluntary health insurance) and the other is critical illness and surgical cash benefit insurance. Both coverages are mainly written on an employee group basis. The latter is a rider-to-group personal accident (PA) policy. Although the market statistics are difficult to interpret, it seems that lump sum riders are more common.

Lump-sum medical covers were developed in response to the underfunding of state healthcare, which forces state hospital patients to pay many of their treatment costs in cash. These low-cost riders are tax deductible for the employer. The most common policy type covers outpatient costs to an annual limit of €2,000. More generous employers will cover inpatient and outpatient costs to a limit of €5,000.

Forty percent of companies provide additional medical insurance, and currently, the best benefit on the market provides all employees treatment. Small companies may pay premiums for dependents, however, larger companies offer employee rates to dependents that the employee covers.

Extended healthcare includes prescription drug coverage, hospital and supplemental healthcare, dental, and vision-

 

This information about mandatory and supplemental employee benefits in Montenegro comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

Moldova

Mandatory and Supplementary Employee Benefits in Moldova

The available products on Moldova’s insurance market designed for personal protection are:

  • Personal Accident insurance
  • Travel Health insurance
  • Group Life insurance
  • Healthcare insurance

The products designed for both protection and savings are:

  • Long-term life insurance with an investment component (Life Endowment)
  • Critical illness insurance

Regarding the scope of cover, the available employee benefits products can be divided into three categories:

  • Products designed for protection
  • Products designed for personal savings
  • Mixed products, which include both components

 

Employee Benefits Overview

Work accidents / Professional Diseases/ Workmen’s compensation

In Moldova, the State still handles the whole system through funds collected monthly from the employers and employees.

According to Law Nr. 756 of 24.12.1999, the Public System grants the following compensations in case of work accidents and/or professional diseases:

  1. a) Medical rehabilitation benefits
  2. b) Benefits for the recovery of work capacity
  3. c) Benefits for professional rehabilitation
  4. d) Indemnity for temporary incapacity of work
  5. e) Allowance for a temporary transfer to another job
  6. f) Permanent disability indemnity
  7. g) Death indemnity
  • For Personal Accidents and professional diseases, facultative insurance products are available in addition to the benefits offered by the state system.
  • The expenses of companies with insurance premiums related to personal accident insurance are tax-free, and the indemnities received following personal accident claims are also exempt from revenue taxation.

Employers’ Liability

  • Law No. 186 din 10.07.2008 on Security and Health at Work has provisions regarding employers’ liability to pay indemnities in case of professional diseases, death, and permanent disability of the employees due to accidents at work when the employers are liable for accidents.
  • Death and permanent disability indemnities are a burden. According to the law, liable employers must pay a lump sum indemnity equal to one annual salary for a deceased employee for each year remaining until 62, but not less than 10 annual salaries. In cases of disability, the payment will be one average salary for each percentage of capacity loss but not less than one annual salary of the injured employee.
  • The employer’s liability risks may be included in facultative insurance coverage. In case of a claim, the insurer will pay the claimed amount regardless of any other payment from Social Security Fund or other insurance schemes.
  • The facultative insurance indemnities are subject to the policy limits.

Healthcare – Public and Private

There are available two Medical Insurance coverages:

  • Compulsory health insurance
  • Private health insurance

The insurance premium for compulsory health insurance is paid monthly, with 9% of the employee contribution. Employers pay the National Health Insurer on behalf of the employee.

Private insurance companies provide facultative health insurance. Following the Fiscal code, only 50% of the employer’s expenses with private health insurance are tax-free.

Private Health Insurance Coverage

In Moldova, healthcare is the number one preferred benefit, as employees are interested in easy and no delays in accessing private health institutions, including private clinics. However, only 5 of the 9 insurance companies in Moldova supply health insurance coverage.

  • Outpatient coverage, including visits to GP or specialists, lab tests or investigations, high-tech imaging, etc.
  • Inpatient coverage includes:
    • Room & board
    • Medication/treatment during a stay in hospital
    • Surgery + consumables and accessories used in the surgery room
  • Road ambulance / Emergency Room
  • Dentistry

Private health insurance offers many advantages in addition to obligatory state health insurance programs:

  • Free access to private health care institutions (hospital and outpatient)
  • Free medicines and drugs
  • Dentistry
  • No need for prior approval on behalf of the family doctor.

Travel Health Insurance

  • Medical expenses occurred during trips abroad following accidents
  • Medical expenses occurred during trips abroad following sudden illness and emergency
  • Additional costs with the repatriation of a dead body

Life Insurance

  • The primary coverage available is death by any cause (illness, accidents) and survival benefits.
  • Available additional riders are:
    • Permanent total disability due to accidents
    • Permanent partial disability due to accidents
    • Critical illness insurance

Private Pension Funds

For the time being, no private pension funds are operating in Moldova.

The law governing the private pension system: Law No. 198 of 20.11.2020 on Private Pension Funds. There is an opportunity for foreign investors to set up private pension funds.

Currently, the pension system functions only on Pillar 1, based on the pay-as-you-go system.

 

Suggested Employee Benefits Package

Based on our previous experience in this market, the most popular combination now is a package which includes:

  • Group Life, Accidental Death & Dismemberment (this one settles the major risks which might affect the individual/employee)
  • Private Health Insurance (this one takes care of the day-to-day problems they might experience during or out of the working program hours)

The advantages of having such schemes in place are well-known to all employers:

  • Line-up/differentiate as to concurrence conditions
  • Higher degree of fidelity/commitment
  • High people retention ratio: a real plus when you have qualified people
  • Lower fluctuation of personnel, which means stability and lower costs

 

Perks

  1. Company car used for personal needs
  2. Gym membership reimbursement
  3. Required breaks (nap rooms, tea stations, etc.)
  4. Wellness activities
  5. Ergonomic desk accessories (like chairs and keyboards)
  6. Free healthy snacks
  7. Company fun runs
  8. Incentives for participation in wellness programs
  9. Flexible hours
  10. Remote or work-from-home options
  11. Company picnic for employees
  12. Time off for volunteering
  13. Charity donation matching
  14. Company-sponsored charity events
  15. Casual dress code
  16. Company retreats
  17. Employee of the Month recognition
  18. Tuition reimbursement
  19. Office library
  20. Stipends for certifications and employee development
  21. Paid memberships to professional organizations
  22. Professional recognition events
  23. Sponsored travel to industry conferences

 

Related Government Websites

 

This information about mandatory and supplemental employee benefits in Moldova comes from Asinta’s Central and Eastern European Partner, the GrECo Group. If you need support with your benefits in the country, please contact Asinta, and we will put you in touch with the local experts at GrECo.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.

Macedonia

Mandatory employee benefits in Macedonia include pension, health, paid time off (including maternity leave and benefits), professional disease, and employment insurance. Supplementary employee benefits in Macedonia include formal education and non-formal education benefits, retirement, managerial insurance, private health insurance, and sports and leisure activities. Offering employee perks is not common practice in the country.

Mandatory Employee Benefits in Macedonia

Pension Insurance

The pension insurance system of the Republic of North Macedonia is a multi-pillar pension system. It is structured this way:

  • Mandatory State organized I (first) Pillar defined by the Law on Pension and disability pension insurance that requires all employed persons to be registered and defined as pension contributors. The System is led by the State Fund for pension and disability insurance. The date of Funds’ entry is related to the date of the first employment, a record that is acquired and maintained by the Agency of Employment. The insurance type is a pay-as-you-go system and by Defined Benefit Scheme, determined by the:
    1. The volume of the pension contribution
    2. Replacement rate, which is defined in relation to the employment period and the time of retirement and amounts up to max. 80% of the earnings in the total period of employment
    3. Length of the insurance period
    4. Type of working time(full/part-time job), namely 40 hours/20 hours (or less) per week

The pension benefit is related to the retirement age of 62 years for women and 64 years for men, while the Law offers the possibility for optional (upon employee request) late retirement at age of 67 (both for women and men) and a minimum employment period of 15 years.

  • Mandatory II (second) Pillar, a defined contribution pension plan, is mandatory for all employees that had formally started their employment after 1.1. 2003 and are registered by the Fund for pension and disability insurance and voluntary for the employees employed prior to 1.1.2003 (this category of insured persons had got in 2019 the right to re-define their status by remaining in the combined Pension System or to swing to the I Pillar, as one-time irrevocable decision). The II Pillar is also mandatory for all the new first-time employees after 1.1.2019 who at the date of their first employment are younger than the age of 40 years. The retirement age is linked to the previously stated I Pillar, thus offering a combined pension for this category of pension-insured employees. The mandatory II Pillar is organized by the current three Pension Funds that operate as an open investments fund, with one portfolio for all the contributors and without particular guarantees for RoR. The System is supervised by the independent Regulatory Body (MAPAS) responsible to the National Assembly of the country. The number of members of the I+II Pillar is 87% of the integral total pension system contributors (as of 1.1.2020, MAPAS Annual 2019 Report)
  • Voluntary III (third) Pillar, defined as a voluntary defined contribution plan, offers possibilities for additional individual pension savings accounts and professional pension savings schemes, predominantly for the Professional pension Schemes, currently used by medium and large size mainly foreign companies (FDI) as an instrument for managers and employees rewards, work stimulation as well as for their retention. Membership at the III Pillar is possible for foreigners and is not conditioned to employment and membership at the mandatory I and II Pillar.
  • Disability pension can be acquired by an employee that has a general working disability as well as an employee that cannot overcome the disability throughout the professional rehabilitation, defined by the following criteria:
  • The disability is caused by a professional disease or working injury, regardless of the length of the pension contribution period
  • The disability is caused by an injury or disease outside of the workplace if the employee prior to the disability is older than 45 years of age and has at least 12 years of pension contribution period or
  • The disability is caused by an injury or disease outside of the workplace, and the employee has 30 to 37 years of age, has a pension contribution for at least 30% of the working period, or if the employee has 37 to 45 years of age and has pension contribution period covering 40% of its working period.
  • According to the law, the legal contributor is the employed person. However, the calculation and the payment of the pensions at the integral pension system, namely for pension contributors for the I Pillar (mainly older employees) and for the contributors to the combined I+II Pillar System (majority of the employees), is done by the employer, on a gross wage, declared, confirmed and accepted by the Public Revenue Office (PRO). The same procedure applies to the rest of the social contributions (described below). The gross wage must be paid to PRO by the 15th of the month, while the employees receive the net wage, and the social contributions are transferred to the respected Funds by the PRO.
  • The pension contribution rate is defined by the Ministry of Finance and is set as a total of 18.8% of the gross wage. For the I Pillar members the total percentage of 18.8% is distributed to the State Pension Fund, while for the members of the combined pension system, there is a distribution of the same percentage for contribution in the proportion of 12.8% for the I Pillar and 6% for the II Pillar. However, the latter is distributed as a back-office process at PRO and MAPAS, while the employer calculates and pays a total of 18.8%
  • The employees performing hazardous and arduous work receive an extended length of service status that allows early retirement by different categories and in relation to the work complexity. These employees are mandatory members of the I Pillar, regardless of their age and employment period.
  • Within the system, two limits exist for calculating social contributions. The minimal base for the contribution calculation is set as 50% of the average salary paid in January for the current year (448 Euros, January 2020, State Statistical Office). However, the maximum level exists, set at 16 times the average salary paid in January for the current year. Above the defined maximum level, the employer does not calculate and pay the social contributions (pension, health, professional illness, and employment insurance), however, the personal tax is payable at 10% of the gross wage.
  • As a result, employees that are contributors to the I Pillar are awarded a mandatory pension ranging from a minimum of €150 (regardless of the contributions and the amount of the salaries), the average pension of all categories is almost €250 up to the maximum pension of roughly €700 for a marginal group of pensioners. The combined pension is yet to be delivered and would be consisted of the defined benefit I Pillar part(up to 40% replacement rate) and the rest depending on the time of the capitalization and the RoR of the invested assets.

Health Insurance

Health insurance for employees consists of the mandatory health insurance defined by the law on health insurance. As an integrative part of social contributions, regardless of the fact that the individual employees are defined as contributors, the employers are calculating and paying the health contribution on behalf of the employee. As is with the pension contribution, this is paid on the gross wage, respecting the minimal and maximum base for the social contribution calculation. Currently, it is set at 7,5% of the gross wage for the employee. The transfers are directed to the Fund for Health Insurance as the State organized and led system of public health. The average monthly contribution for the Health Fund was €33 (Health Fund 2019 Annual Report). The health contributors can contribute and cover health insurance for the members of the family (spouse), dependent until 18 or dependent in process of high education until 26.

Public health insurance covers all the employees’ needs for primary, secondary, and tertiary health care, with individual participation in health services and selected pharmaceutical goods of 20%.

There is a possibility for voluntary and complementary private health insurance for individual/family health coverage within the system of the non-life and life insurance industry. This product is offered by 11 non-life companies and 5 life companies (as complementary to the life insurance) that varies in relation to the covered risks and the insured sum.

Paid Time Off

Maternity / Paternity Pay – Maternity Benefits

According to the Law on health insurance, women have the right to benefit for pregnancy/delivery/maternity. The integral benefits are payable to the biological mother (including the surrogate mother) for a continuous period of 9 months or 15 months if twins and more are delivered at once.

Upon the Report of the Health Authority, the women can decide to start using the benefit 45 days preceding the expected week of delivery as the period mandatory starts 28 days preceding the expected delivery time. That time is calculated within the 9 months of maternity pay. The benefit is payable at the level of 100% of the wage and is transferred by the Fund of Health Insurance on behalf of the Ministry of Labor and Social Affairs. In addition, if there are objective reasons for early pregnancy absence of work, the period of maternity pay can start as early as the Health Fund Specialist Commission confirms the need thus the benefits of 100% of the wage are applied earlier as the 9 months of maternity pay starts with the delivery. In these cases, again the benefits are paid by the Fund of Health Insurance on behalf of the Ministry of Labor and Social Affairs.

The women can apply for the same benefits in cases of adoption of one child (for nine months) or for more than one child (for a period of 15 months).

If the mother/woman decides to return to work earlier, it can be done after 45 days of delivery, in which case she has a right to an additional benefit of 50% of the wage not excluding the initial wage.

The benefit for maternity can be transferred to paternity, if decided so, both in case of delivery and adoption of child/children.

Parental Leave

As previously stated, parental leave is declared for up to 9 months (for a child) and up to 15 months (for more than one child). Benefits are payable monthly at the volume of 100% of the parent’s last wage, but not exceeding 4 times the national average wage for the respective year. The parental leave can be exercised as an unpaid benefit for a maximum of 3 months in a total time frame of 3 years in relation to the need for child/children care and support for growth.

Leave (Relief) for sickness, Professional disease, and benefit for travel expenses related to health services

Employees have the right to benefits related to particular work leaves caused by disease, professional disease, and need for health services. The volume of the benefit is set at 75% of the workers’ monthly average wage prior to the beginning of the temporary leave, in general cases. The exemptions are applied for cancer diseases when the benefit is 85% of the worker’s wage and 100% of the worker’s wage in cases of pregnancy/delivery/maternity/paternity cases, injuries at work, professional disease, and in periods of blood, tissue, and body part donation and transfer.

In cases of caring for a child 3 years and younger, cases of pregnancy/delivery/maternity/paternity cases, injuries at work, professional disease, and in cases of blood, tissue, and body part donation and transfer, the benefits are paid by the Health Fund as from the first day of the leave. In all other cases, the benefits for the first 30 days are paid by the employer, while for the rest of the time, the Health Fund undertakes the responsibility.

For short-term leave up to 21 days, there is a different percentage for salary compensation (benefit) paid by the employer, ranging from 70% to 90%. However, the exemptions defined above apply consequently in such cases and the volume of benefits can increase.

For all cases, general and particular conditions apply:

  • The need for continuity of health insurance status, at least 6 months
  • The obligation for continuous payment of the health contribution (by the employer, or by other institutions according to the laws) or by the maximum delay time of 60 days
  • Particular and defined health documentation must be provided

Professional Disease Insurance

In relation to the employee’s right to professional disease benefits, within the same procedure for calculation and payment of the gross salary, the employer pays a 0.5% contribution rate of the gross salary for professional disease, as mandatory insurance for the employee for acquiring potential benefit for professional disease confirmed by the procedure involving primary personal physician and doctors from the secondary and tertiary health sector (specialists) integrated into the State Pension Fund Commission for working ability evaluation.

Employment Insurance

All employees are mandatorily insured in case of unemployment according to the legal provisions. For that purpose, within the same procedure, the employer calculates and pays the mandatory employment insurance of 1.2% of the gross salary. The employee benefits in case of unemployment are consisted of:

  • Financial benefit
  • Support for employment such as training, re-qualification, and sub-qualification
  • Health insurance
  • Pension insurance for a period of 18 months for a person missing such a period for obtaining a minimum of 15 years of employment period as a precondition for acquiring an age pension

The unemployed person can apply for a benefit if was employed (in different capacities) continuously for 9 months or discontinuously for at least 12 months in a total employment period of 18 months. The volume of the benefit depends on the calculated and paid salaries by the employer i.e. 50% of the average monthly net employees’ salary in the last 24 months if the person is eligible for benefits up to a period of 12 months, as well as for the person that is eligible for the benefit for a period more than 12 months, the benefit for the first year is set on 50% of the average monthly net employees’ salary and 40% for the rest of allowed period. In all cases, the maximum amount of the benefit must not exceed 80% of the national wage average, declared for the last available month.

The duration of the benefit can last from 1 month to 12 months depending on the continuity or discontinuity of the employment status, exempt for the insured persons that have the opportunity for obtaining the age pension when the duration can be prolonged to 18 months.

The benefit is transferred by the Agency of employment, as well as the person receives full benefits and rights for health care, particularly the benefits defined above.

Rights for annual vacation and vacation benefit

The employees have the mandatory right of vacation, namely a minimum of 20 working days and a maximum of 26 working days if full-time employed. For part-time employees, the vacation period is 10 days.  Additionally, up to 7 days, are mandatory for employees for other, planned, or sudden events and needs related to family matters, education, and defined circumstances. A legally defined benefit for vacation is defined at the level of 40% of the average last three months’ net salary, thus ranging the benefit between 160 and 200 Euros.

Health Exams

According to the Law for work security and health, all employers are mandatorily obliged to undertake several categories of the employees health exams at accredited health institutions, public or private. The health exams are determined by the particular bye-laws and vary from:

  • Previous exams
  • Periodical exams
  • Targeted (focused) exams and
  • Systematic exams

The health exams must be done at least once every 24 months and all the costs are covered by the employer, including the exams for:

  • General and detailed anamnesis
  • Exams of the various body indices
  • Basic blood laboratory exams
  • Eye exams
  • Audiometric exams
  • Spyrometric exams and
  • ECG

Additional payment for overtime

Employees have a legal right to additional payment for overtime work.

  • Overtime = 35%
  • Night work = 35%
  • Triple shift = 5%
  • Sundays and national holidays = 50%

 

Supplementary Employee Benefits

Formal education and non-formal education benefits

Following the growing demands for skilled and professional human capital, medium and larger domestic and foreign companies offer Programs for employees’ formal education continuation at Master’s and Doctoral Studies, nationally and abroad. Moreover, targeted and focused skilled and profiled employees’ demand is met by enrolling employees in the short to medium-term non-formal specialist training and courses, sponsored by the employers and related to the guaranteed working period for the company afterward. Even though employees’ rights and benefits for continuous education and specialization are defined by the Law on labor relations, they are hardly practiced by the majority of employers.

Retirement

Retirement benefits are not present or developed so far. The only option for it is voluntary retirement savings within the III Pillar offered by professional pension schemes organized by large domestic or foreign companies, within the ICT industry, financial corporate sector, or larger production companies. However, these options are mainly focused on employees in medium and top management positions.

Managerial Insurance and Private Health Insurance

Medium and predominantly larger domestic and foreign corporations, within the ICT, financial, and production industry, offer particular managerial insurance as well as health insurance, from the non-life insurance industry or very limited offerings from individual and group life insurers.

Sports and Leisure Activities

Very few large domestic and foreign companies are offering employees incentives or sponsored activities for sports and leisure activities within the concepts of organizational health. The existence of internal gymnasiums is nonexistent, and support for employees’ healthy behavior is extremely limited, mainly achieved by few examples of gym centers in the companies or partial involvement in the CSR and humanitarian-orientated sports events such as skiing events, marathons, etc.

Workplace Canteens

Employees’ financial benefit for food and travel expenses was abolished in 2008 and such transfers were included in the employee’s gross salary. However, foreign production companies located in the Technological Industrial Development Zones (TIDZ) and larger domestic and foreign financial and ICT companies, offer employees either free catering or discounted price canteens and food/beverages corners.

Transport Services

For companies that require distant travel, the employees are mandatorily offered and organized transport or additional wage benefit should be arranged if the transport is not arranged.

Voluntary Employee Benefits

In practice, the major companies used accident and disability insurance for their employee, which is not mandatory, but it’s most often applicable, covering the following perils:

  • Accidental death
  • Death from disease
  • Permanent disability
  • Daily allowance costs
  • Treatment costs

  

Employee Perks

Common perks offered in Europe are not typical in Macedonia.  However, there are current incentives for designing, developing, and starting programs for improving the country’s human capital and in particular employees’ benefits and perks. The presence of such innovative, sustainable, and effective models could be seen as a strong competitive advantage for multinational employers.

 

This information about mandatory and supplemental employee benefits in Macedonia comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Lithuania

Mandatory employee benefits in Lithuania include a three-tiered pension system, maternity leave and benefits, and employment insurance. Supplementary employee benefits include health insurance, retirement, and flexible benefits. Perks are not common in the country.

 

Mandatory Employee Benefits in Lithuania

Pension

The Lithuanian pension scheme became operational in 2004, allowing residents to accumulate a part of their social insurance contributions in private pension funds.

The pension system in Lithuania is made up of three Pillars in which pensions are accumulated differently.

Pillar I

This is the state’s social security system through which individuals are insured or insure themselves for a social insurance pension.

Pillar II

New sources of financing were introduced in 2019: a person’s private contribution (3% of the person’s gross wage) and the state’s contribution (1.5% of the national average wage).

Once a pension fund scheme has been set up, people cannot withdraw funds before reaching pension age.

Pension scheme eligibility: Employed persons under 40 years of age and all persons currently taking part in the pension scheme will be included in the new scheme, but they can opt out.

Life cycle funds: Pension accumulation companies will be obligated to offer participants to join pension funds that are most appropriate to them regarding age. This means managers will be compelled to get maximum return on investment when participants are young and work towards securing the wealth accrued over a lifetime once they start nearing retirement age.

Annuity: As of July 1, 2020, the State Social Insurance Fund became the centralized provider of annuity services. There are two types: deferred and standard annuities. The mandatory annuity purchase limit has been reduced to €10,806. This means an annuity should be purchased only after accumulating at least €10,807.

  • If the accumulated sum is equivalent to or less than €5,403, the respective person will receive a single payment. This money is heritable.
  • If the accumulated sum is between €5,403.01 and €10,806.99, the respective person will receive periodic payments (which shall be terminated once all the money has been used). This money shall also be heritable.
  • If the wealth accumulated in the pension fund exceeds €64,841, the respective person shall have the right to receive the excess amount from the pension accumulation company as a single payment.
  • The standard pension annuity allows pension benefits to be paid to the person to commence immediately and last for life. The standard pension annuity is not.

Pillar III

This comprises voluntary contributions to a pension fund or participation in a life insurance scheme. Everybody can participate, including those who do not make pay contributions to SoDra (Pillar III) and those who do not participate in Pillars I and II.

The following people have the right to receive a pension from SoDra:

  • Those who have reached retirement age. The pension age is currently being increased year by year to 65.
  • Those with at least the minimum social insurance pension record of 15 years. The number of years of contributions to draw the full pension has been gradually increasing since 2018 by 6 months every year until it will reach 35 years in 2027. In 2023, the period of contribution was 33 years.

Maternity an Paternity Benefits

Expectant mothers are entitled to receive the following:

  • Before the first day of the pregnancy and childbirth leave — maternity social insurance record of not less than 12 months during the last 24 months. ​
  • If a person has the obligatory social insurance record because they had been on childcare leave before – the maternity social insurance period is calculated from 24 months before the child reaches 2 years of age.

Amount of benefits: The maternity benefit is 78% of the compensated recipient’s wages. This size is calculated according to the person’s insurable income for 12 consecutive calendar months until the month preceding the month when the right to maternity benefits appeared.

The minimal monthly maternity benefit cannot be less than 8 basic social insurance benefits valid for the last quarter before the right to maternity benefit appeared (i.e., €368).

The benefit is paid:

  • For 126 calendar days after 30 or more weeks of pregnancy.
  • In the case of complicated childbirth, if more than one child is born, the benefit shall be paid for an extra 14 calendar days.
  • For 56 calendar days after the childbirth, if a woman has not used the right to a pregnancy and childbirth leave before the date of birth.
  • For 70 calendar days after childbirth in the case of a complicated delivery, or if more than one child was born, and a woman has not used the right to a pregnancy and childbirth leave before the date of childbirth.

The paternity benefit is 78% of the compensated recipient’s wages. This size is calculated according to the personal insurable income received in 12 consecutive calendar months until the month preceding the month when the right to paternity benefits appeared. The paternity benefit is paid for 30 calendar days and can be used until the child is 3 months old. 

Childcare benefit:  A mother or a father can be on childcare leave for 1 or 2 years. Depending on the term, different benefit levels apply:

  • 1 year of childcare leave (until the child reaches 18 months of age) – 78% replacement wage
  • 2 years childcare leave (until the child reaches 24 months of age) – first year 45% replacement wage, second year 30% replacement wage

Employment Insurance

Employment insurance benefits entitle recipients to income replacement due to the following:

  • Sickness: The employer pays a minimum benefit of 62.06% and up to 100% (discretionary) of the recipient’s average wages for the first 2 days of illness. The National Social Insurance Fund, from the 3rd day of illness, shall pay 62.06% of the recipient’s compensated wages. The monthly sick pay paid by the National Social Insurance Fund cannot be smaller than 11.64% of the domestic average monthly wages valid for the last quarter before the temporary working inability was determined.
  • Disability allowances: Statutory benefits are paid when a person has lost the capacity to work continuously (paid as a fraction when capacity is lower than 45%). The benefit is paid as a multiple of the Lithuanian Insured Income (€476/month) or a fraction based on the amount of incapacitation.
  • Maternity
  • Parental leave
  • Pension

 

Supplementary Employee Benefits

Healthcare

The most popular supplementary employee benefit in Lithuania is voluntary Health insurance. Supplemental plans typically offer free annual check-ups, dental care, and vision aids.

Retirement

See Pillar III under the pension section in mandatory benefits.

Education

Companies can provide or assist with employee development, usually bearing all training or education costs.

Flexible Benefits

For the last three to five years, employers have increasingly used flexible benefits to improve retention, boost morale, reduce sickness and absence, and improve productivity and job performance. Young employees seek flexible employee benefits and an employer that cares about their health and well-being.

Gymnasiums

Very large local employers or foreign branches can provide on-site facilities. Smaller employers may offer gym subsidies. However, sports clubs/gymnasium perks are included in taxable services, and additional taxes would apply to reimburse for these services through health insurance (a common practice).

 

Perks

Employee Well-being

Foreign companies usually offer these perks and include the employer modifying the workplace to encourage healthy behaviors and installing playrooms and lounges.

Related Government Websites

 

This information about mandatory and supplemental employee benefits in Lithuania comes from Asinta’s Central and Eastern European Partner, the GrECo Group.

Nothing on this country page is intended to be legal, financial, or tax advice, and readers are advised to consult with their appropriate advisors regarding any legal, financial, or tax implications this information may address.