Archives: Countries

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

Azerbaijan

As a pilot project, a compulsory medical insurance implementation process began in 2017 for some Azerbaijan regions. Today, medical insurance is mandatory across the country. Payments are calculated based on the insured person’s salary, and the employee and employer divide the payments.

Though all citizens receive coverage, many local companies prefer to purchase voluntary medical insurance because it provides access to private clinics and hospitals. Compulsory insurance provides services mainly at state clinics, and some modern, well-equipped hospitals are now part of the system. However, these hospitals offer only certain services within a limit.

Albania

Mandatory Employee Benefits in Albania

Workers Compensation

In Albania, the State manages the whole system through funds collected monthly from employers and employees. According to Albania’s social insurance law, the following compensations are granted in the case of:

  • Indemnity for temporary or permanent disability
  • Death following a work accident
  • Professional disease

Employee benefits can be provided indirectly through the Employers Liability facultative basis. Usually, foreign companies buy small and medium-size limits of €500K- €1M.

Healthcare

Despite being a mandatory benefit, it is not a good system, and it is preferred by people who cannot afford the high cost of the private system.

 

Supplementary Employee Benefits in Albania

Personal Accident Insurance

This is mandatory only in the mining sector and has the following parameters:

  • A mandatory limit of €48,000
  • Employers cover the cost of the policy
  • The law regulates the scope of coverage

Retirement

Products for personal savings include private pension funds, which are not compulsory. In addition, long-term life insurance with investment is an available product that combines both protection and savings.

Federal law regulates all activity and operations of private pension funds. It is a favorable system where:

  • Contributions are tax-deductible for employees.
  • Profits from the investment are not taxable.
  • Employer contributions are tax-deductible.
  • The maximum limit for annual contributions is ALL 250,000 per person.

Healthcare

Albania’s private healthcare system is preferred by private companies and people with high-income levels. The three main health plans have a standard limit of €50,000. The next level is Silver at €100-€200K, and Gold at €200-€300K.

Typical outpatient coverage includes:

  • Visits to GP or specialists
  • Lab tests or investigations and imaging

Inpatient coverage includes:

  • Room & Board
  • Medication/treatment during the hospital stay
  • Surgery and consumables and accessories used in the surgery room
  • Road ambulance and emergency room
  • Pregnancy package (monitoring of pregnancy)
  • Dental and vision coverage / poor cover up to €300

Travel Health Insurance

This provides for medical expenses that occurred during trips abroad following accidents and includes:

  • Sudden illness and emergency
  • Dental care is subject to certain sub-limits (emergency)
  • Additional costs with relatives who assist the victim
  • Additional costs with the repatriation of a deceased

Life Insurance

This product is not mandatory, but it is strongly recommended. Also, life insurance is mainly required by banks for their creditors and top managers. The primary coverage is death by illness and accidents, and the available riders are:

  • Permanent total disability (illness, accidents)
  • Permanent partial disability (illness, accidents)
  • Daily cash benefit for temporary disability (days of hospitalization and/or ambulatory plus days of convalescence)
  • Daily cash benefits for medical expenses up to different sub-limits
  • Indemnity for surgical intervention expenses up to different sub-limits
  • Indemnity for broken bones (following accidents)

 

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

Australia

Mandatory employee benefits in Australia include retirement or ‘superannuation’ and PTO, as well as holiday pay, long service leave, maternity/paternity leave, and sick pay. Supplementary employee benefits include education advancement, voluntary benefits, health insurance, and flexible working arrangements.

 

Mandatory Employee Benefits in Australia

Superannuation/pension

This is a mandatory benefit in Australia, subject to legislative requirements. Employers must follow the ‘Choice of Fund’ legislation to allow an employee to select their own preferred pension plan or auto-enroll eligible employees into a complying Group Superannuation scheme.

The legislated minimum as of July 1, 2024, is 11.5% up to a maximum quarterly salary of $65,070 (i.e., the contribution of $7,483.05 per quarter p.a.). This legislated minimum contribution percentage amount increases by 0.5% each year until it hits 12% in July 2025.

Employees can also elect to voluntarily salary sacrifice pre-tax dollars into their superannuation fund (up to yearly limits).

The numbers shown above are minimum requirements. Most employers base their contribution strategy on industry norms and benchmarking data, which can vary from sector to sector.

  • When designing your Australian superannuation scheme, great care needs to be taken in three areas:
  • Contributions — How do they benchmark in your sector?
  • Supplier — Selecting the most suitable supplier based on service and costs is important. This will largely depend on member numbers.
  • Insurance included — Default employer plans have a basic minimum of life and disability lump sum cover, but larger employers typically look towards higher levels of cover. This provides the benefit of scale, such as auto cover and cheaper premiums.

Paid Time Off

  • Holiday Pay — All full- and part-time employees are legally entitled to 20 paid holidays per year. This does not apply to casual employees, however, who are more typically paid by the hour or on flexible work contracts. This is in addition to the public holidays. It is now increasingly common for employers to allow staff to ‘buy’ or ‘salary sacrifice’ extra days.
  • Long Service Leave — Reasonable and unique to Australia, there is a legislated 8.67 weeks of paid leave in addition to the annual leave payable on the completion of 10 years of service. This entitlement starts to accrue from five years, and many businesses will register it as a ‘liability’ in their balance sheet.
  • Maternity / Paternity Pay – Although there are no legislated paid parental leave requirements for the employer, today, companies offer paid parental leave. There is, however, a government parental leave payment (for those eligible), which can be paid through the employer. Full rules can be found at au.
  • Sick Pay – There are no official Statutory Sick Pay benefits — however, most employers voluntarily offer between five and ten days per year. This is sometimes inclusive or exclusive of the typical bereavement leave (commonly up to five days).

 

Supplementary Employee Benefits in Australia

  • Group Insurances – Very popular for large, multi-national companies in a number of sectors to build a personal insurance plan for staff that will often include Salary Continuance cover as well as lump sum Death and Disability insurance
  • Health Insurance – This has traditionally been a lower priority, but with the Government increasing taxes and reducing rebates for high-income earners over the past 5+ years, this is seeing a rise in large businesses offering fully paid or subsidies plans (although mostly in IT and professional sectors where salary levels are high and competition for talent)
  • Education Advancement/Programs – These are very popular and common.
  • Company Cars – Small numbers of employees are provided with company-financed cars and/or fuel or a car allowance. Salary packaging through a ‘Novated Lease’ is reasonably common amongst professional services, IT, or industries where salary levels are typically higher.
  • Childcare Centers and Subsidiaries – An increasing number of large, professional services companies are looking to offer childcare placements and or daycare facilities.
  • Flexible Working Arrangements – For families, including higher levels of time off, working times, and working-from-home arrangements.
  • Voluntary Benefits – Larger employers often provide employees with a range of ‘voluntary benefits,’ which are often provided at discounted prices through the employer or a third-party benefits provider. Personal insurances are the most common.
  • Flexible Benefits – It is increasingly popular to provide flexible benefits where employees select benefits from a menu. CA Financial Services can help build and manage the right mix of benefits to offer your employees depending on demographics, age, and location.
  • Gymnasiums—Very large employers sometimes provide ‘gym on-site’ facilities, whereas smaller employers may offer gym subsidies or access to a gym with lower corporate rates.
  • Workplace Canteens – Canteens are common with larger employers who have high time expectations from their employees or are in remote locations.

 

Perks

  • General Wellness — This is becoming front and center of most employer discussions and is a sub-set of the flexibility discussion. This is seeing a rise in more communal spaces with break-out activities like table tennis or pool tables, bubble chairs, swings, and even swivel scooters. On the more serious side, advertisements on where to seek help or access information for mental health are becoming more common.
  • Flu Shots and vaccinations – Done onsite and occasionally with other basic health checks.
  • On-site canteens and/or healthy food choices—Traditionally, these were just vending machines or a small fridge, but more recently, they can include fresh fruit delivery services, juice and smoothie bars, or menu selections from a local supplier to on-site restaurants.
  • Subsidies for Health and Fitness Facilities — Usually, there is some connection or partial subsidy for a gym, but this is expanding to a wider variety of health services such as yoga, Pilates, and swim centers.
  • In-house bathrooms and shower facilities — Gaining attention as more staff look to walk, ride, or run to work or for those who want to get some activity done during work hours (now more supported than in past years).
  • Increased relaxation activities — Includes onsite team games, lifestyle classes, and even massages.
  • Group benefit pools – More and more employers are signing up to suppliers of discounted goods and services where the scale of many employers can produce significant discounts on shopping, petrol, movie tickets, travel, and leisure activities.

 

This information about employee benefits in Australia is provided by CA Financial, Asinta’s employee benefits consulting Partner in Australia. 

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.

India

Mandatory Employee Benefits in India

There are six key statutory benefits:

  • Employees’ Provident Fund, Employees’ Pension Scheme, and Employees’ Deposit Linked Insurance come under the purview of Employees’ Provident Funds and Miscellaneous Provisions Acts, 1952. These are funded by matching employer and employee contributions.
  • Employee State Insurance Scheme is mandatory for employees earning up to INR 21,000 per month (or INR 25,000 p.m. for employees with disabilities). This is a comprehensive benefits scheme covering medical costs for the family, including parents and dependent siblings, disability compensation, STD and LTD benefits, widow’s and children’s pension, and other benefits. It is funded by employer and employee contributions as well as Government contributions.
  • Statutory leaves are regulated by each State’s Shops & Establishments Acts or by the Factories Act (depending on which Act the company has registered under). These cover sick leave, casual leave, privilege/earned leave, national holidays, State Founding Day, and other leaves such as bereavement leave.
  • Gratuity is a gratuitous payment due to an employee after 4 years 8 months continuous years of service, on termination, resignation, or retirement, or earlier in case of death or PTD. The Government of Karnataka on 10th January 2024 enacted Compulsory Gratuity Insurance Rules, 2024, ensuring legislative approval for compulsory insurance, approved Gratuity Trust creation, mandatory registration, full Gratuity coverage, and governance via a Board of Trustees. With this, Karnataka has become the second state to issue rules on compulsory Gratuity insurance after the Andhra Pradesh Compulsory Gratuity Insurance Rules issued in 2011. If an employer has multiple offices or branches spread out in multiple states, then the current rule will be out of scope as it will fall under the Central Government rules and regulations. However, similar rules may be implemented in other states as well.
  • Paid maternity leave of 26 weeks is mandatory. In addition, the Maternity Benefits (Amendment) Act of 2017 requires employers having more than 50 employees to provide a paid creche for children up to the age of 6 years.
  • Labor laws provide for compensatory days off for working on holidays and overtime pay of at least two (2) times wages.

Supplementary Benefits in India

Group employee benefits in India generally include medical, accidental death & disability, term life, business travel accident insurance, and a pension. These benefits are prevalent across white-collar industries and blue-collar organizations where income levels are above the wage ceiling for statutory benefits. Voluntary retirement savings through the National Pension Scheme have increased substantially since the scheme opened to the private sector in 2017, and the government introduced attractive tax incentives.  Common employee perks include vehicle or transportation allowance, meal vouchers or subsidized cafeteria, and reimbursement of internet and mobile phone charges.

Group Medical Insurance

Group medical insurance provides hospitalization coverage with a waiver for waiting periods and pre-existing disease exclusions, maternity benefits, newborn baby cover, and add-on hospitalization benefits such as new types of cancer treatment, cyber-knife or robotic treatment, and infertility or fertility treatment.

The Group Mediclaim plan is usually extended to include dependent spouse/domestic partner, children, parents or in-laws, and sometimes dependent siblings. Most employers fully fund employee, spouse, and child/ren or sibling coverage but may require full or partial employee contribution towards parental coverage.

A typical Group Medical plan covers:

  • A family floater Sum Insured, which is an annual aggregate limit per family
  • In-patient hospitalization on a 24-hour basis for any disease/illness/accident, except excluded treatment and Day Care Procedures across India
  • Waiver of a 9-month waiting period for Maternity; Maternity coverage with a defined limit for normal and C-section delivery
  • Waiver of a 9-month waiting period for newborn baby
  • Waiver of pre-existing diseases exclusion clause and other waiting periods
  • Room rent subject to a defined limit
  • Dental treatment arising from injury that requires hospitalization
  • Ambulance services
  • 30 days pre-and 60 days post-hospitalization expenses incurred on an outpatient basis
  • Psychiatric treatment on an in-patient basis

Add-on “New Age” hospitalization covers can include oral chemotherapy, Avastin/Lucentis/Macugen injections, Robotic surgery, Bariatric surgery, and Lasik surgery, among many others.

Employers with Diversity and inclusion goals can include a domestic partner in their plans. The plan can include benefits such as surrogate coverage, fertility/infertility treatment, gender reassignment surgery, and HIV/AIDS treatment.

Outpatient, dental, and vision benefits are offered by less than 10 percent of employers.

Outpatient benefits can include consultations, prescription medicines, diagnostics, vaccinations for adults and children, annual health check-ups, physiotherapy, and outpatient mental health counseling. This benefit can be customized.

Dental benefits usually include fillings, scaling, and root canals. However, this benefit can be customized and expanded to include preventative and orthodontic treatment.

Vision benefits include examination by an ophthalmologist and the cost of either spectacle lenses or contact lenses. Frames are not covered. Lasik treatment is covered above a specific vision defect (beyond +/- 7.5 Diopter) under most group health policies.

Group Personal Accident Insurance

Over 80 percent of employers provide a fully funded group personal accident policy. The plan covers accidental death, permanent total disability (TPD), permanent partial disability (PPD), double dismemberment (DM), temporary total disability (TTD: weekly partial income replacement up to 100/104 weeks), accident-related medical expenses, home and vehicle modification, child education expenses, funeral expenses, and other benefits.

This benefit is offered either as a fixed amount, on a graded basis, or as a multiple of salary, usually 2x to 3x annual salary.

Group Term Life Insurance

Over 80 percent of employers offer a fully funded group term life policy. This benefit is provided either as a fixed amount, on a graded basis, or as a multiple of salary, usually 2x to 3x annual salary. Some add Critical Illness (CI) as a rider. This benefit can be given either on an Accelerated basis, which reduces the Sum Assured (SA) available for the death benefit, or on an additional basis as a separate limit over the GTL SA.

Pensions/Retirement

The Pension system in India has two pillars.

The first pillar is the Employees’ Pension Fund (1st Pillar), which is funded through the mandatory employer contribution to the Employees’ Provident Fund: 8.33 percent (INR 1,249.50) of the 12 percent employer contribution, subject to a Basic salary cap of INR 15,000 per month, is allocated to the Employees’ Pension and the remainder to the Employees’ Provident Fund.

The second pillar is purely voluntary and is comprised of Superannuation Funds, which the employer sets up through the establishment of a Trust with Trust Deed and Rules. The second pillar also includes the National Pension Scheme, which requires an employer to set up a Tier 1 account under NPS but does not require Trust formation to facilitate employer and employee contributions. An employer can set up either or both.

Superannuation funds usually restrict membership to senior employees, but some companies may provide this benefit for other grades of staff depending on defined factors. Employers may contribute up to 15% of Basic Salary + Dearness Allowance to a Superannuation Fund. Employer contribution above INR 150,000 is taxable to the employee. Employees typically do not contribute to Superannuation. Due to the ease of participating in the National Pension Scheme and the better tax treatment, this new program has become the preferred way for employers to facilitate pension savings.

The National Pension Scheme (NPS) is a voluntary, portable scheme that permits employees to contribute up to 10 percent of their monthly Basic Salary to the NPS Tier 1 account, with no cap. Employee contributions are tax-exempt at the time of contribution, on returns, and on 60% of withdrawal at retirement; early withdrawals are permitted up to 25% of the subscriber’s total contribution with some exceptions, and after completion of 3 years enrollment in the NPS. Employees may contribute another INR 50,000 per month towards the Tier 1 account and claim an additional exemption under Section 80 C of the Income Tax Act. However, employee contributions to their individual Tier 2 accounts, which permit discretionary withdrawals, are not tax-exempt.

Business Travel Accident

Group Business Travel Accident policies provide accidental medical, death, personal liability, and travel inconvenience benefits to employees traveling on business. A Certificate of Insurance is issued to each employee for each trip, the duration of which must not exceed 180 days. These policies are a must to obtain a visa from some embassies and are one means of carrying out the duty of care obligations towards employees.

Short-Term Disability (Employee Income Protection Plan)

Prudent introduced a short-term disability, or employee income protection plan, in the Indian market in October 2021. This plan provides an aggregate limit of 3 months’ pay per employee who faces pay loss due to defined medical contingencies leading to hospitalization. For leaves opted due to a spouse’s illness, the monthly payment is restricted to 50% of the eligible amount. A minimum group size of 1,000 lives is required to offer this plan.

Employee Perks

Employers offer various fringe employee benefits in India since the labor market is quite competitive. The IT industry, Banking, Financial Services, and Consulting, where competition for talent can be fierce, tend to constantly innovate and up the ante on perks.

Subsidized transportation is offered in cities that now have better connectivity with the new metros; prior to the metro system having been built, employers had to provide cabs to bring employees to work and take them back home. Last-mile connectivity is still a problem in most cities, and employers in the BPO and tech sectors usually provide some transport, especially for women working the night shift.

Company cars are provided to employees by about two-thirds of employers. This benefit is usually offered to senior management or employees in a sales role. It is also common to provide a paid chauffeur.

Subsidized cafeterias have long been part of employers’ offerings. These cafeterias and free snacks ensure employees have everything they need to get through long workdays without worrying about at least one meal a day. This benefit is common with larger employers, particularly in industrial facilities, BPOs, and tech companies. Food is provided at a subsidized rate and can include two meals or a meal and a snack. Employers may also offer meal vouchers instead of a canteen.

Meal allowances are a typical benefit due to their tax advantages to the employee. The current tax-free limit is up to INR 50 per day if the employee chooses to continue with allowances as per the old tax regime. No meal allowance is available if an employee chooses a flat deduction under the new tax regime. Where an employee can provide a subsidized cafeteria, meal vouchers may be less common.

Educational reimbursement for partial or full education after successfully completing a course/program is provided by some employers, especially if it is related to one’s work.

Internet and mobile phone reimbursement for a specified internet or mobile phone reimbursement for tech and other white-collar employees who work from home or use their devices for professional calls. About two-thirds of employers provide a mobile connection, and about half pay for a handset.

Voluntary benefits are offered by large and mid-sized employers and include health, life, accident, or homeowners insurance at rates negotiated by the employer.

Flexible benefits are generally feasible in groups with 2,000 plus employees and a minimum medical insurance premium spend of INR 50,000,000. About 32-35% of employers offer modular flex or flexible benefits to accommodate employees’ need for individualized benefits.

Online marketplaces offer discounted products and services to employees. These can be part of a flexible benefits program or can be offered on a stand-alone basis.

Loans for housing, automobile purchases, education, marriage, medical expenses, and other necessities are offered by about 20% of employers. However, changes in tax structure and easier market access to loans may make these less attractive.

Recognition and awards programs recognize star performers.

Service awards and jubilee awards can be given on designated tenure anniversaries and upon retirement.

Corporate credit cards may be offered to senior management, especially those who travel extensively on business.

Well-being encompasses many support systems provided by the employer. The list is continually expanding to include:

  • Mental health support
  • Financial literacy
  • Spiritual Growth
  • On-site health check-ups and vaccination camps are typical among over 50% of our clients.
  • Health coaches for high-risk employees and family members (e.g., to remind them to take medicines or exercise or stick to a diet) are critical to the success of Wellness initiatives.
  • Preventative health programs have become more common, with more employers providing on-site annual flu vaccinations and vaccination coverage for children. Around Women’s Day, many employers organize programs on cervical cancer, including discounts on cervical cancer vaccinations.
  • Healthy Mother/Pregnancy Programs are offered to support mothers-to-be in maintaining good health throughout their pregnancy and be better prepared to choose a natural delivery over a scheduled Caesarian delivery, which can lead to more complications.
  • Sleeping and meditation rooms, desk-side neck, and shoulder massage to support employees in getting needed rest and relaxation.
  • Recreational areas within the office/campus, indoor and outdoor sports facilities including a gym, computer gaming rooms, table tennis, and pool/billiards are standard offerings.
  • Subsidized gym membership is aligned with Wellness goals. New national fitness chains have emerged all over the country. They provide electronic ID cards that track attendance; thus, employers can easily track utilization to see whether their benefit is being used.
  • EAPs have been in the market for many years. Both MNC and Indian EAP vendors provide a wide range of services through personal consultations and online modes. Employers consider it essential to support their employees’ access to mental and emotional health programs.
  • Telemedicine The pandemic has forced most employers to consider offering telemedicine as employees wish to avoid going to hospitals or other healthcare providers. This trend continues with employers looking for digital solutions to employees’ healthcare needs.

Fun activities are perks that include discount movie tickets, shopping vouchers, and dining cards to keep employees engaged outside working hours. If those aren’t enough, special screenings of Hollywood and Bollywood movies, theme days, rock band performances, and team outings to major sports events all add excitement to an employee’s life.

Various in-house clubs include LGBTQ+ clubs, and opportunities to engage in hobbies during working hours at the office, allows employees to pursue their passions and other life purposes. The employee is seen as a whole person with multiple interests whose pursuits nourish her soul and enable her to devote herself to her work fully.

Additional paid leaves such as birthdays, anniversaries, and other special days can be recognized with gifts such as paid dinners, which is seen as the ‘best in class’ practice. Bereavement leave can also be included.

Parental leave outside of mandatory maternity leave, parental leave is not prevalent, but some leading employers provide up to 6 months of parental leave. A Paternity Benefits Bill, 2017 proposes offering 15 days of paternity leave. Close to 50% of organizations offer some paternity leave.

Family care leave is offered by about 29% of employers as a paid benefit. Forty-three percent provide unpaid leave, while the remaining 29% provide a combination of paid and unpaid leave.

Additional paid leaves for birthdays, anniversaries, and other special days are common, and so are gifts such as paid dinners, which are seen as a “best-in-class” practice.

Housing for enior executives may be given paid housing, especially in major metros like Mumbai, where housing is scarce and expensive.

Relocation allowance for the cost of moving household goods, train or airfare for the employee and family, and a temporary stay in a hotel are reimbursed up to a specified amount.

Parent daycare/home visits are offered by leading employers to support employees’ parents who need medical attention.

Various in-house clubs (including LGBTQ+ clubs) give employees the opportunity to engage in hobbies during working hours at the office to allow employees to pursue their passions.

In-house crèche for children up to age 6 years is mandatory under the Maternity Benefits (Amendment) Act and state-level guidelines pertaining to it. The Paternity Benefits Bill proposes the same benefit for working fathers. Leading employers will likely make this facility (either on-site or off-site) available to both female and male staff, even if the Paternity Bill is not enacted. Doing so will tick off the statutory compliance and the “best in class” employer box. It will also be non-discriminatory and nudge equality in parenting responsibilities.

Retiree health insurance policy, paid for by the employee, is valued by the older population because obtaining comprehensive coverage that includes pre-existing conditions post-middle-age is challenging.

Surrogacy and adoption benefits/infertility counseling are becoming more important to employees who have postponed having children in part to focus on their careers.  These benefits are increasingly being offered by leading employers who offer these benefits at the Corporate Office level.

Mental health cover (as per the Mental Healthcare Act 2017) has a guideline issued by the IRDAI (Insurance Regulatory Development Authority of India) to all insurance companies for Psychiatric Ailment coverage. The insurers tend to offer a small limit of Psychiatric cover on an IPD basis under the medical insurance policy; however, the coverage can be customized under the group medical cover subject to a sum insured limit or sub-limit, and the benefit can be extended on Outpatient (OPD) basis as well. Around 44% of Companies offer this benefit on an IPD basis under Group Medical cover, and 7-8% of companies offer this on both an IPD & OPD basis (as per our in-house client database).

Work from home as a perk was accelerated by the COVID-19 pandemic, but many employers are now keen to have employees return to the office. Many companies are re-evaluating their remote work policies. Some are indeed asking employees to return to the office, while others have adopted a hybrid model, allowing a mix of remote and in-office work.

Flexible working arrangements include working hours, place of work, type of work, and intensity (how much work is to be done). These are all new experiments to accommodate a workforce that wants and needs the flexibility to fulfill other responsibilities, such as child and parental care. Clearly, the trend is for employers to consider every request from employees as a potential opportunity to stand out as a market leader in offering innovative benefits. They are more willing to invest time with their consultant to understand whether and how a particular new benefit could be offered.

Cashless Everywhere is an initiative announced by the General Insurance Council (GIC) on January 24, 2024. Under this initiative, policyholders will be eligible to be treated in any hospital they choose, and the insurance company will make a cashless facility available even if the hospital is not in its network. To use the facility, the policyholder needs to notify the insurance company at least 48 hours before admission. In the event of emergency care, the policyholder should contact the insurance company within 48 hours of admission. It’s important to note that the specifics of the initiative, including participating insurers, network providers, and procedures, may evolve over time. Low consumer awareness about cashless hospital facilities, lack of standardized rates, and disagreements between hospitals and insurers about treatment costs are some of the challenges faced by the “Cashless Everywhere” initiative of GIC.

 

This information about employee benefits in India is provided by Prudent Insurance Brokers, Asinta’s employee benefits consulting Partner in India.

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.

Ireland

Mandatory employee benefits in Ireland (employer-sponsored)

  • PRSA Facility – All employers in Ireland must provide access to a Personal Retirement Savings Account (PRSA) Facility to any excluded employees. Excluded employees are those not offered an occupational pension scheme membership within 6 months of joining service/employment. The employer is not required to contribute to the PRSA currently. However, they must facilitate the arrangement of a PRSA for any staff who wish to contribute to their own retirement and provide tax relief at source via their payroll.
  • Statutory Sick Pay Scheme – Since 1 January 2024, most employees now have a right to 5 days’ sick pay a year (increased from 3 days in 2023). Sick pay must be paid by an employer at 70% of normal pay up to a maximum of €110 a day. (An increase in the number of statutory sick days was expected for 2025 onwards, but that has been put on hold.)

Supplementary employee benefits in Ireland

  • Group Life Assurance / Death-in-Service Schemes – Many employers would provide this benefit as it tends to be one of the most cost-effective, there is no tax implication for the employee on the premiums paid to approved plans, and it is of significant value as a protective measure should an employee pass away and leave their financial dependents burdened by debt or considerable loss of household income. The sum will generally depend on the sector; 4 x base salary would be considered a good benefit level. These schemes are established under trust, and the benefit can potentially pay out quickly and outside of probate.
  • Group Income Protection –Less common than group life assurance, primarily due to higher premium cost, this benefit is extremely meaningful as a means of providing a replacement income for employees who are long-term ill or disabled and unable to continue in their role. Insurers/Carriers will insure up to 75% of salary (including the state disability benefit). Employees serve a deferred period before claims payments commence; most commonly 26 weeks, this can be extended to 1 year and shortened to 13 weeks, which reduces or increases premium costs respectively. Ordinary employer and employee pension contributions can also be insured, as well as the cost of group life assurance premiums for the absent employee. Payments can continue up until retirement age when the employee remains verifiably unwell and unable to return to their role. There is no tax implication on premiums for the employee for approved plans. However, the benefit paid under a claim is taxable as income via payroll.
  • Group Medical & Dental – Private medical Insurance remains one of the most popular benefits when paid partially or in full by the employer. Premiums paid by the employer on behalf of the employee are subject to taxation as a Benefit-In-Kind. There are 3 providers in the Irish marketplace who work with corporations and over 300 plans; at a company plan level, there are 3-6 plans per provider that are common to the employer-paid plan market that include an EAP service, digital/online doctor and good coverage for in-patient hospital stays, day case procedures, consultants’ visits and day to day benefits such as visits to GPs (family doctors), physiotherapists and other practitioners. Dental insurance is available in Ireland but is far less common and generally a paid benefit offered to employees where an overseas parent company seeks to harmonize benefits with a home jurisdiction. Interest in this benefit has been slowly growing with domestic companies in recent years. Dental is also subject to benefit-in-kind taxation. Providing wellness programs from these providers is an ancillary benefit of having a group scheme, and app-based mental and physical fitness can underpin and support an overall employer wellness strategy.
  • Occupational Pensions / Group PRSA / Group and Individual Pensions under a Master Trust – For employers that do contribute to a pension for employees, there are several structures available and the selection of which can depend on many factors, including the business’ structure, number of employees and headcount growth projection, remuneration, and recruitment strategies, parent company practices in other jurisdictions and industry benchmarking. Across all sectors, for employers that do offer a pension with an employer contribution, the average level is 6%, with an ordinary employee’s 5% contribution. Additional employee voluntary contributions are also possible up to revenue age-related contribution limits.
  • Pension Auto-Enrolment – Draft legislation has been introduced that is designed to bring in a national pension auto-enrolment mechanism for all employees who are not already included in one of the above retirement plan arrangements.  Details regarding the operation and actual implementation date for the proposed scheme are still limited at this stage. Implementation has been confirmed for September 30, 2025.

All of these insured benefits will help attract and retain staff, and Howden Ireland can assist you in determining the right benefits package for your employees in Ireland and achieving your long-term employee recruitment and retention goals.

Employee perks

  • Subsidized Food / Social Committees and Events – This can include everything from vending machines to juice and smoothie bars, baristas and coffee docks, onsite restaurants/canteen facilities, and alcoholic beverages at week’s end or to mark special occasions. Sponsored events/work nights out and charity events are popular.
  • Additional Paid Leave – The ability to trade other benefits in exchange for an extra day’s paid leave and other flexible working arrangements remains popular.
  • Tax-Saver Commuter Benefits – The employer pre-purchases a monthly or annual bus/tram/rail ticket, and the employee repays the cost from their pre-tax salary, saving up to 52% on the standard cost. The scheme can be operated in-house through payroll or a third-party benefits vendor.
  • Subsidized Gym Membership / Fitness Supports / Sports Committees – Large employers may have gym facilities onsite, partner with a local gym, or offer discounted gym membership through third-party benefit providers. They may also provide yoga/Pilates classes onsite weekly, coupled with the formation of regular cycling, running, and walking events (step challenges), tag rugby, soccer, and GAA (hurling, football) teams.
  • The Cycle-To-Work Scheme – The employer pre-purchases bicycles and related safety equipment to a value of up to €1,250 or €1,500 for an e-bike, and the employee repays the cost from their pre-tax salary, saving up to 52% of the typical cost. The scheme can be operated in-house through payroll or a third-party provider. It has proven to be hugely popular.

State-funded employee benefits in Ireland

  • Death Benefits / Widow / Widower’s Pension (Contributory) – A spouse’s pension is payable to the widow/widower if the contribution conditions are met on either the late spouse’s pay-related social insurance (PRSI) or the surviving spouse’s own PRSI record at the date of death. The two PRSI records may not be amalgamated in order to qualify.
  • Illness Benefit— If a person cannot work due to a medical practitioner-certified illness, they may qualify for the State Illness Benefit. The person must be under 66 and have been making social insurance contributions (PRSI). Employers must now pay limited sick pay in Ireland at 70% of regular pay (up to a maximum of €110 a day) for up to 5 days in 2024, increasing to 10 days by 2026.
  • Invalidity Pension – A state invalidity pension is available to insured persons incapable of working for at least 12 months and satisfying the contribution conditions instead of a flat rate illness benefit. Usually, before qualifying for an invalidity pension, an insured person will have received illness benefits for at least 12 months.
  • Public Health Services – Any person ordinarily residing in the Republic of Ireland can access the public health system and, depending on their income level, will have to pay to a certain level for this or be eligible for fully state-funded care. An extensive network of private hospital care is available through self-pay or private medical insurance (or a combination of the two).
  • The State Pension – An applicant must be aged 66, commenced paying social insurance before age 56, and meet the requisite number of social insurance contributions paid over their working life and other specified criteria.
  • Maternity Benefit – Maternity benefit is a payment for employed and self-employed women who satisfy certain PRSI (Pay Related Social Insurance) contribution conditions on their insurance record. Maternity benefit is typically payable for 26 weeks. Employers are not required to supplement this, although many do. Effective November 2024, employees who become really ill and require treatment while on maternity leave can now postpone their maternity leave for a period of 5 to 52 weeks.
  • Leave Periods – There are several leave periods permitted in Ireland and enshrined in legislation in addition to standard annual leave. We include some links to these below for reference:
    • Maternity leave: (as above)
    • Parental leave: Gives parents the right to take 26 weeks unpaid leave from work to look after their children aged under 12
    • Paternity leave: New parents (other than the mother of the child) can take 2 weeks’ leave in the first 6 months after the baby is born or adopted
    • Parent’s leave: Each parent is entitled to 7 weeks paid parent’s leave during the first 2 years of a child’s life, or in the case of adoption, within 2 years of the child’s placement with the family.
    • Adoptive leave: For men adopting alone and adoptive mothers
    • Force majeure leave: For people who need to take time off work urgently because of an injury or illness of a close family member
    • Carer’s leave: For people who need to take time off work to provide full-time care for someone who needs it.
    • Sick leave: A new entitlement to paid sick leave of 5 days a year, paid at 70% of standard pay up to a maximum of €110 a day.

State-funded benefits are subject to change in line with newly introduced legislation. We recommend consulting with a local HR consultant and governmental information sources for the most recent information.

 

This information about employee benefits in Ireland is provided by Howden Ireland, Asinta’s employee benefits consulting Partner in the country. If you need support with employee benefits in the country, please contact Asinta, and we will put you in touch with the experts at Howden Ireland.

 

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.

Canada

Mandatory employee benefits in Canada include pension, legislated and parental leaves, PTO, and employment insurance. Common supplementary employee benefits include retirement, healthcare, voluntary and flexible benefits, healthcare spending accounts, gyms, and corporate wellness programs. Employee perks are far-ranging and include virtual care, mental health training, and digital health and fitness platforms.

Mandatory Employee Benefits

Pension

The CPP is a mandatory pension plan for most workers in Canada, excluding Quebec, who have the Quebec Pension Plan (QPP) and anyone earning less than $3,500 annually. CPP provides workers with monthly payments during retirement. The size of those payments depends on an individual’s earnings during their working years. The federal government sets a yearly maximum pensionable earnings (YMPE) amount, the maximum salary amount for CPP contributions. For 2025 this amount is $71,300.

A secondary tier of additional maximum pensionable earnings, CPP2, has been introduced in 2025, where individuals earning between $71,300 and $81,00 will be required to contribute to CPP a second time. This additional contribution rate is 4% or a maximum amount of $396 (($81,200-$71,300) x 4% = $396).

Income from CPP can start as early as age 60 or be deferred to age 70.

Old Age Security (OAS) is paid from general tax revenues and is not something that Canadian citizens contribute to directly. Income from OAS can start as early as age 65 or be deferred to age 70. To qualify for the maximum, you must have been a Canadian citizen for 40 years after your 18th birthday. To collect a minimum OAS payment, you must have been a Canadian citizen for ten years after your 18th birthday.

When designing your Canadian Retirement Savings Plan, great care needs to be taken in three areas:

  1. The plan type that is competitive within your sector, i.e., Registered Pension Plan (both Defined Contribution and Defined Benefit), Group RRSP or Deferred Profit Sharing Plan, Tax-Free Savings Account, or Non-Registered Savings Plans.
  2. Contribution formula
  3. Providers that specialize in your chosen plan type, with competitively low investment fees, state-of-the-art technology, and a comprehensive investment platform

Group RRSP contribution room is granted to a Canadian once they have earned Canadian income. In order to contribute, a person must have earned income in the previous calendar year. For 2025, RRSP contribution room is the lesser of 18% of previous year’s earnings and $32,490.

Legislated leaves

Canada has one of the highest counts of government-regulated and legislated leaves globally. Although paid through government-sponsored Employment Insurance benefits, these leaves are job-protected, which means the employer is responsible for maintaining the employee’s position until it is reasonable for the employee to return to work.

Leaves are governed based on Federal or Provincial mandates and vary by province.

Paid time off

Maternity/paternity pay—maternity benefits (except in Quebec)

  • Benefits are payable to the biological mother (including the surrogate mother) only for a maximum of 15 weeks. However, a woman may elect to receive benefits at any time from the 12th week preceding the expected week of delivery, or from the week of delivery, if earlier, and can end as late as 17 weeks after the expected date of delivery or the week in which delivery occurs, if later.

Parental leave (except in Quebec)

Parental benefits are available to the parents of a newborn or newly adopted child.  There are two options for parental leave:

  1. Standard parental leave at 55% of income up to a weekly maximum of $695.  Up to 40 weeks can be shared between parents. However, one parent cannot receive more than 35 weeks of benefit.
  2. Extended parental leave at 33% of income up to a weekly maximum of $417. Up to 69 weeks can be shared between parents. However, one parent cannot receive more than 61 weeks of benefit.

If parents are sharing the leave, each parent must choose the same option and submit their own application to Employment Insurance (EI).  Parents can receive their benefits in tandem or one after the other.

  • Maternity benefits can be followed by parental benefits and applied for at the same time.
  • Standard parental benefits must be applied for within 52 weeks of the child’s birth.
  • Enhanced parental benefit must be applied for within 78 weeks of the child’s birth.
  • If your newborn or newly adopted child is hospitalized, the 52-week or 78-week timeframe can be extended by the number of weeks your child is in the hospital; to qualify, you need to have worked at least 600 hours in the last year.

On December 4, 2017, Bill C-44 passed amendments to the Canada Labour Code to ensure job-protected and expanded EI leaves for federally regulated employees.

Changes to maternity and parental benefits do not apply to Quebec, where parents are subject to the QPIP, which offers different benefits. In Quebec, benefits amount to nearly C$900 weekly, and Quebec has also eliminated waiting periods, significantly reducing the qualifying time. More information about Quebec maternity and parental/paternity leaves

Employment insurance

For most people, the benefit level is 55% of an employee’s average insurable weekly earnings, up to a maximum amount. As of January 1, 2024, the maximum yearly insurable earnings amount is C$65,700, which means that an employee can receive a maximum amount of C$668 per week.

The maximum benefit period varies from 14 to 45 weeks. It is dependent upon regional unemployment rates, as well as the number of accumulated hours of employment over the preceding 52-week period or since an employee’s last claim, whichever is shorter.

Employment insurance benefits entitle the recipient to income replacement as a result of:

  • Sickness
  • Maternity
  • Parental leave
  • Compassionate care leave

Eye exams

  • Eye exams are usually included as part of an extended health care benefit at a reasonable and customary level every 24 months for adults and every 12 months for children under 18.
  • Vision benefits are separately defined and customarily include eyeglasses and contact lenses at C$250/24 months.

 

Supplementary Employee Benefits

Retirement

Individual and employer-funded retirement/pension programs are widely popular in order to provide a vehicle for long-term savings at a higher rate of return. Employees look to employers to provide group programs through payroll deductions with employer matching schemes as a core component of a total rewards program. In addition to saving for retirement, employees look for low-cost savings vehicles for short- and medium-term goals. Payroll deductions placed into a tax-free savings account are an example of an employee-funded cost savings vehicle that is attractive to all demographics.

Healthcare

Offering supplementary healthcare coverage is important for your employee benefits in Canada. Ninety-one percent of Canadian employers offer an extended health care benefit to supplement the government health insurance plan for salaried employees.

  • 77% of employers pay 100% of the premium
  • 51% of employers offer extended health care to hourly workers
  • 73% pay 100% of the premium

Extended health care includes prescription drug coverage, hospital, paramedical practitioners, supplemental health care, and out-of-country coverage at varying levels, depending on employer size, demographics, and industry.

Voluntary benefits

Larger employers will often provide employees with a range of “voluntary benefits” that can be provided at discounted prices through the employer. There is an emerging trend for employers to offer innovative voluntary programs, such as virtual wellness and pet insurance.

Flexible benefits

Flexible benefit plans are common in Canada and highly desired for their flexibility, ability to address generational differences in the workforce, and attractiveness to employees. However, flexible benefit plans are commonly only offered by larger employers. A few carriers have come to market recently with small to mid-size off-the-shelf flexible benefit plans that are getting traction in the marketplace. Smaller companies can accommodate flexibility by incorporating voluntary benefit offerings, employer-funded spending accounts, and wellness platforms.

Healthcare spending and wellness accounts

Many employers address employees’ desire for flexibility and their changing needs with healthcare spending accounts (100% employer-funded). These accounts enable employees to use available funds within the parameters of eligible expenses dictated by the Canada Revenue Agency (CRA) to meet their individual/family needs. Wellness accounts are administered differently and have a broader scope of eligible expenses. They are taxable for the employee however have been gaining traction in the marketplace as a means for flexibility and to meet the needs of a more diverse demographic in the workplace.

Gymnasiums

Very large employers can provide ‘gyms onsite’ facilities, whereas smaller employers may offer gym subsidies or access to a gym with lower corporate rates. 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.

Workplace canteens

This benefit is not common in Canada; however, in highly competitive industries, such as the technology industry, we see an increase in catered lunches for employees. Large employers often have an onsite cafeteria with discounted food prices.

 

Employee Perks in Canada

Virtual healthcare

The intent is 24/7 health care access across Canada, with responses in under 10 seconds for text. Images can be shared, and there are no time limits on chat or video calls. Employees can also reach nutritionists, naturopaths, and mental health specialists for an additional fee to employees. An online doctor visit may have a per-appointment charge attached. Some services include prescriptions and delivery through an app.  Programs such as this have seen a very high uptake over the past 3 years, not only as a result of Covid restrictions.  The high demand for general practitioners and family doctors has resulted in higher wait times and inability to for some to find Doctors taking on new patients.  As a result, many are looking to virtual care solutions provided by employers as a core benefit offering.

Digital wellness platforms

Digital wellness platforms that incorporate personalized programming and rewards tied to healthcare spending accounts or wellness spending accounts are becoming quite popular for multinational employers’ employee benefits in Canada. Younger employees especially appreciate this benefit.

Perks and loyalty programs

Give employees access to member services at a preferred rate. The costs can vary from free to $2 to $4 per employee per month. Some programs can provide global or North American savings and are viewed as an opportunity to synchronize cross-border offerings.

Corporate health challenges

Provide team-based and individual challenges that are included in the membership fees (ranging from $245 to $350/month), in addition to other services, such as onsite fitness classes. Team challenges can include emails, promotional posters, and other materials created and sent by a vendor. Many programs use wearable devices to track fitness data. Some employers choose to purchase wearables for employees (taxable benefit) to incentivize participation.

Health coaching

Coaching provides health navigation, health risk assessments, and health coaching. Programs are varied and can help with conditions from high cholesterol to back and neck pain, stress, depression, diabetes, and musculoskeletal conditions. Biometrics can also be included to assess baseline health for program coordination. There are varying levels of support offered, and costs vary.

Health fairs

These events are educational and interactive events designed for outreach and to provide basic preventive medicine and medical screening to employees at work in conjunction with workplace wellness. They can also be used to promote health and well-being initiatives and programs which are available to employees. Fairs can include wellness,  perks, promotion of onsite fitness, training, and subsidized meal programs.

Online digital health and fitness platforms

These are increasingly popular low-cost options for health and well-being offerings because they are easily accessible programs available to employees as needed. They typically include health risk assessments, gamification, rewards, challenges, targeted behavior change messaging, and targeted health recommendations. Many wellness platforms can be unbundled or bundled with rewards and recognition and EFAP. Some platforms put less focus on traditional ‘wellness’ and more on training the brain to see the positive. The goal is to help employees be happier, knowing that happy employees are more engaged and productive.

Virtual care

The intent is 24/7 health care access across Canada, with responses in under 10 seconds for text. Images can be shared, and there are no time limits on chat or video calls. Employees can also reach nutritionists, naturopaths, and mental health specialists for an additional fee to employees. An online doctor visit may have a per-appointment charge attached. Some services include prescriptions and delivery through an app.

Mental health training

Leadership training on mental health, anti-stigma campaigns, mindfulness, and stress reduction programs are becoming common. Sit-stand workstations, walking work meetings, and treadmill workstations to support sedentary office workers may also be included.

Employee wellbeing

Some employers are implementing ‘vacation blackout’ email policies that prevent employees on vacation from accessing or receiving work emails. Flex benefit programs have added an opportunity for employees to buy ‘wellness days off.’ Sleep disorders are affecting more than 60% of the Canadian population, resulting in increased workplace accidents, chronic disease risks, and reduced productivity. More forward-thinking employers are investing in nap pods and encouraging employees to take a 15 to 30-minute afternoon nap to boost productivity in place of coffee breaks.

Physical workplaces are being modified to encourage healthy behaviors. Some employers have centralized waste facilities to encourage employees to walk to the garbage. Cafeterias are being rearranged to orient healthy foods in more visible locations. ‘Bringing the outdoors in’ is a trend to help reduce stress and includes water displays,  natural lighting, pictures of the outdoors, and living walls.

Flexible employee benefits

Young employees are looking for flexible employee benefits and an employer that cares about their health and well-being.

Onsite wellness initiatives

These include massages, Pilates, catered meals, healthy snack bars, and fitness challenges.

Financial wellness

This includes financial education for employees, particularly around the importance of adequate retirement planning.

 

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

 

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.

Brazil

Mandatory employee benefits in Brazil include workers’ compensation, disability, life insurance, and Paid Time Off (PTO) in situations such as maternity and paternity leave, among others. Desired supplementary employee benefits in Brazil include medical and dental care, private retirement plans, and life and disability insurance.

Mandatory Benefits in Brazil

National Retirement Programs

  • Retirement, Survivors, and Disability Pension – These programs are administered by the National Institute for Social Security (INSS). Social security benefits are based on the employee’s benefit salary, which is equal to the average of 80% of the two greatest contributive salaries from 1994 onwards. This applies to employees registered with the INSS before 28 November 1999. It also calculates the average of all years’ contributive salaries for those registered after that date. The maximum benefit is equal to the amount of 087,22 per month, depending on the analysis of contributions made by the body.
  • Old Age Pension — Starting with the pension reform, to be eligible for old-age pension benefits, the insured must be at least 65 years of age if male or 62 years of age if female. The minimum number of contribution months has also changed, being a minimum of  180 contribution months required for both genres. The old-age pension is equal to 70% of the benefit salary plus 1% of the benefit salary for every 12 months of contributions, up to a maximum of 100%.
  • Special Pension — A special pension is payable to employees who work in excessively fatiguing, unhealthy, or dangerous occupations if contributions have been paid for 15, 20, or 25 years. The benefit equals 100% of the benefit salary. The accumulated funds in the employee’s Guarantee Fund for Length of Service (Portuguese Fundo de Garantia por Tempo de Serviço – FGTS) account are payable upon retirement.

 

Pension for Death of the Deceased Insured

The pension for death is a benefit provided by the local government through the Brazilian social security system (INSS).

Eligibility

  • The death benefit is payable to the dependents of the deceased insured, whether retired or not, from the date of death.
  • Eligible dependents include spouses and companions, non-emancipated children under age 21 or disabled children and dependent minors, parents, and non-emancipated siblings under age 21 or disabled (depending on the eligible group, proof of dependency will be required).

Benefit Amount

  • The eligible dependents will receive up to 100% of the retirement benefit that the retiree had been receiving or that the employee would be receiving if retired on the date of death.
  • If there is more than one eligible survivor, the benefit is divided equally among all of them. If one of the survivors becomes ineligible, the benefit is then recalculated and divided among the remaining survivors.

 

National Disability Insurance

Disability Insurance in Brazil is provided by the Brazilian Social Security System (INSS). It applies to both occupational and non-occupational incapacity and can be supplemented by the private life insurance policy’s disability rider. The rider normally provides a lump sum benefit of 24x monthly base salary in the event of permanent and total disability.

The first 15 days of disability are fully sponsored by the company. After 15 days of paid sick leave, companies typically supplement the social security benefits to a total of 100% of an employee’s salary for the first three months of the event, then reduce it to a total of 75% for the next three months. Further payments may be made at the company’s discretion. In Brazil, benefits for occupational injury and illness are provided by the Brazilian social security system (INSS). Employees are covered for injuries incurred while working or commuting to and from work and for illnesses contracted due to working conditions. Medical expenses are covered by INSS as well.

Workers’ compensation pensions are paid 13x per year. Medical and dental care is provided in the case of short-term and long-term disability, as long as the employee is part of the company’s payroll.  In the initial phase of the accident or illness that renders the insured unable to work for more than 15 consecutive days, he/she is covered under the sick leave support (short-term disability aid) provided by the Brazilian Government. If the insured becomes partially or permanently disabled, he/she might retire under the disabling condition, and the expenses of such retirement are paid by the Brazilian social security system (INSS).

If the company owns supplemental group life insurance, the employee might also receive an indemnity partially or totally, depending on the disability that occurred. Cases that allow the employees to return to their normal working activities provide them with an indemnity by the private insurer only, according to the disability that occurred and under the limits established by the insurer.

For salary continuation, employers must pay for the first 15 days of leave due to a work-related accident or illness.

Paid Time Off Benefits and Conditions

Employees with up to five unexcused absences receive at least 30 calendar days of paid vacation every year after one year of service. Vacation days depend on the number of unexcused absences.

Vacation Bonus

  • During vacation leave, a mandatory cash bonus equal to one-third of the employee’s monthly salary is payable in addition to the full pay. Employers must provide vacation pay, including bonuses, at least two days before the beginning of the vacation period.
  • According to labor law, employees have the right to convert one-third (approximately 33%) of their paid vacation (generally up to 10 days) into pay in lieu of vacation, which the employer must pay no later than 15 days before the end of the accrual period.
  • Any unused vacation time does not roll over, and employers must pay it out at double-time rates at the end of the calendar year.

Sick Leave

  • Employees in Brazil are entitled to 15 days of sick leave paid by employers at full pay. Medical certification of illness is required, and employees must present signed doctor’s medical certificates to their employers for sick leave to be granted. After 15 days, social security pays cash sickness benefits to insured employees as long as the illness lasts, during which period employees are on unpaid leave.

Union Official Meetings

  • All employees who are union representatives are entitled to paid leave for each day that they participate in official government meetings.

Bereavement Leave

  • An employee is entitled to a paid bereavement leave of two consecutive working days in case of the death of a spouse, child, or direct relative, such as a parent or sibling. However, bereavement leave may last up to five days, depending on collective agreements, and may include grandparents as eligible relatives.

Marriage Leave

  • Employees are entitled to a paid leave for the marriage of three consecutive working days.

Voluntary Blood Donation

  • Brazilian employees are entitled to one day of paid leave every 12 months for voluntary blood donations. To justify the absence, the employee must request a certificate from the donor’s center.

Electoral Registration

  • Employees who provide service on Election Day are entitled to two days of paid leave, consecutive or not. Employees can choose to offer this service themselves, or the government may request their assistance.

Brazilian Military Service

  • All male employees subject to mandatory military service are entitled to paid leave for the duration of said service.

“Vestibular” Examination

  • All employees are entitled to paid leave during the days they can prove to have been taking university admission examinations (Exame Vestibular).

Court Proceedings

  • Employees are entitled to paid leave for the duration of time they are required to participate in court proceedings.

Maternity and Paternity Leave

  • Maternity Leave — Maternity leave is provided for 120 days. It may be extended for medical reasons by a maximum of two weeks before the expected childbirth and two weeks after childbirth.
  • Maternity Protection — Protection from dismissal due to pregnancy is given from the date that the pregnancy has been reported to the employer until one month after confinement. If the employee is dismissed, she must be reinstated and paid for the time missed since termination.

Paternity Benefits and Family Allowances

  • Employers must provide at least five days of paternity leave to employees who become fathers. Employers are required to pay for paternity benefits and family allowances. They are, however, later reimbursed by social security.
  • Brazilian labor law requires employers with 30 or more female employees to provide daycare or payment in lieu thereof to employees with children less than six months of age. Collective agreements may require additional childcare credits, typically for children up to three years old.

 

Supplementary Employee Benefits

Medical and Dental Care (National Coverage and Supplemental)

  • Via the Brazilian social security system, universal healthcare coverage is provided on a decentralized regional and local basis with coordination by the country’s Unified Health System (SUS).
  • About 3/4 of the population receives their healthcare from the public system.
  • In this contributory system, public healthcare is provided through the National Institute of Social Security’s (INSS) healthcare facilities or approved healthcare providers.
  • The quality of care is generally considered poor in rural areas. In urban areas, it is generally adequate. There are often long waiting periods for some forms of medical care, such as routine examinations and non-emergency medical treatment.
  • Due to the poor national service, most of the local employers provide supplemental medical and dental benefits as a differential, which is regulated by the National Regulatory Agency for Private Health Insurance and Plans (ANS). ANS determines the standard minimum coverage for every health insurance carrier in Brazil. As a result, coverage provided by every carrier is almost equal. What differentiates one carrier from another is the network of hospitals, clinics, and doctors provided. The value of refunds for procedures done outside the network is also a differentiator.

Private Retirement Plans

  • If supplementary retirement plans are promised as part of the hiring package, the employer should provide them immediately. If not, the employer can wait and provide them later.
  • Most employer-sponsored retirement plans integrate retirement benefits with Social Security benefits. A defined contribution plan integrates with Social Security by means of a step-rated formula and often provides a matching contribution.
  • Typically, employees may contribute from 1% to 5%, and companies match 100% of employee contributions up to 5%. Employee contributions are tax-deductible up to 12% of salary, and employer contributions are tax-deductible up to 20% of salary. Benefits are generally taxed.
  • Employers who established a plan after 2004 can elect an alternate tax regime. Private pensions utilizing defined contributions are typically paid as a combination of a fixed monthly lifetime annuity and a percentage of the account balance.

Private Group Life Benefit

  • Group life insurance has become a standard benefit for employees in Brazil. Plans provide a lump-sum benefit based on the gross salary, as agreed at hiring. Salary updates must be informed on a monthly basis to the insurer, but bonuses and commissions should not be considered to the individual insured capital, given they are temporary. The common amount insured is equal to 12, 24, or 36 times the gross salary.
  • Riders are often attached covering Accidental Death and Dismemberment and Permanent and Total Disability by accident or disease. Coverage may also include spouse and children, but exclusively to natural and accidental deaths, allowing the primary insured to receive a percentage of his insured capital.
  • Most plans are not contributory, and the premium paid is tax-deductible for the employer. Some of the coverages are:
    • Natural Death – This rider provides the payment of an indemnity equivalent to the multiple of salary (12x, 24x or 36x) or agreed insured capital in contract.
    • Accidental Death – This rider provides for payment of double the death benefit in the event of accidental death. Coverage follows the multiple of salary (12x, 24x, or 36x) or the agreed-upon insured capital in the contract.
    • Total Functional Disability by Disease

This coverage provides a benefit of 100% of the individual insured amount.

Total or Partial Permanent Disability by Accident

  • This coverage provides a benefit of up to 100% of the individual insured amount, depending on the level of disability and the conditions requested by the client.

Individual or Family Funeral Assistance

  • When a claim occurs, assistance is provided to the primary insured and his immediate family (spouse and children). This coverage provides the family with the necessary funds to carry out the funeral.

 

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

Nothing in this report 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.

Spain

All companies must comply with the collective bargaining agreement’s (CBA) liabilities applicable to their employees. CBAs differ significantly by sector and can include a variety of benefits. The most commonly included benefits are accidental death and dismemberment insurance, life insurance, and a retirement or early retirement scheme.

As the benefits of the CBA’s mandatory coverage for death and disability are usually not high, companies often implement voluntary benefits to provide higher coverage and attract and retain talent.

Supplementary benefits highly valued by the average Spanish employee would be in the following order of importance: private medical insurance, life and accidental death and dismemberment insurance, and a retirement plan. Tax-exempt benefits through salary sacrifice and travel insurance are valued benefits as well.

Tax-exempt benefits offered through flexible compensation platforms (salary sacrifice) have gained importance in the past years due to the constant growth of the consumer index price and, consequently, in the cost of living.

Flexible compensation platforms include tools to automate payroll calculations, reduce administrative burdens, give employees the freedom to adjust their benefits according to their changing needs, and increase their satisfaction and commitment to the company.

Products like private medical insurance (including for family members), meal vouchers, nursery, training, and transportation can be offered through salary sacrifice with significant employee tax advantages.

 

Trending Now

Voluntary corporate pension schemes are an employee benefit in Spain that is in the spotlight due to significant tax changes that have been approved lately.

In general, the contributions to tax-qualified individual pension plans are limited to €1,500.

However, the following limits apply to contributions to a tax-qualified occupational pension plan:

  1. General limit of €1,500 per year.
  2. Possibility of increasing this limit by €8,500, provided that this increase comes from employer contributions or from employee contributions to the same tax-qualified occupational pension scheme, for an amount equal to or less than the amounts determined by the following table based on the annual employer contribution:
ANNUAL EMPLOYER CONTRIBUTION MAXIMUM EMPLOYEE CONTRIBUTION
Equal to or less than €500 The result of multiplying the employer contribution by 2.5
Between €500.01 and €1,500 €1,250 plus the result of multiplying by 0.25 the difference between the employer contribution and €500
More than €1,500 The result of multiplying the employer contribution by 1

However, the multiplier of 1 will apply in all cases if the employee’s gross salary exceeds €60,000 from the company making the contribution. The company must notify the managing entity or insurer in such cases.

 

Average Cost for Employer-Sponsored Benefits

An average cost considering Private Medical Insurance, Life Insurance, and a Defined Contribution Retirement Scheme could represent 10% of the gross salary.

Tax legislation may have some differences among the Spanish Autonomous Communities. For example, the private medical insurance premium paid by the employer on behalf of an employee is tax-exempt for an annual amount of up to €500  per person (including the same amount for family members) in most communities, but not so in the Basque Country.

Also, there is a labor risk regulation to be complied with and not related to voluntary employee benefits. It implies, among other technical specialties, offering voluntary annual checkups to employees. Large companies have a specific department and even doctors to comply with these regulations. However, small and medium-sized companies contract the Services of Private Occupational Risk Prevention Companies (different from Insurance Companies) to comply with the requirement. 

 

Mandatory Employee Benefits in Spain

The collective bargaining agreement (CBA) applicable to the sector or company will define the mandatory employee benefits.

Supplementary Employee Benefits in Spain

Private Medical Insurance

Private medical insurance is the employee benefit in Spain that complements the public medical service, and together with the attractive tax treatment, it’s considered one of the highest-valued benefits by employees. People use the public system; however, employees may experience delays for medical tests or non-urgent surgery.

Basic Private Medical Insurance typically provides access to medical services through a provider network of doctors and hospitals. A higher level of benefits provides an 80% to 90% reimbursement for out-of-network medical expenses and includes dental coverage.

Private medical insurance typically covers:

  • Medical consultations (general physician and specialists)
  • Hospitals: in-patient and out-patient
  • Home medical visits
  • Physiotherapy
  • Podology
  • Dental
  • Medical tests
  • Hospital
  • Surgical interventions
  • Ambulance
  • Payment per day of hospital stay
  • Additionally:
  • 24-hour call center to access medical assistance
  • Local travel insurance (for trips under 90 days duration)

Private medical insurance usually covers all employees and may be extended to their spouses and dependents. Employees’ premiums, in most cases, are fully paid by the employer, while spouse and dependents’ premiums are paid either by the employer or (partly) by the employee. If the employee pays the premium or part of it, it is market practice to include this benefit through salary sacrifice.

Life and Accidental Death and Dismemberment Insurance

Usually, all employees receive coverage under group life insurance, and employers pay 100% of the premium. Standard coverage profiles are:

  • Death by any cause is often two times the annual salary (double the amount if by accident), though a fixed amount is provided in some cases.
  • Permanent disability for the usual or all occupations guarantees an amount equal to two times the annual salary (double the amount if by accident) though in some cases, a fixed amount is provided

These benefits are in addition to Spain’s Social Security benefits.

It is often mandatory through the CBA to top up the short-term illness Social Security benefits to 100% of the base salary.  The employer can also provide this benefit voluntarily.

Retirement Scheme

Spain has a pay-as-you-go system to finance the public retirement pension. The standard retirement age will gradually increase by 2027. The standard retirement age will be 67 years unless someone has 38 years and 6 months or more of contributions, in which case they can retire at 65.

The public retirement pension is calculated using a formula considering the years quoted to Social Security and the quotation basis paid under a specific period.

The 2025 maximum social security retirement pension amounts to €45.746,29. The higher the salary, the higher the gap between the final salary and the public pension. Consequently, a supplementary corporate pension scheme is highly valued by higher-salaried employees and is an important retention tool.

On 2 July 2022, new legislation (Law 12/2022) regulating the promotion of occupational pension plans came into force.

Key provisions of Law 12/2022 include:

  • Creation of open public promotion occupational pension funds
  • Development of simplified occupational pension plans
  • New government incentives and tax-favorable measures
  • Government tax and contribution incentives
  • Law 12/2022 creates open public promotion occupational pension funds (Fondo de pensiones de empleo de promoción pública abierto, FPEPP), consisting of a collective supplemental savings vehicle for retirement.
  • Private financial institutions will manage the FPEPPs under the supervision of the Special Control Commission.

Simplified occupational pension plans are a new kind of occupational defined contribution (DC) plan with a streamlined implementation process, promoted by companies covered by sectoral collective bargaining agreements (CBA)

New corporate income tax deduction applies to Corporate Pension Plans only-

Effective 1 January 2023, a new corporate income tax deduction applies for employer contributions to occupational pension plans.

Reduction in Social Security contributions is effective 1 January 2023. Employers’ social security contributions for common contingencies will be reduced by the full amount of their occupational pension plan contributions with a maximum application.

The Spanish government’s plans to change the supplementary retirement scheme have already started with the abovementioned legislation. Its goal is to prioritize occupational pension plans over individual pension plans (second pillar). Currently, the government is aiming its efforts at small and medium-sized enterprises and self-employed workers.

Today, employers have no obligations to offer a supplemental pension scheme other than anything named in the CBA. Most multinational companies offer voluntary pension plans based on defined contribution schemes ranging from 3% to 5% of total salary. The more generous plans are between 5 and 10% of total salary.

In general, an employer contribution is combined with a mandatory smaller employee contribution. Employees can pay additional voluntary contributions.

Employee Perks

Tax-efficient benefits – can be included as salary sacrifice benefits:

  • Meal vouchers (maximum amount of €11/working day, typically €220/ month with a maximum of 11 months/ year)
  • Public Transportation vouchers for commuting (maximum €1.500 /year)
  • Kindergarten (0-3 years of age – no maximum amount)

Discounts are offered via third-party vendors and include:

  • Childcare discounts
  • Restaurant discounts
  • Shopping discounts
  • Gym discounts
  • Travel Agencies discounts

Others

  • Professional training/language courses. Exempted under personal tax if training is directly related to the employee’s job
  • Stock options (under special buying conditions)
  • Cars – tax exempted up to 20% of car market value, applying the percentage of type of use

 

PIB GROUP IBERIA, Asinta’s employee benefits consulting Partner in Spain, provided this information about employee benefits in Spain. 

United Kingdom

Pension provision is an essential employee benefit and the most significant expense for most employers. Young employees have traditionally shown little interest in saving in their pension provision, and this has led the state to mandate employers to enroll their employees into a pension scheme automatically. Private medical insurance is also an important benefit to employees, as are incapacity benefits.

Mandatory employee benefits in the UK include pension, holiday pay, maternity/paternity pay (companies often exceed the statutory limit as part of a comprehensive benefits offer), and sick pay. Supplementary employee benefits in the UK include Group Life Assurance, Group Income Protection (incapacity), Critical Illness Insurance, Private Medical Insurance, Dental Insurance, Health Cash Plan, Employee Assistance Programs, and virtual GP services. Benefits sometimes available to employees to purchase at their own cost include cars, bicycles, optical insurance, and gym memberships.

Mandatory Employee Benefits in the United Kingdom

Workplace Pension

Pensions are a mandatory benefit in the UK and are subject to legislation. Employers must comply with legislation and auto-enroll eligible employees into an appropriate pension. Pensions auto-enrolment includes employers being required to provide a minimum level of pension provision for employees. The minimum contribution rate for workplace pension schemes is currently 8% of ‘qualifying earnings.’ The employer must pay at least 3% of this. However, pensions are considered a key benefit in the UK, and many employers contribute above the minimum level.

Employees can contribute more, but in the UK, they become less tax-efficient once contributions exceed certain levels.

Healthcare

In the UK, the National Health Service (NHS) is a state-funded healthcare system that everyone living in the UK can use without paying the full cost of the services provided. This includes

  • Access to a doctor for medical advice, diagnosis, or treatment
  • Treatment at a hospital for those who are unwell or injured
  • Emergency help from healthcare professionals for those with serious or life-threatening injuries or health problems

The NHS is ‘publicly funded,’ with the cost of provision funded through UK residents paying tax. The NHS is experiencing high service demand, resulting in long waiting times. As a result, increasing numbers of employers are considering funding healthcare through insurance arrangements to give employees access to healthcare advice and treatment when needed most and limit the impact on employees’ productivity.

Holiday Pay

Most workers who work a 5-day week are legally entitled to receive at least 28 days of paid annual leave a year. This is the equivalent of 5.6 weeks of holiday (known as statutory leave entitlement or annual leave). An employer can, and typically will, include public holidays as part of statutory annual leave.

It is common for UK employers to provide more paid holidays than the statutory minimum. Also, some employers will offer employees the option of increasing their holiday entitlement by ‘buying’ extra days as part of a flexible benefits arrangement.

Maternity/Paternity Pay

Complete rules can be found here.

Sick Pay

The state requires employers to provide a minimum level of Statutory Sick Pay for up to 28 weeks of absence. However, some employers increase this; a common approach is to pay full salary for an initial period, and reduce the payment amounts thereafter.

 

Supplementary Employee Benefits

Employer-Sponsored Retirement

When designing a UK pension scheme, either to meet or exceed the minimum auto-enrolment requirements, care needs to be taken in five main areas:

  1. Contributions – what level of contributions will be competitive and attract the right talent?
  2. Contribution method – the most tax-efficient method of deducting contributions is Salary Exchange (also known as Salary Sacrifice), as it gives maximum relief in terms of tax and national insurance to the employee and employer.
  3. Carrier selection – selecting the best supplier based on proposition, delivery, terms, employee engagement support, and financial strength.
  4. Default fund – The pension provider will offer a specific default fund for enrolment, which is run under strict criteria. However, some employers may prefer to select an alternative default fund for enrolment based on their considerations and requirements relating to performance, environmental, and social governance.
  5. Employee support – how is the scheme communicated, and what specialist support are they provided?

Group Life Assurance

Group Life Assurance is the most common insured employee benefit in the UK. The benefit provides a lump sum payment to surviving beneficiaries in the event of the employee’s death. These policies can be established from 3 employees upwards and must be set up under an appropriate trust; otherwise, substantial tax charges can apply when benefits are paid. Employers may need to register the policy with HMRC depending on the type of policy and trust selected.

Other than policies covering less than 20 employees, premiums are usually based on the same premium rate regardless of employee age, gender, and benefit amount. For policies covering less than 20 employees, premiums are generally based on the specifics of each employee.

Group Income Protection (Long-Term Disability / Incapacity Benefit)

Group Income Protection, also known as long-term disability and incapacity policies, can be established from 3 employees upwards and is easier to set up than Group Life Assurance because no trust is required.

The benefit is based on a percentage of salary and, subject to the policy terms and conditions being met, can be paid until state pension age. Some policies have a limited payment term, where the benefit is only paid for 2, 3, or 5 years; such policies are less expensive whilst still providing a generous benefit.

Cover will not apply to any employee not ‘actively at work’ when the policy commences. Claimants typically remain employed, meaning the employer’s pension and national insurance contributions are still made.

Critical Illness Insurance (CIC)

Critical Illness insurance provides a lump sum payment on the diagnosis of a critical illness covered under the policy, such as cancer, heart attack, or stroke. Most policies cover in the region of 30 critical illnesses, although most claims arise from a small number of critical illnesses. Often, the benefit is made available for employees to select at their own cost. Some employers provide employer-funded critical illness insurance to their most senior employees.

Private Medical Insurance (PMI)

Private medical insurance supplements primary care offered by the NHS. It is primarily designed to cover acute illnesses and not chronic conditions or emergency care.

Smaller schemes often have a restriction applied whereby cover for pre-existing conditions is excluded. Generally, insurers will quote on a Medical History Disregarded (MHD) basis for a minimum of 20 employees. Employer-funded cover is subject to Benefit in Kind (‘P11D’) taxation, and most employer schemes are “fully insured” with premiums set annually. For larger employers, typically with over 1,000 employees, alternative funding options are available; these can be more cost-effective and give more control over design.

Dental Insurance

Dental insurance policies are straightforward to set up in the UK, and the minimum number of employees required for a policy is usually two. Policies can be set up on a company-paid or employee-paid basis, and monthly costs typically range from £10 to £50 per member, depending on the level of cover required.

Health Cash Plan

The Health Cash Plans support the coverage or contribution to everyday healthcare costs that Private Medical Insurance does not always cover. Usually, an employee will pay the benefit-cost and make claims directly with the insurer. The minimum number of employees for a corporate policy is 3. Monthly costs can range from £5 to £50 per member, depending on the level of cover required.

Employee Assistance Program and Virtual GP Services

Many employers make an Employee Assistance Program (EAP) available; these are often included free of charge within other insurance benefits, such as Group Life Assurance and Group Income Protection.

Online virtual GP services have become popular; these enable convenient access to healthcare advice and support more quickly than accessing primary care through the NHS. Similar to EAPs, virtual GP services are often included free of charge within other insurance benefits, such as Group Life Assurance and Group Income Protection.

Employee Perks

Company Cars

Employees can be provided with company-financed cars and/or fuel or a car allowance in lieu. Due to significant tax charges, company cars have become less popular. Incentives, however, are made for eco-friendly vehicles.

We are seeing a trend of larger employers offering access to electric vehicles on an employee-paid basis, as part of flexible benefit arrangements.

Season Ticket Loan

Season ticket loans are typical, particularly with employers with many employees who commute by public transport. An employer will loan the employee money to buy a discounted annual season ticket and reclaim the loan monthly directly from the employee’s salary.

Tax-free Childcare and Childcare Vouchers

The government’s tax-free childcare program replaced Childcare Vouchers in 2018. Vouchers are no longer available unless an employee is already enrolled in an employer’s scheme. The tax-free childcare program offers up to £2,000 a year per child towards childcare costs, including nursery, childminder, and wrap-around care. Learn more

Bike to Work

Bike to work is intended to encourage commuting by bicycle by offering a tax-efficient bicycle purchase. Employees can save up to 43% of tax on purchasing a bicycle. In summary, the employer buys the bike, and the employee rents it for a specified period with the option to buy it at a reduced rate at the end of the rental term.

Gym Membership

Where an employer operates a flexible benefits arrangement, gym membership will often be offered. Membership will be at a discounted rate and paid directly from salary. In addition to gym membership, we are seeing an increase in the implementation of wellbeing allowances that enable employees to fund most sports activities.

Workplace Canteens

Workplace canteens are amongst larger employers; often, these are highly valued and enable employees to eat at discounted prices.

 

Related Government Websites

Jobcentre Plus of the Department for Work and Pensions

Department of Health

 

This information about employee benefits in the UK is provided by Howden, Asinta’s employee benefits consulting partner in the UK.

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.

Switzerland

Employee benefits in Switzerland are primarily mandatory, with both employer and employee contributing. Employee perks are very common, with some of the most popular being training and development.

 

Mandatory Employee Benefits in Switzerland

The Swiss social security system provides benefits in five areas: old age, survivors and disability, health, illness and accidents (work-related and non-work related), maternity and military services leave, unemployment, and family allowances.

The Swiss retirement System is structured as a ‘three-pillar’ system.

Pillar I – Social Security System: The first pillar includes the compulsory federal social security system for old age and survivors’ pension (AHV) and disability pension (IV). The employer and employee equally finance it. The contribution is 10.60% (2025) of the total earnings without any salary ceiling.

Pillar II – Occupational Benefits: The second pillar consists of employer-sponsored pension coverage, including the mandatory pension plan (BVG). The employer must pay at least 50% of the total contributions. Savings contributions range from 7% to 18% of covered pay, depending on age. Many employers provide pension benefits to supplement those paid under the AHV and BVG systems. These voluntary benefits are also considered part of the second pillar.

Pillar III – Voluntary Benefits Provision: The third pillar consists of voluntary individual retirement arrangements.

Retirement Benefits

Social Security (1st Pillar Benefits)

The first pillar of pension coverage is provided by the federal social security system and identified by the acronym AHV. The social security system is intended to provide a basic level of income for most Swiss pensioners. The benefits are payable to all persons reaching the statutory age, 65 for men and 64 for women – the retirement age for women will gradually increase to 65 by 2028). All persons having a legal residence, earning their living in Switzerland, or Swiss citizens working abroad for Swiss employers are mandatorily insured. Contributions are paid on total earnings and are shared equally by employer and employee. For a single person, the minimum pension amounts to CHF 15,120 per year and the maximum pension is CHF 30,240 per year. For married couples, the maximum pension is capped at 1.5 times the maximum pension.

Pension Scheme (2nd Pillar Benefits)

The second pillar of the Swiss ‘three pillar’ system consists of voluntary and mandatory employer-sponsored pension coverage. All employers are required to establish and maintain a pension plan for employees (with very few exceptions) under the BVG law. An employee must be covered if he/she is covered under the social security AHV, if he/she is at least 17 years old, and has an annual earning of at least 75% of the maximum annual pension (2025: CHF 22,680). Coverage for retirement pension begins on the 1st of January following the individual’s 24th birthday. Total savings contributions by law for the employer and employee (combined) are shown hereafter.

Employees Age Saving Contributions
25-34 7%
35-44 10%
45-54 15%
55/65 18%

The law requires the employer to pay at least 50% of the contributions.

Most employers provide higher benefits than required by the legal minimum.

Survivors Benefits

Social Security (1st Pillar Benefits)

Switzerland’s federal social security system provides survivors benefits that are financed through contributions from all employed persons over age 17 who are covered under the AHV system. The insured surviving spouse and dependent children may be entitled to a survivor’s pension if the deceased contributed to the AHV system for at least one year. A Spouse pension is payable to the widow or widower if certain criteria such as dependent children 18 or younger etc. are fulfilled. The spouse’s pension is equal to 80% of the pensionable salary. The survivor’s pension for each eligible orphan is equal to 40% of the pensionable salary.

Pension Scheme (2nd Pillar Benefits)

The mandatory pension law requires all pension plans to have at least 4% of contributions to provide death and disability insurance. Insured are spouse/partners’ pension as well as orphans’ pension. The pension payable to a surviving spouse is equal to 60% of the accrued old age pension of the deceased, with the service projected without any interest to the normal retirement age. The pension for each eligible orphan is 20%. The surviving spouse or partner’s benefit ceases upon the death or remarriage of the beneficiary. Most employers provide additional coverage.

Survivors pension under UVG/LAA (Accident Insurance)

In the event that a covered employee dies as the result of an accident, the surviving widow/er and any surviving half or full orphan are entitled to survivor’s benefits under UVG Law. The widow/er is entitled to a pension equal to 40% of the pensionable salary (maximum salary per year CHF 148’200). Half orphans and orphans are entitled to a pension equal to 15% and 25% of the pensionable salary. The total orphan’s pension cannot exceed 70% of the pensionable salary.

Short-Term Disability Insurance

The compulsory accident disability coverage provides benefits for short-term disabilities due to an accident until the insured is able to return to work, is declared permanently disabled, or dies. Compulsory accident insurance distinguishes between professional accidents, which are financed by the employer, and non-professional accidents, which are financed by the employee. The daily cash benefit is equal to 80% of the insured salary as of the third day after the accident. The maximum insured salary per year is CHF 148’200. Additional benefits under UVG are medical expenses in the general ward, prescription drugs, and tests, healing aids, and so on. Cash sickness benefits are not a legal requirement but are most common. In the absence of daily sickness insurance, the employer has a salary continuation requirement. Employers are required to pay full salary on sickness leave for at least three weeks during the first year of service and for an appropriate period according to the duration of the employment in subsequent years. The salary continuation requirement can be replaced by a daily group sickness insurance if the insurance coverage is at least 80% of the employee’s salary for two years and the employer finances 50% of the premium.

Long-Term Disability Insurance

Under federal law on general provisions, Switzerland offers sickness and disability benefits to all persons who are insured through either the compulsory or the optional scheme under the old age, survivors, and disability insurance. The benefits are financed through the employer and employee contributions of all employed persons over the age of 17. In the event of a disablement being the result of an accident, benefits may also be payable under the mandatory accident insurance (UVG/LAA) program. The benefits within the accident insurance (UVG/LAA) amount to 80% of the insured salary (up to CHF 148’200 per year). For illnesses, the disability pension from the pension scheme is payable after a period of 360 days if no group sickness insurance is in place, respectively 730 days if a group sickness insurance exists. The disability pension is determined the same way as the survivor’s pension and is capital-dependent.

 

Employee Perks

In Switzerland, employers offer various fringe benefits to the staff since the labor market is very competitive. Although the list of common perks is long, the most popular are training and development, as well as senior and service awards:

  • Communication benefits – Employers may provide company mobile phones or notebooks to their employees.
  • Company Cars – Providing company cars to executive employees becoming rarer as the benefit has proven to be tax ineffective. Instead, car or transportation allowances in the form of a monthly fixed cash benefit are becoming more common.
  • Education – Reimbursement of education costs is common in some multinational companies.
  • Training and Development – Some companies offer coaching and training.
  • Meals – Meal allowances in the form of lunch checks (between CHF 100 – CHF 180 per month), or in the form of cafeterias catering fully or partially subsidized lunch to employees are typical for large companies.
  • Senior and Services Awards – Companies typically provide modest discretionary seniority and services cash awards.
  • Discounts on company products – In companies that manufacture and/or sell products, providing employees with discounts on those products is typical.
  • Flexible work hours / Home Office – It is very common to offer flexible work hours as well as home office arrangements.
  • Supplementary vacation time or/and sabbaticals.
  • Sponsored medical insurance to employees or/and dependents.

 

Related Government Websites

Federal Office of Public Health

Federal Social Insurance Office

 

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

Nothing in this report 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.