The HR Diary

The HR Diary, the HR blog to get updates on the latest Global HR trends,
Global Employment/Tax laws/practices, HR books & Training recommendations.

Labour Laws & Pension Laws worldwide

Labour Laws Worldwide



For the Human Resources to contribute optimally to organisational performance, there must be an Overarching HR philosophy. HR policies/practices must fit with each other, with the business strategy, with the resource capabilities, and with the design of the organisation.


Global labour law & Social security contributions comparisons
Subject Prepared by
Comparison of Asia-pacific Annual Leave laws - Feb 2009.[download] Cedric Ng Mong Shen
Global social security contribution rates - 28 May 2009.[download] Cedric Ng Mong Shen

Regional employment law comparisons (Updated: 18 Sep ’08).
Country
Annual leave
(Statutory)
Sick leave
(Statutory)
Public holidays
(No. of leave days per year)
Maternity leave
(Expressed in law)
Australia
4 weeks
10 days
10 days
52 weeks
China
not specified
3-24 months
10 days
90 days
Hong Kong
7-14 days
24 days
12-14 days
10 weeks
India
15-30 days
91 days
10-16 days
12 weeks
Indonesia
12 days
-
15 days
3 months
Japan
10-20 days
-
14 days
14 weeks
Korea
15-25 days
-
14 days
90 days
Malaysia
8-16 days
14-22 days
13 days
60 days
Philippines
5 days
-
15 days
60 days
Singapore
7 - 14 days
14 days
11 days
16 weeks
Taiwan
7-30 days
30 days
10 days
8 weeks
Thailand
6 days
30 days
15 days
90 days
Vietnam
12-16 days
30 days
8 days
4 months

    Global HR Laws (Pay sites)
  • CCH Asia.[details]

  • Watson Wyatt Benefits and Employment Practices Publications.[details]


Global Social Security contributions comparisons (Updated: 28 May ’09).
Country
Type of social security contribution
Contribution By Employer (% of wage)
Contribution By Employee (% of wage)
Australia
Superannuation Guarantee System (SG)
Minimum 9% contribution amount of the ordinary time earnings
.
Britain
Pension
Under Pension Act 2008, min 3% (on a band of earnings) to an eligible employee’s workplace pension scheme
Under Pension Act 2008, 4% contribution from employee
China
Old Age Insurance & Medical Insurance
Old Age Insurance: Total Old Age Insurance premiums not to exceed 20% of total wage bill of enterprise. Specific % contribution determined by provincial govt. Medical Insurance: Total premiums for Medical Insurance around 6% of total wage bill of company.
Old Age Insurance: Individual employees pay 8% of their wages as premiums. Medical Insurance: 2% of wage for Medical Insurance.
Hong Kong
Mandatory Provident Fund (MPF)
5% of employee’s monthly wage (subject to income max of HKD20,000 per month).
5% of employee’s monthly wage (subject to income min & max of HKD5,000 & HKD20,000 per month).
India
Employees' Provident Fund (EPF)
12% of employee's monthly basic salary.
.
Indonesia
Jaminan Sosial Tenaga Kerja (Jamsostek)
4.24% of employee's monthly basic salary.
.
Japan
National Pension System
.
JPY14,410/month (for Apr 2008 to Mar 2009 : to be increased every year).
Malaysia
Employees Provident Fund (EPF)
12% of employee's monthly gross salary exclude overtime payment.
8% of employee’s monthly salary.
Philippines
Social Security System (SSS)
7.06% of monthly basic salary (Depends on employee’s income range, ranging from PHP 70.70 for salary range of PHP 1,000 – 1,249.99, to PHP 1,060 for salary range of PHP 14,750 and above.)
3.33% of monthly basic salary (Depends on employee’s income range, ranging from PHP 33.30 for salary range of PHP 1,000 – 1,249.99, to PHP 500 for salary range of PHP 14,750 and above.)
Singapore
Central Provident Fund (CPF)
14.5% of employee's monthly gross salary (For Employee Age 35 & below).
20% of employee's monthly gross salary (For Employee Age 35 & below).
South Korea
National Pension Scheme
4.5% of monthly earning, up to a maximum contribution of KRW162,000 per month each (as at 2001).
4.5% of monthly earning, up to a maximum contribution of KRW162,000 per month each (as at 2001).
Taiwan
Labour Pension System
Not less than 6% of the worker's monthly wages.
Voluntarily contribute up to 6% of the worker's monthly wages.
Thailand
Social Security Fund
3% of monthly base salary (effective from 1 May 2009 until 31 Dec 2009) (To resume to 5% of monthly base salary on 1 Jan 2010).
3% of monthly base salary (effective from 1 May 2009 until 31 Dec 2009) (To resume to 5% of monthly base salary on 1 Jan 2010).
US
Social Security Fund
Social Security: 6.2% of gross compensation up to a limit of US$106,800 of compensation (resulting in a maximum tax of US$6,621.60). Medicare: 1.45% of wages with no limit.
Social Security: 6.2% of gross compensation up to a limit of US$106,800 of compensation (resulting in a maximum tax of US$6,621.60). Medicare: 1.45% of wages with no limit.
Vietnam
Social Insurance Fund
Social Insurance: 15% of monthly gross basic salary.
Social Insurance: 5% of monthly gross basic salary.

    Social Security Schemes (Government sites)
  • Australia - Superannuation[details]

  • Tel: 61 2 6216 1111
  • Bahrain Social Security Schemes[details]

  • Bangladesh Social Security Schemes[details]

  • Brazil Social Security Schemes[details]

  • Britain Social Security Schemes [details]

  • Cambodia Social Security Schemes [details]

  • Canada Social Security Schemes [details]

  • China - Pension Fund [details]

  • Email: jyxc@molss.gov.cn
  • Egypt - Social Security [details]

  • Finland - Social Security [details]

  • France - Social Security[details]

  • Hong Kong - Mandatory Provident Fund (MPF)[details]

  • Email: mpfa@mpfa.org.hk
  • India - Employee Provident Fund (EPF) [details]

  • Email: http://www.epfindia.com/contact_us.htm
    Tel: http://www.epfindia.com/contact_us.htm
  • Indonesia - Jamsostek [details]

  • Tel: (021) 5207797
  • Japan - National Pension System [details]

  • Email: www-admin@mhlw.go.jp
    Tel: 03-5253-1111
  • Malaysia - Employee Provident Fund (EPF) [details]

  • Online Email: http://www.kwsp.gov.my/index.php?ch=rcm@page=rcm@call=rcmform
    Tel: 03-89226000
  • Mexico - Social Security [details]

  • Mongolia - Social Security[details]

  • New Zealand Kiwisaver scheme - Social Security System [details]

  • Pakistan - Social Security System [details]

  • Philippines - Social Security System [details]

  • Email: member_relations@sss.gov.ph
    Tel: (632) 920-6401
  • Russian - Social Security System [details]

  • Saudi Arabia - Social Security System [details]

  • Singapore - Central Provident Fund (CPF) [details]

  • Email: employer-accounts@cpf.gov.sg
    Tel: 1800-227-1188
  • South Korea - Natinal Pension Scheme [details]

  • Tel: http://www.nps.or.kr/appage/english/contact/contact_01.jsp
  • Spain Social Security Schemes[details]

  • Sri Lanka Social Security Schemes[details]

  • Switzerland Social Security Schemes[details]

  • Taiwan - Labour Pension System [details]

  • Online Email: http:/www.b;i.gov.tw/en/contact.asp
    Tel: 886-2-2396-1266
  • Thailand - Social Security [details]

  • Email: Webmaster@sso.go.th
    Tel: 0-2956-2345
  • UAE Social Security Schemes [details]

  • US Social Security Schemes [details]

  • Vietnam - Social Insurance [details]

  • Email: lasic@molisa.gov.vn Tel: (84-4) 8248913


HR case laws
Country Case law Publication date Description
Singapore Breach of employment contract - Firm sues for $1.2m, Diploma holder told to pay $41.60. [details] Published in The Straits Times on 8 Sep 2003 A Singapore company was awarded $41.60 after seeking damages of more than $1.2 million from a woman who allegedly breached her employment contract.
General Manager Fined $15,000 For Making False Declarations of Salaries.[details] Published in Singapore Ministry of Manpower website on 1 Oct 2007 The Ministry of Manpower (MOM) has prosecuted Mr Lim Meng Eng, the general manager of Starprint Production Pte Ltd, for making false declarations of salaries while applying for S Passes. The foreigners were paid monthly salaries of $800 during their employment between February 2006 to May 2007, instead of $1,800 as declared by Lim in the S Pass application forms.
Employment Dispute Involving Ssangyong Engineering & Construction Company Workers Amicably Settled.[details] Published in Singapore Ministry of Manpower website on 9 Oct 2008 On 2 October 2008, 186 foreign workers approached MOM for assistance over an employment grievance against their employer who had proposed a salary reduction. On the proposed monthly salary reduction from $1,700 to $1,200, the company explained that they had attempted to link the workers' performance to their salaries. Upon the Ministry's advice, the company agreed to continue to pay the workers their monthly salary of $1,700 as this is set out in their employment contracts, and separate the performance issue from the contracted salary.
Blinded worker wins S$57k on appeal.[details] Published in The Straits Times on 16 Oct 2008 An Indian worker blinded in one eye will now get S$57,000 in compensation from his employer, with the High Court's reversal of the Labour Court's verdict. The worker was denied compensation by the Labour Court because he gave multiple versions of how his eye was injured, thus denting his credibility. The High Court ruling was based on the view that how the accident took place was not an issue. The onus was for the employer to show that the injury happened outside work hours.
Directors of two Cleaning companies convicted for failing to provide statutory benefits to employees.[details] Published in Singapore Ministry of Manpower website on 17 Oct 2008 The Ministry of Manpower (MOM) has prosecuted two cleaning companies – Sparkle System Cleaning Services and Sun City Maintenance Pte Ltd – and their sole proprietor and managing director respectively for failing to provide statutory employment benefits to their employees.
10 accused of phantom worker scam.[details] Published in The Straits Times on 28 February 2009. 10 employers were hauled to court for lying about the number of local workers they employed sp they could secretly inflat their quota of foreign workers.
Ex-HR exec who forged payslips escapes jail term.[details] Published in The Straits Times on 21 March 2009. Woman who inflated salary to get job with better pay is fined S$!0,000 instead, after appeal to High Court.

Links to other Employment Court judgements
Country focus Sites
Singapore Singapore Ministry of Manpower - press releases[details]
Singapore Law Watch - court judgements [details]
United Kingdom Personneltoday - UK case laws [details]
Worldwide Employment Law Alliance - depository of worldwide court decisions [details]