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Global Benefit Insights - August 2021


Netherlands Paid Parental Leave

Effective 2nd August 2022, employees in the Netherlands will be entitled to 9 weeks paid parental leave.In the Netherlands, employees are currently entitled to 26 weeks unpaid parental leave. This can be used by parents of both biological and adopted children until the child is 8 years of age. Where the company is subject to a collective bargaining agreement, an element of paid parental leave may be required.

From 2nd August 2022, employees will be entitled to 50% of their daily salary each day (capped at 50% of the maximum daily wage) for the first 9 weeks of the 26 week allowance. The 9 weeks paid leave must be used during the child’s first year of birth. The remainder of the unpaid leave can continue to be taken until the child reaches 8 years of age.

Benefit is payable by the Employee Insurance Agency (UWV).Unpaid parental leave is in addition to other paternity and maternity leaves and benefits. Over the next 12 months, further updates may be released. NFP will keep you updated on any changes.

China Family Planning Changes

On 26th July 2021, maternity insurance schemes extended to cover maternity costs for the birth of a third child.

Chinese government announced on 31st May 2021 that they will legitimise a three-child policy in hopes to try and boost childbirths and combat the aging population in China. This means that families will no longer face penalty fines for the birth of a third child. Since this date, many updates have followed including the Communist Party of China (CCP) Central Committee and the State Council confirming they will be revising their law on population and family planning to promote long-term development of the population to work alongside the third child policy.

The National Healthcare Security Administration (NHSA) has confirmed that maternity insurance will cover the cost of maternity expenses incurred by pregnant employees when giving birth to a third child. The National Health Commission (NHC) also confirmed they will look to provide higher quality medical resources to pregnant females and try to streamline the administration surrounding childbirth and the healthcare of children.

Other proposed changes are expected to follow, which could impact employers, such as increased parental leave policies, further protection around a female employee’s rights in employment, tax deduction for childcare expenses, and expanding childcare services and facilities.

Employers with populations in China should keep up to date with all new announcements surrounding this change to ensure they are compliant with any required changes that impact the workforce.

New Zealand Sick Leave Update

Effective 24th July 2021, employees are entitled to 10 employer paid sick leave days.

Earlier this year, NFP let you know that The Holidays (Increasing Sick Leave) Amendment Act 2021 was due to come into force mid-2021. The legislation update has come into effect on 24th July 2021 and increases sick leave to 10 days once an employee has completed 12 months service.

The entitlement to 10 days sick leave begins when the employee’s next entitlement date starts. For new hires, entitlement is 6 months after employment. For existing employees, entitlement is on the 1 year anniversary of when the employee was last entitled to sick leave.

Unused sick leave can be carried over and added to the following year’s entitlement, allowing employees to accumulate up to 20 days sick leave.
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