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Global Benefit Insights - August 2022


India Introduces GST On Hospital Bills

From 18th of July 2022, the Indian government has amended tax exemptions, one of these items being room fees for hospital stays.

For all stays in hospital, except for ICU stays, there will be 5% Goods and Service tax (GST) payable on the cost of room rent over INR 5,000 (approx. $62.95 at time of writing) per day.

This will impact employees as some insurers are not including the GST as part of their reimbursement plan. This will have a detrimental effect on those who have regular hospitalisation due to chronic conditions who will have to pay the GST themselves. There will also be implications for the plans where the insurers will include the GST in the reimbursement, as the total claims value will increase meaning the premiums for medical insurance are likely to increase. There will also be an increase in premium if insurers are increasing the daily room rent reimbursement to accommodate any GST added.

Source: economictimes.indiatimes / prudentbrokers

Germany Introduces Verification Act

The Verification Act came into force on 1st August 2022 and brings with it changes regarding the written requirements for employers.

Employers must provide all contractual items in writing to the employee no later than the first day of their employment. They must be signed by the employer. This also includes details of any benefits provided and the data protection notices of the pension institute, the EPF Euro-BetriebsPensionFonds e.V..

A violation of these requirements can be punished with a fine of up to €2,000.

Source: profion

Changes to Unemployment in Malaysia

On July 25, 2022, the Dewan Rakyat (House of Representatives) approved Bill No. D.R.11/2022 on the Employment Insurance System.

This will amend the Employment Insurance System Act 2017. The main proposed change is the increase of insurable wages from MYR4,000.0 to MYR5,000.0 (approx. $971.4 to $1,214.2 at the time of writing). This will have an impact on the social security costs paid as both the employee and employer will need to contribute 0.2% on the higher wage.

The bill will come into force after its inclusion in the Official Gazette.


Changes to Insurance Discrimination in Brazil

On July 18, 2022, the Chamber of Deputies (Camara Dos Deputados) issued Bill 4007/19 prohibiting insurers to provide coverage with differentiated pricing to individuals with disabilities.

The Bill has already been approved by the Senate, which stipulates the providers of personal insurance, including life insurers, must avoid discriminatory pricing for insurance policies sold to people with disabilities.


Cambodia Introduces State Pension Provision

The National Pension Scheme has been introduced in Cambodia with contributions commencing from 1st October 2022.

All employers who were previously registered with the National Social Security Fund (NSSF) will automatically be enrolled into the pension scheme. If a company hasn’t been registered before or are newly registered, as soon as they have their first employee their registration must commence. For newly established companies they have 30 days from the date of establishment to register. Employees must be registered with NSSF within three days of commencing work.

Contributions will be phased in, starting with a total 4% contribution for the first 5 years since the requirement is passed, 8% for years 6 to 10 and 10.75% for 10 plus years. There is an increase of 2.75% due after each 10-year interval.

The monthly salary used for calculations is capped at KHR 1,200,000 (approx. $291 at the time of writing) and is payable until employees are 60 years of age. The contribution will be split between the employee and the employer equally.

Source: /

Venezuela Salary Changes

The minimum wage and meal bonus increases.

The minimum salary in Venezuela has increased by more than 1,700% from VED 7 to VED 130 per month.

In the same edition Decree No 4,654 increased the food bonus that accompanies the minimum salary from VED 3 to VED 45 per month.

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