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Global benefits insights - July 2024

July 25, 2024

Indonesia

Introduces new law on maternal and child welfare

Enacted by the government of Indonesia on 2nd July 2024, Law No. 4 relates to the first one thousand days of life. The new law is extensive, but key takeaways are:

  • Maternity leave is now extended to allow mothers to take three months’ leave post-birth, with an additional three months’ permissible under special circumstances evidenced by a doctor’s note.
  • Employees who suffer a miscarriage are entitled to an additional one and a half months’ leave, or longer if recommended by a doctor or midwife.
  • Any employee who exercises their right to maternity or miscarriage leave is not allowed to have their employment terminated.
  • Working fathers are now entitled to two days of paid paternity leave during delivery and up
    to an additional three days after delivery (or longer period agreed by the employer). In the event of a miscarriage, fathers are also entitled to two days of paid leave.

Employers should address these changes now as formal regulations will be implemented within the next two years.

Source: mondaq.com

United Arab Emirates

Expands mandatory healthcare requirements

Currently, it is mandated that private employers within Dubai and Abu Dhabi provide their foreign and domestic workers with private healthcare. This requirement is being expanded to the whole of the UAE.

Effective from 1st January 2025, all remaining emirates; Sharjah, Ras Al Khaimah, Umm Al Quwain, Ajman, and Fujairah, will also need to provide this requirement. 

The details of the coverage, cost sharing requirements, and any coverage extension for dependants have not yet been released, but further details on this and confirmation on whether a phased implementation will apply are expected shortly.

Source: khaleejtimes.com

Australia

Increases superannuation rate

Effective from 1st July 2024, the new rate applies to all eligible employees.

The superannuation rate has been increasing by 0.5% each year since 2021, when the rate was 9.5%.

As of 1st July 2024, the superannuation rate will be 11.5% and is set to increase again in July 2025 to 12%.

The maximum quarterly salary used to calculate the contribution is AUD 65,070 for 2024.

Source: ato.gov.au

Minimum wage increases from 1st July 2024

Vietnam

Effective from 1st July 2024, the minimum monthly and hourly salaries in Vietnam will increase by region¹:

Region Minimum monthly Minimum hourly
Region 1 VND 4,960,000 VND 23,800
Region 2 VND 4,410,000 VND 21,200
Region 3 VND 3,860,000 VND 18,600
Region 4 VND 3,450,000 VND 16,600

The cap for contribution of compulsory social insurance increases to VND 46,800,000 per month, whilst the cap for unemployment insurance increases to VND 99,200,000 per month for region 1, VND 88,200,000 per month for region 2, VND 77,200,000 for region 3 and VND 69,000,000 for region 4².

Source: vietnam-briefing¹ / mondaq.com²


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