Norway Pension legislation changes
Changes will have impacts on both employees and employers.
The majority of employers within Norway base their pension contribution from 1G earned (NOK 106, 399). This means that the first NOK 106,399 earned was not subject to pension contributions. The change in pension legislation now requires that pension contributions apply from 0 NOK up to 7.1G (NOK 755,433).
The national insurance rules now also state that from the age of 13 salaries are now pensionable. This will impact on those employers where they have seasonal young workers.
Source : Lexology.com
Changes following the Budget in Singapore
Central Provident Fund (CPF) Contribution Increase.
The CPF contributions for those aged 55 and over, increased in January to 28% between ages 55 and 60, to 18.5% between 60 and 65, to 14% between 65 and 70 but remain at 12.5% for those aged above 70.
From 1st January, these contributions will change again, to 29.5% between ages 55 and 60, to 20.5% between 60 and 65, to 15.5% between 65 and 70. Contributions for those aged, 70 and over will remain at 12.5%.
Increase in Goods Service Tax(GST)
It was also announced a 1% increase in Goods and Services Tax (GST) from 7% to 8%. This is effective from 1st January 2023. This will rise by a further 1% to 9% from 1 January 2024. GST applies to non-life group life policy rider premiums and premiums for accident, disability or medical risk policies issued by life companies.
Source : cpf.gov.sg / mof.gov.sg / treeofwealth.sg / iras.gov.sg
Finland has paid parental leave reform
Paid paternity leave and maternity allowance changes.
For children that are due to be born on or after 4th September 2022, or due for adoption on or after 31st July, parents are entitled to expand their paid leave. Under the new law, pregnant women will be entitled to 40 days of maternity allowance, an increase on the 30 days offered previously. This is to be taken in one single period in the final stages of pregnancy.
Both parents will be entitled to 160 days each of parental leave, to be taken before the child turns 2, this is increased to 320 days for single parents. The leave entitlement increases by 84 days for multiple births and for each child thereafter.
Parental leave can be taken in 4 periods and can be used to reduce working time and work partial days.
Income Tax changes in India
India introduces tax threshold on EPF.
As of the 1st April 2022, employee provident fund (EPF) contributions that exceed INR 250,000 per annum will be taxed. Total contributions that are under the cap remain tax free.
Source : india.com
Ireland Introduces Sick Pay
In March 2022, a bill was approved to roll out statutory sick pay.
Currently there isn’t a legal requirement for employers to provide employees with sick pay for any period of time, employees are required to claim illness benefit from the state. This benefit is relatively low at €203 per week with the minimum PRSA contributions.
From September 2022 employers will be required to provide full and part time employees with 3 days of paid leave at a rate of 70% of usual daily earnings, up to €110 per day.
This rises to 5 days in 2024, 7 days in 2025 and 10 days in 2026. This will mean that a total of two weeks sick pay will be payable along with all other leave (i.e. vacation, parental leave, public holidays).
Source : sage.com