Global Employee Benefits Insights - September 2023

Luxembourg

Introduces new leaves

Two new types of leave have been introduced and passed as law from August 2023 that apply to all employees.

The special leaves apply over a 12-month floating period and are:

• caregiver leave – 5 day leave to provide care or assistance to a family member or anyone living
  within the household.
• leave for reasons of force majeure – 1 days leave for urgent family reasons such as an illness or accident.
• The cost of this leave is split 50/50 by the employer and the state and can be taken in days
  or blocks of hours.

Source: public.lu /allenovery.com

Luxembourg

Increases the meal voucher limit

From January 2024, the total meal voucher limit allowable will increase from EUR 10.80 per day to EUR 15 per day.

The employee contribution will remain at EUR 2.80 per day meaning the maximum employer contribution will rise from EUR 8 to EUR 12.20 per day. Employees will be allowed to use a maximum of 5 vouchers per day, a total of EUR 75.

Source: luxtoday.lu /gouvernement.lu

Romania

Increases meal voucher limit

From 1st August 2023, the maximum value of daily meal tickets in Romania increased from RON 30 to RON 35. A further increase to RON 40 per day is scheduled
to commence from 1st January 2024.

Source: nineclock.ro / teaha.ro

Oman

Introduces new labour reforms

Effective from 31st July 2023, additional measures were introduced under Royal Decree 53/2023 to improve work-life balance.

Highlights of the changes include:

• Daily working hours reduced to 8 hours per day and capped at 40 hours per week.
• Sick leave expanded to 182 days per year. The first 21 days are paid at 100% and a sliding scale applies dropping to 35% from 71st day to 182 days of leave.
• Men can take 7 days of paternity leave up until the 98th day following their child’s birth.
• Women are entitled to 98 days of paid maternity leave (increased from 50 days) to cover the period before and after the birth. The cap on the number of occasions for maternity leave has also been removed.
• Female employees are entitled to a nursing break of one hour per day for up to one year following the end of their maternity leave; they can take up to one year of unpaid leave to care for their child, but they must pay all contributions due to the Social Fund during this period (employee, employer and government contributions).
• Employers with more than 25 female employees must designate a workplace rest area for them.

Employers have 6 months from date of introduction to ensure all measures are adhered to and comply with the new law.

Source: addleshawgoddard.com

Minimum wage increases from 1st October 2023

Japan

From 1st October 2023, the minimum hourly wage will increase to JPY 1,004. The amount payable will vary per region.¹

Laos

As of 1st October 2023, the monthly minimum wage will increase to LAK 1.6 million, up from LAK 1.3 million.²

Guernsey

Effective 1st October 2023, the hourly minimum wage in Guernsey will increase to £10.65, up from £9.55, for employees aged 18 years or older. The
minimum wage rate for employees aged 16 and 17 will be £9.65, up from £8.95.³⁴

Source: mhlw.go.jp¹ / laotiantimes.com² / guernseylegalresources.gg³ / bbc.co.uk⁴

Minimum wage increases from 1st January 2024

South Korea

In 2024, the minimum hourly wage will rise to KRW 9,860 across all industry sectors, up from KRW 9,620.

The hourly wage equals a monthly equivalent of KRW 2,060,740 for employees working the standard 40- hour work week. The new wage will take effect from 1st January 2024.¹

Poland

As of 1st January 2024, monthly minimum wage would increases to 4,242 PLN and the hourly minimum wage to 27.70 PLN.

A second increase is scheduled for July 1st, 2024 when the monthly minimum wage would increase to PLN 4,300, and the hourly minimum wage would increase to PLN 28.10.2.²

Source: hrmasia.com¹ / thefirstnews.com²

Reminders

Canada

There will be an additional public holiday in British Columbia on 30th September, for the National Day for Truth and Reconciliation.

Singapore

Employers must verify Employment Pass holders’ qualifications from 1st September.