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Employee Benefits
Attract and retain top talent with our guides to competitive benefits across the globe.

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Welcome to the Playroll blog
Attract and retain top talent with our guides to competitive benefits across the globe.
So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.
The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.
Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.
Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.
Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.
The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.
All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.
Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.
Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.
The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents.
Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.
Our Norway playbook can help you understand the country’s labor laws and regulations.
Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.
That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.
Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.
Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.
Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.
Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.
Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.
Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.
South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.
The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.
Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.
The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.
Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:
As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.
That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.
To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:
Book a demo with our team to find out how we can help you scale your remote team with ease.
Read Time
January 6, 2025
Recruiting and retaining talent in countries with free healthcare means lower healthcare-related costs for business, fewer sick days, and little-to-no absence from work. That can help companies build a motivated, satisfied, and more stable workforce.
Understanding the average maternity leave by country helps employers grasp the global landscape, ensuring their policies are competitive and in line with international standards.
According to the ILO (International Labour Organization) standards, maternity leave is a universal human and labor right and should last at least 14 weeks. Still, the ILO recommends increasing that period to 18 weeks of paid parental leave so the mother can have more time to rest and recover properly.
However, regarding maternity leave requirements, two variables change between the 152 countries that offer the benefit: leave duration and financial compensation. During said leave, the mother can either be fully paid maternity leave, paid in part, or not paid at all.
To guarantee compliance, employers must keep up-to-date with each country's maternity leave laws. Here are some examples of maternity leave by country around the world. This section highlights the differences in paid maternity leave by country, illustrating how compensation during leave varies globally.
Evaluating the best maternity leave by country allows employers to understand which nations offer the most comprehensive support for new mothers, setting a benchmark for global maternity policies.
Also Read: What Are the Best Countries for Maternity Leave?
Let's examine the common employee rights during maternity leave to better understand the scope of employer obligations and practices.
Pregnant workers may feel entitled to take legal action if they are treated less favorably due to their pregnancy or family responsibilities or if they’re asked to perform tasks not suitable for someone in their state.
Some countries allow employees to take more leave in exchange for disadvantages, such as not being paid for the extra time or pausing their career progression.
In addition to paid maternity leave, 63% of countries offer parental leave. However, the leave duration is often smaller than the mother’s, usually under three weeks of maternity leave.
This is one of the more important things to keep track of. Every mother has the right to return to her previous position upon returning to work, no matter how much time she spends on leave.
A great thing to do when implementing maternity leave policies in your company is to plan and disclose everything in advance. That way, you can ensure you and your team are up-to-date with all respective duties and procedures, avoiding any possible hiccups.
Here are some tips that will help you through this process:
● Previously define those eligible for a paid maternity leave, stating criteria such as length of service, full-time status, etc.
● Establish the leave duration, including possible extensions and other additional arrangements.
● Declare the pay and all the benefits employees receive during the maternity leave beforehand.
● Specify the notice requirements. Let your team know when they should inform you about their pregnancy and when they plan on taking maternity leave.
● Assure job protection. Your employees must know their positions will remain secure.
● Adapt your company to better accommodate pregnant employees and those returning from maternity leave. The gold standard is creating flexible work schedules.
Maternity leave policies have evolved significantly in recent years to reflect the changing dynamics of the modern workforce. With globalization and the rise of remote work, employers face new challenges in managing maternity leave across borders and in diverse cultural contexts. Here are some challenges that global employers may encounter and tips on how to deal with them.
The advent of remote work has blurred traditional boundaries, presenting opportunities and challenges for managing maternity leave. Remote employees may require flexible arrangements to balance work and caregiving responsibilities effectively.
Employers should prioritize communication and collaboration, offering remote-friendly maternity leave policies that accommodate the unique needs of remote workers.
In some cultures, there may be stigma or pressure surrounding maternity leave, leading to reluctance among employees to take time off.
Legal risks associated with maternity leave include potential discrimination claims, wrongful termination lawsuits, and labor law violations. Employers must take proactive steps to mitigate these risks by implementing fair and equitable maternity leave policies, providing adequate training to managers, and fostering a culture of inclusion and diversity within the organization.
While maternity leave is typically associated with birth mothers, it's essential to recognize the importance of supporting fathers and non-birth parents in parental leave policies. Employers should offer gender-neutral parental leave benefits that enable all parents to bond with their newborns and support their families.
By encouraging fathers and non-birth parents to take advantage of parental leave, employers can promote gender equality, strengthen family bonds, and create a more inclusive workplace for all employees.
In an increasingly interconnected and diverse world, managing maternity leave requires a nuanced understanding of legal, cultural, and societal factors. Employers must prioritize compliance, equity, and inclusion, recognizing the role of maternity leave in supporting working parents and promoting gender equality.
That’s where Playroll comes in. Our expert and global team of HR professionals are ready to help you safely navigate maternal leave and offer your international workforce all the benefits they seek. Don’t worry about all the legal hurdles: count on us. Request a demo today.
In the U.S., employee benefits are divided between legally required employee benefits and supplemental benefits that vary depending on the state or the employer's discretion. Federally mandated benefits apply to all 50 states across the United States under federal law whereas benefits at a state level are dependent on the respective laws of the 50 states.
Federally mandated benefits are benefits that companies with full-time employees are legally required to provide to their workers. State-level requirements refer to benefits that may differ from one state to another. For example, employers in certain states (such as Colorado and New York) must provide paid leave to their employees due to state law.
Federal law and state law mandate certain benefits for full-time employees, while others, like voluntary benefits, are commonly offered to attract and retain talent.
Full-time employees are entitled to all statutory benefits, while part-time employees may qualify for limited benefits, such as workers' compensation or unemployment insurance. Benefit entitlements can also vary based on employer size and location.
As an employer, it is important to be able to distinguish the types of employees in your workforce. Full-time employees are =employees who work more than 35 hours a week whereas anyone who works less than 35 hours per week is considered a part-time employee.
These characteristics may differ from one business to another. In some cases, the law outlines the maximum number of hours an employee can work to be considered part-time. Once exceeded, they will be afforded the same benefits as full-time workers For example, the Fair Labor Standards Act (FLSA) states that non-exempt employees are entitled to overtime pay any time they work more than 40 hours per week.
Employers should take the time to understand what each mandatory benefit means to remain compliant with the law and provide the legally required employee benefits to their workers. These benefits were put in place to protect workers’ rights. Statutory employee benefits can be broken down into four subgroups namely:
Social Security is a federally mandated benefits program that provides income support for retired workers (and their dependents) as well as for workers with disabilities and survivor benefits. Both employers and employees contribute 6.2 percent of the employee's wages and self-employed individuals pay 12.4% of their earnings.
Medicare is a public health insurance program primarily for individuals aged 65 and older. Social Security taxes and contributions made by employers and employees fund this program.
This is a nationally mandated benefit that covers medical care for retired individuals and provides financial support to individuals affected by loss of work and disability. It also covers liabilities resulting from workplace injuries and illnesses. This disability insurance is mandatory in nearly all 50 states in the U.S. and protects employers from lawsuits related to workplace injuries.
The Family and Medical Leave Act (FMLA) states that eligible employees are entitled to 12 weeks of unpaid annual leave for specific family and medical reasons. These reasons include the birth of a child or caring for a family member with a serious illness.
To qualify for family and medical leave, an employee must have worked for their employer for at least 1,250 hours in the past 12 months and their employer must have 50 or more employees.
Unemployment insurance provides temporary financial assistance to workers who lose their jobs but are willing and able to work. It is funded through employer taxes of 6% on the initial $7,000 of an employee’s annual salary.
The 6% employer-only contribution exists at a federal government level, but the taxes paid towards the State Unemployment Tax Act (SUTA) differ between states.
It’s often not enough for an employer to only offer their workers statutory benefits. In order to attract the best talent in the U.S. and beyond the country’s borders, employers should think about which supplemental benefits are best suited to their workforce’s needs.
While employees in the U.S. are ensured social security benefits, most employees appreciate increased coverage from popular retirement plans such as 401(k)s. These retirement savings plans allow employees to save comprehensively for their futures, often through contribution-matching policies with their employers.
Certain businesses are required to provide health insurance coverage to their employees under the Affordable Care Act (ACA). Employers may go beyond this statutory requirement by providing broader coverage such as private health insurance to their employees. Offering private healthcare is highly valuable to employees given the high cost of healthcare in the States. According to the Centers for Disease Control and Prevention (CDC), 12.2 % of Americans in the workforce did not have health insurance in 2022.
This highly desirable benefit typically includes paid vacation days, sick leave, and personal days for employees. While this benefit is not legally required, it certainly helps improve employees’ work-life balance and general well-being.
A basic employee healthcare plan may not include vision and dental coverage. If this is the case in your business, consider offering your employees this additional coverage that will give them access to optometric and dental care.
Equity benefits are an investment opportunity that employers can present to their employees in the form of non-cash payments. When implemented, this benefit makes employees partial owners of the company they work for. As an added bonus, employees tend to be more motivated to ensure the company’s growth if they have a personal stake in it.
Employee benefits in the U.S. can have tax implications. For instance, fringe benefits like health insurance and retirement contributions are often tax-deductible for employers. Additionally, some benefits may qualify for tax breaks or incentives, helping companies, like small businesses, manage the cost of offering comprehensive benefits packages.
The Internal Revenue Service (IRS) clearly outlines that any benefit provided by an employer is subject to employment taxes and must be included in the employee’s pay unless it is categorized as an excluded benefit by the IRS.
Failure to provide required benefits can result in severe penalties for employers. The consequences for neglecting to provide employees with benefits vary by state and type of benefit.
For example, failing to provide adequate Workers’ Compensation Insurance is considered a criminal offense in California, New Jersey, and Pennsylvania. Offenders can be subject to fines of $10,000 and prison time in some cases.
Some employers intentionally misclassify their workers to avoid providing them with mandated employee benefits. In such cases, employers will be subject to steep fines, lawsuits, and reputational damage.
There are other perks you could add to your benefits package to make it more attractive to top talent such as:
These perks go beyond basic benefits and contribute to a positive work environment that can set your company apart in a competitive talent market.
Offering statutory benefits can significantly increase the cost of hiring employees. On average, legally required benefits like Social Security, Medicare, and workers' compensation account for around 10-15% of total employee costs. According to the Bureau of Labor Statistics (BLS), employee’s benefits cost between 20-40% of their salary.
Having a clear grasp on the costs associated with employee benefits is essential for accurate budgeting as an employer. For a detailed comparison of employee costs across different countries and U.S. states, check out Playroll’s free employee cost calculator.
Read Time
September 18, 2024
In South Africa, a benefits package will include mandatory employee benefits such as paid time off, Unemployment Insurance Fund (UIF), and overtime pay and may include additional perks such as retirement plans and health benefits.
Not all workers are entitled to the same benefits. Workers can be separated into full-time, part-time, and fixed-term contract employees or independent contractors.
Full-time employees refer to employees who typically work 40 to 45 hours per week. These employees generally receive a more comprehensive benefits package than part-time workers (employees who work less than 40-45 hours per week but more than 24 hours a week). An employee on probation is not guaranteed supplementary benefits but will still have access to statutory benefits. Employees on fixed-term contracts (individuals whose employment runs through a specified date) may be eligible for certain benefits depending on the agreement with their employer.
However, independent contractors (individuals hired to complete a specific task or project) do not qualify to receive benefits.
In South Africa, employee benefits include statutory benefits (benefits guaranteed by law) and supplementary benefits (additional privileges provided at the employer’s discretion).
According to the Basic Conditions of Employment Act, employees are guaranteed annual leave of at least 21 consecutive days (not including public holidays), one day for every 17 days worked, or 1 hour for every 17 hours worked.
The employee and employer must reach a mutual agreement regarding the timing of the leave. The employer makes the final call if a mutual agreement cannot be reached. Employers may only grant leave up to six months after the end of the annual leave cycle and may not offer payment in place of granting annual leave (except on the termination of employment).
Pregnant employees are entitled to at least four consecutive months of maternity leave. The clock on these four months begins four weeks before the expected birth date, but employees may begin their leave earlier than this. Employers are not obligated to pay their employees during this time; however, the UIF covers 60% of their salary for up to 121 days.
Employees may request to extend their maternity leave. However, this request must be accompanied by a medical certificate specifying the extension's expected length.
Companies are only required to offer a less generous ten-day paternity leave following the birth or adoption of a child. In an adoption case, the child must be younger than two years old.
Paternity leave is unpaid; however, employees may claim 66% of their regular earnings from the UIF subject to the maximum income threshold.
Based on the Basic Conditions of Employment Act, workers are entitled to the number of days they would regularly work in 6 weeks every 3 years. For example, someone who works five days per week will have 30 days in their bank of sick leave days every three years.
However, during an employee’s first six months, they are only entitled to one day of paid sick leave for every 26 days they worked.
Employers have the right to request a medical certificate before paying employees who take more than two consecutive sick days or are absent more than twice in 8 weeks.
Certain South African employees are eligible to receive paid leave under certain circumstances, namely, the birth of a child, to care for their child that has fallen ill, or upon the death of an immediate family member.
The term “immediate family member” only includes the following individuals in this case:
The employee’s:
To qualify for Family Responsibility Leave, an employee must work for longer than four months for the same employer and work more than four days a week.
South African employers are required to pay their workers overtime pay. Overtime is capped at 3 hours per day and 10 hours per week. Employees can agree to work up to 15 hours of overtime, but only for up to two months a year.
If employees agree to work overtime, their employer must pay them 1.5 times their standard hourly pay rate. Employees who regularly work on Sundays must be paid 1.5 times their regular wage. However, employees who do not usually work on Sundays must be paid double their regular wage.
An employee may agree to accept PTO in exchange for working overtime.
Both employers and employees contribute to the Fund, which is set up to offer temporary financial support in cases of unemployment, adoption, parental leave, or illness. Dependents of deceased contributors may also claim from the UIF.
The employee must contribute 1% of their remuneration to the Fund, and the employer must match this 1% contribution.
COIDA is a program that compensates workers injured or infected with diseases during their employment. This program covers dependents of workers who die on the job as a result of work-related accidents or contraction of occupational diseases.
The Skills Development Levy (SDL) is a tax imposed on businesses to develop and improve workforce skills. Unlike UIF, employees are exempt from paying SDL, but employers must contribute 1% of the total amount paid in salaries to employees each month.
Supplemental benefits (also called fringe benefits in South Africa) are not required by law, but can help you stand out as an employer and attract top talent. They include:
South African employers are not legally obligated to contribute to employees’ retirement funds. However, future planning is essential to any enticing benefits package.
In many cases, employees are given the option to contribute towards a retirement contribution system; employers in some industries make this a requirement. The idea is that employers invest a percentage of the employee’s remuneration in a retirement fund to provide employees with a source of income once they retire.
While South Africa’s public healthcare system is free, its quality is not comparable to private care. Medical aid is invaluable to employees’ lives as it covers medical services and healthcare expenses from private institutions.
Employers may offer their employees various health insurance systems, including medical aid schemes, hospital plans, and comprehensive medical coverage, to attract world-class talent.
In South Africa, there is no statutory requirement to give employees bonuses at the end of the year. However, it is commonplace to give employees performance-based bonuses in December. These bonuses are usually equivalent to one month’s remuneration.
In addition to drawing in the best talent, employee benefits offer various advantages, including tax breaks or incentives. For example, as of 1 March 2016, contributions made to a pension or provident by an employer on behalf of an employee are tax deductible. This deduction comprises the sum of both the employee and employer contributions.
Interfering with employee benefits in South Africa should be taken seriously. Depriving employees of the benefits they’re entitled to can lead to the employee lodging a case against the employer at the Commission for Conciliation Mediation and Arbitration (CCMA). Failure to comply with South African labor law is treated as unfair labor practice and can result in significant penalties.
Employers also have an obligation to report all work-related incidents. For example, work-related injury and contraction of diseases must be reported to COIDA and other relevant parties.
There are various perks you should consider offering to current and potential employees in addition to the benefits discussed above:
The COVID-19 pandemic made employers and employees aware of the advantages of working from home. These benefits include increased productivity, flexibility and improved work-life balance for workers.
Since the pandemic, there has been an upward trend in adopting remote work, so much so that some workers look exclusively for fully remote positions. If you want access to a broader talent pool, consider offering various work arrangement options such as partial remote work, hybrid work models, or fully remote positions.
Employees not restricted by rigid schedules enjoy a better work-life balance. Flexible work hours allow employees to manage their time in a way that reflects their personal needs and expectations. Increased flexibility gives employees more autonomy regarding how they spend their time. This will invariably increase productivity and employee satisfaction and will help manage stress.
Any competitive benefits package must include an element of physical and mental wellness. Employee wellness programs give workers access to resources that support their physical and psychological care. These include partnerships with local wellness institutions such as gyms, in-house counseling, and health and wellness workshops.
Employee expenses significantly contribute to overall business spending in South Africa. Stats SA found that employers spent about 14% of total expenditure on employees. These costs include salaries and wages, training expenses, and the mandatory and supplementary employee benefits discussed above. That said, South Africa has a relatively low employment cost compared to other countries – studies have shown that European companies can save up to 50% on staff by hiring South Africans.
Use Playroll’s free global employee cost calculator to get a detailed breakdown of mandatory employer taxes and contributions in South Africa and to easily compare different market costs side-by-side.
Managing employee benefits in South Africa can be complex, but Playroll simplifies this process. With a footprint in over 180 countries, our centralized platform streamlines onboarding, payroll, and benefits administration, and ensures compliance with ever-changing employment regulations. Partner with Playroll to attract and retain top talent with benefits tailored to meet the needs of South African employees.
Book a demo with our team to learn how we can help you offer competitive employee benefits packages to scale your team.
In Spain, employee benefits are divided into mandatory and supplemental categories. Mandatory benefits are stipulated by the Spanish Workers’ Statute (Estatuto de los Trabajadores). In contrast, supplemental benefits are often offered to enhance compensation packages and remain competitive in the job market.
Not all Spanish employees are entitled to the same benefits. For example, Spanish full-time employees work an average of 40 hours per week. These types of Spanish employees are entitled to all statutory benefits including maternity/paternity leave, annual leave, and paid sick leave under Spanish law.
On the other hand, part-time employees are defined as Spanish employees who work up to 20 hours per week. These employees receive proportional benefits, based on the hours worked, in line with Spanish law.
Contractors and freelancers (autónomo) in Spain work independently of any employing entity. In Spain, these workers can sign up to a special scheme for freelancers called RETA. This regime requires that freelancers contribute a specified amount to the social security system (Tesorería General de la Seguridad Social – TGSS). In exchange, they can enjoy benefits provided by the system such as medical treatment, sick pay, and retirement.
Mandatory employee benefits in Spain are statutory requirements outlined by labor laws, ensuring employees receive basic rights such as paid time off, leave for family-related events, and social security.
Spanish labor law ensures that new mothers receive 16 weeks of paid maternity leave after the birth or adoption of their child. There is an additional guarantee of two extra weeks of paid leave per child in cases where the mother gives birth to multiple babies or babies born with disabilities.
Paternity leave (or “partner leave” as it is officially called by the Spanish government) has recently also been extended to 16 weeks of paid leave, to accommodate fathers of newborn or adopted children. Both types of leave are funded by the country’s Social Security.
Employees in Spain are entitled to 30 calendar days or 22 working days of paid annual leave each year, as outlined in the Workers’ Statute (Estatuto de los Trabajadores). However, the Collective Bargaining Agreements (CBAs) may secure additional days for workers in certain industries.
Employees unable to work due to illness are eligible for paid sick leave. This is typically covered by the Social Security system, with up to 18 months of paid sick leave depending on the severity of the illness. The first three days of sick leave are unpaid. The employee can receive 60% of pay between the fourth and 20th day and is eligible to receive 75% of pay from the 20th day onward.
In addition to paid annual leave, Spanish employees are entitled to up to 14 paid days off in observance of national holidays (that are region-specific). All Spanish employees must be allowed to celebrate the nine nationwide holidays such as New Year’s Day (Año Nuevo), Good Friday (Viernes Santo), and Labor Day (Día del Trabajo). Other holidays granted to employees are dependent on provincial and regional customs.
In Spain, the social security fund is made up of several funds that address various aspects of employees’ lives such as illness, unemployment, disability, and retirement.
Employers contribute 30.48% and employees contribute 6.47% (a total of 36.95%) towards INSS contributions.
Workers’ compensation is also referred to as Collective Agreement Accident Insurance (Seguro de Accidentes de Convenios Colectivos) because the provisions are usually dependent on the outcome of CBA negotiations for specific industries.
This insurance provides healthcare and financial support to individuals who have suffered from job-related accidents and illnesses that prevent them from working.
While this pay is usually an additional perk in other countries, employers are required to provide their workers with two annual bonuses (13th and 14-month pay). Each bonus is equal to one month of an employee’s salary and is also subject to income tax.
While mandatory benefits ensure basic rights, supplemental employee benefits can significantly enhance a compensation package and help attract top talent. Common non-mandatory benefits in Spain include:
Employers often provide additional health benefits, such as private medical insurance, to cover employees and their families, complementing the public healthcare system. Health insurance can cost Spanish employees an additional 100 to 200 euros per month so offering private health insurance will be greatly valued by employees. Private healthcare gives employees access to better quality healthcare (when compared to Spain’s public healthcare system).
An additional benefit that addresses employees’ physical health can make your compensation package more competitive. This can involve offering your employees additional medical coverage that includes expenses such as dental, vision, and disability that are not covered by mandatory health insurance.
Spanish federal labor law ensures paid leave in certain circumstances such as maternity and paternity leave. However, additional paid time off is a powerful benefit to add to your benefits package as additional days off help employees manage unforeseen circumstances or celebrations in their personal lives. This is sure to boost company morale and improve employee work-life balance.
Many employers in Spain offer private pension plans to supplement the mandatory public pension system.
Certain employee benefits, such as pagas extraordinarias (extra pay), and meal vouchers, can have tax advantages for both employers and employees in Spain. Employers may receive tax deductions for offering specific benefits like private health insurance or childcare and meal vouchers, reducing the overall cost of providing supplemental benefits.
Compliance with Spanish labor laws is crucial when offering employee benefits. Employers must adhere to regulations outlined in the Estatuto de los Trabajadores (The Worker’s Statutes) and ensure they meet legal obligations. Spanish labor law requires that employers provide base-level benefits to their employees. If employers fail to do so, this can lead to penalties, including fines and legal disputes.
Mandatory benefits are merely the bare minimum as outlined by Spanish Federal law. Employers can and should consider offering additional perks to their employees.
Daunted by the complexity and red tape of complying with local labor laws? Playroll does the heavy lifting to ensure you always tick the box on compliance, so you can focus on building your business.
To remain competitive in the Spanish market, companies often provide additional perks, including:
Employee benefits significantly contribute to the total cost of hiring in Spain. On average, statutory and supplemental benefits can account for around 30-40% of an employee's total compensation.
For a detailed breakdown of how benefits affect your employer costs, use Playroll’s Free Global Employee Cost Calculator for country comparisons.
Managing employee benefits can be overwhelming, but Playroll simplifies the process. With a presence in over 180 countries, our platform ensures seamless onboarding, payroll, and benefits administration. Playroll ensures compliance with local labor laws while providing a competitive edge through attractive, localized benefits.
Book a chat with our team to learn how we can scale your global team with ease.
So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.
The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.
Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.
Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.
Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.
The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.
All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.
Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.
Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.
The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents.
Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.
Our Norway playbook can help you understand the country’s labor laws and regulations.
Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.
That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.
Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.
Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.
Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.
Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.
Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.
Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.
South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.
The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.
Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.
The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.
Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:
As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.
That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.
To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:
Book a demo with our team to find out how we can help you scale your remote team with ease.
Employee benefits in Canada typically consist of mandatory and supplemental components, designed to support employees' health, financial stability, and work-life balance. Below is a summary of the typical benefits available in Canada:
In Canada, benefits vary depending on employment type. Full-time employees generally receive a more comprehensive package, including mandatory benefits, while part-time or temporary employees may have limited access to these benefits, depending on their status and the company's policies. Independent contractors typically do not receive employee benefits.
Mandatory benefits, also known as statutory benefits, are legally required benefits provided by Canadian employers. These include essential health, leave, and retirement contributions, ensuring a base level of support for employees.
Employees are entitled to medical care as part of Canada’s public healthcare system, known as Medicare, a universal, publicly funded program that provides essential medical services to Canadian residents. Funded through taxes and managed at the provincial level, Medicare covers a range of healthcare services, including doctor visits, hospital stays, and emergency medical care, with specific coverage varying slightly by province.
Although employers in Canada don’t directly contribute to Medicare, it remains a critical component of Canada’s social benefits infrastructure, reducing the healthcare burden on employees and enabling employers to focus supplemental health benefits on areas not covered, such as dental, vision, or prescription medications.
The CPP is a contributory retirement plan funded by both employers and employees, with mandatory contributions throughout an employee's working life. In 2024, the employee and employer contribution rate is 5.95%. These contributions are deducted from an employee’s earnings. Contributions are made on annual pensionable earnings.
The CPP also includes the survivor's pension, which provides financial support to the family or dependents of an employee who passed away, ensuring some income continuity and stability. To qualify, they need to have been legally married to, or be the common-law partner, of a deceased CPP contributor.
The QPP is a mandatory public pension program for workers in Quebec, similar to the Canada Pension Plan (CPP) in the rest of Canada. Administered by Retraite Québec, the QPP provides retirement, disability, and survivor benefits to individuals who have contributed to the plan through payroll deductions. Both employees and employers contribute to the QPP, with rates set annually based on the employee's earnings up to a maximum limit.
EI provides temporary financial support for employees who lose their jobs or need to take time off due to illness, maternity or parental leave, or compassionate leave. Employers must deduct EI premiums from employees’ insurable earnings. They also contribute 1.4 times the amount of the EI premiums that they deduct from employees' remuneration and remit the total of both amounts. Quebec operates under its own set of EI premium rates. The summary of applicable rates can be found here.
Under Employment Insurance (EI), maternity leave benefits provide up to 15 weeks’ leave for the pregnant employee or employees that have recently given birth. They receive 55% of their earnings, up to a maximum of $668 a week. Employees can't receive these benefits more than 17 weeks after their due date or the date they gave birth.
In addition, employees can apply for parental benefits, which is split between standard and extended parental leave. Under standard parental leave, 40 weeks can be shared between parents, though one parent cannot take more than 35 weeks. Under extended parental leave, 69 weeks can be shared between parents, though one parent cannot take more than 61 weeks. Earnings vary between 33-55%, depending on which option the parent chooses.
In Quebec, parental leave falls within its own system called Quebec Parental Insurance Benefits.
As part of EI sickness benefits (or sick leave), employees can take up to 26 weeks’ leave, receiving 55% of their earnings. Caregiving benefits (which include compassionate care leave) provide between 15-35 weeks’ leave, which include time off to take care of a sick family member. Under these benefits, employees can receive 55% of their earnings.
In Canada, mandated paid time off includes a minimum of two weeks of annual vacation for employees after one year of service, with an increase to three weeks in some provinces after a specified period. Vacation pay is calculated as a percentage of gross wages, varying between 4-8% of earnings.
Additionally, most provinces recognize 5-10 public holidays, during which employees are entitled to paid leave.
Workers' compensation, funded by employers, offers coverage for employees who experience work-related injuries or illnesses, covering medical costs and providing wage replacement during recovery.
The Federal Workers’ Compensation Service (FWCS) processes compensation claims. Employers in Canada need to be registered with the WCB (Workers' Compensation Insurance Board) in their province, and pay workers' compensation insurance premiums.These premiums vary by province.
In addition to mandatory benefits, Canadian employers often provide supplemental perks to improve the work environment and enhance employee satisfaction. Here are some popular options:
Many employers give their employees’ retirement savings a boost through their group Registered Retirement Savings Plans (RRSP). In these cases, an employer usually deducts the employee’s contribution from their pay, and matches this contribution amount (also called RSSP matching).
Comprehensive health coverage, including virtual care and mental health support, is a valuable perk that helps employees access essential care beyond government-provided health services. This can take the form of contributing to a health care spending account (HCSA), to cover health, vision and dental care expenses.
Disability insurance in Canada can replace between 60% and 85% of an employee’s income if they become unable to work due to an unexpected injury or if they’re critically ill. This can include short-term and long-term disability insurance. If the employer funds part of all of the disability premium, these benefits will be subject to income taxes.
Benefits packages in Canada are made up of both taxable and non-taxable benefits. For example, mandatory CPP and EI benefits are taxable, while examples of non-taxable benefits include providing employees with a cellphone, overtime meals or allowances and relocation benefits.
The Canada Revenue Agency (CRA) provides comprehensive guidelines on taxable and non-taxable benefits here, which can help employers manage the tax implications of their benefits packages.
To comply with Canadian labor laws, employers must ensure that mandatory benefits, such as CPP and EI contributions, are accurately calculated and reported. Non-compliance with these regulations can lead to penalties.
Canadian employers who fail to make required contributions to the Canada Pension Plan, Employment Insurance, or income tax face a 10% penalty from the CRA. Repeat offenses within the same year, particularly those involving gross negligence, could lead to a 20% penalty. If contributions are not withheld or remitted, the CRA may take legal actions.
For employers looking to gain a competitive edge in recruitment, additional perks can make a difference:
In Canada, employee benefits can amount to approximately 15-30% of payroll, depending on the scope of benefits offered. Larger companies with more resources can typically afford to spend more on comprehensive benefits packages.
Employers should consider these costs when budgeting for new hires.
In Spain, employee benefits are divided into mandatory and supplemental categories. Mandatory benefits are stipulated by the Spanish Workers’ Statute (Estatuto de los Trabajadores). In contrast, supplemental benefits are often offered to enhance compensation packages and remain competitive in the job market.
Not all Spanish employees are entitled to the same benefits. For example, Spanish full-time employees work an average of 40 hours per week. These types of Spanish employees are entitled to all statutory benefits including maternity/paternity leave, annual leave, and paid sick leave under Spanish law.
On the other hand, part-time employees are defined as Spanish employees who work up to 20 hours per week. These employees receive proportional benefits, based on the hours worked, in line with Spanish law.
Contractors and freelancers (autónomo) in Spain work independently of any employing entity. In Spain, these workers can sign up to a special scheme for freelancers called RETA. This regime requires that freelancers contribute a specified amount to the social security system (Tesorería General de la Seguridad Social – TGSS). In exchange, they can enjoy benefits provided by the system such as medical treatment, sick pay, and retirement.
Mandatory employee benefits in Spain are statutory requirements outlined by labor laws, ensuring employees receive basic rights such as paid time off, leave for family-related events, and social security.
Spanish labor law ensures that new mothers receive 16 weeks of paid maternity leave after the birth or adoption of their child. There is an additional guarantee of two extra weeks of paid leave per child in cases where the mother gives birth to multiple babies or babies born with disabilities.
Paternity leave (or “partner leave” as it is officially called by the Spanish government) has recently also been extended to 16 weeks of paid leave, to accommodate fathers of newborn or adopted children. Both types of leave are funded by the country’s Social Security.
Employees in Spain are entitled to 30 calendar days or 22 working days of paid annual leave each year, as outlined in the Workers’ Statute (Estatuto de los Trabajadores). However, the Collective Bargaining Agreements (CBAs) may secure additional days for workers in certain industries.
Employees unable to work due to illness are eligible for paid sick leave. This is typically covered by the Social Security system, with up to 18 months of paid sick leave depending on the severity of the illness. The first three days of sick leave are unpaid. The employee can receive 60% of pay between the fourth and 20th day and is eligible to receive 75% of pay from the 20th day onward.
In addition to paid annual leave, Spanish employees are entitled to up to 14 paid days off in observance of national holidays (that are region-specific). All Spanish employees must be allowed to celebrate the nine nationwide holidays such as New Year’s Day (Año Nuevo), Good Friday (Viernes Santo), and Labor Day (Día del Trabajo). Other holidays granted to employees are dependent on provincial and regional customs.
In Spain, the social security fund is made up of several funds that address various aspects of employees’ lives such as illness, unemployment, disability, and retirement.
Employers contribute 30.48% and employees contribute 6.47% (a total of 36.95%) towards INSS contributions.
Workers’ compensation is also referred to as Collective Agreement Accident Insurance (Seguro de Accidentes de Convenios Colectivos) because the provisions are usually dependent on the outcome of CBA negotiations for specific industries.
This insurance provides healthcare and financial support to individuals who have suffered from job-related accidents and illnesses that prevent them from working.
While this pay is usually an additional perk in other countries, employers are required to provide their workers with two annual bonuses (13th and 14-month pay). Each bonus is equal to one month of an employee’s salary and is also subject to income tax.
While mandatory benefits ensure basic rights, supplemental employee benefits can significantly enhance a compensation package and help attract top talent. Common non-mandatory benefits in Spain include:
Employers often provide additional health benefits, such as private medical insurance, to cover employees and their families, complementing the public healthcare system. Health insurance can cost Spanish employees an additional 100 to 200 euros per month so offering private health insurance will be greatly valued by employees. Private healthcare gives employees access to better quality healthcare (when compared to Spain’s public healthcare system).
An additional benefit that addresses employees’ physical health can make your compensation package more competitive. This can involve offering your employees additional medical coverage that includes expenses such as dental, vision, and disability that are not covered by mandatory health insurance.
Spanish federal labor law ensures paid leave in certain circumstances such as maternity and paternity leave. However, additional paid time off is a powerful benefit to add to your benefits package as additional days off help employees manage unforeseen circumstances or celebrations in their personal lives. This is sure to boost company morale and improve employee work-life balance.
Many employers in Spain offer private pension plans to supplement the mandatory public pension system.
Certain employee benefits, such as pagas extraordinarias (extra pay), and meal vouchers, can have tax advantages for both employers and employees in Spain. Employers may receive tax deductions for offering specific benefits like private health insurance or childcare and meal vouchers, reducing the overall cost of providing supplemental benefits.
Compliance with Spanish labor laws is crucial when offering employee benefits. Employers must adhere to regulations outlined in the Estatuto de los Trabajadores (The Worker’s Statutes) and ensure they meet legal obligations. Spanish labor law requires that employers provide base-level benefits to their employees. If employers fail to do so, this can lead to penalties, including fines and legal disputes.
Mandatory benefits are merely the bare minimum as outlined by Spanish Federal law. Employers can and should consider offering additional perks to their employees.
Daunted by the complexity and red tape of complying with local labor laws? Playroll does the heavy lifting to ensure you always tick the box on compliance, so you can focus on building your business.
To remain competitive in the Spanish market, companies often provide additional perks, including:
Employee benefits significantly contribute to the total cost of hiring in Spain. On average, statutory and supplemental benefits can account for around 30-40% of an employee's total compensation.
For a detailed breakdown of how benefits affect your employer costs, use Playroll’s Free Global Employee Cost Calculator for country comparisons.
Managing employee benefits can be overwhelming, but Playroll simplifies the process. With a presence in over 180 countries, our platform ensures seamless onboarding, payroll, and benefits administration. Playroll ensures compliance with local labor laws while providing a competitive edge through attractive, localized benefits.
Book a chat with our team to learn how we can scale your global team with ease.
In the U.S., employee benefits are divided between legally required employee benefits and supplemental benefits that vary depending on the state or the employer's discretion. Federally mandated benefits apply to all 50 states across the United States under federal law whereas benefits at a state level are dependent on the respective laws of the 50 states.
Federally mandated benefits are benefits that companies with full-time employees are legally required to provide to their workers. State-level requirements refer to benefits that may differ from one state to another. For example, employers in certain states (such as Colorado and New York) must provide paid leave to their employees due to state law.
Federal law and state law mandate certain benefits for full-time employees, while others, like voluntary benefits, are commonly offered to attract and retain talent.
Full-time employees are entitled to all statutory benefits, while part-time employees may qualify for limited benefits, such as workers' compensation or unemployment insurance. Benefit entitlements can also vary based on employer size and location.
As an employer, it is important to be able to distinguish the types of employees in your workforce. Full-time employees are =employees who work more than 35 hours a week whereas anyone who works less than 35 hours per week is considered a part-time employee.
These characteristics may differ from one business to another. In some cases, the law outlines the maximum number of hours an employee can work to be considered part-time. Once exceeded, they will be afforded the same benefits as full-time workers For example, the Fair Labor Standards Act (FLSA) states that non-exempt employees are entitled to overtime pay any time they work more than 40 hours per week.
Employers should take the time to understand what each mandatory benefit means to remain compliant with the law and provide the legally required employee benefits to their workers. These benefits were put in place to protect workers’ rights. Statutory employee benefits can be broken down into four subgroups namely:
Social Security is a federally mandated benefits program that provides income support for retired workers (and their dependents) as well as for workers with disabilities and survivor benefits. Both employers and employees contribute 6.2 percent of the employee's wages and self-employed individuals pay 12.4% of their earnings.
Medicare is a public health insurance program primarily for individuals aged 65 and older. Social Security taxes and contributions made by employers and employees fund this program.
This is a nationally mandated benefit that covers medical care for retired individuals and provides financial support to individuals affected by loss of work and disability. It also covers liabilities resulting from workplace injuries and illnesses. This disability insurance is mandatory in nearly all 50 states in the U.S. and protects employers from lawsuits related to workplace injuries.
The Family and Medical Leave Act (FMLA) states that eligible employees are entitled to 12 weeks of unpaid annual leave for specific family and medical reasons. These reasons include the birth of a child or caring for a family member with a serious illness.
To qualify for family and medical leave, an employee must have worked for their employer for at least 1,250 hours in the past 12 months and their employer must have 50 or more employees.
Unemployment insurance provides temporary financial assistance to workers who lose their jobs but are willing and able to work. It is funded through employer taxes of 6% on the initial $7,000 of an employee’s annual salary.
The 6% employer-only contribution exists at a federal government level, but the taxes paid towards the State Unemployment Tax Act (SUTA) differ between states.
It’s often not enough for an employer to only offer their workers statutory benefits. In order to attract the best talent in the U.S. and beyond the country’s borders, employers should think about which supplemental benefits are best suited to their workforce’s needs.
While employees in the U.S. are ensured social security benefits, most employees appreciate increased coverage from popular retirement plans such as 401(k)s. These retirement savings plans allow employees to save comprehensively for their futures, often through contribution-matching policies with their employers.
Certain businesses are required to provide health insurance coverage to their employees under the Affordable Care Act (ACA). Employers may go beyond this statutory requirement by providing broader coverage such as private health insurance to their employees. Offering private healthcare is highly valuable to employees given the high cost of healthcare in the States. According to the Centers for Disease Control and Prevention (CDC), 12.2 % of Americans in the workforce did not have health insurance in 2022.
This highly desirable benefit typically includes paid vacation days, sick leave, and personal days for employees. While this benefit is not legally required, it certainly helps improve employees’ work-life balance and general well-being.
A basic employee healthcare plan may not include vision and dental coverage. If this is the case in your business, consider offering your employees this additional coverage that will give them access to optometric and dental care.
Equity benefits are an investment opportunity that employers can present to their employees in the form of non-cash payments. When implemented, this benefit makes employees partial owners of the company they work for. As an added bonus, employees tend to be more motivated to ensure the company’s growth if they have a personal stake in it.
Employee benefits in the U.S. can have tax implications. For instance, fringe benefits like health insurance and retirement contributions are often tax-deductible for employers. Additionally, some benefits may qualify for tax breaks or incentives, helping companies, like small businesses, manage the cost of offering comprehensive benefits packages.
The Internal Revenue Service (IRS) clearly outlines that any benefit provided by an employer is subject to employment taxes and must be included in the employee’s pay unless it is categorized as an excluded benefit by the IRS.
Failure to provide required benefits can result in severe penalties for employers. The consequences for neglecting to provide employees with benefits vary by state and type of benefit.
For example, failing to provide adequate Workers’ Compensation Insurance is considered a criminal offense in California, New Jersey, and Pennsylvania. Offenders can be subject to fines of $10,000 and prison time in some cases.
Some employers intentionally misclassify their workers to avoid providing them with mandated employee benefits. In such cases, employers will be subject to steep fines, lawsuits, and reputational damage.
There are other perks you could add to your benefits package to make it more attractive to top talent such as:
These perks go beyond basic benefits and contribute to a positive work environment that can set your company apart in a competitive talent market.
Offering statutory benefits can significantly increase the cost of hiring employees. On average, legally required benefits like Social Security, Medicare, and workers' compensation account for around 10-15% of total employee costs. According to the Bureau of Labor Statistics (BLS), employee’s benefits cost between 20-40% of their salary.
Having a clear grasp on the costs associated with employee benefits is essential for accurate budgeting as an employer. For a detailed comparison of employee costs across different countries and U.S. states, check out Playroll’s free employee cost calculator.
In South Africa, a benefits package will include mandatory employee benefits such as paid time off, Unemployment Insurance Fund (UIF), and overtime pay and may include additional perks such as retirement plans and health benefits.
Not all workers are entitled to the same benefits. Workers can be separated into full-time, part-time, and fixed-term contract employees or independent contractors.
Full-time employees refer to employees who typically work 40 to 45 hours per week. These employees generally receive a more comprehensive benefits package than part-time workers (employees who work less than 40-45 hours per week but more than 24 hours a week). An employee on probation is not guaranteed supplementary benefits but will still have access to statutory benefits. Employees on fixed-term contracts (individuals whose employment runs through a specified date) may be eligible for certain benefits depending on the agreement with their employer.
However, independent contractors (individuals hired to complete a specific task or project) do not qualify to receive benefits.
In South Africa, employee benefits include statutory benefits (benefits guaranteed by law) and supplementary benefits (additional privileges provided at the employer’s discretion).
According to the Basic Conditions of Employment Act, employees are guaranteed annual leave of at least 21 consecutive days (not including public holidays), one day for every 17 days worked, or 1 hour for every 17 hours worked.
The employee and employer must reach a mutual agreement regarding the timing of the leave. The employer makes the final call if a mutual agreement cannot be reached. Employers may only grant leave up to six months after the end of the annual leave cycle and may not offer payment in place of granting annual leave (except on the termination of employment).
Pregnant employees are entitled to at least four consecutive months of maternity leave. The clock on these four months begins four weeks before the expected birth date, but employees may begin their leave earlier than this. Employers are not obligated to pay their employees during this time; however, the UIF covers 60% of their salary for up to 121 days.
Employees may request to extend their maternity leave. However, this request must be accompanied by a medical certificate specifying the extension's expected length.
Companies are only required to offer a less generous ten-day paternity leave following the birth or adoption of a child. In an adoption case, the child must be younger than two years old.
Paternity leave is unpaid; however, employees may claim 66% of their regular earnings from the UIF subject to the maximum income threshold.
Based on the Basic Conditions of Employment Act, workers are entitled to the number of days they would regularly work in 6 weeks every 3 years. For example, someone who works five days per week will have 30 days in their bank of sick leave days every three years.
However, during an employee’s first six months, they are only entitled to one day of paid sick leave for every 26 days they worked.
Employers have the right to request a medical certificate before paying employees who take more than two consecutive sick days or are absent more than twice in 8 weeks.
Certain South African employees are eligible to receive paid leave under certain circumstances, namely, the birth of a child, to care for their child that has fallen ill, or upon the death of an immediate family member.
The term “immediate family member” only includes the following individuals in this case:
The employee’s:
To qualify for Family Responsibility Leave, an employee must work for longer than four months for the same employer and work more than four days a week.
South African employers are required to pay their workers overtime pay. Overtime is capped at 3 hours per day and 10 hours per week. Employees can agree to work up to 15 hours of overtime, but only for up to two months a year.
If employees agree to work overtime, their employer must pay them 1.5 times their standard hourly pay rate. Employees who regularly work on Sundays must be paid 1.5 times their regular wage. However, employees who do not usually work on Sundays must be paid double their regular wage.
An employee may agree to accept PTO in exchange for working overtime.
Both employers and employees contribute to the Fund, which is set up to offer temporary financial support in cases of unemployment, adoption, parental leave, or illness. Dependents of deceased contributors may also claim from the UIF.
The employee must contribute 1% of their remuneration to the Fund, and the employer must match this 1% contribution.
COIDA is a program that compensates workers injured or infected with diseases during their employment. This program covers dependents of workers who die on the job as a result of work-related accidents or contraction of occupational diseases.
The Skills Development Levy (SDL) is a tax imposed on businesses to develop and improve workforce skills. Unlike UIF, employees are exempt from paying SDL, but employers must contribute 1% of the total amount paid in salaries to employees each month.
Supplemental benefits (also called fringe benefits in South Africa) are not required by law, but can help you stand out as an employer and attract top talent. They include:
South African employers are not legally obligated to contribute to employees’ retirement funds. However, future planning is essential to any enticing benefits package.
In many cases, employees are given the option to contribute towards a retirement contribution system; employers in some industries make this a requirement. The idea is that employers invest a percentage of the employee’s remuneration in a retirement fund to provide employees with a source of income once they retire.
While South Africa’s public healthcare system is free, its quality is not comparable to private care. Medical aid is invaluable to employees’ lives as it covers medical services and healthcare expenses from private institutions.
Employers may offer their employees various health insurance systems, including medical aid schemes, hospital plans, and comprehensive medical coverage, to attract world-class talent.
In South Africa, there is no statutory requirement to give employees bonuses at the end of the year. However, it is commonplace to give employees performance-based bonuses in December. These bonuses are usually equivalent to one month’s remuneration.
In addition to drawing in the best talent, employee benefits offer various advantages, including tax breaks or incentives. For example, as of 1 March 2016, contributions made to a pension or provident by an employer on behalf of an employee are tax deductible. This deduction comprises the sum of both the employee and employer contributions.
Interfering with employee benefits in South Africa should be taken seriously. Depriving employees of the benefits they’re entitled to can lead to the employee lodging a case against the employer at the Commission for Conciliation Mediation and Arbitration (CCMA). Failure to comply with South African labor law is treated as unfair labor practice and can result in significant penalties.
Employers also have an obligation to report all work-related incidents. For example, work-related injury and contraction of diseases must be reported to COIDA and other relevant parties.
There are various perks you should consider offering to current and potential employees in addition to the benefits discussed above:
The COVID-19 pandemic made employers and employees aware of the advantages of working from home. These benefits include increased productivity, flexibility and improved work-life balance for workers.
Since the pandemic, there has been an upward trend in adopting remote work, so much so that some workers look exclusively for fully remote positions. If you want access to a broader talent pool, consider offering various work arrangement options such as partial remote work, hybrid work models, or fully remote positions.
Employees not restricted by rigid schedules enjoy a better work-life balance. Flexible work hours allow employees to manage their time in a way that reflects their personal needs and expectations. Increased flexibility gives employees more autonomy regarding how they spend their time. This will invariably increase productivity and employee satisfaction and will help manage stress.
Any competitive benefits package must include an element of physical and mental wellness. Employee wellness programs give workers access to resources that support their physical and psychological care. These include partnerships with local wellness institutions such as gyms, in-house counseling, and health and wellness workshops.
Employee expenses significantly contribute to overall business spending in South Africa. Stats SA found that employers spent about 14% of total expenditure on employees. These costs include salaries and wages, training expenses, and the mandatory and supplementary employee benefits discussed above. That said, South Africa has a relatively low employment cost compared to other countries – studies have shown that European companies can save up to 50% on staff by hiring South Africans.
Use Playroll’s free global employee cost calculator to get a detailed breakdown of mandatory employer taxes and contributions in South Africa and to easily compare different market costs side-by-side.
Managing employee benefits in South Africa can be complex, but Playroll simplifies this process. With a footprint in over 180 countries, our centralized platform streamlines onboarding, payroll, and benefits administration, and ensures compliance with ever-changing employment regulations. Partner with Playroll to attract and retain top talent with benefits tailored to meet the needs of South African employees.
Book a demo with our team to learn how we can help you offer competitive employee benefits packages to scale your team.
If you want to attract and retain world-class talent in Italy, a competitive benefits package can make all the difference. However, this is easier said than done if you have to navigate complex local regulations you’re unfamiliar with, especially in a country like Italy with comprehensive statutory benefits.
As an Employer of Record (EOR), Playroll can simplify the process of attracting talent in Italy, removing the need for you to understand the intricacies of local labor laws. Our team has in-depth knowledge of 180+ countries and can onboard, pay and offer cutting-edge benefits for your talent, no matter where they are.
In this guide, we’ll unpack everything you need to know about statutory and fringe benefits in Italy.
Employee paid benefits in Italy are to some degree extended to all types of workers, including full-time, part-time, and fixed-term employees. However, the entitlement to benefits depends on the worker's category and the terms of their employment contract.
Generally, full-time employees receive the most comprehensive benefits packages, including health insurance, paid leave, and retirement contributions. Temporary and seasonal workers might receive fewer benefits, but they are still entitled to basic statutory benefits such as health insurance and paid leave.
An employee benefits package in Italy generally includes both statutory and fringe benefits. Statutory benefits are mandated by law, while fringe benefits are additional perks provided by employers to improve employee satisfaction and loyalty.
Statutory benefits are legally required and form the core of any employee benefits package in Italy. These benefits ensure a minimum standard of protection and support for employees.
In Italy, mothers are entitled to five months of paid maternity leave (congedo di maternità). It is usually taken two months before and three months after childbirth, at 80% of their salary covered by Social Security and 20% by the employer.
Fathers receive 10 days of compulsory paid paternity leave (congedo di paternità) at 100% of their salary, covered by Social Security. Paternity leave can be taken within five months of the child's birth. In case of serious conditions that prevent the mother from taking care of the child, the right to absence from work is granted to the father.
Optional supplementary unpaid parental leave (congedo parentale facoltativo) is a reduced paid leave that may be claimed by either the mother or the father. It can last up to 9 months in total, until the child reaches the age of 12 (or within 12 years after the adoption). Social Security covers 30% of the salary during this period.
Italian employees are entitled to a legal minimum of 22 to 26 days or approximately four weeks of paid annual leave. Additional leave days accrue with seniority, or years of service for the company. Plus, days off are given for public holidays, which amounts to 12 additional days off per year.
For part-time employees, the amount of paid leave days is determined based on the number of their daily working hours. On the other hand, managers, known as dirigenti, are entitled to 30 days of paid leave annually.
This leave is crucial for maintaining a healthy work-life balance and is often supplemented by additional days off as per collective agreements.
Sick leave in Italy is well-protected. Employees are entitled to paid sick leave, which is partially covered by the National Social Security Institute (INPS) and topped up by the employer.
The compensation structure varies, with 100% salary coverage for the first three days and 50% from the fourth to the twentieth day. From the twenty-first day onwards, sick pay equals 66% of average daily pay up to a maximum of 180 days per year.
In Italy, employers are required to contribute a substantial portion of their employees' salaries to pension schemes. The contribution rates are among the highest in Europe. Specifically, employers contribute approximately 33% of an employee's salary towards pension funds, while employees contribute about 9%. This combined contribution ensures that employees are supported in their retirement years, adhering to Italy's robust social security system.
In Italy, there are two annual bonus payments. The tredicesima, or the 13th-month pay is disbursed alongside the December salary. Additionally, certain National Collective Agreements (NCAs) stipulate a quattordicesima, or the 14th-month installment, typically given in June.
Fringe benefits are additional perks that employers offer to make their benefits packages more attractive. These benefits are not legally required but are highly valued by employees. They can vary widely and often include:
Italy's National Health Service provides comprehensive healthcare to all citizens and legal residents, so employers are not required to provide health insurance.
However, employers can offer supplemental health insurance plans. This allows employees to access private medical services and specialists not covered by the public system.
These plans typically cover a wide range of medical expenses, including hospitalization, specialist visits, dental care, and oncology therapies. Employers often pay the insurance premiums, providing employees with extensive health coverage at no cost.
Employers in Italy may provide travel allowances to cover commuting costs. This can include company cars, fuel allowances, or public transportation passes, helping employees manage their travel expenses more efficiently.
This benefit is particularly valuable in urban areas where public transportation costs can be substantial. A travel allowance ensures that employees can commute to work without financial strain.
Flexible work arrangements, such as remote work, became considerably more popular in Italy following COVID-19. However, it is still one of the countries with the lowest percentage of job listings that mention remote work, around just 8%. Leveraging these arrangements can help employees achieve better work-life balance and can be a significant drawing card for top talent.
Providing company cars is a common fringe benefit in Italy, especially for roles that require extensive travel. This benefit often includes car insurance and maintenance costs covered by the employer, which helps employees save on personal transportation expenses.
Meal vouchers are a popular benefit in Italy and are exempted from tax up to €5.29 per day. Employers provide these vouchers to employees to use at restaurants or supermarkets. This benefit helps offset the cost of meals during work hours and is a valued addition to the compensation package.
Many Italian employers invest in their employees' professional development by offering access to training programs, courses, and conferences. This benefit helps employees enhance their skills and advance their careers, making it a significant attraction for ambitious professionals.
Employers may offer gym memberships or wellness programs to promote the health and well-being of their employees. This benefit supports employees in maintaining a healthy lifestyle, which can lead to increased productivity and reduce absence.
Providing a competitive benefits package for international employees can be a significant challenge, requiring expertise in local labor laws and contracts.
An Employer of Record like Playroll removes this complexity. Leverage our experts to offer attractive local benefits to your employees without the need to first establish a costly legal entity in Italy. Our team knows the rulebook when it comes to the local labor laws and benefits of 180+ regions.
Contact us to learn more about managing employee benefits, payroll and setting up compliant contracts for your global workforce, all in one place.
A compelling benefit package can give you the edge you need to attract world-class talent. Offering good employee benefits in Norway is especially important, given that Norwegians already enjoy strong labor protections and exceptional quality of life. However, it's tricky to put together a competitive employee benefits package for a global workforce if you’re unfamiliar with local employment regulations.
As an Employer of Record (EOR), Playroll can simplify the process of attracting and employing overseas workers by acting as your legal entity in new jurisdictions.
Our team has in-depth local knowledge of 180+ countries and can offer cutting-edge benefits for your talent, no matter where they are.
In this guide, we’ll help you navigate employment benefits in Norway with confidence.
The labor laws in Norway differentiates between full-time employees and independent contractors.
Only full-time workers typically receive employee paid benefits, with contractors usually paying for the same privileges out of pocket.
Let’s start with the basics – an employee benefits package consists of all the benefits and perks besides an employee’s wages and salary.
Benefits packages can cover everything from life insurance, retirement benefits and paid time off, to perks such as flexible hours and childcare assistance. A country’s statutory benefits dictates the bare minimum to include in a benefits package.
If you want to attract and retain excellent talent, it’s recommended you offer more than just statutory benefits – especially in a highly competitive landscape like Norway, which ranks 7th in the World Happiness Report.
Let’s deep dive into each component of benefits in Norway:
Employers pay up to 14% of their employee’s gross pay into a mandatory national social security fund (the National Insurance Scheme), while employee contributions are 7.9%. The fund covers sick pay, unemployment benefits, disability, parental leave, retirement pensions, and occupational injury benefits.
The second source of Norwegians’ pension is called the mandatory occupational pension (OTP). As an employer, you’re required to pay an annual amount corresponding to at least 2% of an employee’s salary towards this fund, or a maximum of 7%.
Norwegian families enjoy world-class family policies, with comprehensive parental leave (foreldrepengeperioden). Norway has maternal and paternal leave quotas, which fall under the broader policy of parental leave.
Here’s how it works: Parents are entitled up to 59 weeks of paid parental leave in connection with the birth and after the birth. Parental money may either be taken for 49 weeks at 100% of earnings or for 59 weeks at 80% of earnings.
To qualify for the maternal and paternal quota, either parent must have been employed for 6 of the last 10 months before the expected birth. In addition, they need to have earned at least half the national insurance scheme basic amount the previous year.
Each parent in Norway is also entitled to one year of unpaid parental leave for each childbirth, to be taken immediately after the child's first year.
The Annual Holidays Act in Norway mandates that employees receive 25 days of paid leave each year – since the act considers Saturday a work day, in practice employees get 4 weeks’ plus 1 day mandated holiday. By law, employees also get an extra week’s leave after turning 60. It’s standard for employers to offer 25 days of paid leave to employees.
The holiday pay amounts to at least 10.2 percent of an employee’s yearly salary.
In Norway, sickness benefits are covered by the employer for the first 16 calendar days. After 16 days, coverage is provided by the National Insurance Scheme under the Social Security sickness benefit for a period of up to a year.
Given Norway’s strong foundation of employee rights and its comprehensive statutory benefits, you’ll need to go the extra mile to land great talent. Here’s some fringe benefits and perks to consider:
Health Benefit: Since Norwegians enjoy universal healthcare, this doesn’t fall under statutory benefits. Companies can offer employees private health insurance, though it is uncommon. This can cover costs like dental care or consultations with specialists. However, there are tax implications for employees if they use private health insurance.
Remote work or Flexitime: Offering remote opportunities can help you stand out as an employer – it’s estimated that between 35-45% of jobs in Norway can be done at home. Offering flexible working hours is another popular perk that can improve employees’ work-life balance.
Mobile Phone Allowance: Typically, this would cover the cost of a work phone, or takes the form of a monthly allowance for these expenses.
Travel Allowance: Commuting can get expensive – a travel allowance covers your employee’s expenses in getting to work.
Gym Memberships: To help give your team’s health a boost, consider perks such as discounts for gym memberships, wellness programs, or even on-site gyms.
Mental health support: Perks to promote mental health and well-being could include free counseling sessions, meditation spaces or stress management courses.
Providing a competitive benefits package in Norway can be a difficult balancing act to get right. An Employer of Record like Playroll removes that complexity. Our team of experts know the local labor laws and unique benefits of 180+ countries, including Norway. We'll put together a world-class benefits package for your team, so you can focus on building your business.
Contact our team to learn more about managing employee benefits, payroll and setting up compliant contracts for your global workforce in one centralized platform with Playroll.
Fringe benefits, also known as perks, are extra benefits that employers aren’t legally mandated to provide. Examples include extra days off, travel allowances, remote work and more.
An Employer of Record is a third-party entity that takes over responsibilities associated with being an employer on the behalf of a company. This includes payroll management, benefits administration and HR management.
Post-pandemic, the popularity of remote work has skyrocketed – 98% of workers want to work remotely at least some of the time, according to Forbes. However, there’s no one-size-fits-all. The study concludes that while it has a positive impact on work-life balance for the majority of respondents, it negatively impacts others. In light of this, employers may consider providing flexible work arrangements with the following measures:
No-one wants to stare at a screen all day. With 69% of workers experiencing burnout from digital communication tools, encourage a culture of taking small breaks throughout the day to help with focused productivity and promote mental health. Implementing structured policies around breaks – such as a set lunch hour, for example – can help with this.At the same time, providing dedicated relaxation spaces in offices can serve as a forcing function for employees to take their breaks.
Having concrete benefits that promote taking leave will establish your reputation as an employer that takes employee well being seriously. Some of these policies could include:
Good physical health is a surefire way to give your employees’ overall well-being a boost. By bringing fitness opportunities directly to the office, employees can easily incorporate physical activity into their daily routine. It's a win-win situation for everyone – employees stay healthy, and employers get the benefits of a happier, more productive workforce.But what can you practically do to encourage it?
Being intentional about your efforts to support employee’s mental health in addition to physical wellness programmes can help you establish a more positive work environment. What could this look like?
Poor work-life balance is a direct result of unclear boundaries between work and personal life. As an employer, there’s a few simple tactics you can implement to foster a culture of respect for personal time:
Everyone wants to feel like they’re continuously growing and thriving in their career – make it a central part of your efforts to promote overall employee well-being:
In the wake of the COVID-19 pandemic, many workplaces have become hybrid or fully remote. It’s more important than ever to be proactive in encouraging social connections at work in this context, and prevent the sense of isolation that can easily affect employees. Try these tactics to get it right:
Being overloaded at work is a recipe for burnout. Here’s some ways you can head it off and maintain employee well-being:
It’s an uphill task to improve work-life balance in isolation in the workplace: if you don’t have an established culture around it, you won’t get very far. To build this culture from the ground up, prompt your management team to lead by example. When leaders prioritize their own well-being it sends a powerful message that it’s acceptable for employees to do the same.
To maintain a culture that respects work-life balance, you need to remain responsive to the changing circumstances of your employees. Regularly assess your current policies and practice by distributing surveys to gather feedback from employees, and stay on top of industry best practices to adjust your approach. Ultimately, prioritizing employee well-being and work-life balance isn't just the right thing to do – it's also smart business. Organizations that invest in their employees' health and happiness experience higher productivity, lower turnover, and greater overall success.
Need a simple way to offer employee well being benefits to your distributed workforce? On Playroll, you can set up global employment benefits at the click of a button. Request a demo today.
Navigating paternity leave in the U.S. can be challenging for employees. With no federal law guaranteeing paid leave, most fathers rely on a patchwork of FMLA protections, state policies, and employer benefits—if available. In fact, only 23% of workers have access to paid parental leave, according to the U.S. Bureau of Labor Statistics (2023).
This guide is designed to help employees understand their legal rights, leave options, and financial planning strategies. Whether you’re preparing to welcome a child or negotiating time off with HR, we’ll provide the tools and insights you need to confidently manage paternity leave
Paternity leave is a critical aspect of modern workforce policies, allowing fathers to take time off from work to bond with their newborn or adopted child. It fosters gender equality in the workplace and promotes family dynamics where both parents share caregiving responsibilities.
Traditionally, the burden of childcare fell primarily on mothers, leading to gender disparities in the workplace and reinforcing societal stereotypes. However, paternity leave offers fathers the opportunity to actively participate in childcare from the earliest stages. It strengthens their bond with their child and contributes to a more equitable distribution of caregiving responsibilities within the family.
Studies have shown that paternity leave, especially for two weeks or more, positively influences children’s perceptions of fathers’ involvement, parent-child closeness, and improves the communication between fathers and their children.
Parental benefits such as maternity leave, paternity leave, and parental leave serve distinct purposes in assisting parents with childcare responsibilities. But what is the difference between maternity leave and paternity leave?
Maternity leave is exclusively for biological mothers, offering support during late pregnancy, post-birth recovery, and newborn care.
On the other hand, paternity leave is available to the baby's father, the mother's partner, adoptive parents, or intended parents in surrogacy arrangement.
Parental leave is open to both mothers and fathers, biological or adoptive, is unpaid.
Legislative differences and societal perspectives regarding paternity and maternity leave reflect evolving attitudes toward gender roles and caregiving responsibilities.
By offering both maternity and paternity leave options, employers can create a more inclusive and supportive workplace environment that recognizes the diverse needs of their employees.
Also Read: Maternity Leave: A Guide for International Employers
The majority of fathers who opt for paternity leave in the USA take only one week or less. This is due to the complicated current framework of US paternity leave policies, which limits access to paid paternity leave and contributes to patterns of inequality.
The Family and Medical Leave Act (FMLA) is a cornerstone of federal legislation governing paternity leave in the US. Enacted in 1993, FMLA guarantees eligible employees up to 12 weeks of unpaid, job-protected leave for specific family and medical reasons, including the birth or adoption of a child. This is below the 16-week minimum recommended by the World Health Organization.
To qualify for FMLA paternity leave, employees must work for covered employers, which include private sector companies with 50 or more employees, public agencies, and schools. Additionally, employees must have worked for the employer for at least 12 months and accumulated at least 1,250 hours of service.
Source: https://www.kff.org
While FMLA sets minimum standards for paternity leave federal government level, several states have implemented their own paternity leave laws with varying entitlements and provisions. California, New York, and Massachusetts are among the states with notable paternity leave policies.
Do fathers get paid paternity leave everywhere in the US? Let’s dig into the state specifics.
Source: https://www.kff.org
California offers up to 8 weeks of paid family leave through its PFL program, covering approximately 60–70% of wages. Employees must have contributed to the State Disability Insurance (SDI) program to qualify.
New Jersey provides up to 12 weeks of paid family leave through FLI, replacing a portion of wages. Eligible employees must have worked a minimum number of weeks and earned a certain amount within the state.
Rhode Island offers up to 5 weeks of paid family leave under its TCI program, which provides wage replacement for eligible employees. Workers must have paid into the state’s Temporary Disability Insurance (TDI) system.
New York’s PFL program allows up to 12 weeks of paid leave, covering 67% of an employee’s average weekly wage, capped at a state-defined limit. Employees qualify after 26 consecutive weeks of employment.
Washington provides up to 12 weeks of paid leave, with wage replacement based on income. Workers qualify if they’ve worked 820 hours during the previous year in the state.
Massachusetts offers up to 12 weeks of paid leave through its PFML program, replacing a percentage of wages based on income. Eligibility requires prior contributions to the state’s program.
Connecticut provides up to 12 weeks of paid family leave, offering wage replacement through its PFMLI program. Coverage is available to employees who have earned at least $2,325 in the preceding quarters.
Starting in September 2023, Oregon will offer up to 12 weeks of paid leave through PFMLI. Employees can receive partial wage replacement, depending on income and contributions.
Effective January 2024, Colorado’s FAMLI program will provide up to 12 weeks of paid family leave with wage replacement. Contributions began in 2023, and eligibility depends on prior earnings.
Maryland’s Time to Care Act, starting in 2025, will provide up to 12 weeks of paid leave. Benefits will be available to employees who meet earnings and contribution requirements.
Delaware will offer up to 12 weeks of paid leave beginning in 2026 under its Healthy Delaware Families Act. Eligibility will depend on employer size and employee work history.
Illinois state employees are eligible for up to 10 weeks (50 workdays) of paid parental leave following the birth or adoption of a child. This leave must be taken in week-long increments and begins immediately upon the child’s arrival.
The army paternity leave program provides non-chargeable leave benefits for eligible service members upon the birth or adoption of a child. This program, outlined by the Department of Defense, applies to covered soldiers who are birth parents, adoptive parents, or intended parents in surrogacy arrangements.
In the paternity leave army regulation 2024, the expansion of the Military Parental Leave Program (MPLP) grants 12 weeks of parental leave to active and reserve service members who have become birth parents, adopted a child, or had a child placed for adoption or long-term foster care with them.
Birth parents receive 12 weeks of parental leave following a period of convalescent leave, while non-birth parents are also granted 12 weeks of leave after the birth of their child.
Employers have various responsibilities when it comes to paternity leave, including ensuring compliance with federal and state laws, developing clear policies, and effectively communicating leave options to employees.
No, paternity leave is not mandated at the federal level in the US. However, there are six states where there is paternity leave required, while some states have implemented their laws regarding, and individual companies may offer it as a benefit.
The duration of paternity leave can vary significantly. Under the FMLA, eligible employees can take up to 12 weeks of unpaid leave for the birth, adoption, or foster placement of a child. However, the specific length of paid paternity leave, if offered, depends on the employer's policies or the state's regulations.
Whether fathers receive payment during paternity leave depends on their employer's policies and the state's regulations. Under the FMLA, paternity leave is unpaid. However, some states have implemented paid family leave programs that may include paternity leave benefits. Additionally, some employers offer paid paternity leave as part of their benefits package.
Eligibility for paternity leave, particularly under the FMLA, may depend on the size of the employer. The FMLA applies to companies with 50 or more employees, and eligible employees must have worked for the company for at least 12 months and 1,250 hours in the preceding year. However, individual state laws or employer policies may provide different eligibility criteria.
Playroll offers comprehensive solutions to simplify paternity leave management for employers, providing tools and resources to streamline administrative processes and ensure compliance with state and federal regulations. Request a demo today.
Understanding the average maternity leave by country helps employers grasp the global landscape, ensuring their policies are competitive and in line with international standards.
According to the ILO (International Labour Organization) standards, maternity leave is a universal human and labor right and should last at least 14 weeks. Still, the ILO recommends increasing that period to 18 weeks of paid parental leave so the mother can have more time to rest and recover properly.
However, regarding maternity leave requirements, two variables change between the 152 countries that offer the benefit: leave duration and financial compensation. During said leave, the mother can either be fully paid maternity leave, paid in part, or not paid at all.
To guarantee compliance, employers must keep up-to-date with each country's maternity leave laws. Here are some examples of maternity leave by country around the world. This section highlights the differences in paid maternity leave by country, illustrating how compensation during leave varies globally.
Evaluating the best maternity leave by country allows employers to understand which nations offer the most comprehensive support for new mothers, setting a benchmark for global maternity policies.
Also Read: What Are the Best Countries for Maternity Leave?
Let's examine the common employee rights during maternity leave to better understand the scope of employer obligations and practices.
Pregnant workers may feel entitled to take legal action if they are treated less favorably due to their pregnancy or family responsibilities or if they’re asked to perform tasks not suitable for someone in their state.
Some countries allow employees to take more leave in exchange for disadvantages, such as not being paid for the extra time or pausing their career progression.
In addition to paid maternity leave, 63% of countries offer parental leave. However, the leave duration is often smaller than the mother’s, usually under three weeks of maternity leave.
This is one of the more important things to keep track of. Every mother has the right to return to her previous position upon returning to work, no matter how much time she spends on leave.
A great thing to do when implementing maternity leave policies in your company is to plan and disclose everything in advance. That way, you can ensure you and your team are up-to-date with all respective duties and procedures, avoiding any possible hiccups.
Here are some tips that will help you through this process:
● Previously define those eligible for a paid maternity leave, stating criteria such as length of service, full-time status, etc.
● Establish the leave duration, including possible extensions and other additional arrangements.
● Declare the pay and all the benefits employees receive during the maternity leave beforehand.
● Specify the notice requirements. Let your team know when they should inform you about their pregnancy and when they plan on taking maternity leave.
● Assure job protection. Your employees must know their positions will remain secure.
● Adapt your company to better accommodate pregnant employees and those returning from maternity leave. The gold standard is creating flexible work schedules.
Maternity leave policies have evolved significantly in recent years to reflect the changing dynamics of the modern workforce. With globalization and the rise of remote work, employers face new challenges in managing maternity leave across borders and in diverse cultural contexts. Here are some challenges that global employers may encounter and tips on how to deal with them.
The advent of remote work has blurred traditional boundaries, presenting opportunities and challenges for managing maternity leave. Remote employees may require flexible arrangements to balance work and caregiving responsibilities effectively.
Employers should prioritize communication and collaboration, offering remote-friendly maternity leave policies that accommodate the unique needs of remote workers.
In some cultures, there may be stigma or pressure surrounding maternity leave, leading to reluctance among employees to take time off.
Legal risks associated with maternity leave include potential discrimination claims, wrongful termination lawsuits, and labor law violations. Employers must take proactive steps to mitigate these risks by implementing fair and equitable maternity leave policies, providing adequate training to managers, and fostering a culture of inclusion and diversity within the organization.
While maternity leave is typically associated with birth mothers, it's essential to recognize the importance of supporting fathers and non-birth parents in parental leave policies. Employers should offer gender-neutral parental leave benefits that enable all parents to bond with their newborns and support their families.
By encouraging fathers and non-birth parents to take advantage of parental leave, employers can promote gender equality, strengthen family bonds, and create a more inclusive workplace for all employees.
In an increasingly interconnected and diverse world, managing maternity leave requires a nuanced understanding of legal, cultural, and societal factors. Employers must prioritize compliance, equity, and inclusion, recognizing the role of maternity leave in supporting working parents and promoting gender equality.
That’s where Playroll comes in. Our expert and global team of HR professionals are ready to help you safely navigate maternal leave and offer your international workforce all the benefits they seek. Don’t worry about all the legal hurdles: count on us. Request a demo today.
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