Regulatory updates
for Global Employers

The Employees Provident Fund (EPF) Amendment Bill 2025 mandates that foreign employees and their employers in Malaysia must contribute 2% of the employee's monthly wages to the EPF.

This contribution is lower than the rates for Malaysian employees, which require 11% from the employee and 12-13% from the employer. The change, aimed at promoting wage equality and reducing reliance on foreign labor, will take effect in the fourth quarter of 2025.

The Dutch government has announced that the statutory minimum hourly wage for employees aged 21 and over will rise to EUR 14.40, effective from 1 July 2025. This adjustment is part of the regular biannual indexation process. Employers should ensure payroll compliance with the updated minimum wage rate.

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Vietnam’s National Assembly has confirmed that the amended Law on Social Insurance No. 41/2024/QH15 will take effect from 1 July 2025, introducing significant updates for employers. The revised law expands compulsory social insurance coverage to include part-time workers and non-salaried business managers, introduces a new “reference level” for contribution calculations, and reduces the minimum contribution period for pension entitlement from 20 to 15 years (excluding early retirement cases). The law also imposes stricter enforcement measures, including fixed penalties for late or missed contributions and possible criminal proceedings for non-compliance.

The Estonian government has confirmed that the standard value-added tax (VAT) rate will rise from 22% to 24% starting 1 July 2025. This higher rate will apply until 31 December 2028, after which the VAT rate is scheduled to revert to 22% on 1 January 2029. The change follows an earlier VAT increase implemented in January 2024.

The Netherlands is preparing to implement the EU Pay Transparency Directive, introducing new requirements for employers regarding pay gap reporting, pay structures, and transparency in recruitment. Large employers will be required to report gender pay gaps starting June 2027, and all employers must use objective, gender-neutral criteria for setting pay. The draft legislation is expected to be submitted by the end of 2025, with full compliance required by June 2026 at the latest.

Saudi Arabia has enacted a new Social Insurance Law, effective 3 July 2025, which introduces a revised retirement system for new employees joining the workforce in both the public and private sectors with no prior contributions. The statutory retirement age under the new law is set at 65, with gradual increases in the contribution rate for both employers and employees from 9% to 11% of contributory wages over five years. Existing employees with prior contributions will see no change to their current system or contribution rates.

In June 2025, France passed legislation further expanding family-friendly rights for employees. The new law makes it illegal for employers to consider participation in medically assisted conception when making decisions about hiring, pay, promotions, or training, and prohibits requiring disclosure of medical conception treatment. The legislation also extends protections and time-off rights to all employees involved in adoption, regardless of whether the adoption is finalised, and applies equally to male and female employees.

In June 2025, France passed legislation further expanding family-friendly rights for employees. The new law makes it illegal for employers to consider participation in medically assisted conception when making decisions about hiring, pay, promotions, or training, and prohibits requiring disclosure of medical conception treatment. The legislation also extends protections and time-off rights to all employees involved in adoption, regardless of whether the adoption is finalised, and applies equally to male and female employees.

In June 2025, the French Senate approved a bill introducing enhanced requirements for mid-career and end-of-career meetings in all companies, focusing on detailed discussions about employees’ professional goals, training, mobility, and retirement planning. For companies with more than 300 employees, the bill also mandates regular collective bargaining on issues affecting senior staff. The legislation is currently awaiting approval by the French National Assembly.

Draft legislation in Belgium proposes introducing a remuneration cap for calculating social security contributions, meaning no contributions would be due on income above a specified threshold. The cap is expected to be set at a level equivalent to the annual gross compensation of the Prime Minister, with the exact amount to be determined by Royal Decree. The Programme Act containing this measure is currently under parliamentary debate and may enter into force on 1 July 2025 if adopted before the summer holiday.

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