#GLOBALBENEFITSBULLETIN HIGHLIGHTS - AON
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#GlobalBenefitsBulletin Highlights
This document is intended for general information purposes only and should not be construed as advice
or opinions on any specific facts or circumstances. The comments in this summary are based upon Aon’s
preliminary analysis of publicly available information. The content of this document is made available
on an “as is” basis, without warranty of any kind. Aon disclaims any legal liability to any person or
organization for loss or damage caused by or resulting from any reliance placed on that content. Aon
reserves all rights to the content of this document.
Status Key
Action Required = Requires Revisions to Policies or Procedures
To Be Reviewed = Recommend Employer Review for Impact to Policies or Procedures
Watch = Monitor
#GBB Highlights | May 2021 1Table of Contents
Action Required
Colombia: Plans for electronic payroll ..…11
France: Gender equality index changes .....13
Germany: Remote work …..14
Mexico: Outsourcing bill update .....23
United Kingdom: Pensions Ombudsman publishes guidance on panels and Independent
Financial Advisers (IFAs) …..32
#GBB Highlights | May 2021 2Table of Contents
To Be Reviewed
Action Required
Argentina: Increase in employee Germany: Employer benefits tax
contribution ..…6 exemption .....13
Argentina: Amendments to income Germany: Covid-19 workplace
tax laws .....6 testing …..14
Argentina: Extension of measures .....7 Hong Kong: Passage of the Sex
Discrimination (Amendment) Bill
Australia: Requirements for 2020 …..15
financial services providers .....7
Hong Kong: Maternity Leave Pay
Australia: JobMaker Hiring Credit Scheme .....15
scheme .....8
India: Code on Wages (Central
Australia: 2021 Superannuation Advisory Board) rules ..…16
caps and thresholds .….8
India: Corona specific standard
Belgium: Extension of measures .....10 products .....17
Brazil: 2020 Job Protection Program .....10 Indonesia: Regulations for Job
Creation Law …..17
Canada: Retirement and paid time
off for vaccinations, Bill C-30, Ireland: Institutions for
Budget Implementation Act, 2021, occupational retirement
Sick leave proposals and programs/ provision (IORP) II Directive on
Paid leave for COVID-19 pension schemes …..18
vaccinations .....10
Ireland: Benefit Payment Scheme .....19
Chile: Telework agreements …..11
Israel: Decrease in
European Union: Pan-European unemployment benefit ..…19
Personal Pension Product …..12
Israel:Initiative to adopt
France: Extension of measures …..12 management fee ceiling …..20
Israel: Quarantine Benefit Law
measures extended …..20
#GBB Highlights | May 2021 3Table of Contents
To Be Reviewed
Action Required
Japan: Withholding tax for remote Turkey: Termination ban and
working ..…21 unilateral unpaid leave
measures extended …..30
Malaysia: Applications for early
withdrawal …..21 United Kingdom: Employment
and payroll measures .....31
Malta: Social security contribution
rates .….22 United Kingdom: Apprentice
programs ..…31
Mauritius: Guidelines for defined
contribution (DC) plan …..22 United Kingdom: Money and
Pensions Service announces
Netherlands: Future of Pensions Act new MoneyHelper brand .....32
implementation delay .....24
United Kingdom: Right to work
Peru: Withdrawal of pension checks update …..32
savings …..26
United States of America:
Philippines: One-time financial Pension funding relief …..33
assistance .....26
United States of America: Tax
Poland: Workplace vaccination Credits for Paid Leave for
program .....27 COVID-19 Vaccinations …..33
Singapore: Policies for worker's United States of America:
compensation ..…27 Reimbursement Program for
COVID-19 Vaccine
Sweden: Income pension Administration Fees …..34
complement .....28
United States of America:
Taiwan: Exemption for subsidies …..28 Independent Contractor Rule
withdrawn …..34
Turkey: Social security new
regulations …..29 United States of America:
Taxability of Dependent Care
Assistance Programs for 2021,
2022 …..35
#GBB Highlights | May 2021 4Table of Contents
Watch
Australia: Draft Budget Bill 2021-22 (superannuation or retirement income measures) …..9
Australia: Draft Budget Bill 2021-22 (Health Care reform measures) .....9
India: Labor reform update …..16
Netherlands: Parental paid leave proposal .….24
New Zealand: Health care reform …..25
Thailand: National Pension Fund bill approved …..29
United Arab Emirates: Proposals to amend the Employment Law …..30
#GBB Highlights | May 2021 5Key Updates
Argentina: Decree Issued Effective Date: April 1, 2021
Increase in employee contribution
COVID-19 (caused by SARS-CoV-2 coronavirus) is considered “presumptively” a “professional disease” under the Decree
of Necessity and Urgency No. 367/20. The benefits granted for special coverage of COVID-19 is financed through the
Trust Fund for Occupational Diseases (FFEP). Under Resolution 115/2021, the employee contribution to the FFEP has
increased to ARS 40 from April 1, 2021.
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Argentina: Law Enacted Effective Date: April 21, 2021
Amendments to income tax laws
Law 27617, published in the Official Gazette of 21 April 2021, went into force on April 21, 2021, and is retroactively
effective as from January 1, 2021. It introduces amendments to the Income Tax Law. Law 27617:
• Exempts the 13th month salary from income tax for employees whose monthly gross salary does not
exceed ARS 150,000;
• Establishes that the productivity bonuses (and similar compensation) received by employees whose
monthly gross salary does not exceed ARS 300,000 are exempt from income tax (with an annual cap
equivalent to 40% of the basic personal allowance);
• Provides that the dependent spouse allowance also applies in respect of partners (different or same
gender) sharing the same dwelling with the taxpayer;
• Establishes that the taxpayer may increase the child allowance for each child handicapped or unable to
work;
• Increases the special lump-sum allowance for pensioners from six to eight minimum monthly guaranteed
pension payments (as defined by article 125 of Law 24241);
• Provides that travel expenses reimbursed or paid by the employer are deductible for tax purposes for an
amount equivalent to up to 40% of the basic personal allowance;
• Provides that kindergarten expenses reimbursed by the employer are not subject to income tax provided
that such expenses relate to children up to three years old, the employer has no equivalent facilities, and
the employee provides documentation supporting the outlays; and
• Provides an exemption from income tax for the purchase of learning tools for the employee´s children and
training courses taken by the employee (with a limit of 40% of the basic personal allowance).
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#GBB Highlights | May 2021 6Key Updates
Argentina: Decree Issued Effective Date: In Force (partial)
Extension of measures
Emergency Decree (DNU) No. 266/2021 has provisions extending the prohibition to dismiss without just cause, and to
perform terminations or suspensions for lack or reduction of work, or for force majeure, until May 31, 2021. Employers
who violate these measures may be penalized. The penalty includes payment of double severance in case of
terminations without cause, which will be in force until December 31, 2021. This amount is capped at ARS 500,000 (from
January 22, 2021).
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Australia: Law Enacted Effective Date: July 1, 2021
Requirements for financial services providers
Act No. 19 of 2021 received Royal Assent on March 2, 2021, and will go into force on July 1, 2021. The Act amends the
Corporations Act 2001 and requires financial services providers that receive fees under an ongoing fee arrangement to:
• provide clients with a document each year which outlines the fees they will be charged and the services
they will be entitled to in the following 12 months, and which seeks annual renewal for all ongoing fee
arrangements;
• obtain written consent before fees under an ongoing fee arrangement can be deducted from a client’s
account;
• require a financial services licensee or authorised representative to give a written disclosure of lack of
independence where they are authorised to provide personal advice to a retail client.; and
• also, Financial Services Guides provided to new clients on or after July 1, 2021, must contain a lack of
independence statement; and a transitional rule is applicable to Financial Services Guides given to clients
before July 1, 2021, for financial services to be provided on or after July 1, 2021.
The Act also amends the Superannuation Industry (Supervision) Act 1993 allowing a superannuation trustee to only
charge advice fees to a member where certain conditions are satisfied; and removing a superannuation trustee’s ability
to charge fees under an ongoing fee arrangement for financial product advice from MySuper products.
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#GBB Highlights | May 2021 7Key Updates
Australia: Scheme Implemented Effective Date: In Force
JobMaker Hiring Credit scheme
The JobMaker Hiring Credit scheme is an incentive for businesses to employ additional young jobseekers (aged 16–35).
Companies can receive payments for new positions they create and fill with eligible employees between October 7,
2020, and October 6, 2021. Eligible employers can register online for the subsidy.
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Australia: Update Issued Effective Date: July 1, 2021
2021 Superannuation caps and thresholds
The Australian Taxation Office (ATO) has updated superannuation caps and thresholds for 2021-2022. From July 1, 2021,
these rates and threshold apply to contributions and benefits, employment termination payments, super guarantee,
and co-contributions.
• Contribution caps include A$27,500 for concessional contribution caps (i.e., employer contributions and
personal contributions claimed as a tax deduction), A$110,00 for non-concessional (i.e., personal
contributions in which individuals have not claimed an income tax deduction).
• The low-rate cap for payments from super is A$225,000. The low-rate cap is “the limit set on the amount of
taxable components (taxed and untaxed elements) of a super lump sum that can receive a lower (or nil) rate
of tax”. It applies to members that have reached their preservation age but are below age 60.
• The super guarantee percentage is scheduled to increase to 10%. The maximum superannuation guarantee
contribution base for the 2021-22 income year is A$58,920 per quarter. It is used to determine the
maximum limit on any individual employee's earnings base for each quarter of any financial year. Employers
do not have to provide the minimum support for any part of the earnings exceeding this limit.
• The government may add to the super if employees are eligible for the super co-contribution or the low-
income superannuation tax offset. The government’s co-contributions threshold for lower income is
A$41,112 and A$56,112 for the higher income.
• The transfer balance caps (i.e., limit on the total amount of superannuation that can be transferred into the
retirement phase) are A$1,700,000 for the general transfer balance cap and A$106,250 for the defined
benefit income cap.
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#GBB Highlights | May 2021 8Key Updates
Australia: Budget Proposal
Draft Budget Bill 2021-22 (superannuation or retirement income measures)
The government has published details of its draft budget bill for 2021-22. Highlights include measures:
• allowing more flexibility to those aged 67 to 74 years to make or receive non-concessional (including under
the ‘bring-forward’ rule) or salary sacrifice super contributions without meeting the work test, subject to
existing contribution caps;
• increasing the flexibility of the pension loans scheme by allowing participants access to a maximum of two
lump sum advances in any 12-month period (up to a total value of 50 % of the maximum annual rate of the
Age Pension);
• reducing the eligibility age to make "downsizer" contributions into super from 65 to 60 years of age; and
• removing the $450 per month threshold for superannuation guarantee eligibility.
Also, the Government has announced it will not proceed with the proposed measure to extend early release of
superannuation to victims of family and domestic violence.
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Australia: Budget Proposal
Draft Budget Bill 2021-22 (Health Care reform measures)
The draft budget for 2021-22 contains measures on health care. Measures include:
• funding for improving and expanding mental health care and suicide prevention;
• improving the accessibility and quality of women’s health services along with funding for ongoing programs
such as maternal health;
• funding to modernize and improve the administration of the Prostheses List, support the introduction of an
improved certification process when admitting patients to hospitals and a review of private hospital default
benefit arrangements;
• continued funding for telehealth services (extended through the end of 2021); and
• funding to support those with significant and permanent disability and to guarantee access to essential
health care and medicine.
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#GBB Highlights | May 2021 9Key Updates
Belgium: Law Enacted Effective Date: April 1, 2021
Extension of measures
Law No. 2021020750, introducing temporary tax relief measures due to the coronavirus pandemic, was published in the
Official gazette on April 13, 2021. Measures include extending the 15 % withholding tax reduction under the temporary
unemployment regime to June 30, 2021 (from March 31, 2021); extending the annual social contribution payment
deadline for companies to December 31, 2021, from (June 30, 2021). The measures went into force on April 1, 2021
(generally).
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Brazil: Provisional Measures Issued Effective Date: In Force
2020 Job Protection Program
The President has signed two decrees that restore the 2020 Job Protection Program (Provisional Measure No. 1,045 and
Provisional Measure No. 1,046).
• Under Provisional Measure No. 1,045, companies may reduce salaries and working hours by 25%, 50%, or
70%, and also can suspend work contracts (entirely) for up to 120 days.
• The government pays a subsidy to affected employees (i.e., a percentage of their unemployment benefits
equal to the percentage of their salaries that they are receiving).
• The program requires employers and workers to sign agreements covering the reductions. Companies must
also agree to maintain the employment of workers after the reduction period expires for at least the same
amount of time as set in the signed agreements.
• Under Provisional Measure No. 1,046, companies are allowed to delay deposits to employee dismissal
funds, postpone vacation payments, require employees to take periods of leave, declare company
shutdowns, and allow employees to work remotely.
Both decrees are in effect for 120 days after their publication (i.e., from April 28, 2021).
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Canada
Retirement and paid time off for vaccinations; Bill C-30, Budget Implementation Act, 2021;
Sick leave proposals and programs/ Paid leave for COVID-19 vaccinations
Aon’s weekly Radar is available as of April 29, May 6, May 13.
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#GBB Highlights | May 2021 10Key Updates
Chile: Guidance Issued Effective Date: In force
Telework agreements
The Labor Directorate has issued guidance which outlines the clauses that every telework or distance work agreement
should contain.
• The right to disconnect for workers. The worker must provide the employer with a start time of the right to
disconnect.
• The employer does not have the authority to unilaterally modify the place where the worker renders the
services.
• The terms of the teleworking scheme may be subject to the fulfillment of an indeterminate condition or
time.
• The employer must continue to grant the employment benefits (“even when they lose their compensatory
nature”) contained in the employment contract when agreeing to the teleworking and/or distance work
modality. However, the parties may agree to replace the mobilization and collation allowances with a
stipend “destined” to finance the equipment, tools, and materials necessary in the telework or distance
work regime.
• The determination of the value to finance the costs of operation, maintenance, operation, and repair of
equipment, tools, and materials will depend on each employment relationship. The costs incurred by the
worker must be fully covered.
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Colombia: Resolution Adopted Effective Date: May 31, 2021
Plans for electronic payroll
The National Tax and Customs Directorate (DIAN) has announced a plan to implement electronic payroll as part of its e-
invoicing system. Under Resolution 13 of February 11, 2021 (regulating the implementation of the electronic payroll
system), employers subject to income tax and VAT that make payments to persons according to their employment or
legal relationship must submit an electronic payroll supporting document to DIAN. The electronically signed document
must be submitted each month to the tax authority for validation, 10 days after its creation or issuance.
The Resolution also provides an implementation calendar:
• Implementation schedule according to the number of employees: Sets the date by which the IT service will
be enabled (5/31/2021) and the latest acceptable implementation date (7/1/2021 - 12/1/2021).
• Permanent implementation schedule: Companies will have two months from the date of payment to
generate the support document.
• Implementation schedule for companies not obliged to issue electronic sales invoices: IT enablement date
of 3/31/2022 and implementation date of 5/31/2022.
The Resolution also allows any company to pre-empt the established schedule and start issuing payrolls electronically.
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#GBB Highlights | May 2021 11Key Updates
European Union: Regulation Issued Effective Date: March 22, 2022
Pan-European Personal Pension Product
The European Parliament and the European Union Council have issued several regulations regarding a pan-European
Personal Pension Product (PEPP) which is a long-term savings personal pension product that provides income on
retirement. The PEPP Regulation has been finalized and will commence from March 22, 2022. Benefits of the PEPP
include:
• Possibility to switch providers every five years (at capped costs);
• Savers will be able to continue saving in the same product even when they change residence in the EU;
• Full transparency on the product, including on costs and fees (i.e., relevant information will be disclosed via
a “simple” Key Information Document (KID) supplied before the purchase, complemented by a personalised
pension benefits statement during the product lifetime);
• Affordable default investment option (Basic PEPP) with costs capped at 1% of the accumulated capital per
annum; and
• The Basic PEPP will safeguard the consumers’ invested capital.
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France: Decree Issued Effective Date: In Force
Extension of measures
Decree No. 2021-430, amending the social security contribution (SSC) exemption regime for qualified employers, was
published in the Official Gazette on April 13, 2021. The Decree extends the exemption measures and assistance
arrangements for the payment of social contributions and contributions for businesses and self-employed workers (in
certain sectors) affected by the health crisis to February 28, 2021. The Decree applies to 2021 SSC due for the January
and February employment periods. Also, the Decree adjusts and increases the ceiling on the amounts of exemption and
aid. The maximum exemption threshold is increased to 1.8 million euros (from 800,000 euros) for companies under the
regime.
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#GBB Highlights | May 2021 12Key Updates
France: Decree Issued Effective Date: In Force
Gender equality index changes
Decree no. 2021-265 of March 10, 2021 , modified the publication modalities of the gender equality index and has
imposed specific obligations on companies benefiting from the stimulus plan introduced by the Finance Act for 2021.
Under the Decree, companies must publish the overall score obtained when calculating the index and the results
obtained for each indicator. (Companies were required to only publish the overall score and the details of the indicators
and their results were communicated only to the social and economic committee (CSE) and the labor inspection
services.) Additional requirements of the Decree include:
• The publication must now be made in a visible and legible manner on the company's website so that the
information is easily accessible. It must remain available on the website (at least) until the publication the
following year of the overall score and the results obtained for the current year.
• These publication procedures apply to the 2020 results published in 2021. However, companies are granted
a period of adjustment. (The publication of the overall score must be carried out no later than May 1, 2021,
and the publication of the results obtained for each indicator must be made no later than June 1, 2021.)
• The Finance Act for 2021 provides that companies with at least 50 employees benefiting from the aid of the
economic stimulus plan implemented due to the COVID-19 pandemic and having a score of less than 75/100
on the index will have to set and publish their targets, as well as their correction and salary catch-up
measures.
• The publication of the objectives and measures will be made on the company's website (on the same page
as the results obtained) and will be available until the company obtains a result at least equal to 75/100.
This obligation applies to the results for 2021 and must be published no later than March 1, 2022. However,
companies will be given additional time in 2022; they will be able to publish their objectives, and the
correction and catching-up measures until May 1, 2022.
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Germany: Letter Issued
Employer benefits tax exemption
The Ministry of Finance posted Letter No. 2021/0400744 which addresses the implementation of the tax recognition of
employer benefits in accordance with the Income Tax Act. It covers the legal basis of the tax exemption for employer-
sponsored prevention and company health promotion services; the tax-exempt benefits for employers; the assessment
of benefits; and non-exempt services.
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#GBB Highlights | May 2021 13Key Updates
Germany: Law Enacted Effective Date: April 23, 2021
Remote work
The draft of the Fourth Act on the Protection of The Population (“Viertes Bevölkerungsschutzgesetz”, Act) was signed by
the President and published on April 22, 2021. It went into force on April 23, 2021, and is expected to apply for a limited
period (i.e., until June 30, 2021). The law applies "if there are incidence over 100 on three consecutive days" in federal
states and districts (located on the website). Highlights include:
• The Act adopts certain regulations of the SARS-CoV-2 Occupational Health and Safety Ordinance (“SARS-
CoV-2 Arbeitsschutzverordnung“) including, requiring employers to offer remote work to employees
engaged with office work or similar activities.
• An exemption applies only if there are compelling operational reasons against remote work. The employer
may be required to describe such reasons to the competent authority upon request.
• Under the new rules, employees will now be “obligated” to accept this offer of working from home.
However, employees are also entitled to refuse to accept such offer if they have “reasons” to do so (i.e.,
confined space, interference from third parties or insufficient technical equipment at the employee’s
residence).
• Statutory obligations (in principle) are not part of the employee’s contractual obligations under the
employment contract. Even under the new rules, the employer will not be able to enforce working from
home. Companies may consider requesting employees to sign a notice stating that working from home was
offered but they refused the offer for one of the reasons provided for in the Act.
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Germany: Law Enacted Effective Date: April 21, 2021
Covid-19 workplace testing
According to a recent amendment [Article 1 of the Ordinance of April 21, 2021 (BAnz AT 22.04.2021 V1] to the SARS-
CoV-2 Occupational Health and Safety Ordinance (SARS-CoV-2-Arbeitsschutzverordnung), employers are required to
offer employees who do not work exclusively in their home a corona test (PCR test or professional/self-applied rapid
antigen tests) at least twice a week from April 20, 2021. The cost of the tests must be covered by the employer because
it involves occupational health and safety measures within the meaning of the Occupational Safety and Health Act.
Evidence of the procurement of tests in accordance with the measure or agreements with third parties regarding the
testing of employees must be kept by the employer until June 30, 2021.
Also, the federal Ministry of Labor and Social Affairs (BMAS) has published: the new SARS-CoV-2 occupational safety rule
for the workplace.
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#GBB Highlights | May 2021 14Key Updates
Hong Kong: Law Enacted Effective Date: June 19, 2021
Passage of the Sex Discrimination (Amendment) Bill 2020
The Equal Opportunities Commission (EOC) announced the passage of the Sex Discrimination (Amendment) Bill 2020 in
the Legislative Council on March 17, 2021. Measures in the bill introduces protection from harassment on the ground of
breastfeeding under the Sex Discrimination Ordinance (SDO). They prohibit breastfeeding discrimination and
harassment in several sectors, including employment. The provisions will come into force on June 19, 2021.
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Hong Kong: Procedure Update Effective Date: April 1, 2021
Maternity Leave Pay Scheme
The Government has announced that employers may request reimbursement for the additional statutory maternity
leave under its Reimbursement of Maternity Leave Pay Scheme which came into effect in December 2020. Statutory
maternity leave increased from 10 weeks to 14 weeks from December 11, 2020. From April 1, 2021, employers may
apply online for reimbursement of the additional four weeks’ statutory maternity leave pay (i.e., 11th to 14th week).
The reimbursement amount is capped at HK $80,000 per employee. Applications under the Scheme are subject to the
following requirements:
• The employee has been employed under a continuous contract of employment for at least 40 weeks before
the commencement of her statutory maternity leave;
• The employee has taken her statutory maternity leave and the employer has paid the leave amount to her
for the entire 14 weeks;
• The employee’s date of confinement was on or after December 11, 2020; and
• The employer has not received or will not receive any other government funding in respect of the additional
four weeks of statutory maternity leave pay for the employee.
The employer may apply for the reimbursement through the online portal
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#GBB Highlights | May 2021 15Key Updates
India: Update of Law Enacted Effective Date: Future Date
Labor reform update
On September 28, 2020, three new labour law codes (Industrial Relations Code, 2020; the Occupational Safety, Health
and Working Conditions Code, 2020; and the Code on Social Security, 2020) received the President's assent. The
Government has yet to notify the effective implementation date of the Codes and the regulations for the Codes have
not been published. The Codes together with the Code on Wages, 2019, that was also passed by the Parliament, form
part of the Government's labour reform agenda.
• The Code on Wages, 2019, includes significant measures introducing a minimum wage ("floor wages"),
broadening of the definition of employee to include less formal employment and establishing a single legal
determination for the definition of wages.
• The Occupational Safety, Health and Working Conditions Code, 2020 covers health, safety, and conditions in
the workplace.
• The Industrial Relations Code, 2020 covers termination payments for workers who are laid off. Employers
with more than 100 employees must secure permission from the government prior to entrenching workers.
• The Code on Social Security Bill, 2020 retains the main social security benefit schemes currently in place (the
Employees' Provident Fund/EPF, the Employees' Pension Scheme/EPS and the Employees Deposit Linked
Insurance Scheme/EDLIS) but proposes extending cover beyond its current limit of formal-sector employees
to include the self-employed and informal and gig economy workers as well. Benefits would comprise
pension, medical cover, death, and disability.
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India: Rules Issued Effective Date: In Force
Code on Wages (Central Advisory Board) rules
The Ministry of Labour and Employment (MOLE) has issued the Code on Wages (Central Advisory Board) Rules, 2021.
Under the rules:
• The Board will consist of individuals nominated by the Central Government representing employers and
employees (as specified in section 42 of Code on Wages, 2019) and the independent persons and
representatives of the State Governments.
• In addition to the functions (specified in sub-section (3) of section 42), the Board will advise the Central
Government “on the issue relating to the fixation of minimum wages”.
• No business will be transacted at any meeting unless at least one-third of the members (including at least
one representative member each of both the employers and an employee) are present.
• All business of the Board will be considered at its meetings and will be decided by a majority of the votes of
members present. In the event of an equality in votes, the Chairperson will have a casting vote.
• Voting will ordinarily be by show of hands. However, if any member asks for voting by ballot, or if the
Chairperson so decides, the voting will be by secret ballot and will be held in a manner as the Chairperson
may decide.
• If a member of the Board fails to attend three consecutive meetings, without prior notice to the
Chairperson, they will no longer be a member.
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#GBB Highlights | May 2021 16Key Updates
India: Circular Issued Effective Date: In Force
Corona specific standard products
The Insurance Regulatory and Development Authority of India (IRDAI) has mandated Life, General and Stand-Alone
Health insurers to continue to offer “Corona specific standard products”. They are required to continue, as well as
renew, the Corona Kavach and Corona Rakshak Policies until September 31, 2021. The COVID-19 policy offers hospital
cover at a low premium. Anyone aged 18 to 65 can purchase the COVID-19 health insurance.
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Indonesia: Regulation Issued Effective Date: In Force
Regulations for Job Creation Law
Implementing regulations have been enacted regarding the Job Creation Law. Highlights of Regulation No. 35 of 2021 on
Definite Period Employment Agreements, Outsourcing, Working and Resting Hours and Termination of Employment
(Regulation 35) include:
• It requires employers to register online the Definite Period Employment Agreements (Perjanjian Kerja
Waktu Tertentu or PKWT) within three working days from the date of signing. If the online registration is
not available, manual registration can be made at the Local Employment Office seven working days from
the date of signing (at the latest).
• Employers are required to pay “Compensation Pay" and Regulation 35 stipulates the formula to calculate
such.
• Regarding outsourcing, Regulation 35 emphasizes that an employment relationship exists between the
service provider and its employees.
• Regulation 35 recognizes normal working hours that are less than 40 hours per week. These hours can be
implemented by companies with work that can be completed in less than seven hours per day and less than
35 hours in a week; they implement flexible working hours; and they have work that can be completed
outside a location.
• Regulation 35 clarifies that the maximum overtime hours (four hours a day and 18 hours a week) do not
apply during weekly rest days and public holidays. It also includes provisions on employees who can be
exempt from overtime pay eligibility (i.e., employees in certain position classifications (golongan jabatan)
who have responsibilities as the planners, executors, and/or controllers of the company's operations with
higher salaries and their working hours cannot be limited).
• Also, Regulation 35 requires employment agreements, company regulations, or collective labor agreements
to include provisions on position classifications within the company that are excluded from overtime pay
eligibility. If not specifically stipulated in such, the exemption will not be applicable, and all employees will
then be eligible for overtime pay.
• Regulation 35 requires the notice of termination to be issued at the latest 14 days before the effective date
of termination. If the employee is still on probation, the written notice must be issued (at the latest) seven
days before the effective date of termination.
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#GBB Highlights | May 2021 17Key Updates
Ireland: Regulation Issued Effective Date: In Force
Institutions for occupational retirement provision (IORP) II Directive on pension schemes
On April 27, 2021, the Government announced that regulations transposing the IORP II Directive into pensions
legislation has been signed by the Minister for Social Protection. The Directive is the most significant piece of pensions
legislation published in Ireland in over 30 years.
• The underlying objective of the IORP II Directive is to facilitate the development of occupational retirement
savings in the European Union.
• The requirements of the Directive will apply to all schemes and trust Retirement Annuity Contracts (RACs)
(including small schemes and one-member arrangements where possible and as appropriate) to ensure that
all members and beneficiaries are given equal protection irrespective of size.
• Regarding existing one-member arrangements (post-transposition), IORP II investment and borrowing rules
will apply only to new investments or borrowings entered by such arrangements.
• A 5-year transitional period will also apply to existing one-member arrangements in respect of new IORP II
requirements (other than investment and borrowing related requirements).
The regulations provide for improvements within the occupational pensions area (i.e., enhanced governance standards
for schemes and trust RACs in Ireland; better protections for pension scheme members and beneficiaries; enhanced
information provision to scheme members and beneficiaries including the introduction of a Pension Benefit Statement
on an annual basis; the removal of obstacles for cross-border provision of services and transfers; and, promotion of
long-term investment in growth, environment and employment enhancing economic activities).
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#GBB Highlights | May 2021 18Key Updates
Ireland: Scheme Implemented Effective Date: In Force
Benefit Payment Scheme
The government has introduced the Benefit Payment scheme for those between age 65 and 66. It is a new benefit for
residents who are no longer engaged in regular employment (either voluntarily or involuntarily) or self-employment and
meet the pay-related social insurance (PRSI) contribution requirements. The purpose of the new benefit is to replace the
Jobseeker's Benefit (an unemployment benefit for individuals aged 18 to 65) as the main source of income support for
residents who retire at age 65. However, it does not have the same requirements of the Jobseeker’s Benefit scheme
(i.e., require beneficiaries to be available for employment, actively search for full-time work). To qualify for the benefit:
• Residents who were previously employed must have at least 104 weeks of paid contributions since starting
work, and at least 39 weeks of paid or credited contributions (of which at least 13 must be paid) in the
governing contribution year (GCY). In the alternative, they must have at least 26 weeks of paid contributions
in the GCY and at least another 26 weeks in the year immediately before it. (The GCY is the second to last
complete tax year at the time the benefit is claimed.)
• Residents who were previously self-employed must have at least 156 weeks of paid contributions since
starting work and 52 weeks of paid contributions in the GCY.
• Residents must cease regular employment or self-employment. However, they can continue subsidiary
employment (i.e., part-time work in one job that coincided with full-time work in another job for at least six
months) that began before claiming the benefit. An individual cannot begin new employment or self-
employment while receiving the benefit.
• Also, the weekly benefit is €203. If a beneficiary has qualifying dependents, the weekly amount is increased
by up to €38 for each child younger than age 12, €45 for each child aged 12 to 18 (until age 22 if a full-time
student), and €134.70 for each adult.
• Additionally, payment of the benefit stops when a beneficiary reaches the State Pension age of 66 and
begins receiving an old-age pension under the State Pension program.
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Israel: Benefit Update Effective Date: May 26, 2021
Decrease in unemployment benefit
Due to the decline in the unemployment rate, the government has announced a decrease in the unemployment
benefits. From May 26, 2021:
• Those receiving unemployment benefits “in the framework of the extension of unemployment days”
eligibility due to Covid-19, the unemployment benefits will decrease by 10%.
• However, those eligible for unemployment days based on a 12-month qualifying period and have not yet
exhausted the amount of unemployment days to which they are entitled will continue to receive
unemployment benefits at the full rate.
• Also, if the unemployment rate drops below 7.5%, the payment of unemployment benefits will end 30 days
after the release of the unemployment rate for those receiving unemployment benefits "in the framework
of the extension of unemployment days" eligibility due to Covid-19.
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#GBB Highlights | May 2021 19Key Updates
Israel: Initiative Issued Effective Date: In Force
Initiative to adopt management fee ceiling
The Capital Market Authority (CMA) has launched an initiative to adopt a management fee ceiling for savers who
stopped depositing during the Covid-19 crisis. The Commissioner of the CMA requested institutional entities to continue
to abide by the temporary order which stipulates that an institutional body would not be allowed to increase the rate of
management fees for savers when their deposits for pension savings were suspended for a period of 12 months from
the date of termination of deposits. Under the initiative, the order will cover the period from November 2020 to June
2021. Also, under the initiative, the entities would not exercise the existing option to increase management fees under
an arrangement:
• “To the extent that the existing rate of management fees accrues to the saver is higher than the average
rate of management fees accruing from the same institutional body for the same product”, the institutional
body will not exceed the rate of management fees accruing.
• “As long as the existing rate of management fees accrues to the saver is lower than the average rate of
management fees accrued from the same institutional body for the same product, the institutional body will
not exceed the rate of management fees accrues beyond the average rate of management fees.”
• The arrangement also applies to members where deposits for pension savings were discontinued from
March 2020 to October 2020 and for which the said temporary provision applies, after 12 months from the
date of termination of the deposits for them until the end of 18 months.
• The initiative is not applicable to industry provident funds, in which the rate of management fees for all
members is determined according to actual expenses.
It has been reported that all the institutional bodies responded to the initiative and informed the Commissioner that
they intended to participate in the initiative.
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Israel: Law Implemented Effective Date: In Force
Quarantine Benefit Law measures extended
The government has announced a quarantine subsidy scheme for employers to help them financially during the COVID-
19 pandemic. Under the Quarantine Benefit Law, the National Insurance Institute will pay a quarantine benefit to
employers who have paid wages to their quarantined workers. It covers the quarantine days of employees during the
period from January 10, 2020, to July 7, 2021. The payment will only be made for quarantine days declared to the
Ministry of Health (MOH), and employers should ensure that employees declare their quarantine period to the MOH.
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#GBB Highlights | May 2021 20Key Updates
Japan: FAQs Updated
Withholding tax for remote working
The National Tax Agency has updated its FAQs on withholding taxes for employees working from home. According to the
update, meal vouchers must be used within one year; there is a “carry-forward” option available for a monthly unused
voucher; a meal voucher (up to 3,500 Japanese yen per month excluding the consumption tax) is considered as tax-free;
and an employer’s contribution for the meal voucher is calculated by deducting the consumption tax.
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Malaysia: Scheme Implemented Effective Date: March 8, 2021
Applications for early withdrawal
On March 8, 2021, the Employees Provident Fund (EPF) started allowing all provident fund members younger than age
55 to withdraw a portion of their Account 1 balances under an early withdrawal option (i-Sinar). Highlights of the
scheme include:
• EPF members with Account 1 balances of 100,000 ringgits or less can withdraw up to 10,000 ringgits and EPF
members with Account 1 balances above 100,000 ringgits can withdraw up to 10% of their account balances
or 60,000 ringgits (whichever is less).
• Payments will be made over a six-month period. EPF members with Account 1 balances of 100,000 ringgits
or less may withdraw up to 5,000 ringgits in the first month, while those with Account 1 balances above
100,000 ringgits may withdraw up to 10,000 ringgits in the first month. The remaining payments (of at least
1,000 ringgits a month) will be issued for five additional months.
Also, i-Sinar introduced a temporary reduction in the employee EPF contribution rate to 9% for fund members younger
than age 60 for 2021.
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#GBB Highlights | May 2021 21Key Updates
Malta: Update Issued
Social security contribution rates
The Commissioner for Revenue has published the thresholds and rates for social security contributions for 2021. There
is a change in rates based on an adjustment in the basic weekly wage.
• For persons born from January 1, 1962, both the employer and employee contributions are 10% where the
basic weekly wage falls between EUR 181.09 and EUR 485.73.
• Where the weekly wage is EUR 485.74 or higher, the contribution for both employer and employees is fixed
at a weekly rate of EUR 48.57.
• For persons born before January 1, 1962, the top basic weekly wage is EUR 372.35, and the fixed rate when
exceeding that amount is EUR 37.24.
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Mauritius: Circular Issued
Guidelines for defined contribution (DC) plan
The Financial Services Commission ("FSC") has issued a circular letter (CL230421) on April 23, 2021, regarding the new
guidelines for the "conversion" or "shift" of defined benefit pension schemes to defined contribution pension schemes.
• The objective of the guidelines is to provide for a regulatory framework for such matters. The circular
outlines the meaning of "conversion" and "shift".
• It also states that the guidelines require pension schemes and sponsoring employers to ensure full
disclosure of information prior to any conversion or shift of the schemes.
• Additionally, the guidelines address the issues of underfunded defined benefit schemes by providing for
sponsoring employers to either “forthwith fund respective deficits or to submit a contingency plan” when
deciding for a conversion or shift of the defined benefit schemes.
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#GBB Highlights | May 2021 22Key Updates
Mexico: Law Enacted Effective Date: April 24, 2021
Outsourcing bill update
On April 23, 2021, the government published the bill on outsourcing in the Official Federal Gazette. Under the decree,
several provisions of the Federal Labor Law, Social Security Law, Federal Tax Code, as well as other laws, were amended.
Provisions of the decree include:
• The decree prohibits the outsourcing of personnel where a person or entity makes available its own workers
for the benefit of another person or entity.
• The subcontracting of specialized services or the execution of specialized works that are not part of the
main corporate purpose or economic activity of the beneficiary of the services or works will be allowed
provided that the provider entity is registered as subcontractor of specialized services or works before the
Ministry of Labor.
• The services or works rendered between companies of the same business group will be considered as
specialized if they are not part of the corporate purpose or the predominant economic activity of the
beneficiary of the services or works.
• The individuals or entities that provide subcontracting services must register with the Ministry of Labor. To
obtain such registration, they must provide evidence that they are current with their tax and social security
obligations. This registration will have to be renewed every three years.
• It establishes a term of 30 days for the Ministry of Labor to issue the rules for registering in the public
registry of persons providing subcontracting of specialized services.
• The amount of profit sharing will be limited to a maximum of three months of the employee's salary or the
average of the profit sharing received in the last three years (whichever is most favorable for the
employee).
• A fine of 2,000 up to 50,000 times the Unit of Measurement and Update will be imposed on those
companies that violate the measures in the decree.
• It provides for a period of three months (from its approval) for the employers to reorganize its outsourcing
services.
The amendments were enacted on April 23, 2021, and went into effect on April 26 (except for the amendments to the
Federal tax Code, the Income Tax Law and the Value Added Tax Law, which will take effect on August 1, 2021.)
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#GBB Highlights | May 2021 23Key Updates
Netherlands: Proposal
Parental paid leave proposal
The government has published details on its paid parental leave (expected to be effective from August 2, 2022. Under
the measures of the new scheme, the government would pay the first nine weeks of parental leave; parents can take up
to 26 weeks' leave; the Employee Insurance Agency (UWV) would pay 50% of an employee's daily wages during parental
leave (up to 50% of the maximum daily wage); and parents would have to use the 9 weeks' paid leave in the first year
after the child is born (they can use the remaining 17 weeks any time after that, up to the child's eighth birthday). This
leave will be unpaid, unless stated differently in the collective labour agreement (CAO) or company policy. Entry into
force is subject to its passing through the parliament, proclamation of the Order in Council or ministerial decree and
published.
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Netherlands: Update Issued
Future of Pensions Act implementation delay
The Minister for Social Affairs and Employment has confirmed that the implementation of the Future of Pensions Act
(Wet toekomst pensioenen) will be delayed. It is expected to come into force on January 1, 2023 (at the latest). Under
the Act, there will be only one type of pension agreement, defined contribution. All defined benefit plans must convert
to defined contribution plans (i.e., and age-dependent pension contribution). Once the Act has entered into force, there
will be a transitional phase of four years for the social partners and pension administrators will have four years to adjust
pension schemes to the new legislation. Minimum funding ratios for pension schemes will remain at 90% in 2022.
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#GBB Highlights | May 2021 24Key Updates
New Zealand: Proposal
Health care reform
The government has announced major reforms for its health care system in response to the Health and Disability System
Review (HDSR). It found that the public health system was “under stress and that a greater emphasis on primary
healthcare had the greatest potential to improve citizens health”. The measures aim to make health care accessible for
all citizens. Measures include:
• All district health boards will be replaced by one national organisation, Health New Zealand. The entity will
be responsible for running hospitals and commissioning primary and community health services. It will have
four regional divisions.
• A new Māori Health Authority will have the power to commission health services, monitor the state of
Māori health, and develop policy.
• A new Public Health Agency will be created that will “provide technical expertise in the Ministry, and Public
Health Units”. It will “act as a joined-up national service New Zealand that is better equipped to fight future
outbreaks and pandemics”.
• The system will be overseen by a strengthened Ministry of Health, which will also advise the Government
on policy matters.
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#GBB Highlights | May 2021 25Key Updates
Peru: Law Enacted Effective Date: May 9, 2021
Withdrawal of pension savings
Congress has approved the bill that allows members of the Pension Fund Administrators (AFP) to withdraw their savings
from the private pension fund due to the financial impact of the pandemic. The Law is not applicable to those who
qualify to access the Early Retirement System for Unemployment. According to Law No. 31192, promulgated in the
Official Gazette El Peruano on May 9, 2021:
• Affiliates may withdraw up to four tax units (UIT) (equivalent to 17, 600 soles) from the total of their funds
accumulated in their individual capitalization account (CIC), “in order to alleviate the family economy
affected by the consequences of the COVID-19 pandemic”.
• They may submit their request (remotely, virtually, or in person and, only once) within ninety (90) calendar
days after the regulation of this law becomes effective.
• Up to one UIT will be paid every thirty (30) calendar days, the first disbursement being made thirty (30) days
after the request is submitted to the private pension fund administrator to which the member belongs. This
is applicable until the second disbursement and the rest will be delivered in the third disbursement.
• If the affiliate wishes to stop withdrawing funds from their individual capitalization account, they may
request it only once from the private pension fund manager ten (10) days before disbursement.
• The withdrawal of the funds referred to in this law “maintains the condition of intangible, and cannot be
discounted, legal or contractual compensation, embargo, retention, any form of affectation, whether by
judicial and/or administrative order, without distinction”, of the account in which they have been
deposited.
The Superintendency of Banking, Insurance and Private Pension Fund Administrators is responsible for determining the
operating procedure for compliance with this regulation, within fifteen (15) calendar days from the publication of the
law.
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Philippines: Administrative Order Issued Effective Date: In Force
One-time financial assistance
Under Administrative Order (AO) 39, the President has authorized the grant of one-time financial assistance of P20,000
to qualified pensioners under the Employees' Compensation (EC) scheme to provide financial relief during the
coronavirus pandemic.
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#GBB Highlights | May 2021 26Key Updates
Poland: Program Implemented Effective Date: May 4, 2021
Workplace vaccination program
The government announced its “vaccinations against COVID-19 at workplaces” program as part of the National
Immunization Program. The workplace program, launched on May 4, 2021, is applicable to employers that have signed
up a minimum of 300 people (workplace employees and their family members) to be vaccinated. Employers must
complete an online registration form to participate. Guidelines which cover the organization, implementation of the
program, as well as the minimum requirements of the Chief Sanitary Inspector and the Ministry of Health, have been
published by the government.
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Singapore: Regulation Issued Effective Date: April 1, 2021
Policies for worker's compensation
The Ministry of Manpower (MOM) has announced that all work injury compensation insurance policies must be issued
by a designated insurer and must comply with MOM’s compulsory terms (from January 1, 2021).
• Employers must purchase such insurance for all employees doing manual work, regardless of salary level.
Under the Work Injury Compensation (Insurance) (Amendment) Regulations 2021, from April 1, 2021, the
salary threshold for workers doing non-manual work has increased to SGD 2,600 from SGD 2,100 (excluding
any overtime payment, bonus payment, annual wage supplement, productivity incentive payment, and any
allowance).
• Employers must have insurance for both local and foreign employees. Failure to provide adequate insurance
is an offense carrying a fine of up to $10,000 or jail of up to 12 months, or both.
• For other workers, companies have the flexibility to decide whether to buy insurance for them. However, if
those employees make a valid claim, employers will have to compensate them regardless of whether they
are insured.
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#GBB Highlights | May 2021 27Key Updates
Sweden: Scheme Implemented Effective Date: September 2021
Income pension complement
The government has published details regarding the income pension complement (Inkomstpensionstillägg)which is a
new pension benefit that is paid as a supplement to the national public pension. Highlights of the details include:
• From September 2021, individuals already receiving the national pension will receive the income pension
complement (or when they turn 65). It is not necessary to apply for the supplement; it is automatic when
the individual applies for the national pension.
• Eligibility for the benefit and the amount of the income pension complement is based on the size of the
pensioner’s income-based pension and the number of years they have been earning a pensionable income
in Sweden. (The full income pension complement requires between 35 and 40 years.)
• An individual will not receive an income pension complement if they have a monthly income-based pension
of SEK 17,000 or more (before tax) or have a monthly income-based pension of SEK 9,000 or less (gross).
• Receiving the income pension complement is unaffected by the individual working simultaneously while
receiving a pension, or a person choosing to stop working. However, the size of the income pension
complement is affected by how much is earned during the additional years with pensionable income.
• The income pension complement amount ranges from SEK 0 to a maximum of SEK 600 (gross).
• The income pension complement is affected by whether you are receiving pension from another EU
country, EEA country, or Switzerland. (This applies to income based old-age pensions from these countries,
just like income-based pension from Sweden affects the size of the income pension complement that
individuals are entitled to.)
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Taiwan: Announcement Issued
Exemption for subsidies
The Ministry of Finance has announced corporate income tax incentives for 2020 business income due to the
coronavirus pandemic. Various subsidies received from the government are exempt from income tax; and specific
deductions are available for the salaries of certain employees.
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#GBB Highlights | May 2021 28Key Updates
Thailand: Proposal
National Pension Fund bill approved
The Cabinet has approved a bill which establishes the National Pension Fund. It is a new mandatory retirement savings
scheme that aims to support an aging population requiring all formal employees who are not members of provident
funds to save money. The scheme is designed to complement existing voluntary pension arrangements. Its highlights
include:
• Upon approval, both employees and employers would have to contribute to the pension fund at a
progressive rate, starting from 3% of their salary during the first through third year, rising to 5% for years 4-
6,and 7% of their salary in the seventh year onwards.
• It is applicable to those ages 15-60, earning up to B60,000 per month. However, if the employee earns less
than B10,000 per month, only the employer would have to contribute.
• Employees can opt to commit more to the fund (up to 30% of their salary).
• Contributions are tax-exempt and the assets will be managed by private assets management companies.
The companies will be required to obtain licenses from the Securities and Exchange Commission of
Thailand.
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Turkey: Regulation Issued Effective Date: April 22, 2021
Social security new regulations
The government has issued new regulations on social security legislation and corporate tax law. Law No. 7316, was
published in the Official Gazette on April 22, 2021 (No. 31462). Highlights include:
• Under Article 6 of the Law, in workplaces (i.e., those operating in compliance with the NACE Rev.2
Classification of Economic Activities under certain codes), the daily pandemic unpaid leave (cash wage
support amount) will be 50 TL regardless of the start date or hire date.
• Under Article 9, the temporary incapacity payment would be calculated with the following rules:
• The average of social security base amounts of the last three months (within the last 12-month period)
would be considered for daily allowance calculations on work accident and occupational illness cases.
• The average of social security base amounts for the last 12-month period would be considered for daily
allowance calculations on illness and maternity cases.
• If you have fewer premium days than 180 days on short-term insurance types, the daily allowance would
not be higher than two times the daily minimum wage.
The Law entered into force on April 22, 2021.
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#GBB Highlights | May 2021 29You can also read
