If you're hiring globally — or planning to — understanding statutory benefit requirements in different countries is essential, but it can also be overwhelming.
Employment laws governing mandatory employee benefits vary widely depending on where your global workforce is based, and navigating the patchwork of labor laws across borders can be a serious compliance challenge.
In this guide, we'll break down the core legally required statutory benefits in 10 popular international hiring destinations according to RemoFirst's internal data.
Key takeaways:
- Statutory employee benefits vary significantly by country and include a combination of medical insurance, paid leave, social contributions, and bonuses.
- Some countries mandate benefits packages that include 13th-month pay, public healthcare contributions, or employer-paid maternity leave, while others leave it to employer discretion.
- Employers hiring remote international employees must comply with local employment laws to avoid costly fines, legal risks, and reputational damage.
Health Insurance
- Canada: Public healthcare is provided provincially; private insurance isn't mandatory but is often offered as a supplemental benefit.
- Germany: Employers split public health insurance costs (~50%) with employees. Private supplemental insurance is common.
- France: Employers must cover at least 50% of the cost of private health insurance (mutuelle).
- India: Employers with 10+ employees contribute to the Employees' State Insurance Scheme (ESIC) for those earning below INR 21,000/month.
- Netherlands: Employers pay an income-related contribution toward public health insurance.
- Philippines: Employers must pay monthly contributions to PhilHealth (5% of basic monthly salary).
- Portugal: Public healthcare is funded through taxes; employers commonly offer supplemental private insurance.
- Spain: Healthcare is funded via employer payroll taxes to the Social Security system.
- United Kingdom: The National Health Service (NHS) is funded through taxes; supplemental private insurance is optional but common.
- United States: Employers with 50+ employees must provide health insurance under the Affordable Care Act (ACA); smaller employers aren't federally mandated to do so.
Paid Time Off (PTO) & Holidays
- Canada: Minimum two weeks paid leave after one year; approximately nine public holidays
- Germany: 20 paid vacation days minimum; about 9 - 13 public holidays depending on the state
- France: Five weeks annual leave; approximately 10 public holidays
- India: Approximately 12 days annually (varies by state); around three national holidays plus regional holidays
- Netherlands: Minimum 20 days paid leave; no mandatory public holidays but typically around eight observed
- Philippines: Five days of annual paid leave after one year; 12 regular holidays plus special non-working holidays
- Portugal: 22 days of paid annual leave; about 13 mandatory public holidays
- Spain: 22 working days (30 calendar days) paid leave; 14 public holidays annually
- United Kingdom: 28 days paid leave (can include eight public holidays)
- United States: No federal paid vacation mandate; commonly 10 - 15 vacation days and about 8 - 10 public holidays
Bonuses
- Canada: No mandatory bonuses; contractual bonuses must be honored
- Germany: No mandatory bonuses; however, Christmas and vacation bonuses commonly become contractual if regularly paid
- France: Profit-sharing is mandatory for companies with 50+ employees; 13th-month pay is commonly expected through collective agreements
- India: Companies with 20+ employees must pay an annual bonus of 8.33% – 20% of wages
- Netherlands: Mandatory vacation allowance (8% of gross annual wage)
- Philippines: Mandatory 13th-month pay for all employees
- Portugal: Mandatory Christmas and vacation bonuses, each equal to one month's pay
- Spain: Two mandatory annual bonuses (payable in June and December)
- United Kingdom: No mandatory bonuses; contractual obligations apply if agreed
- United States: No mandatory bonuses; contractual obligations apply if promised
Sick Pay
- Canada: Up to 10 federally paid sick days
- Germany: Six weeks fully employer-paid; afterward, public insurance covers 70%
- France: Social Security covers 50% of employee salary from the fourth day of illness
- India: Typically, 6 - 12 paid sick days; further coverage under Employees' State Insurance
- Netherlands: Employers pay at least 70% of an employee's wages for up to two years of illness
- Philippines: Service Incentive Leave (SIL) can be utilized for illness
- Portugal: Social Security pays from the fourth day of illness onward
- Spain: Paid leave from the fourth day; costs shared by employer and Social Security
- United Kingdom: Statutory sick pay (up to 28 weeks at GPB 116.75 weekly)
- United States: No federal sick leave mandate; some states require paid leave
Maternity Leave
- Canada: 15 weeks paid maternity leave via Employment Insurance
- Germany: 14 weeks of fully paid maternity leave
- France: 16 weeks paid maternity leave covered by Social Security
- India: 26 weeks paid leave under the Maternity Benefit Act
- Netherlands: 16 weeks paid maternity leave split before and after birth
- Philippines: 105 days paid leave (extendable unpaid)
- Portugal: 120 - 150 days paid by Social Security
- Spain: 16 weeks paid leave for both parents
- United Kingdom: Up to 52 weeks maternity leave (39 weeks paid)
- United States: 12 weeks unpaid leave (FMLA), no federal paid leave
Paternity Leave
- Canada: No distinct paternity leave, but shared parental leave is available
- Germany: Shared parental leave available (Elternzeit)
- France: 28 days paid leave
- India: No statutory private-sector leave; central government employees 15 days
- Netherlands: One week employer-paid; five weeks partially government-paid
- Philippines: Seven days paid leave
- Portugal: 28 days paid leave
- Spain: 16 weeks paid leave for fathers
- United Kingdom: Two weeks of statutory paid leave
- United States: No federal paid leave; 12 weeks unpaid FMLA
Social Security Contributions & Pensions
- Canada: Employers match employee contributions to the Canada Pension Plan (CPP) at 5.95%.
- Germany: Employers contribute 9.3% of employees' income to statutory pension.
- France: Employers fund pensions through Social Security contributions; rates vary based on salary.
- India: Employers contribute 12% of an employee's basic wage to the Employees' Provident Fund, a retirement savings scheme.
- Netherlands: Employer contributions to pensions vary based on collective agreements.
- Philippines: Employers contribute 10% to the Social Security System (SSS) which helps fund the local pension scheme for private sector employees.
- Portugal: Employers pay 23.75% of an employee's salary to Social Security, which funds the country’s pension scheme.
- Spain: Employers contribute around 30% to Social Security, which funds pensions, including retirement, disability, and survivor benefits.
- United Kingdom: Employers pay 13.8% in National Insurance contributions and are required to make contributions of at least 3% to an employee’s pension scheme.
- United States: Employers contribute 6.2% to Social Security and 1.45% to Medicare. There is no requirement for employers to offer a pension plan for employees, but many opt to do so.
Employment Insurance & Unemployment
- Canada: Employers contribute to Employment Insurance (EI).
- Germany: Employers contribute equally (1.3%) to unemployment insurance for employees.
- France: Employers pay 4.05% to unemployment insurance.
- India: Employers contribute to Employees' State Insurance (ESI), covering unemployment benefits.
- Netherlands: Employer payroll taxes fund unemployment insurance.
- Philippines: Employers contribute to SSS, covering unemployment benefits.
- Portugal: Employers fund unemployment benefits through Social Security.
- Spain: Employers contribute to unemployment and workers' compensation through Social Security.
- United Kingdom: Employers contribute to National Insurance (NI), which funds unemployment benefits.
- United States: Employers pay federal/state unemployment insurance taxes (FUTA/SUTA).
Supplementary Benefits & Perks
Beyond mandatory benefits, many employers offer additional perks to help with attracting and retaining talent. Here are some common non-mandatory benefits:
- Canada: Extended health & dental insurance, employee assistance programs (EAPs), RRSP matching (retirement savings), wellness programs & gym memberships, paid parental leave top-ups
- Germany: Additional vacation days beyond the 20-day minimum, 13th-month salary or holiday bonuses, private health insurance supplements, remote work home office stipends, flexible work hours, subsidized childcare
- France: Ticket restaurant (meal vouchers), supplemental private health insurance, transportation allowances
- India: Health insurance plans (often extended to family), gratuity (lump sum for long service), free or subsidized meals, transport allowances, work-from-home flexibility
- Netherlands: Holiday allowance (typically 8% of annual salary), bicycle allowances for commuting, flexible work arrangements, professional development budgets
- Philippines: 14th-month bonus (in addition to mandatory 13th-month pay), HMO (private health insurance) for employees & families, rice allowances (monthly stipend for staple food), paid birthday leave, performance bonuses
- Portugal: Meal allowances (often via a tax-free card), extra vacation days beyond the legal minimum, private health insurance, training & education reimbursement
- Spain: Extra vacation days beyond the 22-day minimum, private health insurance, childcare vouchers, commuting allowances
- United Kingdom: Private health insurance, pension contribution matching, flexible work arrangements, additional paid parental leave, gym memberships & wellness programs
- United States: 401(k) retirement plan with employer matching, health, dental, and vision insurance, stock options & equity plans, unlimited PTO (offered by some companies), tuition reimbursement & learning stipends
What Are the Risks If You Don't Offer Mandatory Benefits?
Failing to comply with statutory benefit requirements can expose your company to significant financial, legal, and reputational risk. While enforcement mechanisms vary by country, most governments have systems to audit employers, investigate complaints, and penalize non-compliance.
Here's what can happen if you fall short of your legal obligations:
- Fines, penalties, and back pay: Employers may be required to repay missing contributions or benefits with interest and face steep fines for each violation.
- Legal action: Employees can bring claims to labor courts or tribunals, which often rule in favor of workers — especially when benefit entitlements like paid leave, health coverage, or social contributions have been denied.
- Criminal charges: In some countries — including Germany, France, and India — severe violations such as willfully failing to pay social contributions or denying protected leave can lead to criminal prosecution.
- Loss of operating licenses or public contracts: In regulated industries or public sector partnerships, non-compliance can result in exclusion from bids or even revocation of business licenses.
- Reputational damage and employee attrition: A reputation for cutting corners on employee rights can harm your employer brand and make it harder to attract and retain top talent, especially in competitive international markets.
Even well-intentioned employers can make mistakes when navigating unfamiliar regulations. However, local authorities typically take a strict stance: lack of awareness is not a valid excuse.
That’s why having a strong global compliance strategy — and the right partners in place — is essential if you're scaling internationally. Working with an Employer of Record (EOR) like RemoFirst can help ensure you're offering all mandatory benefits, maintaining compliance with local laws, and avoiding costly surprises down the line.
Ensure International Employee Benefits Compliance With RemoFirst
Navigating employee benefits packages and compliance requirements in a single country is challenging enough. Doing it across multiple jurisdictions — each with its own labor laws governing social contributions, leave entitlements, and more — can quickly become overwhelming.
That's where RemoFirst comes in.
As an EOR operating in 185+ countries, RemoFirst takes the complexity out of international hiring. We act as the legal employer on your behalf, handling everything from global payroll and statutory benefits to social security contributions and local labor law compliance.
You control your team's day-to-day work while we manage the backend responsibilities, ensuring your people are employed compliantly.
We can also help ensure you offer competitive benefits beyond the minimum requirements to help with your employees' well-being and work-life balance.
Let us worry about the paperwork so you can focus on what you do best: building your business.
Schedule a demo to learn how RemoFirst can help you hire global talent confidently and compliantly.
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