One of the most important responsibilities in managing employees is maintaining compliance with employment regulations. In the last few years there have been many new laws and changes around the world after the onset of COVID-19. As an employer, you need to make sure that your employment contracts are always up to date with the latest employment laws and regulations.
Europe
Austria
Wage and income tax for the second-level tax bracket has been reduced from 35% to 30%, effective as of 1 July 2022 (source). In 2021, Austria’s personal income tax rate on the first-level tax bracket was also lowered from 25% to 20%, and there is a proposal for the third-level tax bracket to be lowered in 2023.
Germany
The exemption amount for personal income tax has been increased to €10,347/year, meaning no tax is owed if your income is below this amount. This change applies retroactively from January 1st, 2022 (source).
Ireland
Parental leave has increased in Ireland from 5 weeks to 7 weeks, for children born or adopted after July 1st 2022. You can claim the additional 2 weeks of parental leave if your child is under the age of 2 on July 1st 2022, or if your adopted child has been placed with your family less than 2 years on July 1st 2022 (source).
Netherlands
As of July 1 2022, the monthly minimum wage for workers over the age of 21 will increase from €1,725 to € 1,756.20. Minimum wages for workers under 21 have also changed, amounts are based on age. The Dutch government adjusts the minimum wage twice a year on January 1st and July 1st. (source).
Norway
From 1 July 2022, employers in Norway may now only hire employees on a temporary basis under very limited circumstances, as enumerated in Section 14.9(2) of Norway’s Working Environment Act. Previously, the law allowed employers to hire temporary employees for up to 12 months and for up to 15% of the employer’s workforce. The main goal is that employees must be “permanently employed”, meaning that the employment relationship is “continuous and not time limited” (source).
Asia
China
As of July 1 2022, the upper limit of the city's social security payment base will be adjusted to 34,188 yuan/month. The lower limit is adjusted to 6,520 yuan/month. If the average monthly income of employees in the previous year is lower than the lower limit of the payment base, the payment shall be made according to the lower limit of the base; if it is higher than the upper limit of the payment base, the payment shall be made according to the higher limit of the base (source).
Malaysia
Effective July 1 2022, the employee's share of the Employees Provident Fund has gone back to 11%, it was previously 9% from Jan 2021 to Jun 2022 due to the COVID-19 pandemic (source).
Singapore
Employers must offer re-employment to all eligible employees who turn 63 years old, up to age 68, to continue their employment in the organization. The re-employment age was raised from 67 to 68 on July 1 2022 to help older workers who wish to continue working as long as they are willing and able (source).
Vietnam
Vietnam will increase regional minimum wages by around 6% as of July 1, 2022. The increase varies depending on the living expenses in each particular region (source).
Oceania
Australia
From July 1st 2022, the National Minimum Wage will increase by 5.2%, a total of about $40 a week. The new National Minimum Wage will be $812.60 per week or $21.38 per hour, and the super guarantee (SG) rate will increase from 10% to 10.5% (source).
Work with an EOR to manage compliance
The best way to onboard and manage your global employees without worrying about changing laws and regulations is by using an Employer of Record (EOR) like RemoFirst. RemoFirst safeguards your business against compliance penalties and helps you hire employees in 150+ countries by handling legal compliance, payroll, taxes, benefits, labor laws, and more on your behalf. Request a demo to learn more.
