2023 Country Regulation Updates - January Internal
Info
In the tabs below you will find updates to country regulations in January 2023, many of which may impact employee benefits and/or costs of employment.
For the most recent country regulation changes, visit our Country Regulation Updates page and select the current month.
As always, if you have any questions or concerns, please reach out to Velocity Global through your normal process, and we will help you.
Americas
Brazil
Mandatory Compensation Increase
The CBA that applies to Velocity Global supported employees in Brazil mandates annual increases to compensation. This mandatory increase typically closely follows the annual inflation during a full year of work. The percentage increase for 2023 is 5.97%.
The increase will be applied to any employee who was hired in December 2022 or earlier. If an employee has less than one year of service with Velocity Global, a pro-rata increase will apply.
Minimum Wage Increase
The monthly minimum wage was increased on January 1st, 2023 to BRL1,302. The provisional measure with the new value (MP 1.143/2022) was published in an extra edition of the Official Gazette. The minimum wage in 2022 was BRL 1,212.00.
National Institute of Social Security (INSS) Ceiling Value Increase
The ceiling value of the National Institute of Social Security (INSS) has been increased and the new value is BRL 7,718.69. In 2022 this value was BRL 7,087.22.
This value is important in establishing whether an employee is classified as exempt or non-exempt. Non-exempt employees earn at least twice the amount of the INSS ceiling, which is BRL 15,437.38 in 2023.
Canada
Employer Contribution Increases
Canada Pension Plan (CPP) / Quebec Pension Plan (QPP)
The CPP and QPP are payroll taxes that go toward government-administered retirement pension plans. The Quebec Pension Plan is administered only in Quebec. As of January 1st, 2023:
- CPP: The employer contribution rate for 2023 will be 5.95%. This was 5.70% in 2022. The maximum annual contribution to the plan for 2023 is CAD 3,754.45. This is an increase from 2022, when the maximum was $3,499.80.
- QPP: The employer contribution rate for 2023 is 6.40%. This is an increase from 2022, when the rate was 6.15%. The maximum annual contribution amount for 2023 is CAD 4,038.40.
Employment Insurance
The Employment Insurance (EI) premium is a tax that funds several government-provided benefits. These funds provide temporary income support to unemployed workers while they seek employment or upskilling, and benefits to workers who are absent from work due to illness, pregnancy, or other covered life events. Both employees and employers contribute to this fund. The employer has to pay 1.4 times the employee contribution.
- As of January 1st, 2023, the EI premium rate for employees in all provinces except Quebec is 1.63% (up from 1.58% in 2022), meaning that the employer rate is 2.28%. The maximum annual EI premium in 2023 is CAD 1,402.43 for employers.
- The EI premium rate for employees in Quebec is 1.27% (up from 1.20% in 2022), meaning that the employer rate is 1.78%. The maximum annual EI premium in 2023 is CAD 1,093.47 for employers.
Quebec Parental Insurance Plan (QPIP; Quebec Only)
QPIP is designed to support the parents of newborn or newly adopted children, encourage them in their desire to have children, and support them as they devote more time to their children. Both employers and employees contribute to this tax.
As of January 1, 2023, the employer rate is 0.692% with a maximum annual contribution of CAD 629.72.
Workers’ Compensation
The annual income caps used for calculating the Workers’ Compensation contribution have increased in most provinces, which, depending on an employee’s salary, may lead to slight increases for this contribution.
Chile
Employer Contribution Decrease
The employer's portion of the Disability Insurance contribution has decreased from 1.84% to 1.55% in 2023. This change will lead to a slight decrease in employer contributions.
Minimum Wage Increase
The Chilean government increased the monthly minimum wage for full-time employees between the ages of 18 and 65 to CLP 410,000. This was previously CLP 400,000.
As a consequence of this increase, the mandatory monthly minimum Legal Gratification owed to employees increased to CLP 162,292. It was previously CLP 158,333.
Colombia
Minimum Wage Increase
The minimum monthly salary has been increased to COP 1,160,000 in 2023. The minimum comprehensive salary is thirteen (13) times the minimum monthly salary, meaning that the minimum comprehensive salary has also increased. For 2023, it is COP 15,080,000.
For an employee to be eligible for ‘Integral’ salary, they must make more than this minimum comprehensive salary.
An increase in minimum wage will have knock-on increases in social security payments, as well as vacation and 13th month payments.
Personal Income Tax Exemption Changes
In 2023, 25% of workers' wages are exempt from tax, limited to 790 UVT (tax value unit) per year, which is equivalent to COP 33,505,480. In 2022, this 25% exemption could not exceed 2,880 UVT, which was equivalent to COP 122,147,000.
Costa Rica
Employer Contribution Increase
The employer’s portion of the pension contribution (IVM), also known as the Sickness, Old Age, and Death contribution, has increased 0.17% to 5.42% for 2023.
Ecuador
Employer Contribution Increase
The 14th month salary has increased to USD 37.50 per month. This was previously USD 33.33 per month.
El Salvador
Employer Contribution Increase
The employer’s portion of the AFP Pension Fund has increased 1% to 8.75% for 2023. The maximum contribution for this contribution has also been removed, so this is now uncapped.
The severance provision employer contribution has increased from 2.00% to 2.65% for 2023. A maximum annual contribution of USD 1,460 has also been applied to this contribution.
Honduras
Employer Contribution Decrease
In November 2022, the employer portion of the Disability, Maternity, and Old-Age Pension Fund (I.V.M.) decreased from 3.5% to 2.0%, and the maximum salary used to calculate contributions increased slightly to HNL 10,796.49. This change will lead to a decrease in employer contributions.
Minimum Wage Increase
As of January 2023, the new minimum monthly wage is HNL 15,495.25.
Mexico
Annual Leave Entitlement Increase
The minimum annual leave entitlements have increased in 2023 as per the table below. This not only impacts an employee’s annual leave entitlement, but also the additional amount paid to an employee when taking vacation (vacation premium).
Since the annual leave entitlement is part of the vacation premium calculation, if the entitlement increases, so does the vacation premium.
| Years of Service | Days |
| 1 year | 12 days |
| 2 year | 14 days |
| 3 year | 16 days |
| 4 year | 18 days |
| 5 year | 20 days |
| 6 - 10 years | 22 days |
| 11 - 15 years | 24 days |
| 16 - 20 years | 26 days |
| 21 - 25 years | 28 days |
| 25 - 30 years | 30 days |
| 31 - 35 years | 32 days |
Employer Contribution Increase
The employer’s portion of the Unemployment Insurance contribution has increased from a fixed 3.15% to a new range of 3.15% - 4.241%, depending on the employee’s salary. The higher the employee’s salary, the higher the mandatory contribution. These rates will continue to increase annually through 2030.
For most employees this will mean an increase to 4.241%.
Minimum Wage Increase
The general minimum daily salary has increased from MXN 172.87 to MXN 207.44 in 2023.
Upcoming UMA Increase
The Unidad Medida y Actualización (UMA) is an economic reference used in Mexico to determine certain federal payment obligations, including the base salary for social security contributions (SBC, or Integrated Daily Salary). The UMA is increasing to MXN 103.74 on February 1st, 2023.
This change will increase the maximum contribution for each social security contribution by MXN 188 to MXN 2593.50 per month. This will also increase the maximum contribution for the Food Coupons employer contribution by MXN 225.60 per month.
Uruguay
Mandatory Compensation Increase
Effective January 1, 2023, all employee salaries have been increased by 3% per an official government decree.
Asia-Pacific
Korea
Employer Contribution Increase
The employer portion of the National Health Insurance contribution has increased from 3.495% in 2022 to 3.545% in 2023. The maximum contribution has also increased by KRW 257,730, and is now KRW 3,911,280 per month.
The employer portion of the Long-Term Care Insurance contribution has increased from 12.27% in 2022 to 12.81% in 2023. The maximum contribution has also increased KRW 52,740 to KRW 501,030 per month.
Malaysia
Statutory Benefit Changes
The following statutory changes have been implemented for 2023:
| Category | Before 2023 | As of 2023 |
| Maternity Leave | 90 days at 100% pay | 98 days at 100% pay |
| Paternity / Childcare Leave | Not applicable |
7 days at 100% pay for each birth, up to a maximum of 5 births.
|
| Working hours | Maximum 9 hours a day, 48 hours per week as stated on contract |
Maximum 9 hours a day, 45 hours per week as stated on contract
|
| Overtime Pay | For salaries that do not exceed MYR 2,000 and all manual workers irrespective of their earnings. | For salaries that do not exceed MYR 4,000 and all manual workers irrespective of their earnings |
Philippines
Employer Contribution Increase
The employer’s portion of the Social Security (SSS) contribution has increased from 8.50% in 2022 to 9.50% in 2023.
Singapore
Employer Contribution Increase
The employer contribution rates to the Central Provident Fund (CPF) for Singapore citizens and permanent residents in their third year and beyond have changed in 2023. The rates for Singapore permanent residents in their second and first years, and expats, remain unchanged.
The new rates for citizens and third-year permanent residents and beyond are as follows:
| Age | Contribution Rate |
| 55 and Below | 17.00% |
| Above 55 to 60 | 14.50% |
| Above 60 to 65 | 11.00% |
| Above 65 to 70 | 8.50% |
| Above 70 | 7.50% |
Taiwan
Minimum Wage Increase
The minimum monthly salary has increased from TWD 25,250 to TWD 26,400. This will impact the salary brackets used to calculate social security contributions and may slightly increase employer contributions for Labor Insurance and Health Insurance.
Employer Contribution Changes
The Labor Insurance contribution has increased by 0.5% and is now 11.00% in 2023. This contribution is shared between the employer, employee, and the government, and these proportions can vary slightly between industries. Regardless of industry, however, there is a slight increase to the employer’s contribution in 2023.
The average dependent cost decreased from 0.58 to 0.57 which slighlty lowers the National Health Insurance employer contribution.
Thailand
Employer Contribution Change
Social Security rates return to their normal 5.0% in 2023.
Vietnam
VAT Resumption
A VAT Reduction policy was in place in Vietnam until December 2022. This policy has now ceased, and the regular VAT rate of 10% has returned for 2023.
Europe, Middle East, and Africa
Armenia
Employer Contribution Increase
The employer pension contribution calculation has changed to the following in 2023:
- If the monthly gross salary is less than AMD 500,000, the contribution is 5% of the monthly gross
- If the monthly gross salary is more than AMD 500,000, the contribution is 10% of the monthly gross salary, minus AMD 25,000, up to a cap of AMD 87,500
Belgium
Mandatory Compensation Increase
The CBA that applies to Velocity Global supported employees in Belgium mandates annual increases to compensation. In 2023, this mandatory increase is 11.08%. All employee salaries will be increased by this amount.
Cote D’Ivoire
Employer Contribution Increase
The maximum salary used for the calculation of the Retirement Fund (CNPS) employer contribution has been increased from XOF 2,700,000 to XOF 3,375,000. Depending on the employee’s salary, this may lead to a slight increase in employer contributions.
The maximum salary used for the calculation of the Family Allowance and Work Injury employer contributions has been increased from XOF 70,000 to XOF 75,000. Depending on the employee’s salary, this may lead to a slight increase in employer contributions.
Minimum Wage Increase
The minimum monthly wage has been increased from XOF 60,000 to XOF 75,000 in 2023.
Croatia
Minimum Wage Increase
The minimum wage has increased to EUR 700 per month.
Mandatory Work-From-Home Allowance Introduced
A mandatory work-from-home allowance has been introduced, which is tax-free up to EUR 3.98 per day or EUR 66.37 per month. Velocity Global has decided that a minimum rate of EUR 25 per month must be provided to supported employees.
Euro Introduced
The euro has been introduced as the official currency in Croatia.
Czech Republic
Minimum Wage Increase
The minimum monthly salary was increased by 7.7% (CZK 1,100) to CZK 17,300.
Egypt
Employer Contribution Increase
The maximum monthly ceiling used for the calculation of Social Insurance contributions has been increased to EGP 10,900, which means that the maximum monthly contribution is now EGP 2,043.75. This will likely mean a slight increase in employer contributions.
The maximum monthly contribution for the Emergency Relief Fund (ER Fund) has increased to EGP 22.01.
Estonia
Minimum Wage Increase
The minimum monthly wage has increased from EUR 654 to EUR 725.
Finland
Employer Contribution Increases
The employer’s portion of the social insurance contribution has increased from 1.34% to 1.53% in 2023. This will lead to a slight increase in employer contributions.
The employer’s portion of the Accident Insurance contribution has increased from 0.18% to 0.19% in 2023. This will lead to a very slight increase in employer contributions.
We were made aware of the change below in March, but it was effective on January 1st, 2023.
The employer's portion of the Pension Insurance contribution has changed to the following, depending on the employee's age:
- 52 and Under: 18.4048%
- Over 52: 16.9048%
France
Employer Contribution Increase
The monthly ceiling used to calculate social security contributions has increased EUR 289 to EUR 3,666. This may increase the employer contributions for Old-Age Insurance, Supplementary Pension, and the Life/Disability Fund (Prevoyance).
Minimum Wage Increase
The minimum hourly wage has increased by 1.81% to EUR 11.27 in 2023.
Hungary
Minimum Wage Increase
The minimum monthly wage for professional workers has increased to HUF 296,400 in 2023.
Statutory Benefit Increase
The paternity leave entitlement has been increased from five working days to ten working days.
The parental leave entitlement has been established to be 44 working days.
Ireland
Statutory Benefit Change
Paid Sick Leave Entitlement
The entitlement to paid sick leave in Ireland will be phased in over 4 years, as follows:
- 2023: 3 days covered
- 2024: 5 days covered
- 2025: 7 days covered
- 2026: 10 days covered
The sick pay year is the calendar year, so it runs from 1 January to 31 December.
Employees can receive sick pay of 70% of their normal weekly pay, up to a maximum of EUR 110 per day. Employees must have worked for an employer for at least 13 continuous weeks before they are sick and need to be certified by a doctor as unable to work.
Israel
Employer Contribution Increase
The monthly salary ceiling used for calculating Tier 1 Social Security employer contributions increased to ILS 7,122, and the monthly salary ceiling used for Tier 2 Social Security employer contributions increased to ILS 47,465. Depending on an employee’s salary, these changes may lead to slightly increased or decreased employer contributions.
Italy
One-time Bonuses in January and March
In December 2022, the National Contract was updated, which includes one-time bonuses that must be paid to all employees in January and March. These are not recurring bonuses. They are only being mandated because updates have not been made to the national collective bargaining agreement in several years, so this is meant to make up for the lack of compensation increases.
An employee only fully qualifies for these amounts if they were hired in January 2020 or before. Any employee hired after that will receive a pro-rated amount based on their amount of service. For example, an employee hired in June 2021 would receive half the amount of the bonus.
The amounts are as follows:
| Employee Level | January Bonus (EUR) | March Bonus (EUR) |
| Quadri | 347,22 | 260,42 |
| 1 | 312,78 | 234,58 |
| 2 | 270,56 | 202,92 |
| 3 | 231,25 | 173,44 |
| 4 | 200 | 150 |
| 5 | 180,69 | 135,52 |
| 6 | 162,22 | 121,67 |
| 7 | 138,89 | 104,17 |
Minimum Wage Increase
In April 2023, the minimum monthly salaries are increasing. If an employee is currently earning the minimum monthly salary for their employee level, their salary must be increased by the following amounts, depending on employee level:
| Employee Level | Increase (EUR) |
| Quadri | 52,08 |
| 1 | 46,92 |
| 2 | 40,58 |
| 3 | 34,69 |
| 4 | 30 |
| 5 | 27,1 |
| 6 | 24,33 |
| 7 | 20,83 |
Latvia
Minimum Wage Increase
The minimum monthly wage has increased to EUR 620.
Lithuania
Minimum Wage Increase
The minimum wage in Lithuania has been increased to EUR 840 per month and EUR 5.14 per hour.
Luxembourg
Employer Contribution Increase
The Mutuality (Mutual Healthcare) employer contribution has been increased from 1.13% to 1.22%.
Malta
Mandatory Compensation Increase
The COLA (Cost of Living Adjustment) rate for 2023 is approximately EUR 9.90 per week, and a total EUR 541.80 for the year. This amount will be added to the fixed pay of all employees.
Netherlands
Pension Contribution Decrease
In the Netherlands, legislation states that only a certain percentage of the total sum of all pensionable employees should be spent on pension premiums. This percentage is adjusted by the government annually. In 2022, the employer contribution percentage was 15.8% and in 2023, it will be 15.7%.
Norway
Employer Contribution Increase
The employer portion of the National Insurance contribution has increased for annual wages over NOK 750,000. There is an additional 5% employer contribution on wages over this amount.
Portugal
Minimum Wage Increase
The minimum monthly wage has increased EUR 705 to EUR 760 in 2023.
Statutory Benefit Changes
Severance
The minimum severance for employees on indefinite contracts has increased from 12 days of salary per year of service to 14 days of salary per year of service.
The minimum severance for employees on fixed-term contracts has increased from 18 days of salary per year of service to 24 days of salary per year of service.
Overtime
Overtime work exceeding 100 hours per year is now compensated at a higher rate as compared to overtime work less than 100 hours per year.
Overtime of less than 100 hours per year:
- Overtime on a normal workday:
- 125% of the normal salary during the first hour of overtime; then
- 137.5% of the normal salary for hours after that; and
- Overtime on a day off (regardless of whether the day off was mandatory or supplementary) or public holiday:
- 150% of the normal salary.
Overtime work exceeding 100 hours per year:
- Overtime on a normal workday:
- 150% of the normal salary during the first hour of overtime; then
- 175% of the normal salary for hours after that; and
- Overtime on a day off (regardless of whether the day off was mandatory or supplementary) or public holiday:
- 200% of the normal salary.
Serbia
Employer Contribution Increase
The employer contribution percentage to the Pension and Disability Insurance Fund has decreased from 11% to 10%. This will lead to a slight decrease in employer contributions.
The maximum monthly ceiling used to calculate employer contributions has been increased from RSD 441,140 to RSD 500,360. Depending on an employee’s salary, this may lead to a slight increase in employer contributions.
Slovakia
Mandatory Benefit Change
A work-from-home allowance is now a mandatory benefit that must be provided to employees. There is no guidance on this amount, so it is for the employer and employee to agree upon.
Meal Allowance Contribution Increase
The minimum employer’s portion of the meal allowance contribution has increased to EUR 2.81 for employees that work between five and twelve hours per day. This will lead to a slight increase in employer contributions.
Minimum Wage Increase
The minimum monthly wage has been increased to EUR 700 in 2023.
Slovenia
Minimum Wage Increase
The minimum monthly salary has increased from EUR 1,074.43 in 2022 to EUR 1203,36 in 2023.
Spain
Employer Contribution Increase
The maximum monthly salary used to calculate social security contributions has increased from EUR 4,139.90 to 4,495.50 in 2023. This will increase the maximum possible contribution employers pay for each social security contribution.
Depending on an employee’s salary, social security contributions may increase slightly.
Sweden
Income Base Amount (IBA) Increase
The Income Base Amount (IBA), which is used as a basis for the calculation of pension contributions, has been increased to SEK 74,300 in 2023. This amount is used to calculate contributions to one type of pension. This type of pension is calculated as 4.5% on the compensation equal to 7.5 times the IBA, and then 30% on the rest of the employee’s salary.
If an employee is enrolled in this type of pension plan, employer contributions will slightly increase.
Retirement Age Increased
The age at which a general pension can be withdrawn at the earliest has changed from 62 to 63. The age at which the guaranteed pension, the income pension supplement, and housing supplement can start to be paid out has changed from 65 years to 66 years.
This means that employers pay the full employer contribution for employees up to and including the year in which they turn 66, instead of 65 as before.
Switzerland
Employer Contribution Increases
The Family Compensation Fund (FAF) contribution has increased from 0.61% to 1.08% in 2023. This will lead to a slight increase in employer contributions.
The Old Age and Survivors Admin Fee contribution has increased from 0.01% to 0.2% in 2023. This will lead to a slight increase in employer contributions.
United Kingdom
Effective November 2022, the employer National Insurance contribution decreased from 15.05% to 13.8%.
Uzbekistan
Value-Added Tax (VAT) Reduction
The Value-Added Tax (VAT) has been reduced from 15% on the total invoice to 12% on the total invoice in 2023.