Latest news with #SocialInsuranceLaw
Egypt Independent
17-05-2025
- Politics
- Egypt Independent
Sweeping changes for workers & retirees - Egypt's new labor and social insurance laws
President Abdel Fattah al-Sisi has ratified the new Labor Law, a significant step towards solidifying workers' rights and fostering a fair work environment across all sectors, particularly in the private sector. The law aims to provide comprehensive protection for workers, with a focus on the rights of working women and people with disabilities, and to bolster their professional and social stability. Key Highlights of the New Labor Law Article (70) stipulates the right of working women, in both the public and private sectors, to maternity leave of three months with full pay, granted to them three times throughout their period of service. Furthermore, the daily working hours for pregnant women are reduced by one hour starting from the sixth month of pregnancy, with a ban on their working overtime during pregnancy and up to six months after childbirth. According to Article (72), working women in establishments employing 50 or more workers are entitled to unpaid leave to care for their child for a period of up to two years, for a maximum of three times during their employment. They may choose to receive compensation equivalent to 25 percent of their salary during this leave. Abolishing arbitrary dismissal The new Labor Law has eliminated the use of Form #6 which was often exploited as a tool for the arbitrary dismissal of employees. This is considered a major achievement, as it strengthens job security and prevents unjustified termination. Formalizing Hiring and Termination Procedures The new Labor Law mandates that employers document all hiring and termination procedures in official employment contracts. This prevents legal loopholes and promotes transparency in the contractual relationship between employees and employers. Pension Eligibility Requirements The new Social Insurance Law outlines the conditions for pension entitlement, including: Reaching retirement age, with a contribution period of at least 180 months (of which at least 120 months must be actual employment). Death, total disability, or permanent partial disability, provided there is no alternative job opportunity approved by a decision from a specialized committee. In the event of death or disability occurring during employment or within one year of termination of service, the conditions are that the retirement age has not been exceeded and a lump-sum compensation has not been received. After one year has passed since the end of service, a contribution period of at least 180 months is required, along with the same conditions mentioned above. Edited translation from Al-Masry Al-Youm
Egypt Independent
05-05-2025
- Politics
- Egypt Independent
Egypt's new labor and social insurance laws
President Abdel Fattah al-Sisi has ratified the new Labor Law, a significant step towards solidifying workers' rights and fostering a fair work environment across all sectors, particularly in the private sector. The law aims to provide comprehensive protection for workers, with a focus on the rights of working women and people with disabilities, and to bolster their professional and social stability. Key Highlights of the New Labor Law Rights of Working Women Article (70) stipulates the right of working women, in both the public and private sectors, to maternity leave of three months with full pay, granted to them three times throughout their period of service. Furthermore, the daily working hours for pregnant women are reduced by one hour starting from the sixth month of pregnancy, with a ban on their working overtime during pregnancy and up to six months after childbirth. Childcare Leave According to Article (72), working women in establishments employing 50 or more workers are entitled to unpaid leave to care for their child for a period of up to two years, for a maximum of three times during their employment. They may choose to receive compensation equivalent to 25 percent of their salary during this leave. Abolishing arbitrary dismissal The new Labor Law has eliminated the use of Form #6 which was often exploited as a tool for the arbitrary dismissal of employees. This is considered a major achievement, as it strengthens job security and prevents unjustified termination. Formalizing Hiring and Termination Procedures The new Labor Law mandates that employers document all hiring and termination procedures in official employment contracts. This prevents legal loopholes and promotes transparency in the contractual relationship between employees and employers. Pension Eligibility Requirements The new Social Insurance Law outlines the conditions for pension entitlement, including: Reaching retirement age, with a contribution period of at least 180 months (of which at least 120 months must be actual employment). Death, total disability, or permanent partial disability, provided there is no alternative job opportunity approved by a decision from a specialized committee. In the event of death or disability occurring during employment or within one year of termination of service, the conditions are that the retirement age has not been exceeded and a lump-sum compensation has not been received. After one year has passed since the end of service, a contribution period of at least 180 months is required, along with the same conditions mentioned above. Edited translation from Al-Masry Al-Youm
Arab Times
30-04-2025
- Business
- Arab Times
Kuwait government mandates repricing of public services by July 2025
KUWAIT CITY, April 30: The Kuwaiti Cabinet convened its weekly meeting on Tuesday morning at Bayan Palace, chaired by Acting Prime Minister and Minister of Interior Sheikh Fahad Yousef Saud Al-Sabah. Deputy Prime Minister and Minister of State for Cabinet Affairs Sherida Abdullah Al-Muasherji provided an overview of the session's outcomes. Diplomatic acknowledgment At the outset, the Cabinet was informed of a letter from Egyptian President Abdel Fattah El-Sisi to His Highness the Amir Sheikh Meshaal Al-Ahmad Al-Jaber Al-Sabah. The letter expressed sincere gratitude for the warm reception and hospitality extended during President El-Sisi's official visit to Kuwait on April 14-15, 2025. It also highlighted the positive outcomes of the visit, which are expected to strengthen bilateral cooperation and consultation between the two nations. Eid Al-Adha Public Holidays Announced The Cabinet declared official public holidays for the upcoming Eid Al-Adha observance. All ministries, government agencies, public bodies, and institutions will be closed from Thursday, June 5, to Sunday, June 8, 2025, in observance of Arafat and Eid Al-Adha. Monday, June 9, will be designated as a day of rest, with official work resuming on Tuesday, June 10. Agencies with special operational needs will determine their holiday schedules in coordination with relevant authorities. Pension adjustments and bonus suspension Minister of Finance and Minister of State for Economic Affairs and Investment, Noura Sulaiman Al-Fassam, briefed the Cabinet on measures taken by the General Organization for Social Insurance regarding pension adjustments and the suspension of exceptional bonuses. Following the briefing, the Cabinet approved amendments to pension structures and the suspension of exceptional bonuses, effective May 1, 2025. These decisions are in accordance with Article 80 of the Social Insurance Law and Resolution No. 294 from Cabinet Meeting No. 10-2025. Review of government service pricing The Cabinet reviewed recommendations from the Ministerial Committee for Economic Affairs concerning the pricing of government services. It directed all government agencies, in coordination with the Ministry of Finance, to assess and adjust their service fees to align with actual costs. Each agency is required to submit its final decision to the Cabinet within two months. Nationality investigations ratified The Cabinet approved the minutes of the Supreme Committee for the Investigation of Kuwaiti Nationality, which included cases of loss and withdrawal of nationality from certain individuals, in accordance with Decree Law No. 15 of 1959 regarding Kuwaiti nationality and its amendments. Additional agenda items The Cabinet reviewed and approved several other items on the agenda. Additionally, it referred certain matters to the relevant ministerial committees for further study and reporting to complete the necessary procedures. The decisions made during this meeting reflect the Cabinet's ongoing efforts to enhance public administration, ensure fiscal responsibility, and strengthen Kuwait's international relations.
Time Business News
29-04-2025
- Business
- Time Business News
How to Use an Employer of Record in Vietnam
Are you looking to expand your business into Vietnam but unsure how to navigate the country's labor laws, payroll regulations, and hiring processes? Establishing a legal entity in a foreign country and complying with Vietnamese employment laws can be time-consuming and expensive. An Employer of Record (EOR) can help your business hire local talent without setting up a subsidiary. With an EOR, businesses can concentrate on their core operations and comply with Vietnamese labor laws. An Employer of Record (EOR) is a third-party entity that hires employees on behalf of a foreign company, allowing businesses to enter the Vietnamese market without the complexities of setting up a local legal entity. Vietnam has a well-defined labor framework governed by laws such as the Labor Code (Law No. 45/2019/QH14), which regulates employment contracts, wages, working hours, and dispute resolution. The Social Insurance Law (Law No. 58/2014/QH13) mandates contributions to social security programs, while the Personal Income Tax Law (Law No. 04/2007/QH12) outlines income tax obligations for employees and employers. An EOR ensures compliance with Vietnamese regulations for foreign companies hiring in Vietnam by handling employment contracts, payroll, and employer obligations, reducing legal complications and penalties. Let's take a quick look at how an Employer of Record can help businesses at different stages. In Vietnam, all employment contracts must comply with the Labor Code to be legally recognized. Whether oral or written, contracts should clearly outline key terms, including: Job Responsibilities – Defining the employee's role within the company. Working Hours and Rest Breaks – Standard work hours and overtime regulations. Compensation & Benefits – Salary structure, payment schedule, and allowances. Contract Duration – Whether permanent, fixed-term, or project-based. Health, Safety, and Social Security – Compliance with workplace safety standards and social security contributions. An EOR takes responsibility for drafting and managing employment contracts on behalf of foreign companies, ensuring that all agreements comply with Vietnamese labor laws and safeguarding businesses from compliance issues. Vietnam's labor laws require all employers, including EORs, to conduct self-inspections to ensure compliance with labor standards. Key obligations include: Non-Discrimination Policies – Employers must prevent workplace discrimination based on gender, ethnicity, social class, religion, marital status, pregnancy, disability, and union participation. Work Hour Restrictions – Employees cannot work more than 48 hours per week, while those in hazardous conditions are limited to 36 hours per week. Overtime Compensation – Workers receive 1.5 times their salary for overtime on weekdays and double pay for weekend overtime. By using an EOR, foreign businesses can ensure full labor law compliance without the need for direct legal oversight, as the EOR manages all audits, reports, and HR compliance measures. Vietnamese labor law restricts termination for certain protected employee groups. An EOR must ensure that businesses adhere to these regulations, preventing unlawful dismissals. Employees who cannot be terminated without due process include: Employees on sick leave or medical-related absences. Workers on employer-approved leave. Individuals detained without trial or awaiting investigation. Trade union representatives engaged in union-related activities. By engaging in an EOR, foreign companies avoid legal complexities surrounding labor laws, ensuring that all employment decisions, from hiring to termination, are legally compliant, ethically sound, and risk-free. Vietnam's Personal Income Tax (PIT) system operates on a progressive scale, with tax rates ranging from 5% to 35% based on employees' income levels. New businesses in Vietnam face complex wage and payroll tax calculations, requiring careful adherence to a multi-tiered tax system and mandatory contributions. If you don't want to manage these intricacies yourself, partnering with an Employer of Record (EOR) in Vietnam can save time and ensure full compliance. Annual Taxable Income (Million VND) Monthly Taxable Income (Million VND) PIT Rate (%) 0 to 60 0 to 5 5 60 to 120 5 to 10 10 120 to 216 10 to 18 15 216 to 384 18 to 32 20 384 to 624 32 to 52 25 624 to 960 52 to 80 30 More than 960 More than 80 35 Apart from income tax, employers and employees must also contribute to Vietnam's social security system, which includes: Social Insurance (SI): Employers contribute 17.5%, while employees contribute 8%. This covers pensions, maternity benefits, and sick leave. Health Insurance (HI): Employers contribute 3%, while employees contribute 1.5%. This provides access to Vietnam's public healthcare system. Unemployment Insurance (UI): Employers and employees each contribute 1%, offering financial support in case of job loss. An EOR ensures compliance with these tax obligations by managing tax filings, processing monthly payroll, and submitting social security contributions on time. This eliminates the risk of penalties due to late or incorrect filings. Besides facilitating compliance with Vietnamese labor legislation, an EOR reduces the intricacies associated with onboarding, salary disbursements, benefits management, and termination processes for international businesses. Some of the main advantages of engaging with an EOR in Vietnam are: Legally Hiring Employees The EOR acts as the local entity authorized to employ Vietnamese workers on behalf of foreign companies. Faster Onboarding Streamlined hiring processes ensure new employees can start work without administrative delays. Efficient Payroll Management Salaries are processed on time without the need for costly third-party payment services. Compliant Benefits & Perks Employees receive legally mandated benefits, ensuring a competitive and attractive compensation package. Risk-Free Employee Termination Proper termination procedures help avoid potential legal disputes and financial penalties. Expert Legal Support Access to professionals with deep knowledge of Vietnamese employment laws, helping businesses navigate regulatory challenges. Adaptation to Changing Regulations The EOR ensures continuous compliance with new labor laws and tax policies. Tax & Social Security Compliance The EOR withholds and files payroll taxes, social security contributions, and unemployment Using an EOR, international companies can expand in Vietnam without hassle, ensuring that all employment issues comply with the law, are well-managed, and are cost-effective. In Vietnam, businesses face challenges in implementing an EOR due to communication barriers, cultural differences, and labor laws, which can cause operational difficulties. To mitigate these barriers, businesses should engage local EORs with local expertise, clear service agreements, and strong compliance practices to address issues, as they offer better support and cost-effectiveness and can adjust services as needed. By selecting a reputable EOR with experience in Vietnam's regulatory environment, such as RecruitGo, businesses can overcome these challenges and establish a successful presence in the country. The cost of using an EOR varies based on factors such as the number of employees, payroll services, and additional HR support. Some global EOR services such as Deel and Skuad charge anywhere from $250 to $600 per employee. In comparison, local EOR services such as RecruitGo charge $100-$200 per month (depending on employees salary) and offer more personalized services. In general, while this adds to operational expenses, it eliminates the costs of setting up a legal entity, maintaining an in-house HR team, and dealing with compliance risks. Setting up a foreign-owned enterprise in Vietnam requires substantial initial investment, licensing fees, office rental, and ongoing administrative expenses. An EOR provides a cost-effective alternative, allowing businesses to focus on growth without the complexities of local entity registration. Expanding into Vietnam offers great business opportunities, but navigating the country's complex labor laws can be challenging. An Employer of Record (EOR) in Vietnam simplifies this process by managing legal employment, payroll, and compliance, allowing businesses to focus on their core objectives. Whether it's hiring local talent, managing tax obligations, or handling work permits for foreign employees, an EOR ensures smooth and compliant operations in Vietnam. TIME BUSINESS NEWS
Daily Tribune
15-04-2025
- Politics
- Daily Tribune
MP seeks continued support for university students over the age of 18 until graduation
Students over the age of 18 may continue to receive social support while studying at university, under a proposed change to Bahrain's Social Insurance Law that will come before Parliament. The amendment, put forward by MP Jalal Kadhem Mahfoodh, would scrap a clause in the existing law that ties eligibility for those above that age to a lack of financial backing. Instead, any student still working toward their first university degree would be covered, regardless of whether they have family support or assets. The draft also changes the wording of Article Six to ensure that people with a financially capable relative who is legally responsible for them are generally excluded, although one group listed in Clause Eight of Article Three would remain exempt. Purpose A document attached to the proposal sets out its purpose in plain terms: to keep young people in education without pushing families to pull them out early because of household expenses. '[The proposal] aims to enable the youth to continue their education in a stable environment until graduation,' it reads. Dropping out to take up work too soon, it says, 'has a negative impact on their academic, professional, and social future'. The paper also argues that allowing students to finish their studies without disruption would help shape a generation ready to take on a wider range of jobs and ease financial stress on homes that are already stretched. Stable setting It speaks of creating a more stable setting for learning and says the change would help the government make better use of young people's abilities in future. Parliamentary rules give MPs the right to suggest new laws, and if the chamber agrees, the government is then required to turn the text into a formal bill and hand it back within six months. The current proposal is expected to follow that route.
