This weekly compilation of stories from wire services, newspapers and other sources is intended to keep Mercer employees and registered visitors to mercer.com informed of benefits, compensation and HR developments around the world. Facts have not been independently verified, and opinions expressed are those of the editor. Readers are invited to clarify, correct or expand on these items.

Minimum wage raised

Kenya has increased the minimum wage by 14% and announced several employment and labor market measures, including restricting foreigners' working in some jobs. In the announcement, the president also called for improved economic performance. (Mercer Select, 6 May 2013)  More

Employers urged to back youth jobs plan

South Africa's National Youth Development Agency urged employers to back a new youth employment initiative by "absorbing young people into companies – whether through internships or employment." Critics of the plan have questioned its viability. (Mercer Select, 7 May 2013)  More

Bill reduces tax break on super contributions

Draft legislation that would reduce the tax concession on superannuation contributions from 30% to 15% (excluding the Medicare levy) for individuals with income above A$300,000 has been released by the Australian Tax Office. Comments are due 8 May. (Mercer Select, 7 May 2013)  More

Draft rules for super reforms released

A draft regulation to implement Australia's remaining MySuper and governance reforms has been released. The proposed regulation would improve transparency and address transfers from foreign super funds. Comments are due 15 May. (Mercer Select, 7 May 2013)  More

Draft entry/exit regulations released

Draft Chinese entry and residence regulations would require foreigners to get work permits and residence certificates before being employed. Comments are due 3 June. (Mercer Select, 7 May 2013)  More

Electronic sick-leave certificates required

From 1 May Dubai reportedly requires that health care facilities issue electronic sick leave certificates and that workers pay the associated AED60 (US$16) fee. The requirement is intended to reduce the abuse of the manual certification system. (Mercer Select, 6 May 2013)  More

Retirement age for women to stay at 62

Israel's finance minister reportedly denied reports that the 2013-14 budget will include a retirement age hike (from 62 to 67) for women. Following stakeholder consultations, the ministry decided to appoint a committee to consider the issue. (Mercer Select, 1 May 2013)  More

Lower house approves pension bill

Draft pension reform legislation has been approved by Kazakhstan's lower house of Parliament. Among the reforms is the controversial increase in the retirement age for women from age 58 to 63. The bill is now before the Senate. (Mercer Select, 6 May 2013)  More

Expansion of paid parental leave on hold

New Zealand’s prime minister reportedly confirmed plans to veto a bill to expand paid parental leave from 14 to 26 weeks if it passes soon. While conceding that the leave will eventually increase, the PM said it would be unaffordable until at least 2015. (Mercer Select, 2 May 2013)  More

Health and safety report calls for major changes

New Zealand's workplace health and safety system is "not fit for purpose," a new taskforce report says. It suggests establishing a health and safety agency, updating legislation, and providing strong leadership. The government will respond by July. (Mercer Select, 6 May 2013)  More

Share scheme guidance revised

Singapore's Inland Revenue Authority has revised its guidelines on the tax treatment of gains from employee stock schemes to reflect a phase-out of tax breaks for Equity Remuneration Incentive Schemes as announced in the 2013 budget. (Mercer Select, 2 May 2013)  More

Retirement age hike proposal advances

A bill that would guarantee employment to age 60 has cleared the South Korean National Assembly. The bill reportedly did not introduce a statutory wage peak system but would allow employers to modify salary structures. (Mercer Select, 1 May 2013)  More

Substitute holiday bill advances

A bill that would entitle South Korean workers to a weekday off when a public holiday falls on a weekend has cleared a National Assembly review committee and will soon be up for a plenary vote. Business groups are lobbying against the measure. (Mercer Select, 1 May 2013)  More

Employers warned on timely pension registration

Private sector employers in the UAE are reminded to promptly register their Emirati employees for the federal pension scheme and pay the required registration fee in a new circular from the General Authority for Pensions and Social Security. (Mercer Select, 2 May 2013)  More

Voluntary pension funds suggested

Vietnam's deputy finance minister showcased a draft circular on voluntary pension funds at a recent conference on international pension insurance approaches. The draft outlines tax incentives, including exemptions for employee contributions. (Mercer Select, 1 May 2013)  More

New tax break coming for working parents

The Austrian Finance Ministry has announced family-friendly measures for working parents, including a tax-free allowance of EU 3,500 per child. In addition, the government plans to expand childcare facilities and extend flexible working models. (Mercer Select, 7 May 2013)  More

ECJ reviews foreign work agency use

The Czech Republic's Supreme Administrative Court has asked for a preliminary ruling from the European Court of Justice on whether Czech rules on the international hiring-out of employees from another member state are compatible with EU law. (Mercer Select, 6 May 2013)  More

See also: Czech Republic

ECJ reviews foreign work agency use (Mercer Select, 6 May 2013)  More

Input sought on individual pension schemes

A public consultation on consumer protection for voluntary third-pillar individual pension schemes will run through 19 Jul 2013, the European Commission has announced. The goal is to create more uniform rules throughout the European Union. (Mercer Select, 1 May 2013)  More

Commissioner calls on Germany to raise wages

The European Union’s commissioner for employment policy reportedly has again called on Germany to raise wages. The official said higher wages and a minimum wage would boost domestic demand and help member states facing austerity measures. (Mercer Select, 2 May 2013)  More

See also: European Union

Commissioner calls on Germany to raise wages (Mercer Select, 2 May 2013)  More

CBA age clause overrides individual contract

The retirement age clause of a collective agreement overrides the terms included in an individual's employment contract, Germany's Federal Labour Court has ruled. In this case, the contract incorporated the terms of the collective agreement. (Mercer Select, 6 May 2013)  More

Tax reform group’s report due in June

A government-appointed tax reform working group is expected to submit its proposals on Lithuania’s health insurance taxes and social insurance contributions by the end of June. The government plans to make its own proposals later in 2013. (Mercer Select, 2 May 2013)  More

Legalization of gay marriage rejected

Northern Ireland's Assembly has rejected a motion to legalize same-sex marriage. The latest vote follows an earlier vote against the same issue in 2012. (Mercer Select, 2 May 2013)  More

Timetable for pension reforms set

The Spanish government has confirmed the timetable for future pension reform intended to focus on pension sustainability. A committee of experts is expected to report by late May, with proposals to be published in late July. (Mercer Select, 1 May 2013)  More

Pensions regulator to require fee info

The Swiss pensions regulator has issued a directive requiring that pension plans detail in their annual reports the asset management costs of collective investment vehicles. The measure will increase cost transparency and facilitate comparison. (Mercer Select, 2 May 2013)  More

Short-term visits to face close monitoring

Changes to the UK's agreement for short-term business visitors will require employers to report immediately any employee likely to exceed 150 days in the UK. Employers face close monitoring of their compliance due to PAYE real-time reporting. (Mercer Select, 2 May 2013)  More

DB intentions must be disclosed in takeovers

The UK Takeover Panel has updated its code to require a potential buyer in a takeover bid to disclose its intentions regarding a target company's defined benefit pension scheme. The changes take effect from 20 May. (Mercer Select, 1 May 2013)  More

Share buy-back rules simplified

New rules to simplify the share buy-back process under employee ownership schemes came into force on 30 April. The rules aim to make it easier for companies with employee owners to buy back and reissue shares to employees. (Mercer Select, 3 May 2013)  More

Bankers' multimillion bonus claim upheld

The UK Court of Appeal has upheld a High Court finding that 104 ex-employees of an investment bank were contractually entitled to bonuses worth more than €50m. The case underlines the extreme care employers should take when communicating about pay. (Mercer Select, 7 May 2013)  More

Foreign worker program revamped

Canada's federal government has announced changes to the Temporary Foreign Workers Program that include the immediate elimination of the 15% wage differential and the temporary suspension of the fast-track approvals process. (Mercer Select, 2 May 2013)  More

Ontario issues policy on pension plan wind-up

The Financial Services Commission of Ontario has issued a policy stating that employers are prohibited from winding up predecessor pension plans. The new policy, effective as of July 1, 2012, reverses the commission's prior position. (Mercer Select, 2 May 2013)  More

Ontario releases 2013 budget

Ontario's finance minister introduced the government's budget on 2 May 2013. It contains a few new measures relevant to registered pension plans and a significant change to the Employer Health Tax exemption. (Mercer Select, 6 May 2013)  More

British Columbia's workplace bullying policies

British Columbia's workers' compensation board, WorkSafeBC, has developed new occupational health and safety policies aimed at preventing workplace bullying and harassment. The policies take effect 1 Nov 2013. (Mercer Select, 7 May 2013)  More

US withdraws rulings on pension plan coverage

The US has withdrawn two old opinions on the coverage of pension plans funded by a Puerto Rico (PR) trust. The now-obsolete opinions suggested that a PR-trusteed plan complying with US qualification rules in practice would be subject to ERISA Title IV. (Mercer Select, 3 May 2013)  More

See also: Puerto Rico

US withdraws rulings on pension plan coverage (Mercer Select, 3 May 2013)  More

US Senate panel to vote on immigration bill

A comprehensive immigration reform bill increasing US employers' access to high-skilled foreign workers, requiring participation in a revamped E-Verify system, and creating a new visa for low-skilled workers is headed for a Senate committee vote May 9. (Mercer Select, 2 May 2013)  More

National insurance rates raised

National insurance rates for employers and employees will rise by 1% from 1 June under a 2013 budget measure. However, the increases will not apply to employees earning less than $50,000 per month. (Mercer Select, 2 May 2013)  More