Insights Updates - August 2023

Atlas Insights provides you with the latest updates in global labor and employment law and taxation – curated by Atlas.  Get insight into labor regulations, changes in minimum wages, and updates in taxation – all in one place.

EU Framework Agreement for Social Security Enters into Force

Effective July 1, 2023, 18 European Union countries signed a Framework Agreement for social security for cross-border telework. Under the Framework Agreement, an employee who lives in a different country from their employer’s base can work up to 49.9% of their time from home and stay covered by the social security system of their employer’s country.

Ordinarily, an employee must contribute to the social security system of the country where they perform their work. During the COVID-19 pandemic, the EU relaxed this rule to prevent employees working from home from falling under their home country’s social security system. Since COVID-19 ended, the Framework Agreement gives workers the flexibility to continue to work from home and limits the administrative burden on employers of cross-border workers.

Employers and employees who want to use the Framework Agreement must:

• each be a resident of a country that has signed the Framework Agreement,

• do cross-border telework through a digital connection to the employer’s IT system,

• obtain an A1 certificate for up to 3 years from the employer’s country.

The 18 parties to the Framework Agreement are:

Additional EU countries may sign the agreement in the future.

Employees who are not eligible for the protections of the Framework Agreement or who do not opt in can stay covered by the social security system of their employer’s country if they work up to 25% from their home country.

Labor & Employment

Brazil

Effective July 3, 2023, employers with at least 100 employees must publish a salary transparency report twice a year. The report must contain data and information on:

• gross pay,

• net pay, and

• the proportion of women and men occupying high-level positions.

The report also must present data on race, ethnicity, nationality, or age inequalities.

Canada

Effective June 20, 2023, employees working in federally regulated private businesses in Quebec and regions with a strong French-speaking presence have the right to:

• work and be supervised in French,

• receive all communications and documents, including employment application forms, offers of employment, transfer or promotion, individual employment contracts, training, notices of termination, collective agreements and grievances, in French, and

• receive work devices and computer systems in French.

The French language requirements do not apply to activities or workplaces in the broadcasting sector.

Ireland

Effective July 3, 2023, employees in Ireland may take a 60-minute paid nursing break for up to 2 years after giving birth. Before July 3, 2023, the employee could take these breaks for up to 26 weeks after giving birth.

Effective July 3, 2023, Irish employers must give employees 5 days of unpaid leave per year to care for a sick family member. The employee must give the employer a signed statement with the start and end dates of their leave and the facts supporting the leave.

Luxembourg

Effective July 4, 2023, employers in Luxembourg with 15 or more employees must have a right to disconnect policy for employees who use digital devices like computers and phones for work. The policy must:

• say how the employer will ensure it does not disturb employees outside of working hours,

• require training for managers and employees, and

• provide compensation to employees if the employer does contact them after hours.

Norway

Effective Jan. 1, 2024, employers must make all fixed-term employees permanent after 3 years.

Peru

Effective May 25, 2023, the COVID-19 pandemic emergency ended in Peru. The decree that gave employees over age 60 and employees with some chronic diseases the right to telework during COVID-19, is no longer in effect.

Effective June 15, 2023, Peru declared June 7 a national holiday commemorating the Battle of Arica and Flag Day.

United Kingdom

Effective July 24, 2023, employers in the UK must offer employees who are pregnant or on maternity, adoption or parental leave transfers to open positions if their jobs are in danger of redundancy.

Social Security & Payroll Tax

Australia

Effective July 1, 2026, Australian employers will have to make superannuation contributions at the same time they pay salary, rather than quarterly.

France

On June 3, 2023, France gave early retirement to employees with long careers. Employees who started work at: 

• age 16 – may retire at 58,

• age 18 – may retire at 60,

• age 20 – may retire at 62, and

• age 21 – may retire at 63.

New Zealand

Effective July 1, 2024, New Zealand will contribute 3% to the KiwiSaver accounts of employees on paid parental leave if the employee makes their own contribution of at least 3%.

Tanzania

Effective July 1, 2023, the Skills Development Rate in Tanzania declined from 4% to 3.5%. Employers with at least 10 employees pay the SDL, which supports vocational education and training.

Turkey

Effective July 1, 2023, the maximum monthly salary base for employer and employee social security contributions in Turkey increased from TRY 75,060 per month to TRY 100,608.75 per month. The maximum contribution base is 7.5 times the monthly minimum wage.

United Kingdom

On June 30, 2023, the UK signed the Convention on Social Security Coordination with Iceland, Liechtenstein and Norway. The agreement ensures that employees who move between these countries for work will have their social security benefits protected and will only pay into one country’s social security system at a time.

VAT

Turkey

Effective July 10, 2023, Turkey raised its VAT rates:

• standard – from 18% to 20%

• reduced – from 8% to 10%

Corporate Tax

Bahamas

Effective July 1, 2023, for tax years starting on or after Jan. 1, 2024, international business corporations (IBCs) in the Bahamas pay Business License Tax at rates from:

• 0.5% to 1.25% of turnover on revenue earned in the Bahamas, and

• 0.25% on revenue earned outside of the Bahamas.

Before the change, IBCs did not pay Bahamian tax on offshore revenue.

Turkey

Effective Oct. 1, 2023, Turkey will raise the standard corporate income tax rate from 20% to 25% and the rate for qualified export income from 19% to 20%.

Individual Tax

Cyprus

Effective June 30, 2023, Cyprus changed the eligibility requirements for the 50% income tax exemption for employees in their first job in Cyprus. To be eligible, the employee must not have lived or worked in Cyprus for at least 15 years (up from 10 years) before starting work in Cyprus. The exemption lasts for 17 years and can be used for income from multiple employers in that period, not just the first job.

Denmark

On May 25, 2023, Denmark lowered the bottom bracket tax rate for individuals from 12.09% to 12.06%, retroactive to Jan. 1, 2023.

Latvia

Effective June 15, 2023, Latvia enacted a low, remote worker tax rate for foreign employees working in Latvia for employers located in another OECD member country. The remote worker tax rate is 15%., while Latvia’s top personal income tax rate is 31%.

Mauritius

Effective July 1, 2023, Mauritius changed its individual income tax system from:

• a flat rate of 15% and a solidarity levy on higher incomes, to

• a progressive rate system with rates from 2% to 20% and no solidarity levy.

Russia

Effective Jan. 1, 2024, employees who work outside of Russia for Russian employers will pay income tax at the standard rates for residents:

• 13% on annual income up to RUB 5 million, and

• 15% on income above RUB 5 million.

Before Jan. 1, 2024, an employee who works outside of Russia for at least 183 days in the tax year does not pay Russian income tax on their employment income, because:

• They are not a tax resident of Russia; and

• The source of their employment income is the country where they did their work.

Minimum Wages

Argentina

ARS 105,500 per month effective July 1, 2023

ARS 112,500 per month effective Aug. 1, 2023

ARS 118,000 per month effective Sept. 1, 2023

Dominican Republic effective Feb. 1, 2024

DOP 25,116 per month for large companies

DOP 23,023 per month for medium-size companies

DOP 15,428 per month for small companies

DOP 14,232 for micro companies

Turkey

TRY 13,414.50 gross per month eff. July 1

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