Thanks to The Federation of International Employers, we learn that the monthly minimum wage will increase in all four of Vietnam’s wage zones from 1 January 2015. The new monthly minimum wages will be 3.1 million Vietnamese dong (145 US dollars) in Zone 1, 2.75 million Vietnamese dong (129 US dollars) in Zone 2, 2.4 million Vietnamese dong (112 US dollars) in Zone 3 and 2.15 million Vietnamese dong (101 US dollars) in Zone 4. The UK currency equivalent ranges from about 40 to 60 pence per hour. If this seems very low, at least Vietnam has a minimum wage, unlike seven of the 28 member states of the European Union according to a BBC report from earlier in the year. This story confirmed that one of these countries is Germany, which is introducing its first minimum wage on 1 January 2015, the same date as the Vietnamese increase. For the first time in its history, Germany will then introduce a nationwide minimum wage of 8.50 euros per hour (about £6.75, so very close to the UK over 21 rate of £6.50). Failure to comply with the Minimum Wage Act could have serious consequences for employers, as the government can impose fines of up to half a million euros. To see the other end of the spectrum from Vietnam, we need look no further than Switzerland. The BBC report tells us that Swiss voters overwhelmingly rejected a proposal to introduce what would have been the highest minimum wage in the world, in a referendum earlier in 2014. Under the plan, employers would have had to pay workers a minimum 22 Swiss francs, or roughly £15, an hour.
New research ranks UK 23 rd of 35 countries for payroll complexity
17 December 2014
NGA Human Resources has published its Global Payroll Complexity Index 2014, showing Italy as the country with the greatest payroll complexity.
This research - based on the in-country expertise of more than 800 payroll experts across the world - provides insight on how complex it is to reward an international workforce.
According to the Index, the top 5 of most complex countries to run payroll are as follows:
1. Italy 2. Germany 3. France 4. Belgium 5. Australia
The UK is 23 rd in the list, with Singapore featuring in last place.
NGA reports that “payroll complexity in Italy arises from the numerous calculations of social security and taxes, which can also vary by region and city. Additionally, legal changes happen very frequently and labour agreements vary widely across industries, organisations and employee categories (C-level, director, manager, white collar, etc.). Finally, monthly government reports and declarations are quite complex and require a high degree of detail.” The easiest country is Singapore because “the information needed to calculate payroll is clear and easy, which creates an undisputable method for applying payroll rules. The Singapore government has also defined a very simple and straightforward tax calculation process, which requires minimal efforts from employers.”
Reduced tax burden for Italian employers
23 December 2014
CIPP Policy News Journal
08/04/2015, Page 215 of 521
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