Three updates to the above three
employee rights came into effect this past July. The following
is important news about the next update to employee rights, which
is expected to come into effect on 1.1.2017.
Update to the Minimum Wage
The 2015 amendment to the Minimum Wage Law prescribed four
stages for the updates to the minimum wage, three of which have
already come into effect, with the last update scheduled to come
into effect in January 2017.
Accordingly, as of the January 2017 salary, which will be paid
to employees at the beginning of February 2017, the monthly minimum
wage will be updated to NIS 5,000, while the hourly minimum wage
will be updated to NIS 26.88.
Increase of the Minimum Annual Paid Leave
Pursuant to the amendment to the Annual Paid Leave Law,
employees' minimum annual paid leave quota was increased this
As of 2017, one more day will be added to the minimum annual
paid leave rights, so that, during the first five years of
employment, employees will be entitled to 12 days of paid leave if
they work 5 days per week, or 14 paid vacation days if they work 6
days per week.
Update to the Contribution Rates to Employees' Pension
Pursuant to the extension order regarding an increase of the
contributions to employees' pension insurance, as of January
2017, employers must update the contribution rates to the pension
funds according to the following:
contribution to the pension component will increase to 6.5%.
employee's contribution will be increased to
If an employee is insured under
managers' insurance policy, the employer is also required to
purchase disability insurance cover, at its expense, at the ratio
required to secure 75% of the employee's wage. When the monthly
contribution rates specified above are increased, they will also
apply to the employer in this case, whereby, the minimum
contribution to the pension component must not be less than 5%, the
total contribution to the pension component and the disability
component together will reach 6.5%.
Furthermore, if the cost of the
insurance cover for disability insurance exceeds 1.5%, then the
employer will be obligated to bear such increased cost, however the
employer's contribution to pension and disability components
together shall not exceed 7.5%.
Employers should take appropriate action to update their
payroll systems and pension systems in a timely manner, to make
sure that their employees receive all of the benefits that are due
to them as of 2017.
Originally published December 6, 2016
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Nigeria is a federal constitutional republic located on the west coast of Africa. Modern Nigeria has its origins as a British colony through the 19th and 20th century until it achieved independence in 1960.
Employees must understand the notice periods stipulated by law. When an employee gives notice of their resignation to an employer, they is advising the employer that they will cease to work for the employer from a certain date.
The Nigeria Social Insurance Trust Fund (NSITF) recently entered into an agreement with the Nigeria Employers' Consultative Association (NECA) on the basis for calculating contributions under the Employees' Compensation Act (ECA) 2010.
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