Regulatory updates
for Global Employers

• Effective April 1, 2025, the UK's National Living Wage (NLW) for workers aged 21 and over will rise by 6.7%, from GBP 11.44 to GBP 12.21 per hour. This increase aligns the NLW with two-thirds of median earnings, marking its highest real value in history.
• Employers should update their payroll systems to reflect this change.
• Additionally, effective April 6, 2025, the UK's employer National Insurance contribution rate will increase from 13.8% to 15%, while the threshold for contributions will decrease from GBP 9,100 to GBP 5,000 per year.

To offset the financial impact, the Employment Allowance will rise from GBP 5,000 to GBP 10,500, and the GBP 100,000 eligibility cap will be removed. Employers are advised to review their payroll processes to ensure compliance with these changes.

The Indian government has introduced the Income Tax Bill, 2025, which aims to replace the existing Income Tax Act of 1961, with an effective date planned for 1 April 2026.

This new bill is designed to simplify and modernize the country’s income tax framework, addressing evolving economic and tax compliance needs. The proposed changes are expected to streamline processes, enhance transparency, and improve efficiency in tax collection. Further details regarding the specific provisions and implementation timeline will be made available as the bill progresses.

Effective June 2025, the minimum wage in Jamaica will increase to JMD 16,000 per 40-hour work week, marking a 6.7% rise from the previous rate of JMD 15,000. This adjustment is part of the government's ongoing efforts to improve the living standards of workers.

Employers should ensure that payroll systems are updated to reflect the new wage rate.

Brazil's government has introduced Bill No. 1,087/2025, proposing to exempt individuals earning up to 5,000 reais per month from income tax, an increase from the current 2,824 reais threshold.

To compensate for the anticipated revenue loss, the bill suggests implementing a 10% withholding tax on dividends sent abroad and establishing a minimum tax rate for high-income individuals.The effective date is January 2026.

Effective March 1, 2025, the maximum monthly salary cap for Pension Benefit (Jaminan Pensiun) contributions under Indonesia's BPJS Ketenagakerjaan has been increased to IDR 10,547,400. This reflects a 5.03% rise based on the previous year's GDP growth.

As a result, employer contributions are set at 2% of the new cap, amounting to IDR 210,948, while employees will contribute 1%, totaling IDR 105,474. Employers are advised to update their payroll systems to reflect these changes.

Effective March 1, 2025, South Africa's national minimum wage (NMW) rose from ZAR 27.58 to ZAR 28.79 per ordinary hour worked, reflecting a 4.4% increase.

Additionally, amendments to the Employment Tax Incentive (ETI) Act, also effective March 1, 2025, introduced stricter definitions and penalties.

The Sri Lankan government has proposed amendments to the Value Added Tax (VAT) and income tax laws with the goal of enhancing fiscal revenue. These amendments are part of broader efforts to strengthen the country’s financial position and improve tax compliance.

The specific details of the proposed changes are still under review, with the aim to optimize revenue generation while ensuring economic sustainability.

Effective date: 1 April 2025

Effective February 23, 2025, South Korea has amended its family leave policies to promote work-life balance. Key changes include extending paternity leave from 10 to 20 days, increasing maternity leave for premature births from 90 to 100 days, and allowing childcare leave to be split into up to four periods. Additionally, eligibility for reduced working hours during pregnancy and childcare has been expanded to children up to 12 years old.​

Effective February 19, 2025, Saudi Arabia's Council of Ministers approved amendments to the Labor Law, introducing significant changes to employment practices. Key updates include formal recognition of resignation procedures for fixed-term contracts, with a 30-day notice period, and the option for employers to delay acceptance for up to 60 days with proper justification. Additionally, the amendments extend maternity leave to 12 weeks, introduce three days of paternity leave, and grant three days of bereavement leave for the death of a sibling

Argentina's government has raised the national minimum wage to ARS 296,832 per month, effective March 1, 2025. This adjustment reflects ongoing efforts to address inflation and improve workers' purchasing power. Employers should update payroll systems accordingly to comply with the new minimum wage standards.