2017 Vacation and Other Leave Policies Around the World

2017 VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

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TABLE OF CONTENTS HEALTH & BENEFITS In today’s competitive race to attract and retain highly skilled global talent, organizations require current, in-depth information on everything from local statutory Car Benefit Policies Worldwide Benefit & Global Parental Leave Global Parental Leave benefits, to salary trends, to Around the World Employment Guidelines Industry Scorecard managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that LGBT Benefits Vacation and Other Leave Severance Pay Policies help companies take the actions Around The World Policies Around The World Around The World necessary to support their human WORKFORCE & CAREERS capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global. Global Compensation Global Compensation Global Pay Summary International Geographic Planning Report Planning Report Salary Differentials FULL ACCESS TO ALL 20 Year Look Back GLOBAL PUBLICATIONS Subscribe to our Talent All Access® Portal for exclusive online access to our entire suite of publications and Short-Term Incentives Total Employment Costs Workforce Turnover tools. Around the World Around the World Around the World HANDBOOKS & GUIDES

Compensation Global Mobility HR Management Terms Handbook Handbook

HR Guide to Doing HR Atlas Asia Pacific Business

SAMPLE PUBLICATIONS GLOBAL INTRODUCTION Paid vacation leave is far from a luxury. In the CREATING A WIN-WIN THAT modern employment landscape, this particular ACTUALLY WORKS benefit is an absolutely integral part of most companies’ workforce management strategy. As with other employee benefit areas, leave programs should Counter-intuitive as it may seem, offering be a win for both the employer and employees. A scenario in which employees are overworked is just as detrimental to an employees an opportunity to spend time away organization as the one in which managers are left shorthanded. from the office while maintaining compensation Though the solution may seem as simple as arriving at the right can actually improve an organization’s efficiency, number of days, today’s HR managers must create policies that production, and overall well-being. Indeed, work in practice. This means that instead of deciding to offer an employee sabbatical program, they must create policies employees that spend time away from the office that enable employees to actually take a sabbatical and return are often more engaged with their work, more to work effectively. At the end of the day, leave programs — collaborative, and more likely to contribute to a vacation, sick leave, sabbaticals, volunteer leave, and so on — positive workplace for all. should allow employees to refuel, deal with personal issues that encroach on everyday life, and remain engaged while at work. However, creating and instituting a successful annual leave program is about more than deciding on a number of days. For NONTRADITIONAL LEAVES instance, any corporation with a multinational footprint must consider how local regulations and statutes dictate the number One facet of a leave policy that complicates matters for HR of days for any given type of leave, and some organizations professionals is the sheer variety leaves. In addition to national are compelled to ask whether they might be better served by and corporate holidays, employees may be away on vacation offering employees an unlimited number of paid leave days. As leave, personal leave, sick leave, bereavement leave, marriage the push for top talent in the tech and start-up sectors spawns leave, study leave, sabbatical, or any number of other offerings revolutionary new approaches to vacation policies, HR managers that employers may grant their employees. How might employers around the world must determine how these new solutions fit discern between and parse out these types of leave to their into their own organization’s employee value proposition. employees, and how does an organization offer each distinct policy? For instance, if employers wish to offer a separate allocation of sick and personal leave days, what administrative

support and tracking mechanisms do they need to implement these programs? Some companies, recognizing this headache, have elected to adopt an “unlimited” annual leave policy that grants employees as much time away from the office as they need. Sounds simple, but these policies bring their own headaches. Navigating these waters can be more difficult than one might expect, but doing so correctly can save hours of needless work.

THINK IT OVER

There are several considerations for every employer to consider when devising their annual leave policy:

►► What types of leaves are required in the various countries in which my organization is active?

►► How do my company’s annual leave policies compare to those of my competitors?

►► Should my company create a global employee leave program, or should we allow each country or region to determine its own policy?

►► Which types of leave are most important to my specific workforce?

►► How might a generous or miserly annual leave policy impact my company’s ability to attract and retain top talent?

The 2017 Vacation and Other Leave Policies Around the World Each regional section provides critical information for those publication provides human resources (HR) and business looking to learn more about specific countries or markets. managers hard-to-find and current information on the amount The regional sections contain country pages with an overview and types of leave that most organizations provide to their of statutory requirements for that market, as well as national employees. Drawing on a global survey of more than 2,000 survey results for each type of leave policy. submissions, the report offers a county-by-country analysis of trends in common and emerging types of leave, including Individual country pages include: prevalence data, number of leave days, and potential upcoming changes. Statutory Requirements

The report also includes information on each country’s statutory ►► Annual Leave Policies leave requirements as mandated by law, thereby ensuring that readers have a complete sense of the vacation and other leave ►► Unlimited Leave Days landscape for all markets in the publication. The report includes the following sections: ►► Vacation Days SUMMARY OF KEY FINDINGS ►► Personal Days ► Sick Leave This section provides an overview of global survey results and ► trends. Offering an executive summary-type synopsis, the ► Holidays section is optimal for anyone looking for regional variations ► in policies, global vacation policy trends, and other notable ► Other Leave Policies takeaways from the data collected in Mercer’s global survey. ►

This section delineates the methods of data-gathering and cleaning used for the report and lists key definitions. It is composed of the following subsections:

►► Methodology includes data sources used to compile this report and other details on calculations and assumptions.

►► Glossary provides definitions for many of the terms used throughout this report, including the career levels reported for some questions.

The following pages include tips and guidelines to help navigate the report content. COUNTRY The first few pages of each country provide information on statutory leave requirements. The remaining pages provide market data on ANNUAL LEAVE POLICIES annual leave and other leave policies. WHAT TYPE OF ANNUAL LEAVE POLICY DO COMPANIES HAVE?

LOCAL, BUT PARENT ORGANIZATION 25% GLOBAL 25% REGIONAL 25% LOCAL 25% CONTROLS SOME MAJOR ASPECTS OF This figure indicates THE POLICY N=60 the percentage of companies with a global SAMPLE DATA CARRYING leaveOVER policy. ANNUAL LEAVE DAYS WHICH TYPES OF ANNUAL LEAVE DAYS MAY BE CARRIED OVER? ARE EMPLOYEES ALLOWED TO CARRY OVER

UNUSED ANNUAL LEAVE DAYS FROMSome ONE questions YEAR VACATION DAYS 50% TO THE NEXT? allowed more than N=50 one response; this is noted below PERSONAL DAYS 50% applicable graphics. N=50

SICK DAYS 50% 50% The50% content to the right N=40 of this graphic provides some additional detail Note: More than one response was permitted; percentages may sum more than 100%. from companies that YES NO indicated "Yes" for this N=40 question. © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 9 INTRODUCTION COUNTRY

WHAT IS THE CUTOFF DATE FOR USING DAYS CARRIED OVER IS THERE A MAXIMUM LIMIT FROM THE PREVIOUS YEAR? ON THE NUMBER OF DAYS THAT MAY BE CARRIED VACATION DAYS PERSONAL DAYS SICK DAYS OVER? END OF JANUARY 0% 0% 0% END OF FEBRUARY 0% 0% Vacation days are0% END OF MARCH 0% 0% shaded blue, personal0% VACATION DAYS 50% N=44 END OF APRIL 10% 10% days are shaded10% pink, END OF MAY 10% 10% and sick days are10% END OF JUNE 10% 10% shaded green.10% END OF JULY 10% 10% 10% PERSONAL DAYS 50% N=– END OF AUGUST 10% 10% 10% This number indicates the END OF SEPTEMBER 10% SAMPLE10% DATA10% percentage of companies This is the average END OF OCTOBER 10% 10% 10% that have a maximum number number of vacation SICK DAYS END OF NOVEMBER 10% 10% 10% of vacation days that may be days that may be 50% N=– END OF DECEMBER 10% 10% 10% carried over each year. carried over from NO TIME LIMITone year to the next. 10% 10% 10% N= 33 33 33 Note: Percentage represents the companies that indicated "Yes." WHAT IS THE MAXIMUM NUMBER OF DAYS (E.G., 15 DAYS) THAT MAY BE CARRIED OVER ANNUALLY?

VACATION DAYS PERSONAL DAYS SICK DAYS A dash indicates insufficient data to 10 N=16 10 N=– 10 N=– report a statistic. This is often because a type of leave or policy is not common Note: Number of days is an average. in a country. © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 10 INTRODUCTION Each country includes several pages that COUNTRY provide details specific to vacation days. The shaded bar, along VACATION DAYS DO COMPANIES RECOGNIZEwith PRIOR the percentage, SERVICE WITH OTHER ORGANIZATIONSindicate WHEN the portion of companies that DO COMPANIES PROVIDE PAID VACATION LEAVE DETERMINING VACATION ENTITLEMENT FOR selected each answer. TO EMPLOYEES? NEW HIRES?

YES, FOR THE MAJORITY 20% OF NEW HIRES

YES, FOR SENIOR POSITIONS ONLY 20%

This legend 50% 50% YES, ON A CASE-BY- CASE BASIS 20% indicates what the colors in the SAMPLENO DATA 20% graph mean. POLICY DOES NOT ADDRESS 20% YES NO The N= denotes the N=40 N=40 sample size, or number of DO COMPANIES PROVIDE LEAVE IN ADVANCE OF ACCRUING VACATION? companies that responded to the question. Not all questions applied to all participants, so this 20% 20% 20% 20% 20%number varies throughout.

YES, FOR THE YES, FOR SENIOR YES, ON A NO POLICY DOES MAJORITY OF POSITIONS ONLY CASE-BY-CASE NOT ADDRESS EMPLOYEES BASIS N=40 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 11 INTRODUCTION The statistic reported may be noted This table provides the average number of below the table; in this instance, the vacation days for the years of service and COUNTRY average accrual rate is provided. career level.

HOW MANY VACATION DAYS DOES A NEWLY HIRED EMPLOYEE ACCRUE ON A MONTHLY BASIS?

EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL MONTHLY ACCRUAL RATE UPON HIRE 1.0 1.0 1.0 1.0 N= 32 32 32 32

Note: Accrual rate is an average.

HOW MANY PAID VACATION DAYS ARE PROVIDED FOR EACH OF THE YEARS OF SERVICE LISTED BELOW?

EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL AFTER 1 YEAR SAMPLE16 16 DATA 16 16 AFTER 5 YEARS 16 16 16 16 AFTER 10 YEARS 16 16 16 16 AFTER 15 YEARS 16 16 16 16 AFTER 20 YEARS 16 16 16 16 AFTER 25 YEARS 16 16 16 16 AFTER 30 YEARS 16 16 16 16 N= 32 32 32 32

Note: Number of days per year of service is an average. N= indicates the sample size for each column of data. This number may be different for each individual category.

© 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 12 INTRODUCTION Content related This column provides COUNTRY to personal days is the average number of shaded in pink. days, and the column to PERSONAL DAYS HOW MANY PERSONAL DAYSthe ARE right PROVIDED provides the ANNUALLY? sample size. DO COMPANIES PROVIDE PERSONAL LEAVE AVERAGE NUMBER OF (PAID OR UNPAID) TO EMPLOYEES? N= DAYS PAID LEAVE DAYS 11 12 UNPAID LEAVE DAYS 11 12

The number of 50% 50% companies that provide paid and SAMPLE DATA unpaid leave varies. Personal leave may be provided as paid or unpaid leave. This table indicates the YES NO average number N=40 of paid or unpaid days provided to employees.

© 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 13 INTRODUCTION Content related to COUNTRY sick days is shaded in green. SICK LEAVE DO COMPANIES REQUIRE EMPLOYEES TO PRODUCE A MEDICAL CERTIFICATE WHEN DO COMPANIES PROVIDE SICK LEAVE (PAID OR USING THEIR SICK LEAVE ENTITLEMENT? UNPAID) TO EMPLOYEES? 30% YES, IT IS REQUIRED FOR ALL SICK LEAVE

30% YES, IF THE NUMBER OF SICK DAYS EXCEEDS A MAXIMUM AMOUNT

50% 50% 30% NO

SAMPLEN=40 DATA A dash indicates insufficient data to report a statistic. This column AFTER HOW MANY SICK DAYS IS A MEDICAL ThisYES is oftenNO because a type provides the CERTIFICATE REQUIRED? of leave or policy is not average number N=61 common in a country. of days and the HOW MANY SICK DAYS ARE PROVIDEDcolumn to the ANNUALLY? right provides the DAYS The statistic reported sample size. 10 N=40 may be noted below the graphic; in this AVERAGE NUMBER OF N= DAYS instance, the average FULLY PAID LEAVE DAYS 27 3 number of sick days is Note: Number of days is an average. provided. PARTIALLY PAID LEAVE 27 3 DAYS UNPAID LEAVE DAYS 27 3 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 14 INTRODUCTION "Fixed" holidays are sometimes referred to as COUNTRY Content related to public, federal or statutory holidays is shaded holidays. in yellow. HOLIDAYS HOW MANY FIXED HOLIDAYS ARE PROVIDED ANNUALLY? DO COMPANIES PROVIDE "FIXED" HOLIDAYS AVERAGE NUMBER OF (PAID OR UNPAID) TO EMPLOYEES? N= DAYS PAID LEAVE DAYS 15 26 UNPAID LEAVE DAYS 15 26

ARE COMPANIES CLOSED FOR BUSINESS ON ALL FIXED HOLIDAYS? 50% 50%

SAMPLE DATA25% 25% 25% 25% This page is divided into two different types of holidays — YES, FOR ALL YES, FOR ALL NO OTHER PAID LEAVE PAID AND UNPAID "Floating" holidays may be fixed and floating YES NO DAYS LEAVE DAYS used to ensure employees holidays. N=40 N=40 all receive the same number of holidays; for example, DO COMPANIES PROVIDE "FLOATING" HOW MANY FLOATING HOLIDAYSwhen one AREprovince PROVIDED or state HOLIDAYS (PAID OR UNPAID) TO EMPLOYEES? ANNUALLY? provides a larger number of fixed holidays.

AVERAGE NUMBER OF N= DAYS YES NO 50% 50% PAID LEAVE DAYS 15 26 UNPAID LEAVE DAYS 15 26 N=40 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 15 INTRODUCTION Content related to COUNTRY other leave policies is shaded in purple. OTHER LEAVE POLICIES WHICH OF THE FOLLOWING FAMILY MEMBERS ARE INCLUDED IN THE BEREAVEMENT POLICY? BEREAVEMENT LEAVE Bereavement is just OPPOSITE-SEX one of the leaves 33% SPOUSE DO COMPANIES PROVIDE BEREAVEMENTcovered in this section. You will OPPOSITE-SEX LEAVE (PAID OR UNPAID) TO EMPLOYEES WHO DOMESTIC PARTNER 33% EXPERIENCE THE DEATH OF A FAMILYalso find MEMBER information on marriage leave, SAME-SEX SPOUSE OR CLOSE FRIEND? volunteer leave, 33% study/exam leave, SAME-SEX DOMESTIC and sabbaticals. PARTNER 33% SAMPLECHILD DATA 33% PARENT 33% 50% 50% PARENT-IN-LAW This graph indicates33% if an employee would SIBLINGS be provided with 33% bereavement leave in GRANDPARENT the event of the death33% of each listed family YES NO OTHER CLOSE FAMILY member. MEMBER OR FRIEND 33% N=40 N=40

Note: More than one response was permitted; percentages may sum more than 100%.

STATUTORY REQUIREMENTS

MANDATORY VACATION ENTITLEMENT

Vacation entitlement is calculated according to job seniority. As per law, the applicable job seniority is determined at the end of the calendar year (December 31).

Employees are entitled to the following annual vacation periods in accordance with length of service:

►► Less than six months: One day for every 20 days worked (sick days and legal absences count as days worked).

►► Six months to five years: 10 business days (14 consecutive days).

►► Five to 10 years: 15 business days (21 consecutive days).

►► 10 to 20 years: 20 business days (28 consecutive days).

►► Over 20 years: 25 business days (35 consecutive days).

OPTIONS FOR CARRY FORWARD OF UNUSED VACATION DAYS

Companies typically do not supplement statutory requirements.

OPTIONS FOR PAY-OUT IN CASH OF UNUSED VACATION DAYS

Companies typically supplement statutory requirements.

National public holidays are as follows:

PUBLIC HOLIDAY 2017 2018 2019

NEW YEAR’S DAY January 1 January 1 January 1

MARTIN LUTHER KING, JR. DAY January 16 January 15 January 14

WASHINGTON’S BIRTHDAY February 20 February 19 February 18

MEMORIAL DAY May 29 May 28 May 27

INDEPENDENCE DAY July 4 July 4 July 4

LABOUR DAY September 4 September 3 September 2

COLUMBUS DAY October 9 October 8 October 7

VETERANS' DAY November 11 November 11* November 11

THANKSGIVING DAY November 23 November 22 November 28

CHRISTMAS DAY December 25 December 25 December 25

SICK LEAVE

Social security pays 60% of salary after the third day the condition exists, up to 52 weeks for general sickness. Some companies supplement social security benefits and pay 100% of salary during the first three days’ absence and supplement to 80% of salary after the third day. Employers typically provide this benefit to all employees (union and nonunion); it is usually company-paid. If the sickness is work-related, social security pays 100% of current salary during the employee’s disability.

MISCELLANEOUS PAID LEAVE

Miscellaneous paid leave includes time off due to marriage, domestic calamity, or to vote.

Employees may take up to three working days with full pay as paid leave for marriage or domestic calamity. To encourage voting, if an employee votes in an election and presents the employer with the vote certificate, the employee can ask for a half-day leave during the following month.

WHAT TYPE OF ANNUAL LEAVE POLICY DO COMPANIES HAVE?

LOCAL, BUT PARENT ORGANIZATION 25% GLOBAL 25% REGIONAL 25% LOCAL 25% CONTROLS SOME MAJOR ASPECTS OF THE POLICY

N=100

CARRYING OVER ANNUAL LEAVE DAYS WHICH TYPES OF ANNUAL LEAVE DAYS MAY BE CARRIED OVER? ARE EMPLOYEES ALLOWED TO CARRY OVER UNUSED ANNUAL LEAVE DAYS FROM ONE YEAR VACATION DAYS 50% TO THE NEXT? N=50

PERSONAL DAYS 50% N=50

SICK DAYS 50% N=50

50% 50% Note: More than one response was permitted; percentages may sum more than 100%.

WHAT IS THE CUTOFF DATE FOR USING DAYS CARRIED OVER IS THERE A MAXIMUM LIMIT FROM THE PREVIOUS YEAR? ON THE NUMBER OF DAYS THAT MAY BE CARRIED VACATION DAYS PERSONAL DAYS SICK DAYS OVER? END OF JANUARY 0% 0% 0% END OF FEBRUARY 0% 0% 0% END OF MARCH 0% 0% 0% VACATION DAYS 50% N=50 END OF APRIL 10% 10% 10% END OF MAY 10% 10% 10% END OF JUNE 10% 10% 10% END OF JULY 10% 10% 10% PERSONAL DAYS 50% N=50 END OF AUGUST 10% 10% 10%

END OF SEPTEMBER 10% 10% 10%

END OF OCTOBER 10% 10% 10% END OF NOVEMBER 10% 10% 10% SICK DAYS 50% N=50 END OF DECEMBER 10% 10% 10% NO TIME LIMIT 10% 10% 10%

N= 33 33 33 Note: Percentage represents the companies that indicated "Yes." WHAT IS THE MAXIMUM NUMBER OF DAYS (E.G., 15 DAYS) THAT MAY BE CARRIED OVER ANNUALLY?

VACATION DAYS PERSONAL DAYS 10 N=50 10 N=50

SICK DAYS 10 N=50

CASHING OUT UNUSED LEAVE DAYS WHICH TYPES OF ANNUAL LEAVE DAYS MAY BE CASHED OUT? ARE EMPLOYEES ALLOWED TO CASH OUT UNUSED ANNUAL LEAVE DAYS (OTHER THAN VACATION DAYS 100% UPON TERMINATION OF CONTRACT)? N=50

PERSONAL DAYS 20% N=50

SICK DAYS 0% N=50

50% 50% IS THERE A MAXIMUM LIMIT ON THE NUMBER OF DAYS THAT MAY BE CASHED OUT?

VACATION DAYS PERSONAL DAYS 40% N=50 20% N=50

YES NO N=40

SICK DAYS WHAT IS THE MAXIMUM NUMBER OF DAYS 40% N=50 (E.G., 15 DAYS) THAT MAY BE CASHED OUT ANNUALLY? Note: Percentage represents the companies that indicated "Yes."

10 10 10

VACATION DAYS PERSONAL DAYS SICK DAYS N=20 N=10 N=5 Note: Number of days is an average. © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 22 COUNTRY NAME TRACKING ANNUAL LEAVE

HOW DO COMPANIES MANAGE OR MONITOR ANNUAL LEAVE?

LOCAL IN-COUNTRY ABSENCE EXCEL OR OTHER 25% SPREADSHEET 25% MANAGEMENT SYSTEM

LOCAL FINANCE SYSTEM 25% GLOBAL FINANCE SYSTEM 25%

GLOBAL ABSENCE OTHER MANAGEMENT SYSTEM 25% 25%

N=50

WHICH TYPES OF ANNUAL LEAVE DO COMPANIES TRACK?

30% 30% 30% 30%

VACATION DAYS PERSONAL DAYS SICK DAYS DO NOT TRACK

N=60

Note: More than one response was permitted; percentages may sum more than 100%.

IN WHAT TIME-INCREMENTS ARE THESE LEAVE TYPES TRACKED?

VACATION DAYS PERSONAL DAYS

20% 20% 20% 20% 20% 20% 20% 20% 20% 20%

FULL DAY HALF DAY HOUR 30 MINUTE 15 MINUTE FULL DAY HALF DAY HOUR 30 MINUTE 15 MINUTE INCREMENTS INCREMENTS INCREMENTS INCREMENTS

N=40 N=40

SICK DAYS

20% 20% 20% 20% 20%

FULL DAY HALF DAY HOUR 30 MINUTE 15 MINUTE INCREMENTS INCREMENTS

N=40

© 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 24 COUNTRY NAME UNLIMITED LEAVE DAYS WHICH TYPES OF LEAVE ARE INCLUDED IN THE “UNLIMITED DAYS” PAID ANNUAL LEAVE HAVE COMPANIES IMPLEMENTED AN POLICY? “UNLIMITED DAYS” PAID ANNUAL LEAVE POLICY?

YES, BUT WE HAVE YES 50% 50% 50% 25% 25% SINCE DISCONTINUED THE POLICY

NO, BUT WE ARE VACATION DAYS PERSONAL DAYS SICK DAYS 25% CONSIDERING THIS 25% NO TYPE OF POLICY N=40

Note: More than one response was permitted; percentages may sum more than 100%. N=40

HOW SUCCESSFUL ARE “UNLIMITED DAYS” PAID DO COMPANIES PLAN TO DISCONTINUE ANNUAL LEAVE POLICIES? “UNLIMITED DAYS” PAID ANNUAL LEAVE POLICIES? 50% EXTREMELY SUCCESSFUL; MOST EMPLOYEES USE THEIR LEAVE CAUTIOUSLY 33% 33% 33% 50%

MODERATELY SUCCESSFUL; SOME EMPLOYEES YES NO UNSURE, WE USE EXCESSIVE AMOUNTS OF LEAVE ARE CURRENTLY EVALUATING 50% N=40 NOT SUCCESSFUL; MOST EMPLOYEES USE EXCESSIVE AMOUNTS OF LEAVE

N=40 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 25 COUNTRY NAME VACATION DAYS DO COMPANIES RECOGNIZE PRIOR SERVICE WITH OTHER ORGANIZATIONS WHEN DO COMPANIES PROVIDE PAID VACATION LEAVE DETERMINING VACATION ENTITLEMENT FOR TO EMPLOYEES? NEW HIRES?

YES, FOR THE MAJORITY 20% OF NEW HIRES

YES, FOR SENIOR POSITIONS ONLY 20%

YES, ON A CASE-BY- 50% 50% CASE BASIS 20%

NO 20%

POLICY DOES NOT ADDRESS 20%

YES NO N=41 N=42

DO COMPANIES PROVIDE LEAVE IN ADVANCE OF ACCRUING VACATION?

20% 20% 20% 20% 20%

YES, FOR THE YES, FOR SENIOR YES, ON A NO POLICY DOES MAJORITY OF POSITIONS ONLY CASE-BY-CASE NOT ADDRESS EMPLOYEES BASIS

HOW MANY VACATION DAYS DOES A NEWLY HIRED EMPLOYEE ACCRUE ON A MONTHLY BASIS?

EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL MONTHLY ACCRUAL RATE UPON HIRE 1.0 1.0 1.0 1.0 N= 32 32 32 32

Note: Accrual rate is an average.

HOW MANY PAID VACATION DAYS ARE PROVIDED FOR EACH OF THE YEARS OF SERVICE LISTED BELOW?

EXECUTIVE MANAGEMENT PROFESSIONAL PARA-PROFESSIONAL AFTER 1 YEAR 16 16 16 16 AFTER 5 YEARS 16 16 16 16 AFTER 10 YEARS 16 16 16 16 AFTER 15 YEARS 16 16 16 16 AFTER 20 YEARS 16 16 16 16 AFTER 25 YEARS 16 16 16 16 AFTER 30 YEARS 16 16 16 16 N= 32 32 32 32

Note: Number of days per year of service is an average.

© 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 27 COUNTRY NAME PERSONAL DAYS HOW MANY PERSONAL DAYS ARE PROVIDED ANNUALLY? DO COMPANIES PROVIDE PERSONAL LEAVE AVERAGE NUMBER OF (PAID OR UNPAID) TO EMPLOYEES? N= DAYS PAID LEAVE DAYS 11 12 UNPAID LEAVE DAYS 11 12

50% 50%

YES NO N=40

© 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 28 COUNTRY NAME SICK LEAVE DO COMPANIES REQUIRE EMPLOYEES TO PRODUCE A MEDICAL CERTIFICATE WHEN DO COMPANIES PROVIDE SICK LEAVE (PAID OR USING THEIR SICK LEAVE ENTITLEMENT? UNPAID) TO EMPLOYEES? 30% YES, IT IS REQUIRED FOR ALL SICK LEAVE

30% YES, IF THE NUMBER OF SICK DAYS EXCEEDS A MAXIMUM AMOUNT

50% 50% 30% NO

N=40

AFTER HOW MANY SICK DAYS IS A MEDICAL CERTIFICATE REQUIRED? YES NO N=40

DAYS HOW MANY SICK DAYS ARE PROVIDED N=20 ANNUALLY? 10

AVERAGE NUMBER OF N= DAYS Note: Number of days is an average.

FULLY PAID LEAVE DAYS 27 3

PARTIALLY PAID LEAVE 27 3 DAYS

UNPAID LEAVE DAYS 27 3 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 29 COUNTRY NAME HOLIDAYS HOW MANY FIXED HOLIDAYS ARE PROVIDED ANNUALLY? DO COMPANIES PROVIDE "FIXED" HOLIDAYS AVERAGE NUMBER OF (PAID OR UNPAID) TO EMPLOYEES? N= DAYS PAID LEAVE DAYS 15 26 UNPAID LEAVE DAYS 15 26

ARE COMPANIES CLOSED FOR BUSINESS ON ALL FIXED HOLIDAYS? 50% 50%

25% 25% 25% 25%

YES, FOR ALL YES, FOR ALL NO OTHER PAID LEAVE PAID AND UNPAID YES NO DAYS LEAVE DAYS N=40 N=40

DO COMPANIES PROVIDE "FLOATING" HOW MANY FLOATING HOLIDAYS ARE PROVIDED HOLIDAYS (PAID OR UNPAID) TO EMPLOYEES? ANNUALLY?

AVERAGE NUMBER OF N= DAYS YES NO 50% 50% PAID LEAVE DAYS 15 26 UNPAID LEAVE DAYS 15 26 N=40 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 30 COUNTRY NAME OTHER LEAVE POLICIES WHICH OF THE FOLLOWING FAMILY MEMBERS ARE INCLUDED IN THE BEREAVEMENT POLICY? BEREAVEMENT LEAVE OPPOSITE-SEX 33% SPOUSE DO COMPANIES PROVIDE BEREAVEMENT OPPOSITE-SEX LEAVE (PAID OR UNPAID) TO EMPLOYEES WHO DOMESTIC PARTNER 33% EXPERIENCE THE DEATH OF A FAMILY MEMBER OR CLOSE FRIEND? SAME-SEX SPOUSE 33%

SAME-SEX DOMESTIC PARTNER 33%

CHILD 33%

PARENT 33% 50% 50% PARENT-IN-LAW 33%

SIBLINGS 33%

GRANDPARENT 33%

YES NO OTHER CLOSE FAMILY MEMBER OR FRIEND 33% N=40 N=40

Note: More than one response was permitted; percentages may sum more than 100%.

HOW MANY LEAVE DAYS ARE PROVIDED TO AN EMPLOYEE FOLLOWING THE DEATH OF A FAMILY MEMBER?

NUMBER OF NUMBER OF NUMBER OF FULLY PAID LEAVE N= PARTIALLY PAID N= UNPAID LEAVE N= DAYS LEAVE DAYS DAYS OPPOSITE-SEX SPOUSE 4 34 4 34 4 34 OPPOSITE-SEX DOMESTIC PARTNER 4 34 4 34 4 34 SAME-SEX SPOUSE 4 34 4 34 4 34 SAME-SEX DOMESTIC PARTNER 4 34 4 34 4 34 CHILD 4 34 4 34 4 34 PARENT 4 34 4 34 4 34 PARENT-IN-LAW 3 34 3 34 3 34 SIBLINGS 3 34 3 34 3 34 GRANDPARENT 3 34 3 34 3 34 OTHER CLOSE FAMILY MEMBER OR FRIEND 3 34 3 34 3 34

Note: Number of days for each family member is an average.

MARRIAGE LEAVE HOW MANY LEAVE DAYS ARE PROVIDED TO AN EMPLOYEE IN THE EVENT OF THEIR MARRIAGE? DO COMPANIES PROVIDE LEAVE (PAID OR AVERAGE NUMBER OF UNPAID) IN THE EVENT OF AN EMPLOYEE’S N= MARRIAGE? DAYS FULLY PAID LEAVE DAYS 4 30

PARTIALLY PAID LEAVE 4 30 DAYS

UNPAID LEAVE DAYS 4 30

50% 50% DOES MARRIAGE LEAVE ALSO APPLY TO SAME-SEX MARRIAGES/CIVIL UNIONS?

50% YES 50% NO

YES NO N=40 N=40

VOLUNTEER LEAVE HOW MANY DAYS OF VOLUNTEER LEAVE ARE PROVIDED ANNUALLY? DO COMPANIES PROVIDE LEAVE (PAID OR AVERAGE NUMBER OF UNPAID) FOR EMPLOYEES TO PERFORM N= VOLUNTEER OR COMMUNITY SERVICE WORK? DAYS FULLY PAID LEAVE DAYS 4 30

PARTIALLY PAID LEAVE 4 30 DAYS

UNPAID LEAVE DAYS 4 30

50% 50%

YES NO N=40

STUDY OR EXAM LEAVE HOW MANY STUDY LEAVE DAYS ARE PROVIDED ANNUALLY?

DO COMPANIES PROVIDE STUDY OR EXAM COMPANY SPONSORED COURSES LEAVE (PAID OR UNPAID)? AVERAGE NUMBER OF N= DAYS 25% FULLY PAID LEAVE DAYS 5 10 YES, FOR COMPANY SPONSORED COURSES PARTIALLY PAID LEAVE 5 10 25% DAYS

YES, FOR NONCOMPANY SPONSORED COURSES UNPAID LEAVE DAYS 5 10

25% YES, FOR BOTH COMPANY AND NONCOMPANY NONCOMPANY SPONSORED COURSES SPONSORED COURSES AVERAGE NUMBER OF N= DAYS 25% NO FULLY PAID LEAVE DAYS 3 2

N=40 PARTIALLY PAID LEAVE 3 2 DAYS

UNPAID LEAVE DAYS 3 2

IS PAID LEAVE PROVIDED ON THE DAY OR DAYS OF AN EXAM?

COMPANY SPONSORED COURSES NONCOMPANY SPONSORED COURSES

33% 33% 33% 33% 33% 33%

YES, ALL EXAM YES, A MAXIMUM NUMBER NO YES, ALL EXAM YES, A MAXIMUM NUMBER NO DAYS ARE PAID OF PAID EXAM DAYS ARE DAYS ARE PAID OF PAID EXAM DAYS ARE PROVIDED ANNUALLY PROVIDED ANNUALLY N=40 N=40 © 2017 MERCER LLC. SAMPLEVACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 35 COUNTRY NAME

SABBATICALS WHAT IS THE MAXIMUM NUMBER OF MONTHS AN EMPLOYEE MAY TAKE AS A CAREER BREAK DO COMPANIES PROVIDE EMPLOYEES WITH OR SABBATICAL? THE OPTION TO TAKE A CAREER BREAK OR AVERAGE NUMBER OF SABBATICAL LEAVE (PAID OR UNPAID)? N= MAXIMUM MONTHS FULLY PAID LEAVE 5 4 MONTHS PARTIALLY PAID LEAVE 5 4 MONTHS

UNPAID LEAVE MONTHS 5 4

50% 50% DO COMPANIES GUARANTEE THE SAME JOB POSITION UPON RETURN OF THE EMPLOYEE FROM A CAREER BREAK OR SABBATICAL?

YES NO YES NO 50% 50% N=40 N=40 WHAT IS THE MINIMUM LENGTH OF SERVICE REQUIRED BEFORE AN EMPLOYEE IS ELIGIBLE TO TAKE A CAREER BREAK OR SABBATICAL?

MINIMUM NUMBER OF SERVICE MONTHS 20 N=30

ABOUT THIS REPORT © 2017 MERCER LLC. ABOUT THIS REPORT ► endash or “–”when minimum sample sizes are not met. To ensure the confidentiality of all companies that provide data to Mercer’s surveys, statistics have been “masked” by displaying an MASKING DATA ► ► ► ► The following statistics are presented in this report: STATISTICS METHODOLOGY exceptions and exclusions in the data and alist of data sources, and relevant equations. Readers will also find aglossary of key terms. This section provides information on the methods of collecting, collating, and analyzing data for this publication. Below are notes on ► ► ► ► ► ► ► A minimum of three data points are required to report the average and prevalence percentages. Endash or “–”:The sample is too small to provide the statistic. N or Sample Size: The number of companies that reported data for the statistic. from. For example, asingle response question or acheck box (select all that apply) style question. Prevalence: Mean or Average: The sum of all data reported divided by the number of data observations in the sample. ► ► In checkIn box response single In The percentage of companies that provided aresponse to aquestion with adefined number of options to choose response questions, the sum of all responses will be greater than 100%. SAMPLE questions, the sum of all responses may not equal 100% due to rounding. VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 3838 METHODOLOGY © 2017 MERCER LLC. ► ► ► survey submissions were received for 48countries (including China two markets). Data were collected through anew global survey on Vacation and Other Leave conducted during June and July 2017. More than 2,0 VACATION AND OTHER LEAVE POLICIES SURVEY DATA the statutory requirement information is presented in calendar or consecutive days. This information is for guidance purposes only. StatutoryThe Requirements are sourced from Mercer’s 2017 Worldwide Benefits &Employment Guidelines (WBEG). In some instances, WORLDWIDE BENEFIT &EMPLOYMENT GUIDELINES SOURCES DATA ABOUT THIS REPORT ► ► ► Extreme data outliers for accrual rates, number of leave days, or number of leave months were removed. Keep sample size in mind when making decisions; asmall sample size may not be atrue reflection of the market. Participants completed questions that were applicable to their policies; therefore, sample sizes vary by question. SAMPLE VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 00 3939 METHODOLOGY © 20162017 MERCER Mercer LLC. LLC. personal issues.personal frequently provided to allow an employee to handle unforeseen may not require prior approval when they are used. They are Personal days are available for employees to use as needed and DAYSPERSONAL may be used for any number of reasons. with apool of days to manage throughout the year; these days days, such as vacation and sick days. An employee is provided A paid (PTO) time-off pool includes or two more of leave types PAID TIME-OFF POOL time of their marriage. These additional leave days are provided to an employee at the LEAVE MARRIAGE not tied to aspecific date or closure. an office A “floating” holiday may be used at any time of the year and is these dates. countries, there is astatutory requirement to provide leave on for which many businesses close (e.g., Christmas day). In most A “fixed” holiday refers to aholiday that falls on aspecific day HOLIDAYS year (but rather the number of days per death/family member). typically no restrictions on the number of days provided per is generally based on the of family type member and there are of afamily member or close friend. The number of days provided This leave is provided type to an employee who suffers the loss BEREAVEMENT LEAVE TYPES OF LEAVE ABOUT THIS REPORT SAMPLE break (or other reason). that is provided to an employee who wishes to take acareer An extended period of leave (usually several months or more) SABBATICALS with alocal charity or volunteer program. This leave is provided to an employee who wishes to volunteer VOLUNTEER LEAVE certain number of paid vacation leave days each year. requirements for companies to provide their employees with a of avacation or holiday. Most countries have minimum statutory Leave that is provided for employees to use for the purposes VACATION DAYS program.program sponsored noncompany or preparing to sit an exam, either as part of acompany-sponsored Leave that is provided to an employee who is studying or STUDY OR EXAM LEAVE not considered apart of sick leave. unwell. For the purpose of this survey, short-term disability is Sick days are provided for an employee to use when they are DAYSSICK VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 4040 GLOSSARY © 20162017 MERCER Mercer LLC. LLC. degree or full-trade equivalent. to less-experienced staff. They typically hold auniversity supervisory responsibility, but may provide coaching/mentoring qualification. They are individual contributors without Typically refers to jobs requiring aprofessional or technical PROFESSIONAL technology. information resources, human finance, including senior managers and (other than sales) functional managers meet the organization’s objectives. They typically report to managing people and implementing policies and strategies to unit or organization. Management-level employees focus on responsibilities are usually the higher levels within abusiness These employees with important supervisory and managerial MANAGEMENT executive Head of Sales/Marketing. Senioras Executive Function or Head, or in the case of asales multiple functions or sub-functions. May also be referred to strategic vision and/or tactical/strategic direction across a business unit or organization. Executives focus on providing employees with managerial responsibilities at the top level of include top executives and directors within the organization, or These senior-most employees in the organization generally EXECUTIVE LEVELS EMPLOYEE CAREER ABOUT THIS REPORT

SAMPLE basis. and certification, and may be paid on an hourly or asalaried a university degree, but may require formal professional training supervisory or management responsibility. They do not require Typically includes roles that are semi-skilled or unskilled with no PARA-PROFESSIONAL VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD 4141 GLOSSARY ABOUT MERCER

At Mercer, we make a difference in the lives of more than 110 million people every day by advancing their health, wealth, and careers. We’re in the business of creating more secure and rewarding futures for our clients and their employees — whether we’re designing affordable health plans, assuring income for retirement, or aligning workers with workforce needs. Using analysis and insights as catalysts for change, we anticipate and understand the individual impact of business decisions, now and in the future. We see people’s current and future needs through a lens of innovation, and our holistic view, specialized expertise, and deep analytical rigor underpin each and every idea and solution we offer. For more than 70 years, we’ve turned our insights into actions, enabling people around the globe to live, work, and retire well. At Mercer, we say we Make Tomorrow, Today.

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