®

VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

2017

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Condition of SaleCopyright © 2017. All rights reserved. No part of this publication may be reproduced, stored in a retrieval system, or be transmitted in any form or by any means, electronic or mechanical, photocopying, recording or otherwise, without the prior written permission of the publishers. No responsibility for loss occurring to any person acting or refraining from acting as a result of the material in this publication can be accepted by the authors or the publishers.

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PUBLISHED BY:MERCER1166 Avenue of the Americas, New York, New York 10036, United States

PUBLICATIONS DIRECTORCHRISY WILSON

PRODUCT MANAGERDUSTIN THOMAS

PRODUCTION MANAGERSUMIT BAJAJ

PROJECT MANAGERRAHI SARDANA

DESIGN MANAGERBHUPESH PERIWAL

ANALYSTASHVINDER KAUR

KARUNANJALI TANDON

WRITER AUSTIN LOTZ

COPYEDITORSANKITA RAWAT

DIVYA PRAKASH

DESIGNERANUJ PANDEY SAYKA FATIMA

VISHAL KAPOOR

CONTENT TECHNICIANNIYATI RASTOGI

ORDER ONLINE

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TABL

E O

F C

ON

TEN

TS

4 MERCER'S GLOBAL PUBLICATIONS

5 INTRODUCTION 7 Report Structure

9 Reading the Report

15 SUMMARY OF KEY FINDINGS

26 AMERICAS 27 Argentina

52 Brazil

67 Canada

82 Chile

97 Colombia

110 Ecuador

125 Mexico

140 Peru

153 Puerto Rico

140 United States

153 Venezuela

476 EUROPE, MIDDLE EAST AND AFRICA

477 Austria

487 Belgium

496 Czech Republic

496 Denmark

467 Egypt

500 Finland

512 France

528 Germany

541 Ireland

556 Israel

569 Italy

582 Netherlands

597 Poland

612 Portugal

625 Russia

634 South Africa

647 Spain

662 Sweden

677 Switzerland

691 Turkey

704 United Arab Emirates

717 United Kingdom

168 ASIA PACIFIC 169 Australia

186 China-Beijing

199 China-Shanghai

213 Hong Kong

228 India

240 Indonesia

255 Japan

269 Malaysia

282 New Zealand

289 Pakistan

304 Philippines

319 Singapore

334 South Korea

349 Thailand

349 Vietnam

732 ABOUT THIS REPORT733 Methodology

745 Glossary

750 ABOUT MERCER

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HEALTH & BENEFITS

WORKFORCE & CAREERS

HANDBOOKS & GUIDES

Car Benefit Policies Around the World

Global Parental Leave Global Parental Leave Industry Scorecard

LGBT Benefits Around The World

Vacation and Other Leave Policies Around The World

Severance Pay Policies Around The World

Global Compensation Planning Report

Global Compensation Planning Report

20 Year Look Back

Short-Term Incentives Around the World

HR Guide to Doing Business

HR Atlas Asia Pacific

Worldwide Benefit & Employment Guidelines

Global Pay Summary International Geographic Salary Differentials

Total Employment Costs Around the World

Workforce Turnover Around the World

Compensation Handbook

Global Mobility Handbook

HR Management Terms

GLO

BAL

PUBL

ICAT

ION

S

In today’s competitive race to attract and retain highly skilled global talent, organizations require current, in-depth information on everything from local statutory benefits, to salary trends, to managing a diverse workforce. Through Mercer’s own extensive global presence, we collect and analyse data and insights that help companies take the actions necessary to support their human capital strategies. You can order any of the publications below by clicking on the title links or by visiting www.imercer.com/global.

FULL ACCESS TO ALL GLOBAL PUBLICATIONSSubscribe to our Talent All Access® Portal for exclusive online access to our entire suite of publications and tools.

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© 2017 MERCER LLC. 5VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

CREATING A WIN-WIN THAT ACTUALLY WORKS As with other employee benefit areas, leave programs should be a win for both the employer and employees. A scenario in which employees are overworked is just as detrimental to an organization as the one in which managers are left shorthanded. Though the solution may seem as simple as arriving at the right number of days, today’s HR managers must create policies that work in practice. This means that instead of deciding to offer an employee sabbatical program, they must create policies that enable employees to actually take a sabbatical and return to work effectively. At the end of the day, leave programs — vacation, sick leave, sabbaticals, volunteer leave, and so on — should allow employees to refuel, deal with personal issues that encroach on everyday life, and remain engaged while at work.

NONTRADITIONAL LEAVES One facet of a leave policy that complicates matters for HR professionals is the sheer variety leaves. In addition to national and corporate holidays, employees may be away on vacation leave, personal leave, sick leave, bereavement leave, marriage leave, study leave, sabbatical, or any number of other offerings that employers may grant their employees. How might employers discern between and parse out these types of leave to their 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

Paid vacation leave is far from a luxury. In the modern employment landscape, this particular benefit is an absolutely integral part of most companies’ workforce management strategy. Counter-intuitive as it may seem, offering employees an opportunity to spend time away from the office while maintaining compensation can actually improve an organization’s efficiency, production, and overall well-being. Indeed, employees that spend time away from the office are often more engaged with their work, more collaborative, and more likely to contribute to a positive workplace for all. However, creating and instituting a successful annual leave program is about more than deciding on a number of days. For instance, any corporation with a multinational footprint must consider how local regulations and statutes dictate the number of days for any given type of leave, and some organizations are compelled to ask whether they might be better served by offering employees an unlimited number of paid leave days. As the push for top talent in the tech and start-up sectors spawns revolutionary new approaches to vacation policies, HR managers around the world must determine how these new solutions fit into their own organization’s employee value proposition.

INTRODUCTION

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© 2017 MERCER LLC. 6VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

INTRODUCTION

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?SAMPLE

© 2017 MERCER LLC. 7VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

INTRODUCTION

REPORT STRUCTUREThe 2017 Vacation and Other Leave Policies Around the Worldpublication provides human resources (HR) and businessmanagers hard-to-find and current information on the amountand types of leave that most organizations provide to theiremployees. Drawing on a global survey of more than 2,000submissions, the report offers a county-by-country analysisof trends in common and emerging types of leave, includingprevalence data, number of leave days, and potential upcomingchanges.

The report also includes information on each country’s statutoryleave requirements as mandated by law, thereby ensuring thatreaders have a complete sense of the vacation and other leavelandscape for all markets in the publication. The report includesthe following sections:

SUMMARY OF KEY FINDINGS

This section provides an overview of global survey results andtrends. Offering an executive summary-type synopsis, thesection is optimal for anyone looking for regional variationsin policies, global vacation policy trends, and other notabletakeaways from the data collected in Mercer’s global survey.

Each regional section provides critical information for thoselooking to learn more about specific countries or markets.The regional sections contain country pages with an overviewof statutory requirements for that market, as well as nationalsurvey results for each type of leave policy.

Individual country pages include: Statutory Requirements

► Annual Leave Policies

► Unlimited Leave Days

► Vacation Days

► Personal Days

► Sick Leave

► Holidays

► Other Leave Policies

REGIONAL RESULTS

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© 2017 MERCER LLC. 8VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

INTRODUCTION

ABOUT THIS REPORT

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

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

► Glossary provides definitions for many of the terms usedthroughout this report, including the career levels reportedfor some questions.

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N=40

COUNTRY

ARE EMPLOYEES ALLOWED TO CARRY OVER UNUSED ANNUAL LEAVE DAYS FROM ONE YEAR TO THE NEXT?

WHICH TYPES OF ANNUAL LEAVE DAYS MAY BE CARRIED OVER?

CARRYING OVER ANNUAL LEAVE DAYS

WHAT TYPE OF ANNUAL LEAVE POLICY DO COMPANIES HAVE?

N=60

GLOBAL REGIONAL LOCAL

LOCAL, BUT PARENT ORGANIZATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY

YES NO

ANNUAL LEAVE POLICIES

25% 25% 25% 25%

50%50%

N=50

N=50

N=40

VACATION DAYS

PERSONAL DAYS

SICK DAYS

50%

50%

50%

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

© 2017 MERCER LLC. 9VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

INTRODUCTION

READING THIS REPORTThe following pages include tips and guidelines to help navigate the report content.

The first few pages of each country provide information on statutory leave requirements. The remaining pages provide market data on annual leave and other leave policies.

This figure indicates the percentage of companies with a global leave policy.

Some questions allowed more than one response; this is noted below applicable graphics.

The content to the right of this graphic provides some additional detail from companies that indicated "Yes" for this question.

SAMPLE DATA

SAMPLE

VACATION DAYS PERSONAL DAYS SICK DAYS

END OF JANUARY 0% 0% 0%

END OF FEBRUARY 0% 0% 0%

END OF MARCH 0% 0% 0%

END OF APRIL 10% 10% 10%

END OF MAY 10% 10% 10%

END OF JUNE 10% 10% 10%

END OF JULY 10% 10% 10%

END OF AUGUST 10% 10% 10%

END OF SEPTEMBER 10% 10% 10%

END OF OCTOBER 10% 10% 10%

END OF NOVEMBER 10% 10% 10%

END OF DECEMBER 10% 10% 10%

NO TIME LIMIT 10% 10% 10%

N= 33 33 33

50%

50%

50%

WHAT IS THE CUTOFF DATE FOR USING DAYS CARRIED OVER FROM THE PREVIOUS YEAR?

WHAT IS THE MAXIMUM NUMBER OF DAYS (E.G., 15 DAYS) THAT MAY BE CARRIED OVER ANNUALLY?

IS THERE A MAXIMUM LIMIT ON THE NUMBER OF DAYS THAT MAY BE CARRIED OVER?

VACATION DAYSN=44

PERSONAL DAYSN=–

SICK DAYSN=–

10 N=–SICK DAYS

Note: Percentage represents the companies thatindicated "Yes."

Note: Number of days is an average.

© 2017 MERCER LLC. 10VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

COUNTRY

INTRODUCTION

10 N=16VACATION DAYS 10 N=–

PERSONAL DAYS

Vacation days are shaded blue, personal days are shaded pink, and sick days are shaded green.

This is the average number of vacation days that may be carried over from one year to the next.

A dash indicates insufficient data to report a statistic. This is often because a type of leave or policy is not common in a country.

This number indicates the percentage of companies that have a maximum number of vacation days that may be carried over each year.

SAMPLE DATA

SAMPLE

N=40

YES NO

DO COMPANIES PROVIDE PAID VACATION LEAVE TO EMPLOYEES?

VACATION DAYS

COUNTRY

DO COMPANIES RECOGNIZE PRIOR SERVICE WITH OTHER ORGANIZATIONS WHEN DETERMINING VACATION ENTITLEMENT FOR NEW HIRES?

N=40

YES, FOR THE MAJORITY OF NEW HIRES

YES, ON A CASE-BY-CASE BASIS

YES, FOR SENIOR POSITIONS ONLY

NO

POLICY DOES NOT ADDRESS

20%

20%

20%

20%

20%

DO COMPANIES PROVIDE LEAVE IN ADVANCE OF ACCRUING VACATION?

N=40

YES, FOR THE MAJORITY OFEMPLOYEES

YES, FOR SENIOR POSITIONS ONLY

NOYES, ON A CASE-BY-CASE

BASIS

POLICY DOES NOT ADDRESS

20% 20% 20% 20% 20%

50%50%

© 2017 MERCER LLC. 11VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

INTRODUCTION

SAMPLE DATA

Each country includes several pages that provide details specific to vacation days. The shaded bar, along

with the percentage, indicate the portion of companies that selected each answer.

The N= denotes the sample size, or number of companies that responded to the question. Not all questions applied to all participants, so this number varies throughout.

This legend indicates what the colors in the graph mean.

SAMPLE

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

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.

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

COUNTRY

© 2017 MERCER LLC. 12VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

INTRODUCTION

SAMPLE DATA

The statistic reported may be noted below the table; in this instance, the average accrual rate is provided.

N= indicates the sample size for each column of data. This number may be different for each individual category.

This table provides the average number of vacation days for the years of service and career level.

SAMPLE

N=40

YES NO

DO COMPANIES PROVIDE PERSONAL LEAVE (PAID OR UNPAID) TO EMPLOYEES?

PERSONAL DAYS HOW MANY PERSONAL DAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

PAID LEAVE DAYS 11 12

UNPAID LEAVE DAYS 11 12

COUNTRY

INTRODUCTION

50%50%

© 2017 MERCER LLC. 13VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

Content related to personal days is shaded in pink.

This column provides the average number of days, and the column to the right provides the sample size.

Personal leave may be provided as paid or unpaid leave. This table indicates the average number of paid or unpaid days provided to employees.

The number of companies that provide paid and unpaid leave varies. SAMPLE DATA

SAMPLE

N=61

YES NO

DO COMPANIES PROVIDE SICK LEAVE (PAID OR UNPAID) TO EMPLOYEES?

SICK LEAVE

HOW MANY SICK DAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

FULLY PAID LEAVE DAYS 27 3

PARTIALLY PAID LEAVE DAYS 27 3

UNPAID LEAVE DAYS 27 3

DO COMPANIES REQUIRE EMPLOYEES TO PRODUCE A MEDICAL CERTIFICATE WHEN USING THEIR SICK LEAVE ENTITLEMENT?

N=40

Note: Number of days is an average.

YES, IT IS REQUIRED FOR ALL SICK LEAVE

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

NO

AFTER HOW MANY SICK DAYS IS A MEDICAL CERTIFICATE REQUIRED?

N=40

DAYS10

30%

30%

30%50%50%

© 2017 MERCER LLC. 14VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

COUNTRY

INTRODUCTION

SAMPLE DATA

Content related to sick days is shaded in green.

The statistic reported may be noted below the graphic; in this instance, the average number of sick days is provided.

This column provides the average number of days and the column to the right provides the sample size.

A dash indicates insufficient data to report a statistic. This is often because a type of leave or policy is not common in a country.

SAMPLE

YES, FOR ALL PAID LEAVE

DAYS

NOYES, FOR ALL PAID AND UNPAID

LEAVE DAYS

OTHER

N=40

© 2017 MERCER LLC. 15VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

DO COMPANIES PROVIDE "FLOATING" HOLIDAYS (PAID OR UNPAID) TO EMPLOYEES?

HOW MANY FLOATING HOLIDAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

PAID LEAVE DAYS 15 26

UNPAID LEAVE DAYS 15 26

N=40

YES NO50% 50%

COUNTRY

INTRODUCTION

DO COMPANIES PROVIDE "FIXED" HOLIDAYS (PAID OR UNPAID) TO EMPLOYEES?

HOLIDAYS

N=40

YES NO

HOW MANY FIXED HOLIDAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

PAID LEAVE DAYS 15 26

UNPAID LEAVE DAYS 15 26

ARE COMPANIES CLOSED FOR BUSINESS ON ALL FIXED HOLIDAYS?

25% 25% 25% 25%

Content related to holidays is shaded in yellow.

This page is divided into two different types of holidays — fixed and floating holidays.

"Fixed" holidays are sometimes referred to as public, federal or statutory holidays.

"Floating" holidays may be used to ensure employees all receive the same number of holidays; for example, when one province or state provides a larger number of fixed holidays.

50%50%

SAMPLE DATA

SAMPLE

N=40

YES NO

50%50%

© 2017 MERCER LLC. 16VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

COUNTRY

INTRODUCTION

OTHER LEAVE POLICIES

DO COMPANIES PROVIDE BEREAVEMENT LEAVE (PAID OR UNPAID) TO EMPLOYEES WHO EXPERIENCE THE DEATH OF A FAMILY MEMBER OR CLOSE FRIEND?

WHICH OF THE FOLLOWING FAMILY MEMBERS ARE INCLUDED IN THE BEREAVEMENT POLICY?

BEREAVEMENT LEAVE

N=40

OPPOSITE-SEX SPOUSE

PARENT

OPPOSITE-SEX DOMESTIC PARTNER

PARENT-IN-LAW

SAME-SEX DOMESTIC PARTNER

GRANDPARENT

CHILD

OTHER CLOSE FAMILY MEMBER OR FRIEND

SAME-SEX SPOUSE

SIBLINGS

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

33%

33%

33%

33%

33%

33%

33%

33%

33%

33%

Content related to other leave policies is shaded in purple.

Bereavement is just one of the leaves covered in this section. You will also find information on marriage leave, volunteer leave, study/exam leave, and sabbaticals.

This graph indicates if an employee would be provided with bereavement leave in the event of the death of each listed family member.

SAMPLE DATA

SAMPLE

© 2017 MERCER LLC. 17VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

COUNTRY NAME

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 thecalendar 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.SAMPLE

© 2017 MERCER LLC. 18VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

COUNTRY NAME

MANDATORY PUBLIC HOLIDAYS ENTITLEMENT

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

SAMPLE

© 2017 MERCER LLC. 19VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

SICK LEAVE

Social security pays 60% of salary after the third day the condition exists, up to 52 weeks for general sickness. Some companiessupplement social security benefits and pay 100% of salary during the first three days’ absence and supplement to 80% of salaryafter 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 askfor a half-day leave during the following month.

COUNTRY NAME

SAMPLE

N=40

N=50

N=50

N=50

VACATION DAYS

PERSONAL DAYS

SICK DAYS

50%

50%

50%

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

© 2017 MERCER LLC. 20VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

ARE EMPLOYEES ALLOWED TO CARRY OVER UNUSED ANNUAL LEAVE DAYS FROM ONE YEAR TO THE NEXT?

WHICH TYPES OF ANNUAL LEAVE DAYS MAY BE CARRIED OVER?

CARRYING OVER ANNUAL LEAVE DAYS

WHAT TYPE OF ANNUAL LEAVE POLICY DO COMPANIES HAVE?

N=100

GLOBAL REGIONAL LOCAL

LOCAL, BUT PARENT ORGANIZATION CONTROLS SOME MAJOR ASPECTS OF THE POLICY

YES NO

ANNUAL LEAVE POLICIES

25% 25% 25% 25%

COUNTRY NAME

SAMPLE

VACATION DAYS PERSONAL DAYS SICK DAYS

END OF JANUARY 0% 0% 0%

END OF FEBRUARY 0% 0% 0%

END OF MARCH 0% 0% 0%

END OF APRIL 10% 10% 10%

END OF MAY 10% 10% 10%

END OF JUNE 10% 10% 10%

END OF JULY 10% 10% 10%

END OF AUGUST 10% 10% 10%

END OF SEPTEMBER 10% 10% 10%

END OF OCTOBER 10% 10% 10%

END OF NOVEMBER 10% 10% 10%

END OF DECEMBER 10% 10% 10%

NO TIME LIMIT 10% 10% 10%

N= 33 33 33

50%

50%

50%

© 2017 MERCER LLC. 21VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

WHAT IS THE CUTOFF DATE FOR USING DAYS CARRIED OVER FROM THE PREVIOUS YEAR?

WHAT IS THE MAXIMUM NUMBER OF DAYS (E.G., 15 DAYS) THAT MAY BE CARRIED OVER ANNUALLY?

IS THERE A MAXIMUM LIMIT ON THE NUMBER OF DAYS THAT MAY BE CARRIED OVER?

VACATION DAYSN=50

PERSONAL DAYSN=50

SICK DAYSN=50

10 10N=50VACATION DAYS

N=50PERSONAL DAYS

10 N=50SICK DAYS

Note: Percentage represents the companies thatindicated "Yes."

Note: Number of days is an average.

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 22VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

N=40

YES NO

20%40% N=50VACATION DAYS

N=50PERSONAL DAYS

40% N=50SICK DAYS

N=50

N=50

N=50

VACATION DAYS

PERSONAL DAYS

SICK DAYS

100%

20%

0%

50%50%

ARE EMPLOYEES ALLOWED TO CASH OUT UNUSED ANNUAL LEAVE DAYS (OTHER THAN UPON TERMINATION OF CONTRACT)?

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

WHICH TYPES OF ANNUAL LEAVE DAYS MAY BE CASHED OUT?

CASHING OUT UNUSED LEAVE DAYS

WHAT IS THE MAXIMUM NUMBER OF DAYS (E.G., 15 DAYS) THAT MAY BE CASHED OUT ANNUALLY?

Note: Percentage represents the companies that indicated "Yes."

N=20 N=10 N=5VACATION DAYS PERSONAL DAYS SICK DAYS

10 10 10

Note: Number of days is an average.

COUNTRY NAME

SAMPLE

30% 30% 30% 30%

© 2017 MERCER LLC. 23VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

TRACKING ANNUAL LEAVE

HOW DO COMPANIES MANAGE OR MONITOR ANNUAL LEAVE?

WHICH TYPES OF ANNUAL LEAVE DO COMPANIES TRACK?

N=50

N=60

GLOBAL ABSENCE MANAGEMENT SYSTEM 25%

EXCEL OR OTHER SPREADSHEET 25%

LOCAL FINANCE SYSTEM 25%

LOCAL IN-COUNTRY ABSENCE MANAGEMENT SYSTEM

GLOBAL FINANCE SYSTEM

OTHER

VACATION DAYS PERSONAL DAYS SICK DAYS DO NOT TRACK

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

25%

25%

25%

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 24VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

IN WHAT TIME-INCREMENTS ARE THESE LEAVE TYPES TRACKED?

VACATION DAYS PERSONAL DAYS

FULL DAY FULL DAYHALF DAY HALF DAYHOUR HOUR30 MINUTEINCREMENTS

30 MINUTEINCREMENTS

15 MINUTEINCREMENTS

15 MINUTEINCREMENTS

N=40 N=40

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

SICK DAYS

FULL DAY HALF DAY HOUR 30 MINUTEINCREMENTS

15 MINUTEINCREMENTS

N=40

20% 20% 20% 20% 20%

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 25VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

YES YES, BUT WE HAVESINCE DISCONTINUED THE POLICY

NONO, BUT WE ARE CONSIDERING THIS TYPE OF POLICY

N=40

HAVE COMPANIES IMPLEMENTED AN “UNLIMITED DAYS” PAID ANNUAL LEAVE POLICY?

UNLIMITED LEAVE DAYS

25%

25%

25%

25%N=40

N=40

EXTREMELY SUCCESSFUL; MOST EMPLOYEESUSE THEIR LEAVE CAUTIOUSLY

MODERATELY SUCCESSFUL; SOME EMPLOYEES USE EXCESSIVE AMOUNTS OF LEAVE

NOT SUCCESSFUL; MOST EMPLOYEES USE EXCESSIVE AMOUNTS OF LEAVE

HOW SUCCESSFUL ARE “UNLIMITED DAYS” PAID ANNUAL LEAVE POLICIES?

WHICH TYPES OF LEAVE ARE INCLUDED IN THE “UNLIMITED DAYS” PAID ANNUAL LEAVE POLICY?

50% 50%50%

VACATION DAYS PERSONAL DAYS SICK DAYS

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

N=40

DO COMPANIES PLAN TO DISCONTINUE “UNLIMITED DAYS” PAID ANNUAL LEAVE POLICIES?

YES NO UNSURE, WE ARE CURRENTLY

EVALUATING

33% 33% 33%

50%

50%

50%

COUNTRY NAME

SAMPLE

N=42

YES NO

50%50%

© 2017 MERCER LLC. 26VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

DO COMPANIES PROVIDE PAID VACATION LEAVE TO EMPLOYEES?

DO COMPANIES PROVIDE LEAVE IN ADVANCE OF ACCRUING VACATION?

VACATION DAYS DO COMPANIES RECOGNIZE PRIOR SERVICE WITH OTHER ORGANIZATIONS WHEN DETERMINING VACATION ENTITLEMENT FOR NEW HIRES?

N=41

YES, FOR THE MAJORITY OF NEW HIRES

YES, ON A CASE-BY-CASE BASIS

YES, FOR SENIOR POSITIONS ONLY

NO

POLICY DOES NOT ADDRESS

N=40

YES, FOR THE MAJORITY OFEMPLOYEES

YES, FOR SENIOR POSITIONS ONLY

NOYES, ON A CASE-BY-CASE

BASIS

POLICY DOES NOT ADDRESS

20%

20%

20%

20%

20%

20% 20% 20% 20% 20%

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 27VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

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

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.

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

COUNTRY NAME

SAMPLE

N=40

50%50%

YES NO

© 2017 MERCER LLC. 28VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

DO COMPANIES PROVIDE PERSONAL LEAVE (PAID OR UNPAID) TO EMPLOYEES?

PERSONAL DAYS HOW MANY PERSONAL DAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

PAID LEAVE DAYS 11 12

UNPAID LEAVE DAYS 11 12

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 29VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

N=40

50%50%

YES NO

DO COMPANIES PROVIDE SICK LEAVE (PAID OR UNPAID) TO EMPLOYEES?

SICK LEAVE

HOW MANY SICK DAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

FULLY PAID LEAVE DAYS 27 3

PARTIALLY PAID LEAVE DAYS 27 3

UNPAID LEAVE DAYS 27 3

DO COMPANIES REQUIRE EMPLOYEES TO PRODUCE A MEDICAL CERTIFICATE WHEN USING THEIR SICK LEAVE ENTITLEMENT?

N=40

Note: Number of days is an average.

YES, IT IS REQUIRED FOR ALL SICK LEAVE

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

NO

AFTER HOW MANY SICK DAYS IS A MEDICAL CERTIFICATE REQUIRED?

N=20

DAYS10

30%

30%

30%

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 30VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

YES, FOR ALL PAID LEAVE

DAYS

NOYES, FOR ALL PAID AND UNPAID

LEAVE DAYS

OTHER

N=40

DO COMPANIES PROVIDE "FIXED" HOLIDAYS (PAID OR UNPAID) TO EMPLOYEES?

DO COMPANIES PROVIDE "FLOATING" HOLIDAYS (PAID OR UNPAID) TO EMPLOYEES?

HOW MANY FLOATING HOLIDAYS ARE PROVIDED ANNUALLY?

HOLIDAYS

N=40

YES NO

HOW MANY FIXED HOLIDAYS ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

PAID LEAVE DAYS 15 26

UNPAID LEAVE DAYS 15 26

AVERAGE NUMBER OF DAYS N=

PAID LEAVE DAYS 15 26

UNPAID LEAVE DAYS 15 26

ARE COMPANIES CLOSED FOR BUSINESS ON ALL FIXED HOLIDAYS?

N=40

YES NO50% 50%

25% 25% 25% 25%

50%50%

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 31VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

N=40

50%50%

YES NO

OTHER LEAVE POLICIES

DO COMPANIES PROVIDE BEREAVEMENT LEAVE (PAID OR UNPAID) TO EMPLOYEES WHO EXPERIENCE THE DEATH OF A FAMILY MEMBER OR CLOSE FRIEND?

WHICH OF THE FOLLOWING FAMILY MEMBERS ARE INCLUDED IN THE BEREAVEMENT POLICY?

BEREAVEMENT LEAVE

N=40

OPPOSITE-SEX SPOUSE

PARENT

OPPOSITE-SEX DOMESTIC PARTNER

PARENT-IN-LAW

SAME-SEX DOMESTIC PARTNER

GRANDPARENT

CHILD

OTHER CLOSE FAMILY MEMBER OR FRIEND

SAME-SEX SPOUSE

SIBLINGS

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

33%

33%

33%

33%

33%

33%

33%

33%

33%

33%

COUNTRY NAME

SAMPLE

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

© 2017 MERCER LLC. 32VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

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

NUMBER OF FULLY PAID LEAVE

DAYSN=

NUMBER OF PARTIALLY PAID

LEAVE DAYSN=

NUMBER OF UNPAID LEAVE

DAYSN=

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

COUNTRY NAME

SAMPLE

N=40

YES NO

50%50%

© 2017 MERCER LLC. 33VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

DO COMPANIES PROVIDE LEAVE (PAID OR UNPAID) IN THE EVENT OF AN EMPLOYEE’S MARRIAGE?

HOW MANY LEAVE DAYS ARE PROVIDED TO AN EMPLOYEE IN THE EVENT OF THEIR MARRIAGE?

MARRIAGE LEAVE

AVERAGE NUMBER OF DAYS N=

FULLY PAID LEAVE DAYS 4 30

PARTIALLY PAID LEAVE DAYS 4 30

UNPAID LEAVE DAYS 4 30

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

N=40

YES NO50% 50%

COUNTRY NAME

SAMPLE

N=40

YES NO

50%50%

© 2017 MERCER LLC. 34VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

VOLUNTEER LEAVE

DO COMPANIES PROVIDE LEAVE (PAID OR UNPAID) FOR EMPLOYEES TO PERFORM VOLUNTEER OR COMMUNITY SERVICE WORK?

HOW MANY DAYS OF VOLUNTEER LEAVE ARE PROVIDED ANNUALLY?

AVERAGE NUMBER OF DAYS N=

FULLY PAID LEAVE DAYS 4 30

PARTIALLY PAID LEAVE DAYS 4 30

UNPAID LEAVE DAYS 4 30

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 35VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

STUDY OR EXAM LEAVE

DO COMPANIES PROVIDE STUDY OR EXAM LEAVE (PAID OR UNPAID)?

HOW MANY STUDY LEAVE DAYS ARE PROVIDED ANNUALLY?

COMPANY SPONSORED COURSES

NONCOMPANY SPONSORED COURSES

AVERAGE NUMBER OF DAYS N=

FULLY PAID LEAVE DAYS 5 10

PARTIALLY PAID LEAVE DAYS 5 10

UNPAID LEAVE DAYS 5 10

AVERAGE NUMBER OF DAYS N=

FULLY PAID LEAVE DAYS 3 2

PARTIALLY PAID LEAVE DAYS 3 2

UNPAID LEAVE DAYS 3 2

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

N=40 N=40

COMPANY SPONSORED COURSES

YES, ALL EXAM DAYS ARE PAID

YES, A MAXIMUM NUMBER OF PAID EXAM DAYS ARE

PROVIDED ANNUALLY

NO YES, ALL EXAM DAYS ARE PAID

YES, A MAXIMUM NUMBER OF PAID EXAM DAYS ARE

PROVIDED ANNUALLY

NO

NONCOMPANY SPONSORED COURSES

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

YES, FOR COMPANY SPONSORED COURSES

YES, FOR NONCOMPANY SPONSORED COURSES

N=40

NO

YES, FOR BOTH COMPANY AND NONCOMPANYSPONSORED COURSES

25%

25%

25%

25%

COUNTRY NAME

SAMPLE

© 2017 MERCER LLC. 36VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

SABBATICALS

N=40

YES NO

DO COMPANIES PROVIDE EMPLOYEES WITH THE OPTION TO TAKE A CAREER BREAK OR SABBATICAL LEAVE (PAID OR UNPAID)?

WHAT IS THE MAXIMUM NUMBER OF MONTHS AN EMPLOYEE MAY TAKE AS A CAREER BREAK OR SABBATICAL?

WHAT IS THE MINIMUM LENGTH OF SERVICE REQUIRED BEFORE AN EMPLOYEE IS ELIGIBLE TO TAKE A CAREER BREAK OR SABBATICAL?

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

N=30

Note: Number of months is an average.

MINIMUM NUMBER OF SERVICE MONTHS

50% 50%

20

N=40

YES NO

AVERAGE NUMBER OF MAXIMUM MONTHS N=

FULLY PAID LEAVE MONTHS 5 4

PARTIALLY PAID LEAVE MONTHS 5 4

UNPAID LEAVE MONTHS 5 4

50%50%

COUNTRY NAME

SAMPLE

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HIS

REP

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SAMPLE

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© 2017 MERCER LLC.

ABOUT THIS REPORTThis section provides information on the methods of collecting, collating, and analyzing data for this publication. Below are notes on exceptions and exclusions in the data and a list of data sources, and relevant equations. Readers will also find a glossary of key terms.

METHODOLOGYSTATISTICSThe following statistics are presented in this report:

► Mean or Average: The sum of all data reported divided by the number of data observations in the sample.

► Prevalence: The percentage of companies that provided a response to a question with a defined number of options to choose from. For example, a single response question or a check box (select all that apply) style question.

► In single response questions, the sum of all responses may not equal 100% due to rounding.

► In check box response questions, the sum of all responses will be greater than 100%.

► N or Sample Size: The number of companies that reported data for the statistic.

► Endash or “–”: The sample is too small to provide the statistic.

DATA MASKINGTo ensure the confidentiality of all companies that provide data to Mercer’s surveys, statistics have been “masked” by displaying an endash or “–” when minimum sample sizes are not met.

► A minimum of three data points are required to report the average and prevalence percentages.

3838VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD SAMPLE

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© 2017 MERCER LLC.

ABOUT THIS REPORT

DATA SOURCES

WORLDWIDE BENEFIT & EMPLOYMENT GUIDELINESThe Statutory Requirements are sourced from Mercer’s 2017 Worldwide Benefits & Employment Guidelines (WBEG). In some instances, the statutory requirement information is presented in calendar or consecutive days. This information is for guidance purposes only.

VACATION AND OTHER LEAVE POLICIES SURVEY DATAData were collected through a new global survey on Vacation and Other Leave conducted during June and July 2017. More than 2,000 survey submissions were received for 48 countries (including two China markets).

► Participants completed questions that were applicable to their policies; therefore, sample sizes vary by question.

► Keep sample size in mind when making decisions; a small sample size may not be a true reflection of the market.

► Extreme data outliers for accrual rates, number of leave days, or number of leave months were removed.

3939VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD SAMPLE

GLO

SSAR

Y

ABOUT THIS REPORT

SABBATICALSAn extended period of leave (usually several months or more) that is provided to an employee who wishes to take a career break (or other reason).

SICK DAYSSick days are provided for an employee to use when they are unwell. For the purpose of this survey, short-term disability is not considered a part of sick leave.

STUDY OR EXAM LEAVELeave that is provided to an employee who is studying or preparing to sit an exam, either as part of a company-sponsored program or noncompany sponsored program.

VACATION DAYSLeave that is provided for employees to use for the purposes of a vacation or holiday. Most countries have minimum statutory requirements for companies to provide their employees with a certain number of paid vacation leave days each year.

VOLUNTEER LEAVEThis leave is provided to an employee who wishes to volunteer with a local charity or volunteer program.

BEREAVEMENT LEAVEThis leave type is provided to an employee who suffers the loss of a family member or close friend. The number of days provided is generally based on the type of family member and there are typically no restrictions on the number of days provided per year (but rather the number of days per death/family member).

HOLIDAYS A “fixed” holiday refers to a holiday that falls on a specific day for which many businesses close (e.g., Christmas day). In most countries, there is a statutory requirement to provide leave on these dates.

A “floating” holiday may be used at any time of the year and is not tied to a specific date or an office closure.

MARRIAGE LEAVEThese additional leave days are provided to an employee at the time of their marriage.

PAID TIME-OFF POOLA paid time-off (PTO) pool includes two or more types of leave days, such as vacation and sick days. An employee is provided with a pool of days to manage throughout the year; these days may be used for any number of reasons.

PERSONAL DAYSPersonal days are available for employees to use as needed and may not require prior approval when they are used. They are frequently provided to allow an employee to handle unforeseen personal issues.

TYPES OF LEAVE

© 2016 Mercer LLC. 4040© 2017 MERCER LLC. VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD SAMPLE

GLO

SSAR

Y

ABOUT THIS REPORT

EXECUTIVE These senior-most employees in the organization generally include top executives and directors within the organization, or employees with managerial responsibilities at the top level of a business unit or organization. Executives focus on providing strategic vision and/or tactical/strategic direction across multiple functions or sub-functions. May also be referred to as Senior Executive or Function Head, or in the case of a sales executive Head of Sales/Marketing.

MANAGEMENT These employees with important supervisory and managerial responsibilities are usually the higher levels within a business unit or organization. Management-level employees focus on managing people and implementing policies and strategies to meet the organization’s objectives. They typically report to senior managers and (other than sales) functional managers including finance, human resources, information technology.

PROFESSIONAL Typically refers to jobs requiring a professional or technical qualification. They are individual contributors without supervisory responsibility, but may provide coaching/mentoring to less-experienced staff. They typically hold a university degree or full-trade equivalent.

EMPLOYEE CAREER LEVELSPARA-PROFESSIONAL Typically includes roles that are semi-skilled or unskilled with nosupervisory or management responsibility. They do not requirea university degree, but may require formal professional trainingand certification, and may be paid on an hourly or a salariedbasis.

© 2016 Mercer LLC. 4141© 2017 MERCER LLC. VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD SAMPLE

© 2017 MERCER LLC. 42VACATION AND OTHER LEAVE POLICIES AROUND THE WORLD

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.

Mercer LLC and its separately incorporated operating entities around the world are part of Marsh & McLennan Companies, a publicly held company (ticker symbol: MMC) listed on the New York, Chicago, and London stock exchanges.

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Copyright 2017 Mercer LLC. All rights reserved. 17-VAOL-SAMPLE

For further information, please contact your local Mercer office or visit our website at www.imercer.com

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