New Zealand holiday leave highest in the region

Kicking back: New Zealand holiday leave highest in the region

New Zealand ranks 8th globally in statutory employee holiday entitlements
Employees in Asia fare poorly compared with the rest of the world
Workers in the UK and Poland have most generous statutory employee holiday entitlements
Employees in the USA, Canada, Philippines, China and Thailand have the least generous

15 December 2011

Employees in New Zealand are offered among the highest levels of statutory holiday entitlement (20 days) in Asia Pacific, but rank below the majority of Western Europe according to research by Mercer.

Western European employees, on average, have access to the greatest amount of statutory paid holiday in the world, in contrast to employees in the Asia Pacific region, which has the lowest levels. Japan, Australia and New Zealand offer 20 days of statutory holiday entitlement. This compared to Hong Kong, Singapore, Vietnam and Pakistan which provides 14 days followed by India and Indonesia (both 12) and China (10), Thailand (6) and the Philippines (5) offer the region’s lowest holiday entitlement.

The data comes from Mercer’s Worldwide Benefit and Employment Guidelines (http://www.imercer.com/wbeg) which provides an overview of employee regulation and employment practices across 62 different countries. Companies rely on this report to ensure compliance with statutory regulations and to define their employee benefit policies across the countries in which they operate.

According to Georgina Harley, Leader of Mercer’s Information Product Solutions business, holiday entitlements are an important and often undervalued part of a broader rewards strategy.

“With pay rises muted and often below the rate of inflation, companies are searching for other ways to motivate their staff. Flexible working and a good work/life balance helps improve employee engagement when the usual financial tools are unavailable. Companies recognise that a healthy, happy workforce is a productive one and this feeds directly to the bottom line,” Ms Harley said.

New Zealand employees have the potential to take 20 days statutory holiday entitlement and 11 days public holiday (31 days in total).

“Employers benefit from a healthier workforce, with higher levels of productivity and lower annual leave liabilities. However they need to ensure their employees regularly take holiday leave,” Ms Harley said.

Looking globally, Austrian employees have plenty of holiday leave to play with: they receive 25 days statutory holiday entitlement and 13 days public holidays each year, while workers in Malta enjoy 24 days statutory holiday entitlement and 14 days public holiday each year. In both countries employees have the potential for 38 days holiday a year. The Philippines and Canada have the lowest possible entitlements with 20 and 19 days, respectively. Employees in Columbia have the greatest number of public holidays (18 days) while those in Mexico (7) have the least.

In addition to annual leave and public holidays, employers in some nations are required by law to give special leave for getting married, or for other circumstances such as the death of a spouse or close relative, for example. Even when there is no requirement, many larger employers provide additional leave for special circumstances.

“A break from the daily routine is essential in maintaining employee wellbeing,” said Ms Harley. “It’s important to create a culture of health in the workplace so employees take the message home with them and look after their health outside work as well.”

Asia Pacific
India, Thailand and Malaysia all make provision for the most public holidays in the region with 16 days followed by Japan, South Korea and the Philippines all with 15 days. Indonesia provides 14, Taiwan 13 and Hong Kong 12. Singapore, Pakistan, China and New Zealand all provide 11 with employees in Australia provided 10 and Vietnam entitled to 9.

Western Europe
UK employees receive the most generous statutory holiday entitlements in Western Europe (28 days) followed closely by Greece, Austria, France, Sweden, Luxembourg, Finland and Denmark (all 25 days). Employees are slightly worse off in Malta (24), Spain and Portugal (both 22) and Norway (21). In Italy, Belgium, Germany, Cyprus, Ireland, Switzerland and the Netherlands employees are entitled to 20 days statutory holidays. Cyprus offers the highest number of public holidays (15) followed by Malta and Spain (both 14) and Austria and Portugal (both 13). The UK and the Netherlands have the lowest number of public holidays in Europe (8).

Central and Eastern Europe
Poland (26 days) offers employees the most generous holiday entitlements in Eastern Europe, followed by Hungary (23). Latvia, Russia, Slovenia, Serbia, Slovakia, Lithuania, Croatia, the Czech Republic and Romania all offer 20 days statutory holiday. The Ukraine offers 18 days and Turkey has the region’s lowest entitlements at 17 days. Across the region there are more public holidays on offer compared to Western European countries. Slovakia offers the highest number of public holidays (15) with Serbia offering the least (8).

Middle East and Africa
The United Arab Emirates (UAE) with 22 days make provision for the greatest amount of statutory holidays in the region, followed by Morocco (18), Lebanon (15) and South Africa (15). The Lebanon offers the highest number of public holidays (16) followed by Morocco (14), South Africa (12) and the UAE (9).

North and Latin America
The two North American states, Canada and the United States are amongst the least generous nations when it comes to statutory holidays. US Federal law does not mandate pay for time not worked and holiday policies vary widely. Many organisations in the US provide three weeks of vacation after five to ten years of service and unionised employees generally have vacation time specified under collective agreements. In Canada, mandatory vacation entitlements vary between provinces and companies typically supplement statutory requirements and some organisations provide up to six weeks’ vacation after 20 or 25 years of service. The story is markedly different in Latin America. Employees in Venezuela receive 24 days holiday followed by Brazil and Peru (both 22), Argentina (20) and Mexico (16) with Colombia and Chile both offering employees the region’s least generous entitlement of 15 days. However, employees in Colombia also receive the regions most generous public holiday allowance of 18 days a year, followed by Chile (14), Argentina (12), Peru (12) and Venezuela (12). Canada and Ecuador have amongst the continent’s least generous public holiday allowance (9), with Mexico coming at the bottom with 7 days.

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