As we approach year-end, you may notice variations in future payroll amounts compared to previous months. This is normal during December and January and is usually related to statutory entitlements and employer obligations mandated by local labor laws.
The most common items affecting December payroll are:
Year-End Bonus (e.g., 13th Payment, Christmas Bonus)
Additional statutory holiday/seasonal payments
Savings/Provident Fund contributions or transfers, when applicable
Annual taxes or contributions recalculated at year-end
These components vary by country and may increase the total employer cost for the month, even if employee salaries remain unchanged.
How These Costs Are Displayed
All statutory year-end payments will appear in your invoice, clearly labeled with the corresponding benefit or legal requirement.
You’ll see these items under Employer Costs, with descriptions such as:
- “Employer Costs”
- “13th Payment”
- “Year-End Bonus / Aguinaldo”
- “Statutory Holiday Payment”
- “Savings Fund Contribution”
These are not additional service fees; they are standard legal obligations associated with employee compensation.
Do I Need to Approve Something?
If any non-statutory or discretionary item requires extra confirmation, you will be notified through the platform when payroll is ready for your review and approval. Otherwise, no separate approval is required for these components, since they are mandated by law, and you review payroll as usual.
What to Expect in January 2026: Employer Cost Adjustments
We’ve now received initial confirmations from our local teams regarding employer cost updates effective January 2026.
Where confirmed, these updates reflect final statutory changes to employer social security contributions, thresholds, or mandatory benefits.
| Country | Statutory Change Details |
| 🇦🇷 Argentina | ART insurance has increased by 0.7%, and employer social security contributions have increased by 9.9%. |
| 🇦🇹 Austria | The social security contribution ceiling has increased from EUR 6,450 to EUR 6,930. |
| 🇦🇿 Azerbaijan | Social insurance contributions have been reduced by 4% for salaries exceeding AZN 8,000. |
| 🇧🇪 Belgium | Employer social contributions have been reduced by 0.45%. |
| 🇨🇱 Chile | The statutory gratuity cap has increased to CLP 213,354. |
| 🇨🇳 China (Shenzhen) | Public healthcare contributions have increased by 1% for employees based in Shenzhen. |
| 🇨🇴 Colombia | Employees earning below 2x the minimum wage are eligible for a transport/internet allowance (COP 249,095 per month for 2026) and a workwear allowance (USD 20 per month). These benefits apply only to eligible employees. |
| 🇨🇷 Costa Rica | Employer social security contributions have increased by 0.3%. |
| 🇨🇾 Cyprus | The maximum insurable income has increased by EUR 191 per month, as confirmed by Social Insurance Services. |
| 🇪🇬 Egypt | The social insurance wage base has increased by 15%, with updated contribution caps ranging from EGP 2,700 (minimum) to EGP 16,700 (maximum). |
| 🇫🇮 Finland | Overall employer contributions have decreased by 0.127%, reflecting the following changes: Social Security +0.04%, Employer Pension –0.28%, Employer Unemployment Insurance +0.11%, and Workers’ Compensation +0.003%. |
| 🇫🇷 France | Employer social contributions have increased by 0.3%. |
| 🇩🇪 Germany | Contribution caps have increased as follows: +EUR 300 for employer social security, +EUR 400 for employer pension, +EUR 400 for employer unemployment insurance, and +EUR 400 for sickness pay reimbursement (Entgeltfortzahlung). |
| 🇮🇪 Ireland | Employer costs are expected to increase by approximately 1.5%–2% due to statutory contribution changes and the introduction of mandatory employer pension contributions. |
| 🇮🇱 Israel | The travel allowance has increased to 315 NIS. The pension cap is 13,769 NIS, and the social security cap ranges from 7,703 NIS (minimum) to 51,910 NIS (maximum). |
| 🇱🇺 Luxembourgh | Employer pension contributions have increased by 5%. |
| 🇲🇹 Malta | Weekly social security contributions have increased by EUR 1.51 for Class D employees. |
| 🇲🇽 Mexico | Employer social security contributions have increased by 0.58%. In addition, the Infonavit contribution cap has increased by MXN 344.25. |
| 🇳🇬 Nigeria | New mandatory employer contribution introduced under the Industrial Training Fund (ITF), charged at 1% of monthly gross salary. |
| 🇸🇬 Singapore | The CPF maximum monthly contribution cap has increased by SGD 600. |
| 🇸🇰 Slovakia | The maximum assessment base for social security has increased by EUR 1,064 per month. |
| 🇪🇸 Spain | Employer social security contributions have increased by 0.8%. A slight increase to the Solidarity contribution also applies for salaries above EUR 5,101.20. |
| 🇸🇪 Sweden | The employer contribution toward vacation reimbursement has decreased by 0.04%. |
| 🇹🇭 Thailand | The statutory employer contribution cap has increased by THB 125 per month. |
| 🇹🇹 Trinidad and Tobago | Employer contributions to the National Insurance System (NIS) have increased by 3%. |
| 🇹🇷 Turkey | Employer social security contribution rates have increased by 1%. |
| 🇿🇲 Zambia | The NAPSA statutory contribution ceiling has increased to K37,236, capping employer contributions at K1,861.80 (5%). |
Some countries may not yet appear in this list, as statutory updates are still pending confirmation from local authorities. We will continue to monitor changes and share updates as soon as they are confirmed.
What does this mean for your team?
If you’re planning budgets, forecasting headcount costs, or preparing for expansions, it’s a good time to factor in small contribution increases, and in a few rare cases, slight decreases.
If something in the payroll looks unclear, feel free to contact your CSM directly. We're here to help you make sense of all components.
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