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Great diversity in employment conditions in EU accession countries

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Great diversity in employment conditions in EU accession countries

The ten EU accession countries will create great diversity in pay, benefits, social security and working conditions across the European Union when they become full members in May 2004, according to consultants Watson Wyatt.

The study found that while most accession countries have been modernising their social security and benefits systems, there remains wide differences compared with existing EU members and between the accession states themselves.

"It would be a mistake to consider the 10 accession countries as a homogeneous group since their political, economic and social histories differ greatly," said Karin Bogart, an international consultant at Watson Wyatt.



Key findings of Watson Wyatt research

This guide to employee benefits and employment law and practice in the new accession countries looks at employment and contractual issues, pay, employee benefits, working hours, industrial relations and social security arrangements. It includes multi-country comparisons, including comparisons with the UK and Germany.

State pension

  • Most generous state pension: Cyprus -- e.g. paying 60% of final gross earnings to a male retiring on &#8364 20,000.
  • Least: Estonia -- e.g. paying 10% of final gross earnings to a male retiring on &#8364 20,000.

Minimum wage

  • Highest minimum monthly wages: Cyprus (&#8364 546) and Malta (&#8364 533).
  • Lowest: Latvia (&#8364 119) and Lithuania (&#8364 130).

Retirement date

  • Earliest normal retirement date: Czech Republic -- 61.5 for males and 60 for females.
  • Latest: Cyprus -- 65 for both males and females.

Statutory holidays

  • Most statutory holidays: Malta (24 days), compared with 20 for all other accession countries.
  • Most public holidays: Slovakia (15 days), while Hungary and Poland have the least (10).

Social security

  • Highest social security costs: Czech Republic at 47.5% of gross earnings (12.5% employee and 35% employer) for someone earning &#8364 20,000.
  • Lowest social security payments: Cyprus at 12.6% of gross earnings (6.3% each for employee and employer) for someone earning &#8364 20,000.

Want to know more?

Title: Benefits & Employment Conditions Report -- EU Accession Countries 2004, Watson Wyatt.

Availability: The price for the full report is &#8364 1,400, with individual country extracts at &#8364 500 each, and are available by contacting Watson Wyatt Data Services on tel: +32 (0) 2 678 1511.

Watson Wyatt Worldwide is a global consulting firm focusing on human capital and financial management. It specialises in employee benefits, human capital strategies, and insurance and financial services. To find out more visit
www.watsonwyatt.com

Posted 6 April 2004