Your compensation and benefits practices show your employees that you value their work. They’re also a significant aspect of employer compliance. When you expand abroad, you’ll need to learn new labor laws and required compensation minimums. At Globalization Partners, our compensation and benefits outsourcing ensures everything runs smoothly.
Eritrea Compensation Laws
While Eritrea doesn’t have a fixed minimum wage, collective agreements allow employers to collaborate with workers to determine a fair salary. Your minimum payment requirements will vary according to your industry and enterprise.
The labor laws describe various forms of payment. They are as follows:
- Time rate: The employer pays wages based on a unit of time, including one day, one week, every two weeks, or once a month.
- Lump sum: Employees receive a single amount of wages for a defined piece of work, regardless of how long it took.
- Piece-rate: The quantity and quality of work determine the rates employees receive.
- Combined piece and time rate: Payment depends on the quantity and quality of work within a given period.
- Job rate: Employees earn wages for a set amount of work within a given period.
- Commission: Employees receive an agreed percentage from the work they’ve performed.
Employers must record all payments made to employees, including gross pay, net pay, and any relevant deductions.
Alongside compensation laws, employers must provide specific benefits to their workforce. These provisions include overtime pay, leave, and public holidays.
Overtime is any work outside the prescribed hours. Pay regulations for these hours vary depending on the time of day an employee works. Between 10 a.m. and 6 p.m., overtime pay is 125 percent of regular wages. After 10 p.m. and before 6 a.m., pay is 150 percent.
Leave provisions include annual time off, sick leave, and maternity benefits. Paid vacation time starts at 14 days for the first year and one additional day for every year following up to a cap of 35 days. Employees must receive six months of sick leave, and maternity leave is 60 days with pay.
Employees are entitled to a day off for any public holiday recognized in the country, and they must receive standard wages on these days.
Eritrea Benefits Management
While the country’s labor laws describe benefits regulations, these provisions act as minimum requirements. Employers have the option to exceed these benefits and provide for their employees further.
Offering more comprehensive benefits packages serves employers and employees. Provisions can act as strong selling points for your vacancies, making your company more competitive in the job market. Employees also feel cared for at work, improving morale and retention.
Additional provisions can include:
- Health insurance schemes
- Holiday bonuses
- Transportation stipends
Benefits management can be challenging for employers because it requires a balance between employees’ needs and company resources. Overextending your business can affect your success, but failing to care for employees may affect retention.
Globalization Partners makes it easy to find a balance. Our benefits compensation services include tiered packages to support your employment practices. Every level includes the minimum requirements. As your company grows, you can move up the tiers and provide more for your workers. This arrangement is an excellent way to maintain compliance with labor laws as you offer the benefits employees want.
With the presence of collective agreements, restrictions for benefits and compensation will come from policies you create with your team. These regulations may change over time.
Count on Globalization Partners for Compensation Outsourcing
Globalization Partners offers the resources you need to succeed in a new country. Get in touch with our team today to learn more.