Top 10 Countries with the Best Employee Benefits

Imagine this: You’re speaking to a friend at a party, excitedly telling them about your new vacation package. They look at you like you are crazy because you’re getting half what they do (or maybe you’re getting double!).

One person’s dream benefits can be another person’s nightmare. Employee benefits look different in every country, and knowing the expectations is the first step to making a benefits package offer that is attractive, not offensive.

Here are ten countries that set the standard for offering the best employee benefits.

1. Luxembourg

Benefits in Luxembourg are among the best in the world and extend beyond what’s considered standard for many U.S. companies. Standout employee entitlements include 26 days of paid leave and 20 weeks of paid maternity leave.

It’s also customary for employees to receive an additional month’s salary, known as 13th-month pay, from their employer each December.

Employers in Luxembourg commonly offer lunch vouchers that employees can redeem for meals, as well as provide company cars for employees’ professional and private needs.

For expatriate employees, employers in Luxembourg often provide reimbursement for housing and tuition fees for expatriate employees’ children.

2. Switzerland

Swiss employers champion the notion of a healthy work-life balance. While the Swiss government guarantees at least 20 days off work per year, employees between the ages of 20 and 49 took an average of five weeks off in 2023—thanks to generous annual leave offerings from Swiss employers.

Companies in Switzerland routinely offer benefits such as mobile phone allowance and work-from-home allowance. Parental leave entitlements are also among the best employee benefits in Switzerland compared to the U.S., with 14 weeks of paid leave for women and 2 weeks of paid leave for men.

Learn more: Complete guide to Employee Benefits in Switzerland

3. Australia

One of Australia’s best employee benefits is its annual leave offering. Under Australian law, companies must pay employees annual leave based on their regular work hours. Statutory annual leave is four weeks per year, but some employers grant more. Employees accumulate leave even while on vacation and can roll over unused leave from one year to another.

Australia also firmly believes in work-life balance. Under Australian law, the workweek is 38 hours, and companies pay employees overtime for hours worked beyond 38 per week.

Employees in Australia also enjoy flexible working arrangements. The Australian government passed legislation that allows workers to request remote work arrangements, and employees can challenge rejections with the backing of the Fair Work Commission (FWC).

4. Sweden

Sweden has one of the most generous paid time off policies in the world. The Swedish government grants employees 25 days of paid leave per year. Once accrued, employees can hold their vacation days for up to five years.

Parental leave is also generous: Parents are entitled to 480 days of parental leave, which parents can choose to split. Single parents are entitled to the entire 480 days. Plus, employees can choose to use their parental leave to reduce their working hours until their child turns eight.

5. Norway

Norway stands out for offering some of the best employee-friendly family benefits. The Norwegian government provides 59 weeks of paid maternity leave for female employees. Norway’s national insurance scheme pays 80% of the regular income for 59 weeks of leave. If an employee wants to take a reduced leave of 49 weeks, the national insurance pays 100% of their income.

Fathers are also entitled to 10 weeks of paternity leave at 100% pay or 19 weeks at 90% pay. Plus, together, parents in Norway can receive up to 56 weeks of additional child leave.

6. Denmark

Employers in Denmark are known for the generous unemployment benefits they provide their former employees. The country mandates that employers grant former employees up to 90% of their salary for a maximum of two years after leaving the company.

The Danish government also offers some of the best job re-activation programs. These programs help 70% of displaced employees return to the workforce within one year of unemployment.

Danish employment law also entitles employees to 25 days of paid annual leave and 52 weeks of paid parental leave shared between the parents.

7. New Zealand

New Zealand provides ample maternity and paternity leave, known locally as partner’s leave. Paid parental leave starts three weeks before the child’s due date and extends 22 weeks after the baby is born.

Another attractive benefit is KiwiSaver, a voluntary savings scheme available to employees between the ages of 18 and 65. The default employee contribution is 3% but can be extended to 10% while employers contribute 3%. While designed to be a retirement account, employees can also use KiwiSaver funds to purchase their first home.

8. The Netherlands

The Netherlands offers a competitive minimum wage for employers. Dutch companies must pay employees over the age of 21 a minimum of €1,995 (US$2,152) every month. This sum is significantly higher than in the U.S., where a full-time employee earning the minimum wage of US$7.25 per hour would take home US$1,218 per month.

Employees in the Netherlands are also entitled to 20 days of paid annual leave per year, not including the seven paid days off received for national holidays.

9. Finland

While remote work and flexible work schedules may seem new to U.S. companies, Finland has been a global leader in employee-friendly work arrangements for decades. The country passed the Working Hours Act in 1996, giving workers more freedom in deciding when they work.

By 2011, Finland led the world in flexible scheduling, with 92% of the country’s companies allowing workers to adjust their hours. Finland updated the Working Hours Act in 2020, granting employees the ability to decide when and where they work for at least half their working hours.

10. Germany

In a country renowned for its efficiency, there is hard evidence that German talent gets more done in less time. Germany is home to one of the shortest average working weeks in Europe, at 34.7 hours per week, according to the 2023 Labor Force Survey from the German Federal Statistical Office.

This low week total is due in part to a landmark 2018 legal battle in which German trade unions in metalwork and engineering won a 28-hour work week.

Other notable employee benefits in Germany include statutory annual leave, which is 20 working days per year for German employees working a regular five-day week and 24 days per year for employees working six days per week. Starting in 2023, German workers can carry over unused holidays for up to three years.

Read also: 8 Countries With the Best Healthcare for Employees

Employee benefits examples

Flexible work schedules

The rigid 9-5 schedule is a thing of the past. Employees today expect more flexibility and autonomy over choosing when they work—often prioritizing this benefit over salaries. Flexible work schedules allow employees to take care of personal errands and responsibilities when needed, so they can work during hours that are most productive for them.

Work-from-anywhere policies

Remote work is more prevalent than ever before, and for good reason. Not only does it give talent the freedom to work from anywhere (goodbye, dreaded commuting!), but it also empowers employers to hire top talent beyond borders.

WFA policies encourage better work-life integration and can save employees money on living costs by allowing them to live where they want. Plus, employers can maximize their hiring budget by recruiting talent globally.

Learn more: Why Companies That Hire Remotely Come Out Ahead

Additional paid time off

The U.S. is one of the only countries in the world with no federal statutory minimum time off for employees. As a result, employees in the U.S. are consistently among the world leaders in logged work hours every year.

The average U.S. employee gets just 11 days of supplementary paid vacation per year, which pales in comparison to what many European employees receive. In the private sector, it usually takes a U.S. worker about 20 years to accumulate 20 days off per year.

As the global hiring market becomes more competitive, U.S. HR leaders must adopt employee-friendly vacation policies that stand against the best annual leave policies around the world if they want to increase their ability to win top talent.

Additional paid parental leave

The U.S. is one of the few countries with no guaranteed parental leave. Meanwhile, countries such as Estonia entitle new mothers to 410 days of maternity leave per child.

Inadequate parental leave can lead to several challenges for employees, including financial stress, anxiety, depression, relationship strain, and the inability to return to work. Your paid leave policy is critical to employee well-being. It may be worth the time to reconsider your own policies—to reflect changing norms and keep pace with leading countries worldwide.

FAQs: Global employee benefits

How much paid vacation do employees receive in Europe compared to the U.S.?

Countries in the European Union are mandated to give employees a minimum of four weeks or 20 working days of paid vacation per year. In the U.S., there is no federal law mandating paid time off or paid holidays, and the average U.S. employee gets 11 days off a year.

What are the most common global employee benefits that attract top talent?

Health benefits, retirement plans, and flexible work arrangements (like remote work) are among the most common benefits global employees seek. Other common benefits include parental leave, professional development opportunities, wellness benefits, and paid time off.

How do parental leave policies differ between countries?

The differences in parental leave from country to country are significant. For example, the U.S. has no guaranteed parental leave, while other countries, like Estonia, grant mothers 410 days of leave per child. HR leaders can improve employee benefits by increasing the amount of parental leave to keep pace with countries with more generous policies.

How can companies ensure their benefits packages are competitive internationally?

Companies can attract the best global talent by offering competitive compensation that goes beyond a paycheck, including generous parental leave, paid time off, comprehensive health benefits, and flexible schedules. It’s also important to provide culturally relevant benefits that meet local laws and regulations.

Competitive employee benefits that benefit you

Let’s face it—compensation doesn’t stop at a paycheck, and nobody wants to work for a company that doesn’t compensate them well. Making sure the other benefits you offer are competitive will give you the best chance of attracting—and keeping—global talent.

So you can learn the ins and outs of employment law and benefits in 185+ countries worldwide. Or you can come to the experts at Pebl.

Our Global Benefits service handles employee compensation, from vacation to parental leave and everything in between—and we have local expertise in every one of those 185+ countries, so you can rest easy knowing that your benefits offerings will be both competitive and compliant.

Contact us today to benefit yourself and your company.

This information does not, and is not intended to, constitute legal or tax advice and is for general informational purposes only. The intent of this document is solely to provide general and preliminary information for private use. Do not rely on it as an alternative to legal, financial, taxation, or accountancy advice from an appropriately qualified professional. The content in this guide is provided “as is,” and no representations are made that the content is error-free.

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