Your Paris employee announces they’re taking six weeks off this summer. Your colleague in São Paulo takes 30 days of holiday. Meanwhile, your U.S. team is meticulously rationing their two weeks off like precious cargo. The differences in global paid leave policies are startling to say the least.
Paid annual leave operates as a legal requirement across most of the world, but the rules shift dramatically from country to country. In the European Union, workers must receive at least 4 weeks of paid leave by statute, with many nations setting the bar higher. The United States stands alone among developed countries with no federal mandate for paid time off.
This patchwork creates real challenges for employers expanding internationally. When companies miscalculate leave entitlements or deny legally required time off, regulators can impose significant fines and penalties. Each jurisdiction sets its own enforcement standards, and repeated violations often escalate the consequences.
The stakes extend beyond compliance costs. Teams notice when vacation policies feel fair versus when they meet only minimum requirements. Equitable time off policies support trust, retention, and engagement across global workforces, especially when employees compare notes about their benefits across different locations.
Vacation days are as varied as the cultures and cuisines of their countries. Here are some to keep in mind.
Australia
Australian employees receive a minimum of 20 paid vacation days annually (or 4 weeks), with shift workers entitled to 25 days. Public holidays are separate in Australia, ranging from 10 to 13 days depending on the state or territory. A unique feature is long service leave, which provides approximately 8.67 weeks of additional paid time off after 10 years of continuous service with the same employer.
Brazil
Brazilian labor law entitles employees to 30 paid vacation days each year after their first 12 months of work. This entitlement can be reduced based on unexcused absences during the year, dropping to as few as 12 days for frequent absenteeism. Public holidays in Brazil are separate, totaling around 13 days nationally, and vacation can be split into up to three periods.
Canada
Canadian vacation entitlements vary by province, but federal standards typically start at 10 days for the first years of employment, increasing with tenure. Most provinces in Canada require two weeks minimum, with some offering three weeks after extended service periods. Public holidays are separate and vary by province, ranging from 9 to 11 days annually.
China
China provides 5 to 15 days of annual leave based on years of service, with many employers offering 10 to 15 days as standard practice. Starting in 2025, China increased its statutory holidays from 11 to 13 days by adding Lunar New Year’s Eve and May 2nd, bringing the total paid public holidays to 13 days annually. A unique feature is the “adjusted working days” system, where employees work weekends to create extended holiday periods, such as eight consecutive days during Spring Festival.
Colombia
Colombian employees earn 15 business days of paid vacation after completing one year of service. Colombia provides 18 separate paid public holidays, giving workers substantial time off overall. Employees must use at least six vacation days per year, but can accumulate unused days for up to two years.
France
France requires 30 working days (six weeks) of annual leave, making it one of the most generous statutory minimums globally. Public holidays in France are separate, totaling 11 days nationally. Cultural expectations include taking a minimum of 12 consecutive days between May and October, reflecting the traditional August vacation period when many businesses close.
Germany
German employment law mandates 20 working days of paid vacation as the statutory minimum for full-time employees. Public holidays are separate and vary by federal state, ranging from 10 to 13 days annually. Many employers in Germany offer additional days through collective bargaining agreements, and unused leave can often be carried over to the first quarter of the following year.
India
Under the Factories Act, Indian workers earn 12 working days of annual leave after completing 240 days of work in a year. Adult employees in India accrue one day of leave for every 20 days worked. Leave can be carried over up to a maximum of 30 days, and must be divided into no more than three periods per year.
Israel
Israeli vacation policies allow for the accumulation of unused days, particularly relevant during the current conflict, where employees may have extended reserve duty obligations. Employers can mandate vacation dates with 14 days’ notice for leaves of five days or longer. The current extension order allows employees to accumulate vacation days for use over the next two working years.
Italy
As part of the EU, Italian workers are entitled to 22 to 26 days (minimum of 4 weeks) of paid leave annually, with the exact amount determined by employment contracts or collective bargaining agreements. Public holidays in Italy are separate, totaling 10 days nationally, and employees receive full pay during vacation time. Vacation accrual begins in the first month of employment for those working at least 15 days, with approximately 2.16 days earned per month.
Japan
Japanese employees receive 10 to 20 days of paid vacation based on years of service, but eligibility requires six months of continuous employment and 80% attendance. The entitlement starts at 10 days after six months, increasing gradually to a maximum of 20 days for employees with 6.5+ years of service. Japan has 16 national holidays separate from vacation entitlements, creating substantial time off opportunities when combined with strategic planning.
Mexico
Mexico significantly increased vacation entitlements in 2023, starting with 12 days after the first year of employment and progressing up to 32 days for workers with 31 or more years of service. A unique feature is the mandatory vacation bonus equal to 25% of vacation pay, paid in addition to regular salary during time off. Employees in Mexico must take at least 12 consecutive vacation days unless they request to distribute them differently.
Netherlands
Dutch employees receive 20 days of statutory paid vacation annually, though most employers provide 25 days as standard practice. Public holidays in the Netherlands are separate and not legally required to be paid, with eight official holidays that employers may choose to observe. A unique benefit is the mandatory holiday allowance equal to 8% of gross salary, typically paid in May.
Philippines
The Philippines requires 5 days of Service Incentive Leave (SIL) after one year of employment, which can be used for vacation or sick leave. In practice, most employers provide around 15 days of paid annual leave, making the legal minimum feel relatively low by regional standards. Companies with fewer than 10 employees based in the Philippines are exempt from providing SIL.
Portugal
Portuguese workers are entitled to 22 working days of paid vacation annually, with first-year employees receiving 2 days per month up to a maximum of 20 days. Public holidays are separate, totaling around 13 days nationally. Employees in Portugal must take at least 10 consecutive vacation days, traditionally scheduled between May 1 and October 31.
Saudi Arabia
Recent 2025 labor law amendments have enhanced leave entitlements in Saudi Arabia, including extended maternity leave from 10 to 12 weeks and new bereavement leave provisions. The amendments also introduce compensatory leave as an alternative to overtime pay at employer discretion.
Singapore
Singapore provides 11 paid public holidays annually under the Employment Act, with provisions for additional compensation or time off in lieu when employees work on holidays. Public holiday scheduling includes automatic shifts when holidays fall on weekends.
Spain
Spanish labor law entitles employees to 30 calendar days, or 22 working days of paid leave, in addition to regional and municipal holidays. The Workers’ Statute also provides additional paid leave for personal circumstances like marriage (15 days) and family emergencies (2-4 days depending on travel requirements).
South Korea
South Korean workers earn vacation days based on tenure and attendance, with employees receiving 15 days after completing one year of employment with 80% attendance. The entitlement increases by two days every two years after the third year, capping at 25 days maximum. Workers in South Korea with less than one year or below 80% attendance receive one vacation day per qualifying month worked.
Switzerland
Swiss workers receive a minimum of 20 working days of paid vacation annually, though most employers offer 20 to 30 days. Each of Switzerland’s 26 cantons maintains its own selection of statutory holidays, with Ticino offering up to 15 paid holiday days annually. Strategic planning around public holidays in Switzerland can significantly extend vacation periods.
Thailand
Thailand mandates 6 days of statutory paid vacation as the legal minimum after one year of employment. Employees with shorter tenure receive pro-rated entitlements based on months of service. The law also provides up to 120 days of unpaid leave for religious observances like monkhood or Hajj.
United Kingdom
The United Kingdom mandates 28 days of paid annual leave for full-time workers (equivalent to 5.6 weeks), which covers all workers, including part-time, agency, and irregular-hours staff. U.K. employers can choose to include the eight bank holidays within this statutory benefit or provide them separately. Part-time workers receive proportional entitlements calculated by multiplying their weekly working days by 5.6.
United States
The United States remains the only developed nation with no federal requirement for paid vacation time, leaving policies entirely to employer discretion. Individual states also generally do not mandate paid vacation, though some states, like California and Colorado, regulate how unused vacation time must be handled if employers choose to provide it. This creates a stark contrast when U.S. companies expand internationally and must adapt to countries with generous statutory minimums.
Some regional trends and notable differences
Patterns in paid vacation law keep shifting, driven by remote work, demographic change, and new ideas about wellbeing. Below are trends global HR teams are watching, beyond the basic statutory numbers.
Europe: Leading in statutory protections
European countries consistently offer some of the world’s most generous vacation benefits. A four-day workweek pilot in the U.K. spurred talk of “compressed” annual leave: employees keep the full 28-day entitlement but spread it across fewer working days, stretching rest periods without cutting pay. The EU is also debating a mental-health day directive, which would sit alongside existing vacation rules and could expand protected leave for stress recovery.
Asia-Pacific: Wide variation
Social media planners in Japan, India, and Australia post viral “holiday stacking” calendars that turn 10–12 statutory days into 25+ days off by bridging public holidays, boosting demand for flexible carryover policies. At the same time, tech employers in Singapore are piloting unlimited PTO, with analytics showing staff still take only 14-16 days a year, prompting calls for “minimum use” clauses so rest is real, not theoretical.
The Middle East: Limited annual leave, generous holidays
UAE and Saudi firms now feed lunar-calendar updates straight into HRIS systems so Ramadan-adjusted hours and Eid breaks sync with payroll in real time, reducing manual errors when holidays shift year to year. Some multinationals add “bridge days” to create full-week shutdowns, smoothing operations and signaling respect for local observance.
North America: Minimal statutory requirements
North America offers limited legal protections for paid vacation, with the United States uniquely providing no federal mandate for paid time off. Canada requires modest minimums that vary by province, typically starting at 10 days annually, creating a culture-shock when North American companies begin hiring global workers.
Latin America: Seniority-based progression
Latin American countries often structure vacation entitlements around tenure-based progression, with Mexico recently increasing from 6 to 12 days after the first year and continuing increases up to 32 days for long-term employees. Brazil provides a generous 30 calendar days for all employees regardless of seniority, while countries like Colombia require minimum service periods before vacation eligibility.
What do global employers need to consider?
Managing time off across borders demands precision and flexibility. A clear framework reduces risk and supports a consistent employee experience.
- Tailor by jurisdiction. A single global vacation policy rarely works because laws and expectations differ in every country.
- Benchmark locally. Use market data to set paid time off that stays compliant and competitive.
- Track PTO clearly. Provide tools that record global PTO policy accruals, approvals, and carryovers in real time.
- Monitor accrual rules. Check local limits on carryover and know when unused days must be paid at exit.
- Separate statutory and extra. Spell out which days are mandated and which are company-granted.
- Align public holidays. Build workflows that respect local holidays so critical deadlines stay on track.
- Automate legal updates. Use HR tech, which pushes statutory changes into calendars and reduces errors.
How Pebl helps ensure leave compliance
Pebl’s Employer of Record service delivers localized HR with expertise across 185+ countries, helping companies hire and stay compliant. No need to bother with setting up local entities, we take care of everything for you.
We offer dedicated in-country legal and HR teams that guide employers in crafting fair, competitive time-off policies that satisfy local regulations and resonate with distributed talent. Get in touch to learn more.
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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