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Wages and Benefits - Leave, Benefits, and Social Insurance

  • Updated

Each question below includes its SLCP/FSLM key and the related recommendation. In some cases, the same guidance applies to multiple IDs.

Table of Contents

Are workers informed about their individual wages and deductions in line with legal requirements (e.g. through pay slips)?

wb-16

Recommendations

  • Provide workers with wage slips that clearly show base wages, overtime, deductions, and final earnings. 
  • Ensure wage slips meet the legal requirements in the country of operation. 
  • Educate workers on how their wages are calculated, including deductions and benefits. 
  • Allow workers to ask questions and clarify any wage-related concerns. 
  • Ensure payroll systems correctly calculate wages and deductions. 
  • Regularly audit payroll records to detect and fix errors. Clearly outline all legal deductions to workers before applying them. 
  • Obtain worker consent where required for voluntary deductions (e.g., union fees, savings plans). 
  • Ensuring wage transparency, accurate documentation, and clear worker communication, employers can prevent wage disputes, enhance compliance, and maintain ethical labor practices.

 

Do pay slips contain accurate information on worker wages in a detailed and comprehensive manner for workers?

wb-16--3

Recommendations

  • Translate pay slips into workers' native languages if necessary. 
  • Ensure bilingual or multilingual wage statements for facilities with diverse workforces. 
  • Pay slips should detail:
    • Base wage rate, Total hours worked (regular and overtime),Bonuses and incentives,Deductions (e.g., taxes, social security, other withholdings),Final net pay (take-home salary) 
  • Conduct workplace training to help workers understand wage calculations. 
  • Ensure they know where to find critical information on their pay slips. 
  • Workers should have a clear, accessible way to report pay slip discrepancies. 
  • Payroll managers should address wage complaints quickly and transparently. 
  • Ensuring pay slips are clear, legally compliant, and easy to understand, facilities can prevent wage disputes, build worker trust, and align with international labor standards.

 

Are all loans and/or advances in line with legal requirements?

wb-17--1

Recommendations

  • Verify national laws on employer-issued loans, interest rates, and wage deductions. 
  • Ensure repayment schedules do not violate wage protection laws. 
  • Provide Written Loan and Advance Agreements Workers should receive a contract detailing: 
    • Loan amount
    • Interest rate (if any)
    • Repayment period
    • Consequences of late or missed payments 
    • Maintain signed copies for compliance and record-keeping. 
  • Provide verbal and written explanations in a language workers understand. 
  • Ensure workers know their rights regarding repayment and wage deductions. 
  • Regularly review loan records to ensure compliance with legal requirements. 
  • Ensure deductions do not exceed legal wage limits. 
  • Ensuring loan and advance programs are legally compliant and transparent, facilities can offer financial support to workers while maintaining ethical labor practices.

 

Does the facility provide in-kind benefits in line with legal requirements?

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Recommendations

  • Review national labor laws to confirm the types and limits of in-kind benefits permitted.
  • Ensure that in-kind benefits do not exceed the legally allowed portion of total wages.
  • Clearly document all in-kind benefits provided, their monetary value, and applicable deductions. 
  • Provide written details of in-kind benefits to workers in a language they understand.
  • Ensure that in-kind benefits are voluntarily accepted by workers and not imposed as a condition of employment. 
  • Obtain written consent from workers before deducting any costs for housing, meals, or other non-monetary compensation. 
  • Ensuring compliance, transparency, and fairness in providing in-kind benefits, the facility can minimize legal risks, maintain worker satisfaction, and uphold ethical labor practices.

 

Does the facility provide workers with compensatory time off in line with legal requirements?

wb-24--1

Recommendations

  • Check national labor laws to determine if compensatory time off is mandatory for overtime work or work on scheduled rest days.
  • Ensure compensatory time off is granted at the legally required rate and timeframe 
  • Develop a formal compensatory time off policy that defines eligibility, accrual rates, and procedures for requesting time off.
  • Communicate policies to workers through written agreements, employee handbooks, or notice boards.
  • Maintain accurate records of overtime hours worked and compensatory time granted.
  • Use payroll and attendance systems to ensure that workers either receive compensatory time off or are paid in accordance with legal overtime regulations
  • Encourage workers to take their compensatory time off rather than accumulating excessive hours.
  • Ensure workers are not pressured to work overtime without fair compensation or adequate rest.
  • Ensuring compliance with compensatory time off regulations, the facility can avoid legal risks, promote ethical labor practices, and enhance worker well-being.

 

Regular hours worked at night

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Recommendations

  • Review national labor laws to confirm required premium rates for night shifts, rest days, and public holidays. 
  • Update payroll systems to automatically apply premium pay where applicable. 
  • Workers should receive payslips that clearly show premium pay for non-overtime hours.
  • Employers should document and track all hours worked during night shifts, rest days, and public holidays. 
  • Verify payroll records against work schedules to ensure compliance with premium pay regulations. 
  • Internal and third-party audits should be conducted to identify and rectify any discrepancies. 
  • Ensuring compliance with premium pay laws, employers can prevent labor rights violations, maintain workforce morale, and reduce legal risks. 
  • Workers should never be financially disadvantaged for working non-standard hours, and immediate corrective action should be taken to rectify any non-compliance.

 

Regular hours worked on weekly rest days

wb-5--2

Recommendations

  • Review national labor laws to confirm required premium rates for night shifts, rest days, and public holidays. 
  • Update payroll systems to automatically apply premium pay where applicable. 
  • Workers should receive payslips that clearly show premium pay for non-overtime hours. 
  • Employers should document and track all hours worked during night shifts, rest days, and public holidays. 
  • Verify payroll records against work schedules to ensure compliance with premium pay regulations. 
  • Internal and third-party audits should be conducted to identify and rectify any discrepancies. 
  • Ensuring compliance with premium pay laws, employers can prevent labor rights violations, maintain workforce morale, and reduce legal risks. 
  • Workers should never be financially disadvantaged for working non-standard hours, and immediate corrective action should be taken to rectify any non-compliance.

 

Regular hours worked on public holidays

wb-5--3

Recommendations

Review national labor laws to confirm required premium rates for night shifts, rest days, and public holidays. Update payroll systems to automatically apply premium pay where applicable. Workers should receive payslips that clearly show premium pay for non-overtime hours. Employers should document and track all hours worked during night shifts, rest days, and public holidays. Verify payroll records against work schedules to ensure compliance with premium pay regulations. Internal and third-party audits should be conducted to identify and rectify any discrepancies. Ensuring compliance with premium pay laws, employers can prevent labor rights violations, maintain workforce morale, and reduce legal risks. Workers should never be financially disadvantaged for working non-standard hours, and immediate corrective action should be taken to rectify any non-compliance.

 

Pakistan: Does the employer maintain a fair price shop?

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Recommendations

  • Check local labor laws to confirm whether the facility is legally required to maintain a fair price shop. If required, set up a fair price shop offering essential food, clothing, and household goods at subsidized rates. If in Sindh Province, the employer is not obligated to maintain a fair price shop but may still voluntarily offer one as a worker benefit.
  • Ensure fair price shops offer essential goods at reasonable, regulated prices to prevent exploitation. 
  • Regularly review pricing and compare with local market rates to maintain affordability. 
  • Develop clear policies on product availability, pricing, and worker access to avoid complaints. 
  • Inform workers about the fair price shop policy and available items. 
  • Ensure fair price shops operate during convenient hours to allow workers to access goods before/after shifts. 
  • Survey workers periodically to understand their needs and stock essential goods accordingly. 
  • Ensuring fair price shops are maintained where legally required and offering alternative welfare measures where applicable, employers can enhance worker well-being, promote ethical labor practices, and comply with Pakistan’s labor standards

 

Are overtime allowances provided/paid in line with legal requirements?

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Recommendations

  • Identify any work-related activities requiring worker participation beyond regular hours.
  • Ensure these activities are included in payroll records and compensated accordingly.
  • Ensure that all work-related activities beyond scheduled work hours are recorded and paid. 
  • Workers should receive clear payslips showing any additional compensation. 
  • Perform internal and third-party payroll audits to verify that all compensable activities are properly paid. 
  • Ensuring that all work-related activities outside of regular working hours are properly compensated, employers can maintain fair wage practices, prevent legal risks, and improve worker satisfaction. Immediate corrective actions should be taken where unpaid labor is identified.

 

Cambodia: Is the piece rate set at a level that permits workers of average ability working normal hours to earn minimum wage, as legally required?

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Recommendations

  • Assess whether an average worker can earn at least the minimum wage within normal working hours. 
  • Adjust the piece rate if workers are unable to meet minimum wage requirements under standard conditions. 
  • Clearly define how piece rates are calculated and ensure transparency with workers. 
  • Ensure production targets are realistic and do not force workers into excessive overtime to meet minimum wage. 
  • Perform regular internal and third-party audits to confirm compliance with Cambodian labor laws. If underpayment is found, provide back pay to affected workers and adjust piece rates accordingly. 
  • Ensuring that the piece rate allows workers to earn at least minimum wage within normal working hours, employers can prevent wage theft, maintain legal compliance, and uphold fair labor practices. 
  • Immediate corrective action is necessary to protect workers and prevent potential legal and reputational risks.

 

Indonesia: Does the facility establish a wage structure and wage scale, announce it to all workers, and submit it to the Local Manpower Office, as legally required?

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Recommendations

  • Define a formal wage structure that outlines pay scales based on job roles, experience, skills, and tenure. 
  • Ensure that the wage structure aligns with Indonesian labor laws and is regularly updated as per legal minimum wage changes. 
  • Ensure timely submission of the wage scale to the relevant labor authorities. 
  • Maintain copies of submission records for compliance audits. 
  • Regularly review wages to ensure alignment with legal requirements, inflation, and cost-of-living changes. 
  • Adjust wages based on government mandates, collective bargaining agreements, or facility performance. 
  • Establishing a clear wage structure, announcing it to workers, and submitting it to labor authorities, employers in Indonesia can improve wage transparency, ensure legal compliance, and reduce the risk of labor disputes. Proactive compliance will help build trust with workers and prevent potential legal consequences.

 

Bangladesh: Has the facility established a Workers' Participation Fund and Welfare Fund, and paid the correct amount into the funds each year, as legally required?

wb-wag-105

Recommendations

  • Review the Bangladesh Labour Act (BLA) to confirm the facility’s obligation to establish these funds. 
  • Ensure financial records meet the required thresholds for mandatory contributions. 
  • Calculate the required 5% of net profits annually and ensure timely contributions. 
  • Maintain proper financial records to avoid underpayment issues. 
  • Workers must be represented in fund administration to ensure proper usage. 
  • Ensure the fund is used for its intended purpose (e.g., worker welfare, housing, healthcare). 
  • Ensuring compliance with Bangladesh’s Workers' Participation and Welfare Fund laws, facilities can improve worker welfare, avoid legal risks, and maintain ethical labor practices that align with global supply chain expectations.

 

Bangladesh: Are the Workers' Participation and Welfare Funds used and distributed as legally required?

wb-wag-106

Recommendations

  • Review the Bangladesh Labour Act to ensure proper allocation and distribution of funds.
  • Ensure financial records meet the required thresholds for mandatory contributions. Use the fund strictly for legally designated worker benefits (e.g., healthcare, housing, financial assistance). 
  • Ensure that payments to eligible workers are made on time. 
  • Ensuring compliance with Bangladesh’s Workers' Participation and Welfare Fund laws, facilities can avoid legal risks, enhance worker satisfaction, and maintain ethical labor practices in line with global standards.

 

Vietnam: Does the facility collect and forward workers' contributions as legally required and pay the legally required employer contributions to social, health and unemployment insurance funds on time?

wb-wag-111

Recommendations

  • Employers must deduct the correct amount from workers’ wages and forward payments to social security funds as per Vietnamese law. 
  • Payroll systems should track contribution deadlines to prevent delays. Temporary, seasonal, and contract workers should be included if required by law. 
  • Regular audits should confirm that all eligible workers are covered. 
  • Workers should receive pay slips in a language they understand, showing both deductions and employer contributions. 
  • Employers should educate workers about their social security benefits. 
  • Ensuring compliance with Vietnam’s social security laws, employers can protect workers’ financial security, avoid legal risks, and build trust within the workforce.

 

Compulsory group insurance for workers

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Recommendations

  • HR should review national labor laws to determine employer responsibilities for group insurance, workplace injury compensation, and worker death benefits. 
  • Ensure that all legally required compensation is being processed through the correct channels. 
  • Employers must register all eligible workers in compulsory group insurance programs as per national laws. 
  • Workers should be informed about their coverage and entitlements. Employers must follow legal procedures for reporting and compensating workplace injuries and occupational diseases. 
  • Maintain clear documentation of all reported cases and compensation payments.
  • Ensuring compliance with social protection compensation laws, facilities can protect workers and their families while reducing legal risks and maintaining a positive employer reputation.

 

Compensation for work-related accidents and diseases

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Compensation for worker's death

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Vietnam: Facility contribution for social, health and unemployment insurance for workers not covered by compulsory social insurance

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Recommendations

  • HR should review national labor laws to determine employer responsibilities for group insurance, workplace injury compensation, and worker death benefits. 
  • Ensure that all legally required compensation is being processed through the correct channels. 
  • Employers must register all eligible workers in compulsory group insurance programs as per national laws. 
  • Workers should be informed about their coverage and entitlements. Employers must follow legal procedures for reporting and compensating workplace injuries and occupational diseases. 
  • Maintain clear documentation of all reported cases and compensation payments.
  • Ensuring compliance with social protection compensation laws, facilities can protect workers and their families while reducing legal risks and maintaining a positive employer reputation.

 

Vietnam: Does the facility submit claims for sick leave and maternity leave to the social insurance agency within 10 days, as legally required?

wb-wag-119

Recommendations

  • HR departments must process and submit sick leave and maternity leave claims within 10 days of worker application. Implement a tracking system to monitor submission deadlines. 
  • Ensure that all required documents (e.g., medical certificates, birth certificates) are collected and submitted correctly. 
  • Train HR personnel on proper documentation procedures to avoid errors and delays. Inform workers about the process and timeline for claiming sick leave and maternity benefits. 
  • Provide written confirmation of claim submission and expected processing time.
  • Ensuring compliance with Vietnam’s sick leave and maternity leave claim requirements, facilities can protect workers, avoid legal risks, and maintain a strong reputation as a responsible employer.

 

Vietnam: Does the facility comply with applicable legal requirements when workers have occupational accidents and diseases?

wb-wag-120

Recommendations

  • Ensure that policies align with Vietnamese labor laws and ILO standards on occupational safety and injury compensation. 
  • Establish a clear reporting process for workplace accidents and occupational illnesses.
  • Ensure workers receive proper medical care and wage compensation as required by law.
  • Cover medical expenses, lost wages, and any required long-term compensation for affected workers. 
  • Regularly assess and improve workplace safety procedures to prevent accidents.
  • Provide personal protective equipment (PPE) and conduct regular safety training.
  • Ensuring compliance with Vietnam’s occupational safety and compensation laws, facilities can protect workers, prevent legal risks, and maintain a positive workplace reputation.

 

Vietnam: Pay 30 minutes of time off per day for female workers for rest during their period

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Recommendations

  • Confirm Vietnam’s specific labor law on menstrual breaks and update policies accordingly. 
  • Ensure all eligible female workers receive their entitled 30-minute break per day during menstruation Inform all female workers of their right to menstrual rest through employee handbooks, training sessions, and posted notices. 
  • Encourage an open and respectful workplace culture where workers feel comfortable utilizing their entitled breaks. 
  • Ensure proper documentation of menstrual leave to verify compliance with labor laws.
  • Supervisors and HR teams should track whether eligible female workers are receiving the required break. Ensuring compliance with this law, facilities can promote gender equality, improve workplace morale, and avoid legal penalties in Vietnam.

 

Ethiopia: Pay workers correctly during prenatal visits

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Recommendations

  • Confirm Ethiopia's specific labor regulations on prenatal leave to ensure compliance.
  • Develop a clear policy stating that pregnant workers can take time off for medical check-ups without losing wages. 
  • HR should proactively inform female workers of their right to paid prenatal visits.
  • Supervisors must be trained to accommodate pregnant workers and ensure no wage deductions occur. 
  • Keep attendance records and payroll data to verify compliance. 
  • Ensure medical appointment slips or doctor’s notes (if required by law) are processed correctly. 
  • Ensuring paid prenatal visits, facilities in Ethiopia can promote worker well-being, comply with national labor laws, and align with global maternity protection standards.

 

Ethiopia: Pay workers correctly when they take time off to appear at labor dispute hearings and to exercise their civil rights and duties

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Recommendations

  • Consult Ethiopia’s labor laws and the Law Overlay to determine the specific legal obligations regarding paid leave for labor dispute hearings and civic duties. 
  • Ensure company policies align with national laws on wage entitlements during such leave. 
  • Implement a transparent policy stating that workers will not face wage deductions when participating in legally recognized labor dispute hearings or civil duties. 
  • Clearly communicate this policy to workers and HR teams. 
  • Ensure payroll systems properly account for time off taken for labor dispute hearings and civic duties. 
  • Keep written documentation of workers' participation in these activities to support compliance audits. 
  • Complying with Ethiopian labor laws and ensuring workers are paid correctly for protected time off, facilities can avoid legal risks, uphold labor rights, and foster a fair and transparent work environment.

 

Vietnam: Does the facility incorporate all legally required allowances and additional payments into the calculation of wage-based benefits (e.g. social insurance payments, overtime, paid leave, etc.)?

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Recommendations

  • Review all legally required allowances (e.g., job-specific allowances, hazardous work pay, regional wage supplements). 
  • Confirm all wage components are included when calculating social insurance, overtime, and paid leave. 
  • Work with payroll specialists to ensure compliance with Vietnam’s Social Insurance Law & Labor Code. 
  • Ensure payroll systems automatically calculate social insurance contributions, paid leave, and overtime correctly. 
  • Conduct regular payroll audits to check for errors in wage-based benefit calculations.
  • Develop a clear wage and benefit policy that is communicated to all workers. 
  • Schedule regular payroll compliance reviews to ensure full alignment with Vietnamese law. Engage with external labor compliance consultants to identify and correct any miscalculations before government inspections. If any discrepancies are found, correct them immediately and ensure workers receive full compensation.

 

Does the facility take any deductions from wages that are not in line with legal requirements?

Wb-wag-46

Is the facility failing to correctly pay workers for any of these types of leave, as legally required:

• All public holidays • Annual leave • Sick leave • Maternity leave • Paternity leave • Personal leave • Other types of required leave? wb-wag-78

All public holidays

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Annual leave

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Sick leave

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Maternity leave

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Paternity leave

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Personal leave

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Other types of required leave

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Recommendations

  • Review national and local labor laws regarding paid leave entitlements. 
  • Ensure payroll systems correctly calculate and disburse leave payments. 
  • Ensure that all leave requests and approvals are documented. 
  • Provide workers with written records of their leave balances and entitlements. 
  • Ensure workers are informed about their entitlements to paid leave. 
  • Ensuring paid leave policies comply with legal requirements, facilities can protect workers' rights, avoid legal penalties, and foster a positive workplace culture.

 

Does the facility comply with legal restrictions regarding payment instead of leave?

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Recommendations

  • Consult applicable labor laws to determine if payment instead of leave is legally permitted. 
  • Do not substitute paid leave with payment unless explicitly allowed by law (e.g., payout for unused leave upon termination). 
  • Educate workers and HR teams about their right to take leave instead of accepting payment. 
  • Ensure workers are not pressured into waiving their leave entitlements for financial compensation. 
  • Regularly track whether workers are taking their entitled leave rather than being compensated for it. If workers consistently forgo leave in exchange for payment, investigate whether there is direct or indirect coercion. 
  • Encourage a workplace culture that prioritizes rest and recovery over financial incentives for unused leave. 
  • Provide workers with flexibility to take leave at times that suit their needs and operational requirements. 
  • Ensuring compliance with legal restrictions on payment instead of leave, the facility can protect worker rights, prevent legal risks, and support a healthier, more productive workforce.

 

Is the facility failing to comply with any legal requirements not covered elsewhere regarding ?

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Recommendations

  • Regularly review local wage and benefits laws to ensure full compliance. 
  • Monitor updates on statutory benefits, wage structures, overtime pay, and deductions.
  • Engage legal experts or compliance auditors to verify adherence to wage-related legal requirements. 
  • Clearly communicate wage structures, bonuses, overtime rates, and benefit entitlements to all workers. 
  • Ensure contracts specify wage rates, benefits, and deductions in line with legal and collective bargaining agreements (CBAs). 
  • Maintain accurate payroll records for at least 12 months as required by many labor laws. Ensure social security, pensions, and insurance contributions are deducted and forwarded correctly. 
  • Review wage payment methods to ensure workers are paid in line with legal requirements (e.g., cash, bank transfer, or digital payment systems).
  • Create a transparent process for workers to report wage and benefit concerns. 
  • Ensure complaints are addressed promptly and corrective actions are taken.

 

Is the facility failing to comply with any legal requirements for Wages and Benefits pertaining to non-production workers and/or onsite sub-contracted workers?

wb-wag-90

Recommendations

  • Ensure all subcontracting agreements explicitly state compliance with local wage and benefit laws. 
  • Verify that third-party contractors pay wages on time and provide legally required benefits (social security, health insurance, overtime pay). 
  • Include a clause allowing regular audits of subcontractor payroll records Check that all workers—regardless of employment type—receive at least the legal minimum wage.
  • Ensure non-production workers get access to social security, overtime pay, and paid leave. 
  • If the facility provides additional benefits (e.g., bonuses, allowances, or meals), extend them to non-production workers when feasible
  • .Cross-check actual payments against legal requirements for overtime, minimum wage, and deductions.
  • Ensuring fair and legal wage compliance for all categories of workers, facilities can minimize financial and legal risks, improve labor rights protections, and enhance their reputation in responsible sourcing and compliance audits.

 

Does the facility provide legally required compensation/ benefits related to social protection directly to workers (e.g. old age, accident, illness and death benefits)?

wb-wag-94

Recommendations

  • HR should review national labor laws to determine if employers are responsible for providing direct compensation for old-age, accident, illness, and death benefits. 
  • Ensure compliance with severance pay, accident compensation, and other mandatory payments. Employers should ensure that all social protection benefits are clearly communicated to workers. 
  • Workers should receive written documentation detailing their entitlements. 
  • All legally required compensation should be paid in full and on time to avoid legal consequences. 
  • Payroll systems should track benefit payments and ensure compliance with local regulations. 
  • Ensuring full compliance with social protection compensation laws, facilities can protect workers, reduce legal risks, and strengthen their reputation as a fair and responsible employer.

 

Deductions are not voluntarily accepted by workers

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Workers do not give written consent for monies to be deducted (signing a document in a language they understand)

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Deductions to wages are not explained to workers

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Workers do not have access to the account status of all wage deductions (i.e. history of payments, current account balances, etc.)

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None of the above

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Recommendations

  • Workers must provide written consent before non-mandatory deductions are made. Deductions should not be imposed as a condition of employment. 
  • All wage deductions must be explained to workers before implementation. 
  • Employers should review deductions with workers during onboarding and wage payment. 
  • Pay slips should list all deductions separately with clear descriptions. 
  • Employers should allow workers to request deduction records from HR at any time.
  • Review payroll records to confirm that all deductions comply with legal standards.
  • Ensure workers are not experiencing excessive or unfair deductions.

 

Pakistan: Do workers receive correct payment for work-related injury benefits?

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Recommendations

  • Verify that all workers are covered under social security or employer-sponsored injury insurance. 
  • Maintain records of workplace injuries and promptly report them to the relevant authorities. 
  • Ensure that workers receive correct payments for medical expenses, wage replacement, and disability benefits as per legal requirements. 
  • Prevent delays by streamlining injury reporting and claim processing. 
  • Conduct training sessions to inform workers about their rights to injury compensation and medical care. 
  • Ensure HR personnel are trained to assist workers in filing injury claims. 
  • Provide workers with clear documentation of their injury compensation entitlements
  • Ensure injury claims and payments are properly recorded to avoid disputes or legal violations. 
  • Ensuring full compliance with work-related injury compensation laws in Pakistan, facilities can protect workers, avoid legal risks, and promote a responsible and ethical work environment.

 

Pakistan: Do workers' survivors receive correct payment for survivor benefits?

wb-wage-112

Recommendations

  • Verify that all eligible workers are enrolled in government-mandated social security schemes. 
  • Regularly audit records to confirm compliance with survivor benefit registration requirements.
  •  Implement a structured process to expedite survivor benefit claims and payments. 
  • Work with government agencies to ensure that survivor benefits are processed without unnecessary delays.
  • Conduct awareness sessions for workers to inform them about survivor benefits and how their families can claim them. 
  • Provide written documentation to workers on survivor benefit entitlements and claim procedures. 
  • Ensure all worker records, including dependents' details, are accurately maintained.
  • Keep documentation readily available for survivor benefit claims to prevent unnecessary delays. 
  • Ensuring full compliance with survivor benefit laws in Pakistan, facilities can protect workers' families, avoid legal risks, and promote a responsible and ethical workplace.

 

Pakistan: Do workers' survivors receive correct payment for death grant?

wb-wage-113

Recommendations

  • Verify that all eligible workers are registered with social security schemes that provide death grants. 
  • Regularly update worker records to ensure dependents' information is documented.
  • Establish a structured claim process to ensure that families receive the death grant in a timely manner. 
  • Work with government agencies to expedite processing of funeral and survivor benefits
  • Conduct awareness programs to ensure workers and their families understand how to claim death and funeral benefits. 
  • Provide written documentation outlining the procedure for filing a claim. 
  • Ensure that all workers’ records, including their legal dependents and next of kin, are up to date. 
  • Keep documentation readily available for claim verification and submission to authorities.
  • Ensuring full compliance with Pakistan’s legal requirements for death grants, facilities can support workers’ families, uphold ethical labor practices, and mitigate legal risks.

 

Pakistan: Do workers and survivors receive required medical care?

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Verify that all eligible workers are enrolled in PESSI and EOBI for medical care benefits. Regularly audit records to ensure compliance with healthcare coverage laws. Establish a streamlined process for workers to access medical care in case of illness or injury. Work with government hospitals and approved private healthcare providers to ensure quick access to medical treatment. Conduct awareness sessions to inform workers and their families about available medical benefits. Provide written guidelines on how workers can claim medical care services. Ensure that all worker records, including medical benefit enrollment and treatment history, are accurately maintained. Regularly update records to reflect changes in employment status and family dependents. Ensuring full compliance with Pakistan’s legal requirements for medical care benefits, facilities can protect workers and their families, avoid legal risks, and promote a responsible and ethical workplace

 

Pension/ Provident fund not collected/ forwarded

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Medical not collected/ forwarded

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Work-related injury/ illness/ death not collected/ forwarded

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Unemployment not collected/ forwarded

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Maternity not collected/ forwarded

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Recommendations

  • Employers must deduct worker contributions and pay employer portions as required. Payroll records should be audited regularly to confirm compliance. 
  • Workers should receive payslips showing the exact amount deducted for social insurance. 
  • Payslips should be in a language workers understand. 
  • Ensure that workers are classified correctly to avoid misrepresentation. 
  • Casual or contract workers should receive the same protections if legally required. Regularly review payroll records to ensure deductions match payments forwarded. Work with labor authorities or auditors to confirm compliance with local laws. 
  • Ensuring compliance with social security laws, employers can protect workers' financial security, avoid legal penalties, and build trust within the workforce.

 

Does the facility register their workers with social security institutions, in line with legal requirements?

wb-wage-75

Recommendations

  • Employers must register all eligible workers as required by national laws. Temporary, seasonal, and contract workers should also be registered if legally required. 
  • Workers should receive payslips with a clear breakdown of social security deductions. Workers should be able to verify their registration status with the social security institution. 
  • Regular audits should be conducted to ensure all workers are properly registered. 
  • Work with labor authorities to confirm compliance with social security regulations. HR personnel should be aware of all legal requirements for worker registration. 
  • Payroll teams should ensure timely registration and contribution remittances. 
  • Ensuring compliance with social security registration requirements, employers can protect workers' rights, prevent legal penalties, and enhance workforce trust and morale.

 

Pension/ Provident fund not collected/ forwarded

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Medical not collected/ forwarded

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Work-related injury/ illness/ death not collected/ forwarded

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Unemployment not collected/ forwarded

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Maternity not collected/ forwarded

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Other not collected/ forwarded

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Recommendations

  • Employers must verify legal contribution rates and ensure timely payments. 
  • Payroll audits should be conducted to identify and correct errors in calculations. 
  • Payslips should clearly state social insurance deductions for worker awareness. 
  • Workers should have access to their contribution records and social security enrollment details. 
  • Regular audits should ensure that employer and worker contributions are in line with legal requirements. 
  • Work with labor authorities to confirm compliance with national regulations. 
  • HR personnel should understand all legal requirements for social insurance contributions. 
  • Payroll systems should be updated to automatically calculate correct contributions. 
  • Ensuring compliance with social insurance contribution requirements, employers can protect workers’ benefits, prevent legal issues, and promote trust in payroll practices.

 

Is the facility failing to pay workers overtime in line with legal requirements (Incl. overtime rate and types of overtime)?

Wb-wage-8

Is the facility failing to pay workers correctly for any of these types of overtime hours, as legally required:

• Ordinary overtime hours • Overtime hours performed at night • Overtime hours performed on weekly rest days • Overtime hours performed on public holidays? wb-wag-12

Recommendations

  • Review national laws to confirm the required overtime multipliers 
  • Payroll records must reflect proper overtime compensation. 
  • Regular audits should compare working hours with payroll records to detect underpayment. 
  • Independent audits from third parties can help ensure wage compliance 
  • Ensuring that workers are properly compensated for all overtime hours, facilities can prevent legal risks, uphold fair labor standards, and maintain a motivated workforce.
  • Failure to comply with overtime pay laws is a serious violation that requires immediate corrective action.

 

Does the facility provide other insurance to workers who are not covered by legally required social insurance or social security programs?

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Recommendations

  • HR should track which workers (e.g., contract, part-time, migrant workers) are not covered by public social security programs. 
  • Assess whether offering private insurance would improve worker retention and welfare.
  • Employers can provide optional health, accident, or disability insurance for uncovered workers. 
  • Group insurance plans often provide cost-effective coverage for multiple employees.
  • Workers should understand what coverage is provided and how they can enroll. 
  • Provide written documentation in a language workers understand. 
  • Providing additional insurance coverage, employers can strengthen worker protection, enhance job satisfaction, and build a more resilient workforce.

 

Indonesia: Does the facility comply with all requirements related to national social insurance (BPJS Ketenagakerjaan), including registering workers, paying employer contributions, and collecting and forwarding workers' contributions?

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Recommendations

  • Verify that all formal sector workers are enrolled in BPJS. Maintain updated records of worker registrations and contributions. 
  • Regularly audit payroll systems to ensure accurate and timely employer contributions.
  • Avoid delays to prevent penalties and ensure workers receive uninterrupted benefits.
  • Ensure that worker contributions are deducted correctly from salaries and forwarded to BPJS without delays. 
  • Use an automated payroll system to track and report contributions accurately. 
  • Ensuring full compliance with BPJS Ketenagakerjaan regulations, facilities can protect workers, avoid legal risks, and promote a secure and responsible working environment.

 

Indonesia: Does the facility comply with all requirements related to National healthcare funds (BPJS kesehatan), including registering workers, paying employer contributions, and collecting and forwarding workers’ contribution?

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Recommendations

  • Verify that all workers are enrolled in BPJS Kesehatan and maintain updated registration records. 
  • Ensure newly hired workers are promptly registered and receive their healthcare benefits
  • Regularly audit payroll systems to confirm accurate and on-time employer contributions.
  • Prevent delays in payments to avoid penalties and ensure workers have uninterrupted healthcare coverage. 
  • Ensure worker contributions are accurately deducted from wages and submitted to BPJS Kesehatan without delays. 
  • Use automated payroll systems to track and report contributions effectively 
  • Provide workers with regular updates about their BPJS Kesehatan contributions, coverage, and benefits. 
  • Ensure HR personnel are trained to assist workers in accessing their healthcare entitlements. 
  • Ensuring full compliance with BPJS Kesehatan regulations, facilities can protect workers, avoid legal risks, and promote a responsible and ethical work environment.

 

If the facility has overdue social insurance / social security debts due to non-payment or untimely payment of contributions, is the facility actively correcting this legal non-compliance?

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Recommendations

  • Conduct a financial audit to identify overdue contributions.
  •  Implement automated payroll deductions to ensure timely payments. 
  • Engage with the relevant social insurance authorities to formalize a repayment agreement. 
  • Ensure all payment deadlines under the agreement are met to demonstrate compliance. Inform workers about their social insurance entitlements and any corrective actions being taken. 
  • Provide access to their social security records to verify that contributions are being made correctly. 
  • Maintain accurate records of all social security payments to prevent future discrepancies. 
  • Regularly review compliance with social insurance laws to prevent new debt accumulation. 
  • Actively correcting overdue social insurance debts and ensuring full compliance with legal requirements, facilities can safeguard workers' social protections, reduce legal risks, and maintain a responsible and ethical business environment.

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