Stay informed with Comrise‘s latest European HR regulatory updates. These cover labor laws, payroll, and compliance across key European markets. Follow our official account for global HR insights.
UK
1. Labor Policies
Employer National Insurance Contributions (NIC)
The UK’s 2024 Autumn Budget announced four NIC changes, effective April 6, 2025:
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Class 1 NIC (employer) threshold drops from £9,100 to £5,000.
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Main Class 1 NIC rate rises from 13.8% to 15%.
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Employment Allowance increases from £5,000 to £10,500.
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The £100,000 NIC cap for claiming the allowance is removed.
Statutory Sick Pay (SSP)
Starting April 6, 2025, SSP rises from £116.75 to £118.75 weekly.
Statutory Maternity Pay (SMP)
From April 6, 2025, SMP increases to £187.18/week (up from £184.03). Other family-related pay (paternity, adoption, etc.) will also rise.
Employment Allowance
This NIC relief encourages hiring. Key 2025 updates:
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Allowance increases to £10,500.
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Full exemption if employer NICs are below this amount.
Eligibility:
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Annual NICs ≤ £100,000.
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Applies to limited companies, sole traders, and partnerships.
2. Legal Updates
Arbitration Act 2025 (UK)
Effective February 24, 2025, this law reforms arbitration agreements, arbitrator duties, and court support. Chinese firms should review arbitration clauses and procedures.
3. Taxation
UK Non-Dom Regime Abolished
From April 6, 2025, the “remittance basis” tax system ends. New rules:
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Four-Year FIFG Regime: New UK residents (non-taxable for 10+ years) pay no tax on foreign income/gains for 4 years.
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Post-Year 5: Global income taxed, even if not remitted.
Spain
1. Labor Policies
Minimum Wage
As of January 1, 2025:
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Daily: €39.47 (up from €37.80).
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Monthly: €1,184 (up from €1,134).
Working Hours
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Max weekly hours drop to 37.5 (from 40). Salaries remain unchanged.
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Part-time workers’ pay rises proportionally.
2. Taxation
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Minimum Tax Rule: Firms with €20M+ revenue face a 15% minimum tax rate.
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Digital Certificates: Mandatory for filings.
3. Visa Policies
Non-Lucrative Visa Changes (Effective May 20, 2025)
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Stay >183 days/year required.
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Annual tax payment for renewal.
Germany
1. Labor Policies
Digital Work Contracts
From January 1, 2025, e-signatures are valid for most contracts. Exceptions: fixed-term roles and sectors like logistics.
Social Insurance Updates
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Health insurance cap: €73,800/year (2024: €69,300).
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Pension cap: €96,600/year (no regional differences).
Pension Increase
From July 1, 2025, pensions rise 3.74% (€40.79/month, up from €39.32).
Parental Allowance Cap
From April 2025, eligibility requires taxable income ≤ €175,000.
2. Taxation
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E-Invoicing Mandate: B2B transactions require e-invoices from January 1, 2025. Exemptions: sub-€250 invoices and transit tickets.
3. Visa Policies
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Online Portal: Visa applications go digital from January 1, 2025. In-person biometrics still required.
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EU Blue Card: Salary thresholds rise to €48,300 (general) and €43,759.80 (shortage occupations).
