Is your organisation prepared for the upcoming changes in global benefits?

Insight

5 minutes

17 December 2025

As the year draws to a close, attention turns to 2026 and the changes that may affect your global benefits strategy. And, with governments grappling with issues such as ageing populations, employee rights and mental health, significant reform is expected. 

One of the key issues facing governments worldwide is the shift in demographics. Improvements in healthcare and living standards means we’re living longer. Most people can now expect to live into their sixties, according to the World Health Organisation, with the number of people aged 60 plus set to double to 2.1 billion by 2050. 

Longer lives are good news for individuals but they’re a headache for governments. Supporting older populations puts pressure on a nation’s pension and healthcare systems, especially as birth rates fall. As an example, in Japan, where almost a third of its population is over 60,  686,061 births were recorded in 2024, the lowest level since records began in 1899. 

Governments are using several levers to address this demographic shift. As well as changing retirement savings policies to encourage more financial security for later in life, there is also a trend towards family-friendly policies such as parental leave and more flexible working to make it easier for employees to have a family.

Employee health is another major issue for governments, with more people falling out of work due to health issues. In the UK, the number of people who are economically inactive for health reasons has increased by 800,000 or 40% since 2019.  

Mental health issues are particularly concerning. In Australia’s New South Wales, claims for psychological injury have doubled since 2018 on Workers Compensation and only 50% of these individuals return to work within a year, compared to 95% for physical injuries. 

These trends have seen governments reform retirement schemes and social security systems, as well as employment rights but also look at ways to promote more proactive approaches to workplace health. For instance, Malaysia, under its 2026 Budget, introduced i‑Saraan Plus to extend retirement savings to gig and informal workers, such as independent contractors, freelancers, small traders, and self‑employed individuals, while also making SOCSO coverage mandatory for gig workers to strengthen social protection.

Faced with so much change, multinational employers must be prepared to adapt their benefits systems and policies. Here’s our round up of some of the key changes around the world.

More generous parental leave is also being rolled out in Singapore in April 2026. Under the new rules, shared parental leave will increase from six weeks to 10 weeks, which can be taken in the 12 months following the child’s birth. To be eligible, an employee must be a Singaporean citizen and have at least three months’ continuous employment with their employer prior to their child’s birth. Employees must give employers at least four weeks’ notice unless a shorter notice period had been agreed. 

The Japanese government is seeking to make changes to workplace pensions to enhance retirement income security for its ageing population. 
Key proposals include increasing contribution limits for employer sponsored plans and abolishing the requirement that voluntary employee contributions cannot exceed employer contributions. 

If approved, these changes are expected to come into effect in 2026 and 2027. 

The New South Wales Workers’ Compensation Scheme is facing its most significant overhaul in decades to address rising costs associated with psychological injury claims. These have doubled since 2018 and now account for 38% of total claims costs. 

To address this – and head off potential increases of more than a third in employer insurance premiums by 2028 – the NSW government is proposing reforms, including:

  • Higher psychological injury thresholds 
  • A 42-day limit for insurers to determine liability for psychological injury claims 
  • Objective tests for psychological injuries caused by workplace conduct
  • A two-week excess period for psychological injury claims, during which employers pay wages and coordinate return-to-work plans 

The Bill was passed by both houses in November 2025 and, subject to the governor’s assent, will become law. Implementation dates are yet to be determined. 

The UK has two major pieces of legislation currently making their way through Parliament.

The Employment Rights Bill is in its final stages and proposes a range of employee protections. The final bill, which is expected to come into force gradually in 2026 and 2027, is likely to include:

  • Better protection against unfair dismissal 
  • Day one right to paternity leave and unpaid parental leave and new protections against dismissal for pregnant women and new mums 
  • New right to unpaid bereavement leave
  • Strengthening of the day one right to request flexible working
  • Ban on zero-hour contracts and ‘fire and rehire’ practices
  • Improved Statutory Sick Pay by removing the three-day waiting period and the Lower Earnings Limit 
  • Mandatory DEI reporting

The Pension Schemes Bill proposes significant reform to the UK’s pension system, creating larger, better governed workplace schemes. It also aims to introduce enhanced investment strategies and a value for money framework to improve returns. 

Royal Assent is expected in 2026, although regulations are unlikely to come into force until the following year at the earliest. 

On 1 January 2026, new pension rules will be introduced to support employees working in third risk category roles. These are higher risk occupations such as heavy labour, working with vibration or in extreme temperatures.

Where an employee works at least three shifts a month in the third risk category, their employer will be required to contribute 4% of their basic salary into a pension. This is to support these workers if they stop working before reaching pension age. 
Employees must opt-in to the additional contribution, but employers will also have a new set of requirements. These include informing employees of their rights and keeping records of contributions for 10 years.

From 1 January 2026, employees in Liechtenstein will receive more generous paternity and parental leave. New mums and dads will be entitled to two months’ paid parental leave, capped at CHF4,760 a month. They will also have an option to extend their leave by a further two months, although this will be unpaid.
New dads will also be able to take 10 days of paternity leave around the time of the child’s birth, paid at 80% of their salary.

What employers can do now

With governments around the world grappling with issues such as ageing populations and employee health, major reform is expected over the next few years. Multinational organisations can strengthen their position by taking the following steps:

  • Map your benefits footprint
    Multinationals must stay on top of regulatory changes; understanding reforms, assessing their impact, and preparing strategies to ensure that you remain compliant across the globe.
  • Understand existing policies
    Analyse your organisation’s policies such as parental leave and sickness absence to understand whether it’s ahead of the reform curve and, if not, the implications of change.
  • Review retirement contribution strategies
    Map existing contribution levels in each market and explore the financial implications of any proposed increases, both locally and globally.
  • Be proactive with insurance options
    Occupational health services and products such as group income protection provide proactive support, including early intervention and rehabilitation for employees with health issues.
  • Future proof your strategy
    Change is inevitable so consider redesigning your global policies and benefit strategies to meet future requirements.
  • Communicate change to employees
    A proactive communications exercise will harness maximum value from any improvements you make to benefit provision, supporting employee engagement, attraction and retention.

Ready for change? We can help

Our Employee Benefits team is here to help manage and support your employee benefits programme, including ensuring compliance with local regulations. With offices all around the world, our experts will keep you informed of any reforms that could affect your organisation and its employees.

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