Global Tax & Payroll Glossary

The Accident Compensation Corporation (ACC) provides universal no-fault personal injury coverage across New Zealand. The Earner’s Levy is deducted through PAYE by Inland Revenue to fund accident coverage for non-work injuries. For 2025–2026, the rate is 1.60% on all earnings up to the maximum liable threshold ($142,283).

The Dutch tax authority (Belastingdienst) divides personal income into three distinct "Boxes". Box 1 covers taxable income from work and homeownership. For 2026, Box 1 features progressive brackets covering combined national income tax and national insurance contributions (volksverzekeringen: AOW pension, Anw survivor, and Wlz care).

The Canada Pension Plan (CPP) covers working Canadians in all provinces outside Quebec (which administers the equivalent QPP). For 2026, employees contribute 5.95% on pensionable earnings between the $3,500 basic exemption and the Year’s Maximum Pensionable Earnings (YMPE, $71,300). Earnings above YMPE up to the second ceiling are subject to the 4% CPP2 enhancement rate.

Administered by the CPF Board, the Central Provident Fund funds retirement (Special/Retirement Account), homeownership (Ordinary Account), and healthcare (Medisave). For private sector employees aged 55 and below, standard monthly contribution rates are 20% for employees and 17% for employers, capped at the statutory Ordinary Wage (OW) ceiling. CPF contributions are 100% exempt from Singapore personal income tax.

Canadian Employment Insurance (EI) provides income replacement for individuals who lose their jobs through no fault of their own, or take maternity/parental leave. Employees contribute 1.64% of insurable earnings up to the annual Maximum Insurable Earnings limit ($65,700).

Under UAE Federal Decree Law No. 33 of 2021 on the Regulation of Labour Relations, expatriate employees in the private sector are entitled to an End-of-Service Gratuity upon departure. The benefit equals 21 days of basic wage for each year of the first five years of service, and 30 days of basic wage for each additional year thereafter, capped at two years’ total salary.

The General Tax Credit (Algemene heffingskorting) is a statutory tax deduction that directly reduces the final income tax payable in the Netherlands. It provides maximum relief to low-income earners and progressively phases out to zero as taxable earnings increase above statutory thresholds.

While expatriates pay 0% income tax and 0% pension deductions in the UAE, UAE national citizens are enrolled in the General Pension and Social Security Authority (GPSSA) scheme. Private sector UAE national employees contribute 5% of their pensionable wage, with employer and government subsidies completing the contribution.

Singapore’s Inland Revenue Authority (IRAS) administers one of the most competitive personal income tax systems in the world. Personal tax is calculated on a territorial residency basis, with 13 progressive tiers. Foreigners on employment passes residing 183+ days in a calendar year qualify for resident rates.

KiwiSaver is a voluntary retirement savings scheme for New Zealand residents. While enrollment is voluntary, new employees are automatically enrolled unless opting out within statutory deadlines. Employees choose contribution rates of 3%, 4%, 6%, 8%, or 10% of gross salary, and employers are legally required to contribute at least 3% (subject to ESCT tax).

Under the Mandatory Provident Fund Schemes Ordinance, both employees and employers must make mandatory contributions to an approved MPF scheme. The standard rate is 5% of relevant income each, with an employee cap of HK$1,500/month (HK$18,000/year). Mandatory employee contributions are 100% tax-deductible against Hong Kong Salaries Tax.

The Medicare levy is paid by Australian tax residents in addition to standard income tax. The standard rate is 2.0% of taxable income. Low-income earners benefit from threshold exemptions or phase-in reductions where taxable income falls below statutory low-income limits. Higher earners without adequate private hospital insurance may also be subject to the Medicare Levy Surcharge (1.0% to 1.5%).

Class 1 National Insurance is paid by employees earning over the Primary Threshold (£12,570/year or £242/week). The standard employee contribution rate is 8% on earnings between £12,570 and £50,270 (Upper Earnings Limit), dropping to 2% on earnings above £50,270. Employers pay separate secondary Class 1 contributions.

Under HMRC PAYE, employers deduct income tax and employee National Insurance contributions before transferring wages. Tax codes indicate an individual’s Personal Allowance (standard 1257L for £12,570 tax-free earnings) and automatically account for adjustments across England, Wales, Northern Ireland, and Scotland.

Pay As You Go (PAYG) withholding requires Australian employers to deduct income tax and Medicare levy from employees each pay cycle and remit it directly to the ATO. At financial year-end, total PAYG withheld is credited against actual assessed tax liability, producing a tax refund or balance payable.

Most employees in the commercial sector in Ireland pay PRSI Class A. For employees earning over €352 weekly (€18,304/year), the employee PRSI deduction is 4.0% of all gross earnings (with tapered PRSI credit relief for earnings between €352 and €424 per week). Employers contribute 11.05% Class A PRSI on higher salaries.

UK tax residents receive a standard tax-free Personal Allowance of £12,570. However, for income exceeding £100,000, this allowance phases out at a rate of £1 for every £2 earned, disappearing completely at £125,140. This taper creates an effective marginal tax rate of 60% (40% higher rate + 20% lost allowance + 2% National Insurance) on income between £100,000 and £125,140.

In Hong Kong, personal income tax on employment is called Salaries Tax. Tax is calculated using two methods, and taxpayers are charged whichever yields the lower tax bill: (1) Progressive tax rates from 2% to 17% applied to Net Chargeable Income after allowances (such as the HK$145,000 Basic Allowance), or (2) Standard rate of 15% applied to Net Income before allowances.

In Australia, the Superannuation Guarantee requires employers to pay a minimum percentage of an eligible employee’s ordinary time earnings into a complying superannuation fund. Effective from 1 July 2025 (2025–2026 financial year), the statutory rate is 12.0%. Contributions are made on top of gross salary and are subject to a concessional contributions tax of 15% within the fund, rather than the employee’s marginal income tax rate.

The Universal Social Charge (USC) was introduced in Ireland as an emergency measure and remains a core progressive tax element. It is charged on gross income before pension deductions or standard personal tax credits. If total annual income exceeds €13,000, USC applies across tiered bands: 0.5% up to €12,012, 2.0% from €12,012 to €25,760, 4.0% from €25,760 to €70,044, and 8.0% above €70,044.