In Gibraltar, several benefits for employees are mandated as per the Employment Act 1932 and the Employment Regulations 1978. These benefits provide a baseline level of security and compensation for workers.

Leave Entitlements

• Annual Leave: Employees are entitled to a minimum of 20 days of paid annual leave per year, which increases to 25 days after eight years of employment.

• Sick Leave, Compassionate Leave, and Bereavement Leave: The regulations require employers to provide reasonable amounts of paid leave for these purposes, although a set duration is not explicitly mandated.

• Maternity Leave: Pregnant employees are entitled to at least 20 weeks of paid maternity leave, starting 8 weeks before the expected due date and continuing for 12 weeks after childbirth.

• Paternity Leave: Fathers are entitled to 10 days of paid paternity leave upon the birth of their child.

Social Security Contributions

Gibraltar operates a contributory social security system where both employers and employees contribute towards a set of mandatory benefits. These benefits include:

• Injury Benefit: This provides financial support to employees who are unable to work due to a work-related accident or illness.

• Maternity Allowance: This offers financial assistance to mothers during their maternity leave.

• Unemployment Benefit: This provides temporary financial support to unemployed individuals who meet eligibility criteria.

• Death Grant: This provides a one-time payment to the dependents of a deceased employee.

Additional Notes

Employers are required to register their employees with the Employment Service and the Income Tax Office. The benefits received by employees are considered taxable income.

Beyond mandatory benefits, employers in Gibraltar may offer a range of additional benefits to attract and retain talent. These perks can range from health and wellness programs to financial security measures and work-life balance initiatives.

Health and Wellness

Employers might offer private health insurance plans covering a wider range of treatments and specialists beyond the basic healthcare provided by the Group Practice Medical Scheme. Some companies may also promote employee well-being through gym memberships, on-site fitness facilities, or subsidized fitness classes.

Financial Security

Some employers may offer company pension plans on top of the mandatory social security contributions, providing employees with an additional source of retirement income. Certain companies also share a portion of their profits with employees, boosting employee morale and rewarding performance.

Work-Life Balance

Offering flexible work hours, remote work options, or compressed workweeks can improve employee work-life balance and productivity. Some employers provide paid vacation days beyond the minimum mandated amount, allowing for more leisure time. Employers may also offer subsidized childcare solutions or on-site daycare facilities to support working parents.

Other Perks

Offering life insurance coverage can provide financial security for employees' families in case of death. Companies may negotiate discounts with local businesses on products or services for their employees. Employers may also invest in their workforce by offering tuition reimbursement or sponsoring professional development courses to enhance employee skills.

The specific benefits offered by employers in Gibraltar can vary depending on the industry, company size, and overall compensation strategy. It's essential to research individual companies to gain a comprehensive understanding of their benefits package.

In Gibraltar, a two-tiered healthcare system is in operation. All employees are automatically enrolled in the Group Practice Medical Scheme (GPMS) through mandatory social security contributions by both employers and employees. The GPMS provides access to subsidized primary care services, including doctor consultations, basic diagnostic tests, and referrals to specialists within the public healthcare system.

Optional Private Health Insurance

While the GPMS covers basic needs, some employers offer private health insurance plans as an optional benefit. These plans typically provide greater coverage, including access to a wider range of specialists, faster appointment times, and potentially coverage for private hospital stays or more advanced treatments.

Cross-Border Workers

Individuals residing in Spain but working in Gibraltar have access to special healthcare arrangements. They can register for the Spanish healthcare system and obtain an S1 form (formerly E106) to access treatment in Gibraltar. Dependents of these workers may be eligible for Gibraltar's healthcare system under certain conditions.

In Gibraltar, retirement planning is a two-pronged approach that combines mandatory social security contributions with employer-sponsored schemes and personal plans.

Basic State Pension

All employees in Gibraltar contribute to the social security system, which provides a basic state pension upon retirement. The amount received depends on the number of years of contributions and earnings history.

Occupational Pension Schemes

The Private Sector Pensions Act 2021 introduced a requirement for large and enterprise-sized companies (over 250 employees) to offer an occupational pension scheme to their staff. Smaller companies have a phased implementation timeline. These schemes are typically defined contribution plans, where employer and employee contributions are invested to accumulate a retirement nest egg.

Gibraltar Approved Personal Pension Schemes (GAPPS)

Individuals can establish a personal pension plan through a recognized financial institution in Gibraltar. Tax relief may be available on contributions made to GAPPS.

Other Personal Pension Plans

Alongside GAPPS, other options include Retirement Annuity Contracts (RACs) and Qualifying Recognised Overseas Pension Schemes (QROPS) depending on individual circumstances. Financial advisors can guide you through the complexities of these plans.

Choosing the Right Option

The ideal retirement plan depends on various factors including your employment situation, risk tolerance, and retirement goals. Consulting with a financial advisor can help you develop a personalized strategy to ensure a comfortable retirement.