Employing Workers

Doing Business measures the regulation of employment. It specifically examines the difficulty of hiring, nonstandard work schedules and paid annual leave, and the costs and rules governing redundancy termination.

The table below shows the main indicators. They include:
  • Difficulty of hiring index: Applicability and maximum duration of fixed-term contracts and minimum wage for trainee or first-time employee.
  • Rigidity of hours index: Scheduling of nonstandard work hours and annual paid leave.
  • Difficulty of firing index: Notification and approval requirements for termination of a redundant worker or a group of redundant workers, obligation to reassign or retrain and priority rules for redundancy and reemployment.
  • Rigidity of employment index: A simple average of the above three indices.
  • Firing cost: Notice requirements, severance payments and penalties due when terminating a redundant worker, expressed in weeks of salary.
Higher values in the table indicate more rigid regulations.

To see the details for a specific economy, use the dropdown box on the right or click on the links below.  Click on column headers to sort data.

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Research

The Regulation of Labor (PDF, 270KB), by Botero and others, Quarterly Journal of Economics, June 2004.
Region or EconomyDifficulty of Hiring IndexRigidity of Hours IndexDifficulty of Firing IndexRigidity of Employment IndexFiring costs (weeks of salary)
East Asia & Pacific19.219.220.019.538.6
Eastern Europe & Central Asia36.448.032.438.926.3
Latin America & Caribbean34.733.125.631.253.9
Middle East & North Africa22.541.131.631.753.6
OECD25.742.226.331.425.8
South Asia22.215.041.326.266.0
Sub-Saharan Africa39.043.541.541.368.3
Afghanistan04040270
Albania4440203556
Algeria4460404817
Angola6760706658
Antigua and Barbuda110201052
Argentina446003595
Armenia3340203113
Australia001034
Austria06040332
Azerbaijan0010322
Bahamas, the110401726
Bahrain02050234
Bangladesh44204035104
Belarus040402722
Belgium1140102016
Belize222001424
Benin3940404036
Bhutan0020710
Bolivia786010079not possible
Bosnia and Herzegovina6740304631
Botswana020402090
Brazil786004637
Brunei020074
Bulgaria176010299
Burkina Faso3320102134
Burundi060303026
Cambodia4460304539
Cameroon2840704633
Canada1100428
Cape Verde3360705493
Central African Republic7260506122
Chad3960404636
Chile3320202452
China1120502791
Colombia1140202459
Comoros39604046100
Congo, Dem. Rep.7280707431
Congo, Rep.7860706933
Costa Rica444002835
Côte d'Ivoire3360203849
Croatia6140505039
Czech Republic3340102822
Denmark02010100
Djibouti6740304656
Dominica1120201758
Dominican Republic444002888
Ecuador44605051135
Egypt0206027132
El Salvador334002486
Equatorial Guinea67607066133
Eritrea040202069
Estonia3380605835
Ethiopia3340303440
Fiji1120201722
Finland4460404826
France6760405632
Gabon1760805243
Gambia, the040402726
Georgia020074
Germany3360404469
Ghana22405037178
Greece3380405124
Grenada442002129
Guatemala4440028101
Guinea3360404426
Guinea-Bissau6760706687
Guyana2220202156
Haiti224002117
Honduras8920505374
Hong Kong, China000062
Hungary080103035
Iceland4440103113
India020703056
Indonesia6106040108
Iran1160504091
Iraq336020380
Ireland1120201724
Israel116002491
Italy3340403811
Jamaica1100462
Japan02030174
Jordan112060304
Kazakhstan04030239
Kenya220301747
Kiribati0050174
Korea4460304591
Kuwait04001378
Kyrgyz Republic3340403817
Lao PDR1140503419
Latvia5040404317
Lebanon440302517
Lesotho224002144
Liberia3320403184
Lithuania3380304830
Luxembourg6780406239
Macedonia, FYR5060304726
Madagascar8960406330
Malawi560202584
Malaysia00301075
Maldives00009
Mali3340403831
Marshall Islands00000
Mauritania5640404531
Mauritius020502335
Mexico3340704852
Micronesia220070
Moldova4440404137
Mongolia22800349
Montenegro3340403839
Morocco10040506385
Mozambique67602049134
Namibia040202024
Nepal560704290
Netherlands1740704217
New Zealand1101070
Nicaragua226002724
Niger10060507035
Nigeria0020750
Norway6140404713
Oman33400244
Pakistan7820304390
Palau110040
Panama7860606644
Papua New Guinea112001039
Paraguay56606059113
Peru4440604852
Philippines5620303591
Poland1160403713
Portugal3360504895
Puerto Rico56020250
Qatar060202769
Romania678040628
Russian Federation3360404417
Rwanda4440303826
Samoa11200109
São Tomé and Principe5080606391
Saudi Arabia04001380
Senegal7260506138
Serbia6720303925
Seychelles4420503839
Sierra Leone44605051189
Singapore00004
Slovakia1760303613
Slovenia7860405937
Solomon Islands110201044
South Africa5640304224
Spain7860305656
Sri Lanka0206027169
St. Kitts and Nevis1120201713
St. Lucia0200756
St. Vincent and the Grenadines020201354
Sudan39205036118
Suriname020502326
Swaziland020201353
Sweden3360404426
Switzerland040101713
Syria1140503480
Taiwan, China7840405391
Tajikistan3380405122
Tanzania10040506318
Thailand332001854
Timor-Leste3320503417
Togo7260405736
Tonga020070
Trinidad and Tobago0020767
Tunisia2840804917
Turkey4440303895
Uganda0010313
Ukraine4460304513
United Arab Emirates04001384
United Kingdom1120101422
United States00000
Uruguay336003131
Uzbekistan3340303422
Vanuatu2240102456
Venezuela786010079not possible
Vietnam1120402487
West Bank and Gaza3340203191
Yemen060403317
Zambia22602034178
Zimbabwe0406033446