Overview
Capital
HarrisburgCurrency
United States Dollar (USD)Date Format
mm/dd/yyyyTaxes
Employer
6.20% - Social Security Tax
1.45% - Medicare
Up To 3.3% - State Taxes
1.45% - Medicare
Up To 3.3% - State Taxes
Employee
Minimum Wage
General
Minimum wage is $7.25 per hour.
Paid Time Off
Vacation days
The state law does not require official vacation time to be given to the employees. It depends on the agreement with the employer.
Sick days
No official law requires the employer to give employees sick days. Depends on the prior agreement upon start of employment.
Public Holidays
There are 11 official holidays, however private employers are not required to provide either time off or overtime pay on these days.
VAT
General
The state sales tax is 6%. with exceptions n Allegheny at 7%, and Philadelphia at 8%.
Mandatory Benefits
Pension Fund
Employer:contributes of the total payroll per month for the employees pension funds. The contribution percentage is not specified.
Employee: contributes 6.25% of the total payroll per month for the pension funds.
Social Security
In the US, both the employer and employee contribute 6.20% for social security.
Health Insurance
Both the employer and employee contribute 1.45% to Medicare.
Termination
Termination Process
Pennsylvania follows “employment at will” doctrine which means both the employee and employer are allowed to terminate the employment at any given time without a reason. Therefore at the time of termination, the employer must pay all the necessary wages up to the day of termination.
Advance Notice
There is no official notice period, but general practice is 2 weeks.
Severance Pay
Pennsylvania law does not either require or prohibit severance payments. It depends on the employer’s agreement with the employee.
