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the hire ground
Providing you with the latest stories and solutions for making remote work, work.
Welcome to the Playroll blog
Providing you with the latest stories and solutions for making remote work, work.
Read Time
July 26, 2024
Ready to hire remote workers and access global talent? Learn how to hire international employees, with tips on staying compliant and managing remote teams.
You gain multiple benefits when you hire remote workers. It goes hand-in-hand with hiring international employees and all the advantages of a global workforce.
Despite a trend of many companies enforcing a return to office, remote work has become an ingrained part of the working world post-COVID-19. According to Forbes, 12.7% of full-time employees in the U.S. work from home, while 28% follow a hybrid model. What’s more, a whopping 98% of workers want to work remotely at least some of the time – it will remain an integral part of the future of work.
When you hire remotely, you get a ticket to talent based all over the globe and can tap into many benefits that include:
Hiring from various countries enhances team diversity in culture, ethnicity, and gender, which improves talent acquisition, customer experience, and employee satisfaction. In turn, this drives business profitability, according to a McKinsey report.
Before the rise of remote work, companies were largely restricted to talent based near their offices, or had to relocate candidates that were willing to move - often at great expense. This naturally restricts the number of candidates you have access to.
Remote hiring allows access to top talent globally, vastly expanding your candidate pool. This can be immensely helpful when sourcing hard-to-find skills or if your country is too small to find a good number of candidates for your open roles.
By looking at countries with a lower cost of living, you can access quality, affordable talent across the globe. This can be especially useful for highly competitive, expensive roles as is common in certain industries, for example software development.
Employees have a strong preference for remote work, with 66% preferring fully remote work and 32% preferring hybrid. The majority of employees also report improved work-life balance when working remotely. Offering these opportunities to your team not only increases employee satisfaction as well as your employer reputation, but can also help retain employees.
Using a global workforce platform like Playroll allows your employees to work remotely, from any location, with limited overhead costs and complete compliance.
TecEx provides importer of record and compliance services for companies dealing with IT equipment. They wanted access to a global talent pool — but hiring remotely in new regions was not an option given legislative roadblocks, high costs and time-consuming efforts required to incorporate new entities.
Playroll helped them to scale their company without diminishing the employee experience for their remote teammates.
“The Playroll platform is intuitive and well designed, allowing our HR and Finance teams the ability to seamlessly hire new employees in international jurisdictions where we are not established. Playroll’s customer success team is highly responsive and knowledgeable. This level of service and support has been critical to realizing our global expansion goals.”
Learn more about TecEx’s global growth, made possible by Playroll
Hiring remote workers is more complex than local hiring due to additional legal and compliance requirements. If you want to reap the benefits of a global talent pool, there are several challenges you should be aware of before you get started:
There are always direct and indirect employment costs to consider with any new hire – but international hiring can come coupled with costs you might not be aware of. To legally hire new employees in any new market, you need a legal entity in the region which can come with substantial costs.
Many businesses opt to use Employer Of Record services for this reason, especially if they don’t have a large number of employees in a country. An EOR acts as a legal employer in a region on your behalf, so that you don’t have to take on the effort and cost of establishing entities yourself every time you want to explore a new market.
When you hire in a new market, you need to comply with the employment laws of the country the employee is based in. This means setting up compliant contracts that adhere to local labor laws.
You also need to classify your workers correctly to avoid hefty fines – for example, hiring a contractor but treating them like a full-time employee can open you up to misclassification risk.
Permanent establishment (PE) refers to businesses with a continuous presence in a country, requiring them to pay local taxes. There are a variety of factors that can lead to PE classification which differs by country, such as activity by employees that generate revenue, or having an address or bank account in a country.
Not paying these taxes can make you liable to fines and penalties in that country, and cause reputation damage to your business.
Paying any new employee means having them on your payroll system, paying all required employer taxes and mandatory local contributions – and making sure they’re paid on time. You also need to ensure fair compensation while accounting for currency fluctuations with different currencies.
There’s no one-size-fits-all when it comes to benefits. Each country has its own required mandatory benefits or contributions.
To attract great talent, you also want to provide attractive supplementary benefits – however, this also differs widely between regions.
For example, employees in Norway might not find supplementary health insurance plans very attractive, since they enjoy free healthcare. In another country like South Africa, a great health plan can make all the difference to your employees.
With many international employees, you will be sharing your data across borders. You’ll need to have good technological infrastructure in place to keep your data safe, as well as invest in training for your team to make sure they handle all sensitive data securely.
If you hire employees through an Employer Of Record, double-check that they offer services to ensure your IP belongs to the company.
So, those are significant challenges – how do you overcome them to start enjoying the benefits of an international workforce and explore global expansion as an option? There are several solutions that you can consider depending on the needs of your business:
One way to overcome the obstacles of hiring full time employees is to make use of contractors or freelance workers, instead. Hiring contractors can come with benefits such as:
However, beware of using contractors in the long-term, and for the same amount of work you would give to full time employees. Hiring contractors but treating them like full-time employees comes with misclassification risk, which comes with fines, penalties and reputational harm to your business.
If you make use of contractors, make sure your contract with the contractor is correctly set up to comply with local labor laws, and that your IP and invention rights are protected. Using a contractor management solution through a service like Playroll can help in the set up of compliant contracts, protect your business against misclassification risk, or convert contractors to full time employees.
Use this table as a guide to decide whether you require an employee or contractor for your needs:
Having an established legal entity in a new market can help you overcome many of the challenges mentioned. You can run domestic payroll for local employees, and it will help you avoid the risks of handling a permanent establishment improperly. Since it is considered a separate legal entity to the parent company, it can safeguard you against compliance risk.
However, establishing a legal entity can take a long time and comes with substantial costs – an estimated $20k+ in set up costs and $50K+ in operating costs per location.
To comply with local laws and taxes, you’d also need to hire your own HR, legal and finance experts in each new region.
If you have definite plans to hire many employees in a new market, this approach could make sense. However, it can be a financial bottleneck if you want to explore new markets, quickly expand, or only plan to hire a handful of employees in a new region. Fortunately, there are affordable alternatives that still allow you to be legally compliant when operating in a new region.
Another way to overcome the challenges associated with international hiring is to use an Employer Of Record, an increasingly popular solution for businesses that are expanding globally.
An employer of record is a third-party service that allows companies to employ international talent, without the barriers that are normally associated with global hiring.
These services allow you to expand into new markets at a much faster pace than establishing your own entities. Traditionally, only large companies with substantial resources could afford to employ the local HR, financial and tax experts needed to set up and operate local entities.
An Employer of Record like Playroll removes these barriers and allows companies of all sizes to access global talent. An EOR provider with comprehensive services can:
The usual pricing plan involves paying a monthly or annual fee per employee, instead of the steep set up and operating costs of establishing a legal entity.
Some of the most common reasons it might be time to use an Employer Of Record include:
There are many Employer Of Record solutions on the market. When choosing between services, ask questions such as:
Are they flexible with EOR to Owned Entity transfers?
Many EOR providers are inflexible when it comes to transferring employees between their own entities and client-owned entities, requiring a ‘resign and rehire’ approach – vastly complicating your relationships with employees. Playroll supports the flexible transfer of employment arrangements to client entities.
What is included in the base pricing?
Many EOR providers charge extra for everything beyond their core service offerings, such as dedicated customer support, or to provide localized benefits packages. Often, there are also hidden fees at stake that you’ll discover only when it’s time to pay the bill. Playroll has built-in compliance, dedicated support and benefits management included as part of its fixed pricing.
What kind of support can I expect?
Attracting and retaining talent for your team is an extra challenge when you’re operating in new markets. Your chosen global HR partner should act as an extension of your team. If you have to wait days to get an answer, your promising hire might have moved on already.
Playroll’s legal, finance, HR and support experts are available to advise on everything from payroll and local benefits, to setting up compliant contracts. Employers and employees alike have dedicated support managers available at no extra cost, to give you personalized service.
Once you’ve settled on your method of how you’ll hire remote workers, there are important preparations and research you should do as a business before getting stuck into the hiring process.
Besides the business of paying your remote workers compliantly, you should decide on your approach when it comes to global compensation – for example, do you pay location-independent salaries, or pay based on location and local cost of living?
You might consider pegging salaries to the currency your business uses as a standard (for example, dollars). In this example, you would use the dollar amount as the base for an employee's salary, then pay employees in their local currency based on the current exchange rate.
Every approach comes with its own pros and cons. Read our full guide on the subject, and make sure your business is aligned on this decision before you start hiring internationally.
The country you decide to hire in will affect what a competitive salary band for a role looks like. Factors such as the cost of living, required employer contributions and customary local benefits can have a significant impact on your hiring budget.
Conducting research on this will be important, regardless of your chosen global compensation strategy.
Tools to help you determine employee cost:
To source remote workers in new markets, make use of the following strategies:
Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.
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Finally, it’s time to dive into the actual hiring process. While much of this will follow your same process for hiring local employees, there are some special considerations.
Besides doing research on cost of living and competitive salaries per region, it’s important to know what the local employment laws and regulations are that you’ll need to follow – as well as cultural norms and practices that might affect how you communicate with candidates.
Some countries also have provisions in place that can make it easier to do international business, financial incentives for remote workers, or digital nomad visas that support remote work. For example, remote workers in France receive a monthly working indemnity of €100, and the government extends various incentives to those planning to establish businesses in the country – while many countries such as Spain, Portugal and Japan have introduced digital nomad visas.
Playroll’s country guides, covering 180+ regions, can be a useful starting point to familiarize yourself with hiring in a new market.
Be clear in your job description about the nature of the role, such as:
This can help prevent any confusion about the role and your business. If you’re using an Employer Of Record, it can also be useful to explain the nature of this arrangement to candidates, so they don’t get any surprises on who will ultimately help them manage their leave, benefits and payslips.
Since the COVID-19 pandemic, conducting interviews via video calls have become a standard part of the hiring process. That said, you should double check the basics when interviewing international candidates:
Make sure your employment contract is compliant according to the requirements of the country. It should adhere to local labor laws that govern aspects such as:
If using an Employer Of Record, they will handle setting up compliant contracts and offer expertise on every aspect of the offer you’re making to candidates. Alternatively, make sure you consult local legal, tax and HR specialists when setting up your contracts.
Managing a remote, international employee can differ from working with a team member that’s locally based. Here’s our top tips on what to watch out for:
On a practical level, ensure you have great employment management software up and running that can make it easier for employers to handle the administrative tasks of a distributed workforce and for employees to access key documents or request leave. For example, Employer Of Record services offer portals for employees and employers alike and can integrate with other popular HR software.
Software tools that can make remote team management easier include, for example:
Clear communication is crucial in a fully remote environment, where frequent in-person check-ins are not possible.
Make sure your whole team knows what is expected of them and when, and be deliberate in setting up regular check-ins to flag any problems and address questions in a timely manner.
Create structure and thorough documentation
Without structure in place, miscommunication can easily occur in a remote team, ultimately wasting time and causing frustration among team members.
Your project management should be extra organized with a remote team, with a common understanding of what tools you use to check in on your work and track progress.
Similarly, house your documentation in one place so it’s easy for new joiners to orientate themselves in your business and make an impact sooner.
It can be easy to feel disconnected from team members when working fully remote, and there is an extra risk when you have team members of different nationalities working together who might also be dealing with cultural and language barriers to overcome. To counter this:
While many employees enjoy greater work-life balance with remote work, it can also blur the boundaries between work and personal life – especially if you don’t have strict working hours in place. Set and enforce work hours to prevent burnout, improving long-term retention of valuable team members.
Related to respecting strict working hours, be flexible when it comes to team mates in different time zones – a policy of flexible working hours can make a big difference here. Schedule your team check-ins during times that respect the working days of your entire team.
While frequent check-ins are good in a remote setting, avoid crossing the line into micromanagement. Make it clear that you trust your team members to manage their tasks.
A structured onboarding program is especially important in a remote setting. Work with your HR team to develop a comprehensive program that gives new hires all necessary insight into the business and confidence with the tools they need on the job.
A popular practice is to pair new hires with mentors to provide guidance and support during their initial period.
As a business, your data is only safe if every employee helps safeguard it. When working with international employees:
When working with a global team, inclusive practices are especially important to make everyone on your team feel respected – it can also help your team if they’re going to work with clients based in different countries.
Offer training on cultural sensitivity and awareness, and survey your team regularly on its effectiveness and any improvements you could make.
Your country's borders should not limit where you can source and hire talent – extraordinary people are everywhere.
As skills shortages continue, and competition for world-class talent increases, hiring remote workers will become the new frontier for more companies across the globe.
Hiring a remote team compliantly can quickly get complex and come with significant challenges – but it doesn’t have to be. Playroll is on a mission to make borderless work a reality for thousands of businesses, of all sizes. By using a EOR provider such as Playroll, you can remove many of the risks and challenges of hiring remote workers:
Read Time
October 4, 2024
Employee misclassification is the incorrect categorization of a worker as an independent contractor when they should be classified as an employee due to the true nature of the relationship, regardless of the type of contract they had entered into. This misclassification occurs when companies fail to meet legal criteria that distinguish employees from contractors.
Why is this problematic?
Employee misclassification is particularly challenging because the criteria for determining employment status vary between countries and states.
For example, a worker classified as a contractor in the US may be seen as an employee in the UK based on local labor standards. Because these rules can be complex, many businesses rely on expert assistance to ensure compliance across different jurisdictions.
To avoid misclassifying employees as independent contractors, you first need to know how to distinguish between them. Here are the key differences:
Employees have income tax automatically deducted from their wages, while contractors are responsible for their own tax filings.
Employees follow strict guidelines from their employer on how and when to perform their tasks, while contractors have more flexibility and autonomy.
IP created by employees typically belongs to the employer, while IP created by contractors remains their own unless specified in contracts.
Employees are entitled to mandatory benefits such as health insurance, unemployment insurance, and workers' compensation, while contractors usually do not receive these same benefits.
Employees are also generally entitled to protection from discrimination and harassment, whilst contractors may not be afforded the same level of protection.
Correctly distinguishing between employees and contractors can get surprisingly complex: several tests exist for this reason, for example the Economic Reality Test test in the U.S.
There are, however, some common hallmarks of misclassification. Here’s your checklist of the most common questions that government authorities use to determine misclassification. If you’ve hired a contractor and find your answers aligning with the characteristics of an employee, it’s a red flag that they may be misclassified:
There are several risks to employee misclassification, whether unintentional or not – though the repercussions tend to be most severe if government authorities find that a business has intentionally misclassified workers or committed fraud.
Some of the repercussions can include:
Whilst any industry is susceptible to employee misclassification, some industries have longer standing practices of misclassification than others or it’s generally more common.
For example, businesses in sales, IT, high-tech, hospitality, entertainment, logistics and construction industries should be especially aware of misclassification risks.
Penalties for employee misclassification differ between countries but can include financial fines, tax penalties, and reputational damage. For example:
The IRS imposes heavy fines for unpaid payroll taxes, along with penalties for failure to provide benefits like health insurance or workers' compensation. The Wage and Hour Division of the U.S. The Department of Labor also actively pursues claims. For example, you can be subject to a $50 fine for each unfiled Form W-2, or charged a percentage of wages.
Companies may face penalties under the UK’s Employment Rights Act, including paying back-pay for lost wages, holiday pay, and missed pension contributions.
Penalties vary but may include large fines, repayment of lost unemployment insurance benefits, and damage to the company’s standing with labor unions.
Several notable legal cases highlight the consequences of misclassifying employees:
There are several measures you can take as a business to avoid the pitfalls of misclassification. These include:
Ensuring compliance and the correct classification starts at the recruitment and onboarding stages. When hiring contractors, make sure your contractor agreement is set up correctly in line with local labor laws. It should cover, amongst others (see checklist above):
In a worst-case scenario, a robust contractor agreement can be used in your defense in legal cases – assuming you truly haven’t misclassified the worker.
Whilst the content of the contractor agreement is important, employers should still be aware of the “substance over form” principle, discussed above, and determine if it is applicable in the countries in which they hire individuals.
Employment laws are constantly evolving, especially in the context of remote work.
Spend time researching local regulations for the regions you’re interested in, before taking the next step and hiring an independent contractor or employee.
Regularly review the status of all your workers to ensure they are correctly classified. Make sure this forms part of your standard policies or procedures, and assign ownership of the audit to a specific person or department so these checks don’t fall through the cracks of your business.
If a contractor's role has evolved to more closely resemble that of an employee, consider offering them a formal employment contract. This can also hold the following benefits:
It can take significant time and resources to stay compliant as a global business when hiring remote workers. That’s why many businesses choose to use global employment services like Playroll, that have experts on-hand to help you make sense of local labor laws and stay fully compliant when hiring across borders.
I always feel completely calm and safe with Playroll, which is very important to me and the people we employ. I have complete trust that everything is done by the law.
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Violeta Cirkovic, HR Generalist, Two Desperados
Employee misclassification can get complicated, but it doesn’t have to be a bottleneck to scale your global team.
Playroll can help businesses sidestep employee misclassification risk by ensuring compliance with employment laws in over 180 countries. No matter what type of worker you want to hire, Playroll’s team of experts will do the heavy-lifting to ensure your workforce is correctly classified and compliant – freeing you up to focus on your business growth.
Book a free chat with our team and get a compliance consultation, to ensure your business is not at risk of misclassification.
An Employer Of Record (EOR) is a third-party service that assumes all employer responsibilities on behalf of another business, including payroll and benefits management for employees. EOR services are widely used by companies that are hiring employees internationally, without the hassle, time and cost of establishing a legal entity first.
The EOR acts as the legal employer paper, while you manage the employee's daily activities.
Yes, we admit our bias, but can point to a proven track record of success when it comes to compliantly employing, managing and paying remote teams for businesses of any shape and size.
Playroll simplified our expansion into new markets by providing a comprehensive understanding of local regulations. Through this partnership, we could immediately tick the box on compliance, at no risk to BET Software.
Gizelle Govender, Senior People Partner, BET Software
As a global Employer Of Record, Playroll stands out for its cost effective pricing, without compromising on the quality of its EOR services or support. It offers truly human customer support for both employers and employees to simplify international employment. This is in contrast to many competitors that rely on ticketing systems, do not offer dedicated support, or upcharge for support. We are uncommonly flexible when it comes to the needs of our customers, going the extra mile to customize contracts and facilitating transfers between EOR and client entities as needed.
Playroll’s user-friendly platform allows you to employ, pay and manage employees and contractors alike in 180+ countries, and provides a team of experts that ensures compliance with shifting employment regulations. Other services include comprehensive localized benefits packages, immigration support, and streamlining global payroll operations.
Pricing: From $399 per month, per employee. No annual commitment required for affordable prices.
Papaya Global is especially known for its comprehensive support in payroll processing, and is innovative when it comes to integrating AI within HR tech. They have a broad range of customization options available to customers.
On the downside, Papaya Global relies fully on third party partners to provide their services, instead of having its own infrastructure of owned entities. This can mean extra fees being passed on to customers, on top of already hefty monthly EOR fees. It also means the EOR provider always has to liaise with third-party partners when providing customer support, which can significantly delay their response times.
Pricing: From $599/month, per employee.
G-P is a popular EOR choice that offers a broad range of products. They split their EOR services between a core and premium offering. This can be useful for businesses that are looking for a broad range of options to pick and choose from. They also have many options to tweak and customize services, and advanced data analytics.
Globalization Partners does have its cons. Their pricing is complex and obscure, with reports of high monthly fees. Many of their EOR features are only available with their premium product, and they’ve received some negative feedback for slow customer service. Overall, this could make them a poor fit for smaller companies that have more limited resources and require more hands-on support to make their first international hires.
Pricing: Not publicly disclosed.
OysterHR is known for their fun branding and user-friendly platform, with quick onboarding times reported. They have a wide country coverage, and solid compliance credentials behind their name.
On the other hand, they are priced at the upper end of the market for their EOR services, which can quickly prove to be a financial bottleneck for companies hoping to hire more than just a handful of international employees. In addition, there have been some reports of payroll mistakes and delays on public review sites.
Pricing: From $599/month, per employee if paying annually. Monthly plans are priced from $699 p/month.
Remote is a well-known EOR provider, with a focus on providing services through their own network of owned entities, which can be useful for businesses that want to avoid dealing with any additional third parties in the equation.
On the downside, their EOR fees are very high compared to some other names in the business, and they have received some negative reviews on slow customer service and multiple points of contact. They also don’t offer a very wide network of country coverage for EOR services, with less than 100 countries covered, which can limit your ability to scale as a business.
Pricing: From $599/month, per employee.
Deel is another well-established player in the EOR space, offering options to manage full-time employees and contractors in 150+ regions. They can be a good fit for businesses looking for an EOR partner with many owned entities, and a comprehensive range of integrations.
That said, Deel’s fees are expensive and require annual commitments for cheaper pricing, and they’ve received many negative reviews of hidden fees and unexpected costs. This can make it hard to properly budget for their services, and can prove too expensive for smaller businesses looking to scale globally.
Pricing: From $499/month, per employee if paying annually. Monthly plans are pricier, at $599 p/month.
Rippling is a popular workforce management solution, and is especially known for their broad range of products that include payroll, finance and IT management. This can make them a good choice for companies looking for a single solution to workforce management.
If you’re looking for a specialist in global employment and EOR services though, there are some cons to consider. Their pricing is not publicly disclosed, though high fees are reported – and they’ve received negative reviews of a bloated product with a steep learning curve, as well as payroll errors.
Pricing: Not publicly disclosed.
Velocity Global stands out for its wide country coverage as an EOR provider, at 185+ regions, which can make them a good choice for employers interested in stable support for any future growth plans.
They are another example of an EOR provider that doesn’t disclose their pricing publicly, with reports of steep monthly fees. Another downside is the many negative reviews they’ve received for slow customer service and multiple points of contact, which can make them a frustrating provider to deal with if you value quick response times to enquiries.
Pricing: Not publicly disclosed.
Multiplier offers good pricing for the EOR services, and has a solid library of extra global hiring resources available for employers. They also have all compliance credentials needed to mitigate risk for employers looking to hire internationally.
On the other hand, they take a complex approach to invoicing, and have received some reviews of slow and faulty payroll services. They’ve also received negative feedback on slow customer service. Overall, this can mean risk to your business if you value simple, timely payroll for employees.
Pricing: From $400/month, per employee.
WorkMotion is an EOR service that specializes in supporting European companies, and can also assist with in-country registrations – which can make them a good choice for EU companies looking to expand their business.
As for its cons, WorkMotion charges very high EOR fees that only become more affordable when hiring many employees. They also don’t offer any support in hiring independent contractors, which can be detrimental to businesses that are looking for a single service to hire any type of worker across the globe. Lastly, they don’t have SOC2 certification, which many businesses require to safeguard their data when working with EOR providers.
Pricing: €649 p/month ($724) per employee for up to 4 employees. Price decreases if onboarding more people.
Playroll ticks the boxes on robust compliance, broad country coverage and many owned entities. This is similar to many of the competitors mentioned on this list, and are some of the standard offerings you should look out for when choosing an EOR provider that offers comprehensive services.
Overall, though there are many strong EOR contenders on the market, Playroll stands out for its competitive pricing, as well as its on-the-ground support for businesses of all sizes – with dedicated support and flexibility for both employers and employees.
We believe quality support is the single most important trait for an EOR provider, since EORs support businesses that are expanding into jurisdictions they’re often unfamiliar with. This means quick responses to tricky compliance questions, flexibility to customer needs and a truly human touch is invaluable.
Book a chat with our team to find out how we can help you scale your global team.
Compare the top EOR providers side-by-side, with a full breakdown on cost, support, coverage and more.
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Read Time
October 31, 2024
As 2025 approaches, UK employers should prepare for a series of regulatory and budgetary changes that will impact their responsibilities and payroll costs. Below are the most important updates from the Autumn Budget and the upcoming Employment Rights Bill that employers need to know.
The Autumn Budget also introduced tax incentives designed to stimulate investment and growth in certain business areas, which may benefit employers looking to expand or modernize.
Employers in these sectors or those considering capital investments can leverage these tax reliefs to offset potential payroll cost increases in 2025.
The UK Employment Rights Bill, as introduced to Parliament, proposes significant changes affecting employee protections, flexible work arrangements, and dismissal rights. Here’s what employers should prepare for:
Employers should begin assessing the financial impact of these updates on payroll, benefits, and operational policies. To stay compliant, adjustments to payroll systems, employment policies, and potentially even hiring budgets may be necessary. By adapting promptly and staying informed on shifting regulations, employers can stay ahead of the curve.
Here’s how to get started:
Plan for increased payroll costs due to NI and minimum wage changes and review any potential tax incentives that may help offset costs, such as R&D credits or full expensing.
Ensure employment policies reflect new flexible working rights, guaranteed-hour contracts, and dismissal protections. Update your onboarding process to clarify probation terms and new rights from Day 1.
Strengthen policies against workplace harassment, with clear measures in place to prevent third-party harassment and ensure compliance with the Equality Act amendments.
For large employers, begin gathering data and establishing action plans to meet gender pay gap reporting requirements and support for menopausal employees.
Update sick leave policies and payroll processes to accommodate SSP from Day 1 and prepare for changes to the Lower Earnings Limit in SSP calculations.
By proactively addressing these changes, employers can minimize disruptions, avoid any penalties and stay in line with the UK’s evolving employment landscape.
It doesn't have to be complicated to stay compliant. Playroll's on-the-ground employment experts can do the heavy-lifting to ensure compliance with shifting employment regulations, and inform you how these policies impact your organizations. Book a time with a UK employment consultant to learn how we can support your business.
An Employer Of Record (EOR) is a third-party service that handles employment responsibilities for your company, like payroll, taxes, benefits, and compliance with local labor laws. The EOR legally employs your global team on paper, while you manage the employee's daily activities.
EOR providers typically operate under these business models: using their own wholly-owned local entities, partnerships with local providers, or a combination of these two approaches. A wholly-owned EOR model means the provider sets up its own entities in each country and retains full control over hiring and payroll.
In contrast, some EORs partner with local vendors and outsource these tasks. While this can be cheaper for the EOR, it may lead to less reliable service for you. Wholly-owned entities has the following advantages:
Selecting an EOR partner with a robust network of wholly owned entities can give you advantages in all these areas.
It's important to find an EOR with transparent pricing. Some providers may have hidden fees, like onboarding and offboarding charges, which can increase costs unexpectedly. Look for an EOR that clearly communicates all potential expenses upfront, is straightforward in their invoicing, cost effective and offers a clear breakdown of what’s included in their pricing.
Lastly, they should offer flexibility in their pricing models that suits the needs of your business: this includes offering monthly charges for full-time employees over requiring annual commitments for lower rates.
The level of support an EOR provides can make or break your global employment strategy. Quick response times and hands-on support are essential, especially when dealing with complex issues like payroll queries or legal compliance in jurisdictions you might be unfamiliar with.
Before bringing an EOR provider on board, check their public reviews on platforms like G2 and Trustpilot. Additionally, ensure that the EOR offers dedicated support for your employees to ensure employee satisfaction and retention. Be sure to ask if dedicated support comes free of charge, as some EOR providers charge extra for this service.
Your EOR provider should have a strong presence in the countries where you wish to expand in the short-term and in the long run. In cases where they do not operate in your desired country, your growth might be hampered if you're locked into a contract you’re unhappy with. Some providers also charge fixed offboarding fees – it’s a good idea to ask whether this is the case before you commit to a provider.
Identify a company with comprehensive country coverage. For example, Playroll operates in over 180+ regions and offers the extensive coverage required to support your global ambitions.
An ideal EOR should help you hire both full-time employees and contractors legally. This flexibility is essential as your workforce needs may evolve over time. It’s much easier to use one service provider that can cater for all potential needs, than having to choose different providers to hire full-time employees and contractors.
Additionally, the EOR provider should be able to assist with classifying your workers correctly to avoid the penalties associated with misclassifying employees as contractors, and convert contractors to full-time employees if needed.
Check that your chosen EOR provider will support hiring different types of workers, in all the regions you’re interested in.
Competitive employee benefits are a key component of attracting and retaining top talent. Your EOR should offer a comprehensive benefits package that includes both local benefits and global options.
Enquire about additional services like benefits management and visa support. The more robust and flexible the benefits, the better equipped you’ll be to support your international team no matter any curveballs that might come your way.
Timely and accurate payroll is a non-negotiable part of your day-to-day operations when managing a global workforce. Having delayed and faulty payroll can result in great reputational harm to your business and potential legal fallout. Ensure the EOR has a proven track record of paying employees on time and offers a user-friendly payroll system.
Before committing, ask for a demonstration of how their payroll system works and whether it provides a clear view of all transactions in one place. Ask how their invoicing system works, as some providers can make this needlessly complex.
Your data should always be safe, and data security is an important consideration while choosing an EOR. Ensure this by checking the certifications the EOR holds, such as GDPR and SOC2, and inquire about the measures they take to protect your Intellectual Property. An EOR provider should guarantee that all contracts are compliantly set up to ensure your IP will belong to you.
Be wary of EORs that rely heavily on third-party partners since this can increase the risk of data security issues.
Compliance with local labor laws is one of the main reasons to partner with an EOR. The right EOR should have a team of experts on hand to help you navigate challenges such as employee misclassification risk, and meeting all compliance requirements in new markets. Again, be sure to check if the EOR provider has a track record of quick response times, as you might need fast support when it comes to questions of compliance.
Ask about their legal expertise in the specific countries you’re interested in and how they help you stay compliant with local regulations.
Employment contracts can vary across different regions and your EOR should be flexible to your specific needs and can create customized agreements if needed. Ask about their process for amending contracts and how long it typically takes.
Flexibility in this area ensures your contracts are aligned with both local laws and your business objectives.
Employee terminations can be difficult and complicated, making it a matter that should be handled carefully. Ensure the EOR has a clear and compliant process for managing terminations, including support for both the employer and the employee during the offboarding process. Understand this process thoroughly before entering into a partnership to prevent legal issues in the future.
If you're considering moving an employee from an EOR to one of your own entities, many EOR providers require a ‘resign and rehire’ process. During this process, the employee resigns from the EOR and is rehired by your entity. This approach can complicate the businesses’ relationship with the employee.
Clarify with the EOR if they offer a flexible transfer process.
Choosing the right EOR partner is fundamental for your business’s global expansion. Playroll stands out by meeting the criteria mentioned above, offering extensive country coverage at 180+ regions with a robust network of wholly owned entities.
Enjoy transparent, best-in-class pricing, dedicated support for employees and employees, and a flexible approach to employment contracts – with a team of HR, finance and legal experts on hand every step of the way.
Compare EOR providers and book a demo with Playroll today to explore how we can support your international growth.
So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.
The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.
Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.
Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.
Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.
The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.
All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.
Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.
Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.
The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents.
Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.
Our Norway playbook can help you understand the country’s labor laws and regulations.
Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.
That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.
Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.
Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.
Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.
Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.
Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.
Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.
South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.
The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.
Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.
The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.
Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:
As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.
That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.
To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:
Book a demo with our team to find out how we can help you scale your remote team with ease.
Read Time
September 3, 2024
Recruiting and retaining talent in countries with free healthcare means lower healthcare-related costs for business, fewer sick days, and little-to-no absence from work. That can help companies build a motivated, satisfied, and more stable workforce.
According to the Bureau of Labor Statistics, 43% of businesses in the U.S. use a bi-weekly pay schedule, while 19.8% use semi-monthly payroll.
Choosing the right payroll schedule helps businesses manage their financial commitments and overall administrative workload while driving employee satisfaction. Semi-monthly vs bi-weekly pay schedules are the most common. Both are great, and the one you choose depends on your industry, company size, number and type of employees, and payday regulations in your region.
With a semi-monthly payroll, employees receive payment twice a month. Paychecks are distributed on fixed dates, say 1st and 15th, or 15th and 30th.
Bi-weekly payroll means that employees are paid once every two weeks. Paychecks are distributed every other week, usually on a Friday.
This article delves into the strengths and weaknesses of semi-monthly vs bi-weekly payroll. By the end, you’ll be able to make an informed decision and choose a payroll schedule that aligns with your business goals and workforce needs.
As mentioned above, bi-weekly payroll distributes employee paychecks every other Friday. Paying employees once in two weeks results in 26 pay periods per year. This pay schedule is favored by most U.S. companies as it ensures employees are frequently paid without burdening HR teams with excessive admin work.
A bi-weekly payroll works fine for companies that regularly hire a lot of new hourly and salaried employees.
More frequent payments: Payroll is processed every 14 days, the same day of the week. Such a predictable pay cycle enables employers to prepare and distribute paychecks accordingly.
Employees are paid twice a month on specific dates, with many companies choosing the 1st and the 15th of the month. That results in 24 pay periods per year. Sometimes, paydays may fall on weekends or holidays. Thus, HR teams have to monitor pay dates and make adjustments to ensure timely pay.
Semi-monthly payroll may be a great choice for businesses with employee benefits deductions, such as health insurance and retirement contributions. Paydays align with monthly financial reporting, making it easier to deduct and report deductions from employees’ paychecks.
Several factors come into play when choosing between semi-monthly vs bi-weekly payroll. Below is a list of top factors that influence payroll choice.
Below are the key considerations and best practices for implementing an effective payroll schedule:
Playroll is an innovative global employment platform that offers EOR services and global payroll solutions to help you hire and manage global teams through:
Book a chat with our experts to find out how you can scale your global team with ease.
Remote working is increasingly becoming ingrained in the UK corporate culture. According to StandOutCV, 58% of UK employers offer remote work, with 16% of the UK workforce working full-time from home in 2023.
Cutting-edge business technology, robust internet connection, and the peak of the COVID-19 restriction in 2020 are the top reasons for the increasing shift to this new work culture.
That creates the need for remote management tools to help businesses streamline workflows, manage and monitor remote teams, and ensure secure access to company systems and networks.
Playroll is an all-in-one payroll and HR management platform that offers employment and payroll solutions to help businesses build and manage remote teams efficiently.
This article covers the seven types of remote administration tools for businesses in 2024 and beyond.
Effective communication and collaboration are essential when employees work remotely from different locations. Video conferencing tools and instant messaging apps are the top remote management tools in this category that help bridge the gap and create a seamless work environment.
For instance, video conferencing tools facilitate face-to-face meetings and remote presentations. With messaging apps, remote teams can create groups or channels to organize conversations by topic or project and communicate in real-time.
Reliable communication and collaboration tools to check include:
With about 12.7% of employees working full-time from home, project management and task-tracking tools are absolutely essential for businesses. They enable managers and supervisors to plan projects, schedule tasks, and allocate resources.
From behind a computer screen, managers can set deadlines, assign tasks, and set clear responsibilities to enable remote teams to collaborate on projects. Again, these tools provide important reports and insights to help managers track overall project progress, identify issues, and make adjustments accordingly.
The best remote management tools in this category include:
The 9-to-5 working schedule is lost when employees work from home. That makes it difficult to monitor their home office activities because supervisors don’t have physical access to their remote computers and mobile devices.
Time tracking and productivity software help solve this problem. They work in the background to track down employees' activity and non-activity time. That enables companies to determine time spent on assigned projects or tasks to evaluate performance and productivity.
Time tracking tools also ensure that working hours are fully recorded to enable HR managers to generate payroll easily and quickly. Top remote management tools in this category include:
Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.
Cloud-based storage systems are great remote management tools for file sharing. Unlike in-house file storage systems that are only accessible locally, files on the cloud are accessible to team members at any time regardless of their geographical location.
That enables team members to create, store, edit, share, and access content from any device. Teams can easily collaborate and work on projects or tasks on shared files where everyone can see updates and track file versions. That helps eliminate slowdowns and ensure faster completion of workloads.
The best remote management tools in this category include:
Remote desktop and access tools help technical support teams and managed service providers (MSPs) offer remote support without needing physical access. These tools are embedded in operating systems on company devices, including laptops, computers, tablets, or even mobile devices.
That enables technical support teams to respond to issues quickly without the need to travel on-site. They can remotely manage operating systems' updates, troubleshoot networks, and transfer files. They can also send a command line of tasks to multiple PCs, configure devices, and if necessary, shut down remote computers.
Top remote desktop and access tools include:
If implemented well, employee monitoring has been found to increase employee productivity by 7%. Remote monitoring and management tools help businesses track and analyze how employees utilize working time and company resources.
They track and monitor employees' activities like internet use & browsing, emails, phone calls, or even video surveillance. Such data is then analyzed to draw important insights and identify areas of improvement.
That helps companies ensure remote workers perform their duties efficiently, adhering to company policies and ethical standards. It also helps protect and identify insider threats that can result in damaging data breaches.
Best remote management tools for employee monitoring include:
With companies spending an average of $4.37 million to recover from damaging data breaches, the need for robust data security tools cannot be overlooked.
These tools ensure real-time monitoring of computer networks to identify and report threats. They also scan and remove viruses and malware apps to improve the security of remote and hybrid work environments. Top remote management tools for data security include:
As remote working continues to take root, remote administration tools are becoming an indispensable part of modern business operations. Therefore, business owners should consider using the above tools to ensure hassle-free remote monitoring and management of their workforce.
Playrooll's HR and payroll management system integrates with your remote management tools to ensure streamlined HR and payroll processing for remote teams. Request a demo to see how you can optimize your remote management with Playroll.
Understanding the average maternity leave by country helps employers grasp the global landscape, ensuring their policies are competitive and in line with international standards.
According to the ILO (International Labour Organization) standards, maternity leave is a universal human and labor right and should last at least 14 weeks. Still, the ILO recommends increasing that period to 18 weeks of paid parental leave so the mother can have more time to rest and recover properly.
However, regarding maternity leave requirements, two variables change between the 152 countries that offer the benefit: leave duration and financial compensation. During said leave, the mother can either be fully paid maternity leave, paid in part, or not paid at all.
To guarantee compliance, employers must keep up-to-date with each country's maternity leave laws. Here are some examples of maternity leave by country around the world. This section highlights the differences in paid maternity leave by country, illustrating how compensation during leave varies globally.
Evaluating the best maternity leave by country allows employers to understand which nations offer the most comprehensive support for new mothers, setting a benchmark for global maternity policies.
Also Read: What Are the Best Countries for Maternity Leave?
Let's examine the common employee rights during maternity leave to better understand the scope of employer obligations and practices.
Pregnant workers may feel entitled to take legal action if they are treated less favorably due to their pregnancy or family responsibilities or if they’re asked to perform tasks not suitable for someone in their state.
Some countries allow employees to take more leave in exchange for disadvantages, such as not being paid for the extra time or pausing their career progression.
In addition to paid maternity leave, 63% of countries offer parental leave. However, the leave duration is often smaller than the mother’s, usually under three weeks of maternity leave.
This is one of the more important things to keep track of. Every mother has the right to return to her previous position upon returning to work, no matter how much time she spends on leave.
A great thing to do when implementing maternity leave policies in your company is to plan and disclose everything in advance. That way, you can ensure you and your team are up-to-date with all respective duties and procedures, avoiding any possible hiccups.
Here are some tips that will help you through this process:
● Previously define those eligible for a paid maternity leave, stating criteria such as length of service, full-time status, etc.
● Establish the leave duration, including possible extensions and other additional arrangements.
● Declare the pay and all the benefits employees receive during the maternity leave beforehand.
● Specify the notice requirements. Let your team know when they should inform you about their pregnancy and when they plan on taking maternity leave.
● Assure job protection. Your employees must know their positions will remain secure.
● Adapt your company to better accommodate pregnant employees and those returning from maternity leave. The gold standard is creating flexible work schedules.
Maternity leave policies have evolved significantly in recent years to reflect the changing dynamics of the modern workforce. With globalization and the rise of remote work, employers face new challenges in managing maternity leave across borders and in diverse cultural contexts. Here are some challenges that global employers may encounter and tips on how to deal with them.
The advent of remote work has blurred traditional boundaries, presenting opportunities and challenges for managing maternity leave. Remote employees may require flexible arrangements to balance work and caregiving responsibilities effectively.
Employers should prioritize communication and collaboration, offering remote-friendly maternity leave policies that accommodate the unique needs of remote workers.
In some cultures, there may be stigma or pressure surrounding maternity leave, leading to reluctance among employees to take time off.
Legal risks associated with maternity leave include potential discrimination claims, wrongful termination lawsuits, and labor law violations. Employers must take proactive steps to mitigate these risks by implementing fair and equitable maternity leave policies, providing adequate training to managers, and fostering a culture of inclusion and diversity within the organization.
While maternity leave is typically associated with birth mothers, it's essential to recognize the importance of supporting fathers and non-birth parents in parental leave policies. Employers should offer gender-neutral parental leave benefits that enable all parents to bond with their newborns and support their families.
By encouraging fathers and non-birth parents to take advantage of parental leave, employers can promote gender equality, strengthen family bonds, and create a more inclusive workplace for all employees.
In an increasingly interconnected and diverse world, managing maternity leave requires a nuanced understanding of legal, cultural, and societal factors. Employers must prioritize compliance, equity, and inclusion, recognizing the role of maternity leave in supporting working parents and promoting gender equality.
That’s where Playroll comes in. Our expert and global team of HR professionals are ready to help you safely navigate maternal leave and offer your international workforce all the benefits they seek. Don’t worry about all the legal hurdles: count on us. Request a demo today.
Read Time
February 29, 2024
In a significant 2023 breakthrough, Spain introduced a digital nomad visa, revolutionizing the remote work landscape and solidifying its status as a premier destination for global nomads. This game-changing policy caters to modern digital workers' lifestyles and opens up new vistas for understanding and managing tax obligations in Spain.
Dive into the essentials of this new era, where Spain doesn't just promise sun and culture but a comprehensive framework for digital nomads to thrive financially and legally.
Spain's recent enactment of the Startup Law marks a significant pivot towards embracing the digital nomad lifestyle, offering a fresh perspective on tax obligations for remote workers from across the globe. This groundbreaking legislation simplifies the process of living and working in Spain through a specialized digital nomad visa. Also, it introduces enticing tax benefits, signaling Spain's commitment to becoming a hub for digital innovation and international talent.
Under this new law, digital nomads are granted the opportunity to live and work in Spain with greater ease than ever before. The digital nomad visa, a highlight of the Startup Law, permits non-EU/EEA remote workers and freelancers to reside in Spain for up to five years. This visa facilitates an extended stay in Spain and allows the visa holders to include family members, travel within the Schengen Zone, and access previously unavailable tax benefits.
Furthermore, the law simplifies the tax landscape for digital nomads, potentially lowering their tax liabilities and offering a clearer path to financial planning while in Spain. With requirements such as proving a sustainable income of at least €2,500 per month and possessing a clean criminal record, the law sets a framework that ensures digital nomads' security and economic contribution to Spain.
This strategic move enhances Spain's appeal as a destination for digital nomads and aligns with the country's broader objectives to boost entrepreneurship and attract foreign investments. As a result, Spain is rapidly becoming one of the most sought-after countries for digital nomads seeking the joy of Mediterranean life and the benefits of a supportive legal and tax environment.
The Startup Law is a game-changer for digital nomads eyeing Spain as their next destination or home base. The law's comprehensive benefits package caters to the unique needs of remote workers. This initiative underscores Spain's commitment to attracting skilled professionals and fostering a diverse, dynamic expat community.
In assessing eligibility for certain tax benefits, digital nomads should be aware of the 'bona fide residence test' and the 'physical presence test' commonly used in international tax law. These tests help determine a taxpayer's tax residency status and eligibility for exclusions like the foreign earned income exclusion. While the specifics of these tests might not apply directly under Spanish law, understanding their principles can be beneficial for digital nomads managing their worldwide income tax obligations.
The tax benefits introduced under Spain's Startup Law aim to significantly alleviate the fiscal responsibilities of digital nomads who choose Spain as their base. These special tax considerations are designed with the modern remote worker in mind, offering a range of incentives that make Spain an even more attractive destination:
Embarking on the journey to obtain the digital nomad visa under Spain’s Startup Law involves several steps. Starting with eligibility assessment and document collection, the process is designed to be thorough yet straightforward, ensuring applicants are well-prepared for their new adventure.
By following each step, digital nomads can confidently navigate the bureaucratic waters, setting the stage for a successful and enriching experience in Spain.
While the law introduces tax benefits and potentially reduced rates, navigating the tax landscape requires careful planning and compliance. With the right approach, digital nomads can optimize their tax situation.
For digital nomads establishing tax residency in Spain, it's important to understand how Spain's tax laws interact with international taxation standards, such as the '330 days rule' associated with the physical presence test. This rule, often crucial in determining one’s tax obligations in their home country, particularly for U.S. citizens, can influence how digital nomads plan their stays and manage their tax liabilities across borders. While Spain's Startup Law provides a framework for reduced tax rates and exemptions, digital nomads should also consider how their days spent in and out of the country impact their tax status globally.
Navigating the tax landscape in Spain as a digital nomad can be smooth with the proper preparation and resources. Here’s how to stay ahead:
Embrace these tips and resources to navigate Spain’s tax system confidently, making your digital nomad experience as fulfilling and hassle-free as possible.
The Startup Law represents a significant positive shift for digital nomads considering Spain as their base. By understanding the benefits, following the application process carefully, and being mindful of tax obligations, digital nomads can make the most of what Spain has to offer.
For those looking for expert guidance tailored to the unique needs of digital nomads, Playroll offers comprehensive solutions designed to simplify your tax and payroll processes, allowing you to focus on what you do best: exploring the world and thriving in your remote work endeavors.
Ready to navigate your tax journey in Spain with ease? Request a demo with Playroll today and discover personalized assistance and solutions tailored specifically for digital nomads like you in Spain.
Navigating the payroll and compliance challenges in globalization can be a significant roadblock for businesses. Here are six key challenges to be aware of, with practical tips to overcome each. By proactively tackling these challenges, HR and finance leaders can avoid problems with payroll and focus their attention where it matters – growing the business.
Managing payroll across multiple countries means navigating a maze of different pay cycles, local holidays, and banking practices. What is a standard payday in one country might be a non-working day in another, leading to potential delays and confusion.
These varying payment dates can create significant challenges in payroll processing, such as late payments, compliance violations, and dissatisfied employees. The complexity increases when considering time zone differences and the need to process payroll data at the right moment to meet each country's specific deadlines.
Without a cohesive global payroll strategy, businesses often struggle to keep up with these demands, resulting in errors and a lack of trust from their global team.
To address this challenge, unifying your payroll reporting is essential. Consolidate your payroll data into one centralized system, so you can gain a bird's-eye view of all payment schedules across different countries.
This unified approach allows you to synchronize payment processes and meet deadlines regardless of time zones or local holidays.
Implementing global payroll solutions that standardizes data formats and integrates with local payroll systems can help streamline this process. Such a system improves coordination within your payroll team and strengthens your overall data security. It also helps you remain compliant with local payroll regulations.
By having all your payroll information in one place, you can accurately forecast costs and provide a consistent payroll experience for your global workforce.
Managing a global workforce means dealing with a multitude of payment elements that vary from one country to another. These variations can include:
Each country has its own set of regulations and standards governing these elements, which can significantly complicate payroll processing. For example, what qualifies as taxable income in one country might be tax-exempt in another. This can easily lead to miscalculations and compliance issues.
The complexity increases when these diverse elements must be accurately reflected in your payroll systems, where you need to ensure that each employee receives the correct compensation according to their local laws and regulations. If handled incorrectly, incorrect payments will risk dissatisfaction among employees.
To address this challenge, standardize your payroll processes across the business. Set up a global payroll framework that can accommodate local variations, while maintaining overall consistency to mitigate errors and compliance risks. Create standardized policies and procedures that can serve as a baseline for all payroll activities, regardless of location.
Another option is to use a global payroll management system, that can streamline your global payroll operations and allows for customization to handle country-specific requirements. This reduces the likelihood of errors and helps build trust with your international employees.
With Playroll’s Global Payroll solutions, you can easily standardize your payroll data across multiple regions, allowing you to understand all your costs quickly and clearly.
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Managing payroll across multiple countries often means dealing with a variety of payroll systems and reporting methods. Each country may have its own software, processes, and standards, leading to a fragmented approach that can hinder efficiency.
This disparity makes it challenging to consolidate payroll data, monitor compliance, and gain a holistic view of payroll expenses. The lack of uniformity can result in data inconsistencies, errors, and increased administrative workload.
Companies may struggle with global payroll management due to these fragmented systems. This can lead to payroll issues such as delayed payments, inaccurate tax filings, and difficulties in adhering to local regulations.
This complexity not only impacts the payroll team but can also affect employee satisfaction and the overall financial health of the organization.
To address this, consolidate disparate payroll systems into a unified platform. By integrating payroll processes across all operating countries, businesses can standardize their data formats, reporting procedures, and compliance checks. This consolidation provides better visibility into payroll operations, allowing for real-time monitoring and more accurate financial forecasting.
A centralized system simplifies the management of employee data, reduces the risk of errors, and streamlines communication within the payroll team.
One option is to use a global payroll solution that can accommodate local requirements and provide comprehensive insights into payroll activities worldwide.
Managing payroll across different countries often means dealing with multiple languages and varying payroll terminologies. Language barriers can lead to misunderstandings and errors in payroll processing.
For instance, specific payroll terms or legal requirements may not have direct translations, making it difficult for a centralized payroll team to grasp the nuances of local regulations. This can result in compliance issues, incorrect payments, and a lack of clarity in communication with international employees.
What’s more, important documents, tax codes, and employment laws are often documented in the local language, which further complicates the payroll process. These challenges can prevent effective global payroll management and create obstacles in maintaining a cohesive payroll system.
To overcome language barriers and terminology differences, leveraging local integrations is a practical solution.
By integrating with local payroll services or customizing HR reports to country-specific needs, businesses can ensure that payroll data is accurately processed according to regional standards and that all communications and documentation are in the correct language. This approach minimizes the risk of errors due to misinterpretation and ensures you stay compliant with local laws.
You can also look for a comprehensive global payroll solution, such as Playroll, that allows for locally customized integrations and reports.
Managing payroll for a global workforce involves handling multiple currencies, each subject to the ebb and flow of foreign exchange markets. Fluctuating exchange rates can significantly impact payroll calculations, budgeting, and financial forecasting.
A sudden shift in currency values can lead to increased payroll costs or discrepancies in employee compensation when converted to local currencies. This volatility poses a challenge when it comes to providing consistent and fair pay for international employees. Any discrepancies and payroll errors can seriously affect morale and trust among your team.
Additionally, exchange rate fluctuations can complicate compliance with local tax laws and reporting requirements, adding another layer to the existing global payroll challenges. Without proper management, these fluctuations can disrupt financial stability and create unforeseen expenses for the company.
To address this, consider investing in good payroll software and tools that can automate your currency management and allow for real-time currency conversion. Automation reduces the risk of human error associated with manual conversions and allows for consistent application of rates across the entire payroll process.
Such systems can also provide alerts for significant currency movements, enabling the payroll team to anticipate and adjust for potential impacts on payroll expenses ahead of time.
Additionally, automated currency management can facilitate compliance with local regulations by accurately calculating tax withholdings and deductions based on up-to-date exchange rates.
By streamlining currency conversions, you can improve your team’s efficiency and minimize exchange rate risks. This approach not only simplifies one of the more complex global payroll management tasks but also contributes to a more stable and transparent compensation structure for your international employees.
In the realm of global payroll management, relying heavily on manual data entry can significantly increase the risk of human errors. Mistakes such as incorrect employee information, miscalculations of wages, or overlooking important compliance requirements can easily occur when processes are not automated. These errors can lead to delayed payments and compliance violations, not to mention strained employee relations.
The risk of human error is greater when you’re managing payroll across multiple countries, each with its own set of regulations, tax laws, and reporting standards. Manual processes make it challenging for your team to keep up with these variations, resulting in potential financial losses and even legal issues.
These payroll issues not only affect the immediate payroll operations but can also harm the company's reputation and impact overall employee satisfaction.
To mitigate these risks, automating payroll processes is a highly effective solution. Automation reduces the reliance on manual data entry by utilizing software and technologies that handle repetitive and complex tasks with greater accuracy.
Automated systems can also integrate with other business tools, such as HR and time-tracking software, to synchronize employee data.
By automating compliance checks, companies can stay up-to-date with the ever-changing data protection laws and payroll regulations in different countries. This not only improves accuracy but also ensures you’re adhering to local payroll compliance standards.
Automation also allows the payroll team to focus on more strategic activities, such as analyzing payroll data for insights or improving employee engagement, rather than getting bogged down with manual tasks.
One way to do this is to implement a software solution that can streamline everything from data collection and calculations to reporting. We offer this at Playroll, helping to ensure your payroll data is error-free.
In a world where managing global payroll is increasingly complex, partnering with a global payroll provider makes all the difference. Playroll's Global Payroll Software addresses all the challenges of international payroll – from unified reporting, automated payroll processes and currency conversions, to offering local integrations and ensuring global payroll compliance.
Whether you operate in three countries or thirty, Playroll transforms payroll management into a streamlined, scalable process. Consolidate your operations, reduce manual errors, and simply focus on growing your global team with confidence.
Book a chat with our team to learn more about our features, pricing and hands-on support to manage global payroll in 180+ regions.
We’ve seen thousands of companies struggle with the pain of fragmented payroll systems. The challenges of global payroll leave you needing to decide between using huge resources, or staying in the dark to what is often the largest and most important cost factor of your business. However, with the right solutions in place, businesses can gain real-time management of their global payroll, without thousands of hours of manual work or a premium price tag. That’s what we’re aiming for at Playroll.
David Avshalom, VP of Product Strategy and Operations, Playroll
Employers in the Netherlands must confirm that foreign workers have the proper authorization to work. Workers from outside the European Union(EU), European Economic Area (EEA), and Switzerland are not permitted to work without work permits. Failure to comply can lead to substantial penalties, including fines and legal issues. The types of foreign workers needing work authorization include highly skilled migrants, asylum seekers, and other non-EU/EEA nationals. Employers are responsible for verifying these authorizations and tracking their validity.
Playroll offers visa support solutions that allow you to scale your business globally while we take care of the admin associated with the Dutch work visa application process.
The Netherlands offers several types of work permits and visas to accommodate various employee needs such as the nature and duration of the work. Below is a breakdown of the key work permits and visas available in the Netherlands, along with their specific details:
The exact requirements depend on the type of permit or visa being applied for. Below is an overview of common requirements:
General Requirements:
Additional Documentation include:
It is an employer’s responsibility to ensure that workers have the required documents and that these documents are on par with the Dutch government’s standards.
Employers sponsoring a work visa for an employee in the Netherlands must provide substantial support, from submitting applications to maintaining compliance throughout the employee's stay. Obtaining a sponsorship license is a critical step, as only recognized sponsors are permitted to bring highly skilled migrants into the Netherlands.
Employers looking to sponsor foreign workers in the Netherlands must follow these key steps:
Below are common fees associated with work permits in the Netherlands:
Note: Fees are subject to change. For the most current information, consult the Immigration and Naturalisation Service (IND).
These durations are approximate and can vary based on individual cases and the workload of the IND. Incomplete documentation, incorrect application forms, and high application volumes can cause delays in the visa application process.
Understanding these processing times is crucial for employers to effectively plan recruitment and onboarding processes. Delays not only impact project timelines and operational efficiency but also makes onboarding extra stressful for new employees that need to apply for a visa. To mitigate potential setbacks employers should consider implementing:
The primary work permit is valid for 1 to 5 years, depending on visa type. Employers are responsible for initiating the renewal process to avoid work authorization gaps, ensuring uninterrupted employment for foreign workers.
To renew a work permit, employers must initiate the process at least three months before the current permit expires. The renewal application involves submitting updated documents to the IND, such as a valid employment contract and proof of compliance with the visa requirements. The processing time for extensions is generally up to 90 days.
Easily employ talent in the Netherlands with the help of Playroll’s comprehensive country hiring guide. Access localized information such as payroll, employment, taxes consolidated and more. If you need hands-on assistance, get in touch with our team!
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The Netherlands does not offer a specific "digital nomad visa." However, remote workers can consider alternative visa options such as the Self-Employed Residence Permit (Zelfstandige Zonder Personeel or ZZP Visa) to live and work in the country.
This permit is designed for individuals who wish to operate as independent entrepreneurs in the Netherlands. Applicants must demonstrate that their business activities serve a significant interest to the Dutch economy. The evaluation is based on a points system assessing personal experience, business plan quality, and the venture's added value to the Netherlands.
Hiring in the Netherlands presents unique challenges due to its strict regulations and procedural requirements. Employers often face delays in obtaining work permits or visas, particularly during peak application periods or when documentation is incomplete. Navigating labor market tests for non-EU/EEA nationals, such as proving that no suitable local candidates are available, can add complexity to the process. Additionally, maintaining compliance with Dutch labor laws, including salary thresholds for highly skilled migrants, is essential to avoid penalties.
To overcome these challenges, employers should plan early and ensure thorough documentation. Partnering with an Employer of Record (EOR) like Playroll can provide you with the necessary expertise to guide you through the process. Playroll’s comprehensive Hiring Guides provide step-by-step advice for hiring and onboarding talent in the Netherlands, ensuring a smooth process for both employers and employees.
Dependents, such as spouses and children under 18, can apply for residence permits to join the primary visa holder in the Netherlands. The process requires proof of financial support, housing, and health insurance, and some dependents may have the right to work or study.
Employers must consider tax requirements, including payroll taxes and social security contributions. Highly skilled workers may qualify for the 30% ruling, which reduces taxable income by 30%. Employers must register employees with Dutch tax authorities to ensure compliance.
Hiring foreign talent in the Netherlands involves navigating complex visa and work permit processes, from ensuring compliance with labor laws to managing permit applications and renewals. Playroll simplifies this journey for employers, offering expert guidance to streamline visa sponsorship and compliance checks.
With Playroll, businesses can confidently hire international talent while reducing the administrative burden. Our platform provides step-by-step support tailored to Dutch immigration requirements, providing a seamless process for both employers and employees.
Book a chat to find out how we can cut the red tape from the visa process in the Netherlands, and bring your team on board with ease.
When hiring in Portugal, an employee benefits plan should encompass both mandatory and supplemental offerings. In Portugal, mandatory benefits are benefits that employers are legally required to provide to their employees under Portuguese labor law. In contrast, supplemental benefits refer to non-mandatory perks and benefits that employers may offer to employees beyond what is legally required. These benefits are provided at the employer's discretion and are designed to enhance the overall compensation package, improve employee satisfaction, and attract top talent.
Full-time employees are entitled to all mandatory benefits as stipulated by labor laws. Part-time employees may receive prorated benefits based on their working hours. Independent contractors, however, are not automatically entitled to these benefits. In fact, offering benefits to independent contractors can put you at risk of employee misclassification as an employer.
Full-time employees typically work 40 hours per week which are divided into eight hours per day. Whereas part-time employees generally work fewer hours than the full-time standard, often ranging from 20 to 30 hours per week. Part-time hours should be defined in the employment contract and can vary depending on the employer's needs.
Independent contractors in Portugal are not bound by the same working hour regulations as employees, meaning they have flexibility in setting their schedules. Contractors can choose when to work, depending on the nature of their projects and client requirements. They are not subject to the standard 40-hour work week or limitations on daily working hours unless specifically agreed upon in their contract.
Mandatory benefits, also known as statutory benefits, include essential social security contributions, worker’s compensation and paid leave. These legally required benefits provide a base level of support for employees. Let’s explore each in more detail:
Employers must contribute to the Portuguese social security system (Segurança Social), which covers a range of protections, including pensions, healthcare, unemployment benefits, and parental leave. Employers are responsible for contributing 23.75% of each employee's gross salary to the social security system. Employees contribute 11% of their gross salary to social security. This amount is automatically deducted from their wages by the employer.
Self-employed individuals are also required to contribute to social security. The standard contribution rate for self-employed workers is 21.4% of their relevant income.
Contributions to the Social Security system fund a range of benefits, including:
Employers are responsible for registering their employees with the Social Security system and ensuring timely payment of contributions. Self-employed individuals must register themselves and are responsible for their own contributions. Failure to comply with social security obligations can result in penalties and legal consequences for employers.
Employees in Portugal are entitled to a minimum of 22 working days of paid annual leave each year (separate from the 13 public holidays). Leave accrues progressively in the first year, allowing employees to take leave after six months of working at an organization. In subsequent years, the full leave entitlement is available at the start of the year.
Annual leave must typically be used within the year, though it can be carried over to April 30 of the following year. Leave timing is agreed upon with the employer, and employees can take at least 10 consecutive days if desired.
Portugal observes 13 national public holidays (including New Year’s Day, Good Friday, and Portugal Day) each year, during which employees are entitled to paid time off. If an employee is required to work on a public holiday, they are typically compensated with extra pay or given additional time off.
Maternity leave is designed to support mothers with paid time off around childbirth and is partially funded through the national Social Security system. New mothers are entitled to 120 days of paid maternity leave, with an option to extend to 150 days in cases of multiple births or health complications.
Mothers receive 100% of their average salary for 120 days if they opt for the standard leave period. If the leave is extended to 150 days, they receive 80% of their average salary.
Up to 30 days of maternity leave can be taken before the expected due date, allowing mothers the opportunity to rest before childbirth. Any unused prenatal leave will be added to the postnatal period.
Fathers are entitled to paternity leave to support them in caring for their newborns. Fathers are required to take 20 days of paternity leave. Of these, five days must be taken consecutively immediately after the birth of the child, and the remaining days can be taken within six weeks.
Fathers can also take an additional 5 days of optional paternity leave. New fathers receive 100% of their average salary for the duration of the paternity leave.
Employees are entitled to paid sick leave, funded by the social security system. Sick leave payments cover a portion of the employee’s regular wage, generally between 55% and 75%, depending on the length of the absence. Sick pay starts from the fourth day of illness. Employees must provide a medical certificate from a certified healthcare provider to qualify for sick leave.
The certificate must be submitted to the employer and the Portuguese social security system to initiate the benefit process. Sick leave benefits are funded through Portugal's social security system. Employers are not directly responsible for covering sick pay, reducing the financial burden on them. In cases of chronic illness or long-term conditions, employees may be eligible for extended sick leave benefits, subject to periodic medical certification.
Workers' compensation provides financial and medical support to employees who suffer work-related injuries or occupational illnesses. Employers are required to have workers' compensation insurance to cover medical costs, wage replacement, and, if necessary, disability benefits or death benefits for the employee’s family.
Injured employees receive medical care and income replacement based on the severity of their disability, while dependents receive financial assistance in cases of workplace fatalities. Employees on workers' compensation leave are protected from dismissal, and the system is regulated by the Portuguese Authority for Working Conditions (Autoridade para as Condições de Trabalho or ACT) to ensure compliance and safeguard employee rights.
Struggling to come up with a compelling employee benefits package? Attract and retain talent globally with Playroll's tailored benefits. Let our experts manage benefits to ensure compliance with local laws and employee satisfaction so you can scale your business globally.
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While Portugal’s National Health Service (Serviço Nacional de Saúde or SNS) provides universal healthcare, many residents opt for private health insurance to access faster services, a broader range of treatments, and more flexible provider options.
Many employers offer private health insurance to complement the public healthcare system. This benefit can include coverage for medical, dental, and vision care and is highly valued by employees for the added convenience and range of services. These plans may cover the employee alone or extend to family members, depending on the employer’s policy.
In Portugal, employer-sponsored retirement plans, while not mandatory, are a valuable employee benefit that helps attract and retain talent. These plans are typically defined contribution schemes, where both employers and employees contribute to an individual retirement account, often with tax advantages.
Employers benefit from corporate tax deductions, while employees receive personal tax incentives, especially through a Plano Poupança Reforma (PPR), or Retirement Savings Plan. These plans offer investment flexibility, and potential portability when moving from one employer to another, and can help build long-term financial security. These benefits can help boost employee loyalty and make companies more competitive in the job market.
While not mandatory, meal allowances are a common practice in Portugal. Employers often offer a daily meal allowance, either through vouchers or cash, to help cover employees’ daily meal expenses. If provided as cash, the tax-exempt limit for meal allowances is €6.00 per day. When provided as meal vouchers or loaded onto a meal card, the tax-free limit is €9.60 per day.
Meal allowances within the €6.00 (cash) or €9.60 (voucher) limits are exempt from income tax and social security contributions, making them a cost-effective way to boost take-home pay. For employers, providing meal allowances as vouchers or cards helps reduce payroll tax liabilities while offering an attractive benefit to employees.
Flexible working hours in Portugal are increasingly common, offering employees options like flexible start and end times, compressed work weeks, remote work, and part-time arrangements. Benefits include higher productivity, improved employee satisfaction, and reduced absenteeism. Remote work requires a formal agreement, and the “right to disconnect” law protects employees from work communications outside of set hours. Flexible working arrangements help employers attract and retain talent while supporting employees' work-life balance.
Additional paid time off (PTO) is a voluntary benefit offered by some employers to support work-life balance and improve job satisfaction. Types of additional PTO include wellness days, special occasion days (e.g., birthdays), extended vacation, and compassionate leave. Some companies offer additional PTO based on performance or tenure, rewarding employee contributions and loyalty.
In Portugal, professional development and training benefits are popular among employers to support employee skill growth and career advancement. Common offerings include workshops, certifications, industry events, mentorship, and language classes. Professional development also attracts top talent and can provide tax advantages for employers, making it a valuable addition to compensation packages.
In Portugal, employers can optimize their compensation packages by offering certain employee benefits that receive favorable tax treatment. These tax-efficient benefits not only improve employee satisfaction but also provide financial advantages for both employers and employees. Key benefits with tax incentives include:
Employers must provide mandatory benefits, such as social security, public holidays, and parental leave, and ensure voluntary benefits like health insurance follow regulations. Additionally, accurate records of benefits, payroll, and tax data must be reported to authorities, particularly for tax-exempt benefits, to avoid audits and financial penalties.
Failing to comply can lead to fines, back payments, and increased scrutiny, potentially harming the employer's reputation and workforce stability. Sounds complex? Partnering with global employment experts like Playroll removes the red tape from distributing benefits to your global team, so you can focus on your business.
In Portugal, many employers offer additional perks beyond mandatory and supplemental benefits to make their companies more attractive to top talent. Here are some popular perks that improve the employee experience and help attract and retain skilled professionals:
Wellness benefits, such as gym memberships, yoga classes, mental health support, and wellness reimbursements, are valued by employees. These programs show that the employer cares about their health and well-being, which can be a strong differentiator.
Employers may provide transportation allowances or reimbursements for public transit passes, reducing commuting costs for employees. Some companies offer company cars or fuel allowances for employees who need to travel for work.
Childcare assistance, such as childcare vouchers, subsidies for daycare, or even on-site childcare, is highly valued by working parents. This benefit helps attract talent seeking family support and demonstrates a family-friendly work environment.
Performance-based bonuses or profit-sharing arrangements allow employees to benefit from the company’s success. These incentives align employee goals with company performance and provide extra financial motivation.
In Portugal, employee benefits significantly influence the total cost of employment. Employers are mandated to contribute to social security and often provide additional benefits, which collectively increase the overall expense of hiring.
Employers must contribute 23.75% of an employee's gross salary to social security and approximately 1% for labor accident insurance, adding around 24.75% to the base salary. Many companies also offer supplemental benefits, such as private health insurance (€20 to €100 per month), meal allowances (up to €9.60 per day), and transportation subsidies. Including these additional benefits, the total employment cost can rise by 30% to 40% or more, depending on the specific package offered.
For a detailed comparison of employment costs across regions, use Playroll’s free employee cost calculator.
Playroll offers a centralized platform to simplify hiring and employee benefits management in Portugal, covering onboarding, payroll, and compliance with local regulations. Through Playroll, companies can provide localized benefits packages, ensure accurate payroll processing, and maintain compliance with Portuguese labor laws.
Employees benefit from a self-service portal for accessing pay and benefits information, while Playroll's on-the-ground employment experts help attract top talent by delivering competitive and compliant benefits.
Book a chat with our team to find out how we can help you attract and retain world-class talent in Portugal.
In Portugal, non-EU/EEA nationals generally require a Portugal work permit or visa to legally work and reside in the country. This requirement applies to most foreign employees, with exceptions for EU, EEA, and Swiss citizens who do not need a work permit due to freedom of movement within the European Union. For non-EU/EEA nationals, specific permits are necessary depending on the type of employment.
Employers are responsible for verifying that all foreign employees possess the correct work authorization and hold a valid Portugal work permit. Unauthorized employment can lead to fines and restrictions for both the company and the employee.
There are a variety of work permits and visas that foreign nationals can apply for when seeking work in Portugal. Each of these is tailored to specific employment needs and has unique eligibility criteria, application steps, and duration limitations:
Our team of experts can guide employers in selecting the right visa type based on your requirements, and handle the paperwork every step of the way – freeing you up to focus on scaling your business.
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Employees applying for a work permit or visa in Portugal must provide a range of documents that are outlined by the Ministry of Foreign Affairs on its visa webpage. This includes documentation the employer should supply to support the visa applicants. Here’s a summary of the key documentation required, with a focus on the types of visa that require employer support:
Sponsoring a non-EU/EEA national for permanent employment in Portugal involves several key steps to ensure compliance with Portuguese immigration laws. Here's a structured guide for employers:
1. Verify Eligibility
2. Obtain a Work Permit on behalf of the prospective employee
3. Assist the Employee with Visa Application
4. Facilitate Employee’s Residence Permit Acquisition
5. Ensure Compliance and Record-Keeping
To work legally in Portugal, non-EU/EEA nationals must follow a structured process to obtain the appropriate work visa or permit. Here's a step-by-step guide:
1. Secure a Job Offer
Obtain a formal job offer or employment contract from a Portuguese employer. This is a prerequisite for most work visa applications.
2. Employer Applies for a Work Permit
The employer must apply for a work permit (Autorização de Trabalho) on behalf of the employee through the Portuguese Immigration and Borders Service.
3. Apply for a Work Visa
With the approved work permit, the employee applies for a work visa at the Portuguese Embassy or Consulate in their home country by submitting all the required documents.
4. Attend Visa Interview
Attend an interview at the Portuguese Embassy or Consulate, if required, to discuss the application and provide any additional information.
5. Await Visa Decision
The processing time can vary but typically takes between 2 to 3 months.
6. Travel to Portugal
Upon visa approval, travel to and enter Portugal within the visa's validity period.
7. Apply for a Residence Permit
After traveling to Portugal, schedule an appointment with SEF to apply for a residence permit.
The documents required for the SEF appointment include a valid passport with a visa, proof of accommodation, proof of sufficient financial means, an employment contract, health insurance coverage, and a criminal record certificate.
8. Register with Social Security
Register with the Portuguese Social Security system to obtain a social security number, which is necessary for legal employment.
The cost of a Portuguese work visa varies based on the visa type:
Note: These fees are subject to change and may vary based on the applicant's nationality and specific circumstances. It's advisable to consult the Portuguese Embassy or Consulate in your home country for the most accurate and up-to-date information.
Additionally, upon approval of the visa, there are fees associated with obtaining the residence permit:
These fees are payable to the Portuguese Immigration and Borders Service (SEF) during the residence permit application process.
When budgeting, employers should also be aware of potential additional costs, such as translation and legalization of documents, which may be required during the application process.
The processing time for Portuguese work permits and visas varies based on the type of visa and individual circumstances. Here's an overview:
General Processing Times:
These processing times should be taken into consideration when employers are estimating their timelines. Extended processing times may affect project timelines and resource allocation. This makes strategic planning even more crucial to accommodate potential delays. Nevertheless, employers should anticipate a total processing period of approximately 3 to 5 months from the initial application to the employee's arrival in Portugal.
Common Pitfalls and Potential Delays:
Recommendations for Employers:
The duration of a Portuguese work visa depends on the visa type but can often be extended.
In October 2022, Portugal introduced its Digital Nomad Visa, officially known as the D8 Visa, to attract remote workers and freelancers from non-EU/EEA countries. A Digital Nomad Visa allows individuals who work remotely to reside in a foreign country while performing their job duties for employers or clients located elsewhere. Digital nomad visas enable employers to hire top talent from anywhere in the world, widening the talent pool beyond local or national restrictions.
To qualify for this visa, applicants must show proof of employment or business ownership outside Portugal and meet the minimum income threshold of at least €3,040 (as of 2023).
Similar to other visa types, applicants are required to submit documents such as proof of remote employment or business ownership and bank statements showing income for the last three months at the Portuguese Embassy or Consulate in their home country.
Hiring in Portugal presents unique challenges for employers, especially when managing foreign hires. Here are some of the main challenges and how to go about overcoming them or avoiding them altogether:
When relocating employees to Portugal, employers should be aware of additional factors beyond the primary visa application, particularly regarding dependents and tax implications.
Sponsoring a foreign employee for a work visa in Portugal entails several tax implications for employers. As an employer, understanding these responsibilities is crucial for compliance and effective financial planning:
Firstly, employers must contribute approximately 23.75% of the employee's gross salary to the Portuguese social security system. Employers are responsible for withholding the appropriate amount of income tax from the employee's salary based on progressive tax rates, which range from 14.5% to 48%, depending on the income level. Other employer tax obligations include Work Accident Insurance, which is mandatory in certain sectors and varies depending on the industry and risk level.
For employers to avoid penalties and legal issues, they must register foreign employees with the Portuguese tax authorities and social security system. Additionally, employers must regularly report payroll, tax withholdings, and social security contributions to Portuguese tax authorities.
Playroll is an Employer Of Record (EOR)that simplifies the visa and work permit process in Portugal by managing compliance, documentation, and sponsorship. With expertise in Portuguese employment regulations, Playroll handles all necessary paperwork, provides real-time updates, and supports renewals to keep employees’ work status compliant. Here are some key benefits of using an Employer of Record (EOR) for visa processes:
By leveraging Playroll’s existing, wholly-owned infrastructure in Portugal, you can compliantly employ foreign workers without the red tape.
Employee retention goes beyond just reducing hiring costs. It’s about fostering the type of work environment where team members feel truly valued and are motivated to stay. High turnover can cost companies thousands in recruiting, onboarding, and lost productivity. Research suggests that the cost of hiring is only recovered after 6 months of the employee working. In tech roles or particularly senior roles, this can stretch up to a year. If an employee leaves your organization soon after joining, you are likely to never have seen any return on investment for that hire.
On the other hand, effective workforce retention boosts morale, productivity, and contributes to a strong company culture.
A study by Gallup finds a strong correlation between engaged teams and positive outcomes for organizations, including:
What are the building blocks of employees staying for longer? There are three critical components that form the basis of retention – it’s important not to neglect any one piece of the puzzle. Below, we’ll deep-dive into each of these pillars in more detail.
One of the main drivers for employee retention is competitive pay paired with meaningful benefits. This goes beyond the initial offer you make to convince someone to join your team. To retain these team members, meaningful annual salary increases that keep up with or exceed inflation and performance bonuses also play their part.
Investing in professional development drives employees to stay by showcasing that they have clear pathways for growth within your organization.
Companies with staff retention strategies that include regular upskilling and budgets for training, mentorship programs, and clear pathways for promotions often see employees more committed to their roles, knowing that their career progress is prioritized.
Providing flexible working conditions, like remote work options or adaptable hours, supports employees' work-life balance and improves retention. Studies show that 80% of employees feel more loyal to companies that offer flexibility in the workplace.
Attracting and retaining employees begins with a competitive compensation package. To set competitive salaries, follow these steps:
Offering employee benefits such as health insurance, retirement savings plans, and paid time off ensures that employees feel financially secure and valued.
Companies that go beyond statutory required benefits – offering perks like financial wellness programs, mental health resources, and flexible hours – stand out in retaining and attracting their workforce. Offering remote working options has also become an increasingly attractive perk, with a whopping 98% of workers preferring to work remotely at least some of the time. Being flexible in this area can give you the edge over organizations that mandate a full return to office.
People have to earn a living. Salary, contract payments, some benefits, a few perks are what I call “baseline rewards.” If someone’s baseline rewards aren’t adequate or equitable, her focus will be on the unfairness of her situation and the anxiety of her circumstance. The best use of money as a motivator is to pay people enough to take the issue of money off the table.
Daniel H. Pink, Author of Drive: The Surprising Truth About What Motivates Us
First impressions matter. A smooth onboarding experience sets a solid foundation of success for new hires, making them feel supported from day one. It provides new employees with all the tools, resources and documentation they need to hit the ground running and integrate into the company culture.
This is especially important if you manage a global team where good communication is extra important to succeed. Some hallmarks of a good employee onboarding program include:
See how an EOR like Playroll can help you provide competitive benefits and seamless global HR support, setting up the building blocks of retention from day one.
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Having a bad manager is a driving reason why employees leave. Conversely, a supportive manager can play a crucial role in helping employees stay and thrive at work.
That said, the skills to be a good manager doesn’t necessarily come naturally – it’s worthwhile to invest in training that helps managers to become more effective mentors to encourage employee development.
Having access to plenty of upskilling opportunities show team members that the company is willing to invest in their growth, helping to retain employees who see a future within the organization.
How do you promote professional development in practice? Offer regular skill-building workshops, certification courses, or leadership development programs. Recognize employees’ milestones in completing growth goals, whether it’s through dedicated recognition programs and channels or tangible rewards like performance bonuses.
In addition, a structured career development program helps employees visualize a future within the company, reducing the chances of losing top talent to competitors offering growth opportunities.
Outline the career paths within your organization and what employees need to achieve to progress. Specify what type of skills, experiences, and milestones are required for employees to advance.
Today’s employees prioritize companies that respect their need for personal time.
Flexible scheduling and remote work options promote better work-life balance that supports both productivity and well-being, significantly reducing turnover – 71% of remote workers say it helps to balance their work and personal lives.
Other practical ways to improve employee work-life balance include implementing mental health programmes and setting a realistic workload that is manageable to complete in work hours. Plus, encourage employees to disconnect after work hours and take their paid time off.
Frequent feedback and stay interviews are invaluable tools for gauging employee satisfaction. These touchpoints give employees a structured way to share what they value at work, and voice their needs or concerns. In turn, this allows management to course-correct if there are gaps and problems within the organization.
Set up quarterly employee engagement surveys to gather this feedback and compare results over time. Conducting regular performance reviews also helps employees reflect on their progress and provide proactive feedback on where they need support to hit their goals.
For employees, few things raise a bigger red flag than a micromanager that controls every aspect of their work, decreasing trust and confidence on the job.
Giving employees autonomy over their work boosts morale and creates a sense of ownership. Empowered employees tend to feel more invested in their work, resulting in improved job satisfaction and lower turnover rates.
Human beings have an innate inner drive to be autonomous, self-determined, and connected to one another. And when that drive is liberated, people achieve more and live richer lives.
Daniel H. Pink, Author of Drive: The Surprising Truth About What Motivates Us
When employees decide to leave, conducting exit interviews helps uncover underlying reasons for turnover. This feedback is essential in refining employee retention strategies and pinpointing areas for improvement.
When conducting an exit interview, make it clear that the conversation will remain confidential and won’t impact future reference. Conduct it in a neutral setting, and have it led by someone outside of their direct team.
A thoughtful hiring process can help set up the future success of your employees. Ensure that candidates align with the company culture and values. This approach to recruitment helps secure employees who are genuinely invested in their roles, minimizing high turnover.
To help draw employees that will build up your company culture, implement a referral program that rewards current employees for suggesting suitable applicants. Since current employees are already embedded within your company culture and know what is required for success, they are an excellent way to attract good candidates.
Additionally, add steps to your hiring process such as team-based interviews or assessments, and ask behavioral interview questions that will reveal how the candidate handles real-life scenarios.
Monitoring signs of burnout allows leaders to pick up on issues before they escalate. When employees feel proactively supported, they’re more likely to stay committed to their roles.
So, what should raise the alarm bells? Burnout symptoms include chronic exhaustion, reduced performance, and a lack of motivation. When employees experience burnout, they often feel detached, irritable, and dissatisfied with their work. Physical symptoms like headaches and sleep issues are common, as well as an increased vulnerability to illness.
As employers strive to improve employee retention rates, effective HR tools can streamline the experience for both employees and managers. Playroll offers leading EOR software that simplify global workforce management, helping organizations compliantly employ and manage teams worldwide. With hands-on support for both employers and employees, Playroll helps companies build the type of work environment where employees feel valued and supported to stay.
Book a chat with our experts to find out how we can scale and support your global team.
As 2025 approaches, UK employers should prepare for a series of regulatory and budgetary changes that will impact their responsibilities and payroll costs. Below are the most important updates from the Autumn Budget and the upcoming Employment Rights Bill that employers need to know.
The Autumn Budget also introduced tax incentives designed to stimulate investment and growth in certain business areas, which may benefit employers looking to expand or modernize.
Employers in these sectors or those considering capital investments can leverage these tax reliefs to offset potential payroll cost increases in 2025.
The UK Employment Rights Bill, as introduced to Parliament, proposes significant changes affecting employee protections, flexible work arrangements, and dismissal rights. Here’s what employers should prepare for:
Employers should begin assessing the financial impact of these updates on payroll, benefits, and operational policies. To stay compliant, adjustments to payroll systems, employment policies, and potentially even hiring budgets may be necessary. By adapting promptly and staying informed on shifting regulations, employers can stay ahead of the curve.
Here’s how to get started:
Plan for increased payroll costs due to NI and minimum wage changes and review any potential tax incentives that may help offset costs, such as R&D credits or full expensing.
Ensure employment policies reflect new flexible working rights, guaranteed-hour contracts, and dismissal protections. Update your onboarding process to clarify probation terms and new rights from Day 1.
Strengthen policies against workplace harassment, with clear measures in place to prevent third-party harassment and ensure compliance with the Equality Act amendments.
For large employers, begin gathering data and establishing action plans to meet gender pay gap reporting requirements and support for menopausal employees.
Update sick leave policies and payroll processes to accommodate SSP from Day 1 and prepare for changes to the Lower Earnings Limit in SSP calculations.
By proactively addressing these changes, employers can minimize disruptions, avoid any penalties and stay in line with the UK’s evolving employment landscape.
It doesn't have to be complicated to stay compliant. Playroll's on-the-ground employment experts can do the heavy-lifting to ensure compliance with shifting employment regulations, and inform you how these policies impact your organizations. Book a time with a UK employment consultant to learn how we can support your business.
Employee benefits in Canada typically consist of mandatory and supplemental components, designed to support employees' health, financial stability, and work-life balance. Below is a summary of the typical benefits available in Canada:
In Canada, benefits vary depending on employment type. Full-time employees generally receive a more comprehensive package, including mandatory benefits, while part-time or temporary employees may have limited access to these benefits, depending on their status and the company's policies. Independent contractors typically do not receive employee benefits.
Mandatory benefits, also known as statutory benefits, are legally required benefits provided by Canadian employers. These include essential health, leave, and retirement contributions, ensuring a base level of support for employees.
Employees are entitled to medical care as part of Canada’s public healthcare system, known as Medicare, a universal, publicly funded program that provides essential medical services to Canadian residents. Funded through taxes and managed at the provincial level, Medicare covers a range of healthcare services, including doctor visits, hospital stays, and emergency medical care, with specific coverage varying slightly by province.
Although employers in Canada don’t directly contribute to Medicare, it remains a critical component of Canada’s social benefits infrastructure, reducing the healthcare burden on employees and enabling employers to focus supplemental health benefits on areas not covered, such as dental, vision, or prescription medications.
The CPP is a contributory retirement plan funded by both employers and employees, with mandatory contributions throughout an employee's working life. In 2024, the employee and employer contribution rate is 5.95%. These contributions are deducted from an employee’s earnings. Contributions are made on annual pensionable earnings.
The CPP also includes the survivor's pension, which provides financial support to the family or dependents of an employee who passed away, ensuring some income continuity and stability. To qualify, they need to have been legally married to, or be the common-law partner, of a deceased CPP contributor.
The QPP is a mandatory public pension program for workers in Quebec, similar to the Canada Pension Plan (CPP) in the rest of Canada. Administered by Retraite Québec, the QPP provides retirement, disability, and survivor benefits to individuals who have contributed to the plan through payroll deductions. Both employees and employers contribute to the QPP, with rates set annually based on the employee's earnings up to a maximum limit.
EI provides temporary financial support for employees who lose their jobs or need to take time off due to illness, maternity or parental leave, or compassionate leave. Employers must deduct EI premiums from employees’ insurable earnings. They also contribute 1.4 times the amount of the EI premiums that they deduct from employees' remuneration and remit the total of both amounts. Quebec operates under its own set of EI premium rates. The summary of applicable rates can be found here.
Under Employment Insurance (EI), maternity leave benefits provide up to 15 weeks’ leave for the pregnant employee or employees that have recently given birth. They receive 55% of their earnings, up to a maximum of $668 a week. Employees can't receive these benefits more than 17 weeks after their due date or the date they gave birth.
In addition, employees can apply for parental benefits, which is split between standard and extended parental leave. Under standard parental leave, 40 weeks can be shared between parents, though one parent cannot take more than 35 weeks. Under extended parental leave, 69 weeks can be shared between parents, though one parent cannot take more than 61 weeks. Earnings vary between 33-55%, depending on which option the parent chooses.
In Quebec, parental leave falls within its own system called Quebec Parental Insurance Benefits.
As part of EI sickness benefits (or sick leave), employees can take up to 26 weeks’ leave, receiving 55% of their earnings. Caregiving benefits (which include compassionate care leave) provide between 15-35 weeks’ leave, which include time off to take care of a sick family member. Under these benefits, employees can receive 55% of their earnings.
In Canada, mandated paid time off includes a minimum of two weeks of annual vacation for employees after one year of service, with an increase to three weeks in some provinces after a specified period. Vacation pay is calculated as a percentage of gross wages, varying between 4-8% of earnings.
Additionally, most provinces recognize 5-10 public holidays, during which employees are entitled to paid leave.
Workers' compensation, funded by employers, offers coverage for employees who experience work-related injuries or illnesses, covering medical costs and providing wage replacement during recovery.
The Federal Workers’ Compensation Service (FWCS) processes compensation claims. Employers in Canada need to be registered with the WCB (Workers' Compensation Insurance Board) in their province, and pay workers' compensation insurance premiums.These premiums vary by province.
In addition to mandatory benefits, Canadian employers often provide supplemental perks to improve the work environment and enhance employee satisfaction. Here are some popular options:
Many employers give their employees’ retirement savings a boost through their group Registered Retirement Savings Plans (RRSP). In these cases, an employer usually deducts the employee’s contribution from their pay, and matches this contribution amount (also called RSSP matching).
Comprehensive health coverage, including virtual care and mental health support, is a valuable perk that helps employees access essential care beyond government-provided health services. This can take the form of contributing to a health care spending account (HCSA), to cover health, vision and dental care expenses.
Disability insurance in Canada can replace between 60% and 85% of an employee’s income if they become unable to work due to an unexpected injury or if they’re critically ill. This can include short-term and long-term disability insurance. If the employer funds part of all of the disability premium, these benefits will be subject to income taxes.
Benefits packages in Canada are made up of both taxable and non-taxable benefits. For example, mandatory CPP and EI benefits are taxable, while examples of non-taxable benefits include providing employees with a cellphone, overtime meals or allowances and relocation benefits.
The Canada Revenue Agency (CRA) provides comprehensive guidelines on taxable and non-taxable benefits here, which can help employers manage the tax implications of their benefits packages.
To comply with Canadian labor laws, employers must ensure that mandatory benefits, such as CPP and EI contributions, are accurately calculated and reported. Non-compliance with these regulations can lead to penalties.
Canadian employers who fail to make required contributions to the Canada Pension Plan, Employment Insurance, or income tax face a 10% penalty from the CRA. Repeat offenses within the same year, particularly those involving gross negligence, could lead to a 20% penalty. If contributions are not withheld or remitted, the CRA may take legal actions.
For employers looking to gain a competitive edge in recruitment, additional perks can make a difference:
In Canada, employee benefits can amount to approximately 15-30% of payroll, depending on the scope of benefits offered. Larger companies with more resources can typically afford to spend more on comprehensive benefits packages.
Employers should consider these costs when budgeting for new hires.
Estimate the cost of a new hire in Canada, with our free cost calculator. Get a complete view on the taxes, fees, and benefits you can expect to pay.
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In Germany, employee benefits encompass mandatory statutory benefits required by law, alongside supplemental benefits offered by employers to attract and retain talent. While the statutory benefits provide a safety net for employees, additional perks like private health insurance or gym memberships help create a competitive advantage for employers.
In Germany, full-time employees are entitled to the full range of statutory benefits. In this region, full-time employees are generally defined as those working between 36 to 40 hours per week, with 8-hour workdays considered standard under the German Working Hours Act (Arbeitszeitgesetz).
Part-time employees (employees who work less than an average of 30 hours per week) are also entitled to these benefits, although it is often prorated based on the number of hours worked.
Mandatory employee benefits in Germany are legally required and aim to provide a strong social safety net for all workers. Employers must comply with these regulations to ensure the well-being of their workforce and avoid legal penalties.
Employers are required to contribute to all employees’ health insurance. Public health insurance requires a joint contribution from employers and employees, typically amounting to 14.6% of the employee’s gross monthly salary. Employees who earn above €64,350 annually may opt for private health insurance, which provides additional healthcare options.
Employees working at least 18 hours a week are eligible for unemployment insurance, covering approximately 2.6% of their salary. This is also split between employer and employee contributions (each paying around 1.3% of the employee's gross monthly salary).To qualify for unemployment benefits, an individual must have contributed to unemployment insurance for at least 12 months within the last 24 months before losing their job.
Employees contribute to a national pension fund at a rate of 18.6%, equally shared between the employer and employee. This public pension serves as the primary retirement plan, though private pension plans are common to supplement retirement savings.
To support those needing ongoing care due to age or illness, long-term care insurance is required, with contributions around 3.05% shared between employers and employees.
Covering work-related accidents or illnesses, this insurance is fully funded by employers and provides support for medical expenses and rehabilitation. Rates vary depending on the industry and the level of risk associated with the job
In Germany, annual leave is a mandatory benefit regulated by the Federal Holiday Act (Bundesurlaubsgesetz). This act sets a minimum entitlement of 20 paid days per year for employees working a five-day week. This minimum requirement can often be extended, with many employers offering up to 30 days to stay competitive and meet employee expectations.
German employees are entitled to up to six weeks of paid sick leave at their full salary, funded by their employer. If the illness extends beyond six weeks, the employee’s public health insurance steps in to cover a percentage of their salary (typically around 70%) for up to 78 weeks for the same illness.
German labor law prevents employers from terminating an employee due to illness alone, especially if the leave is medically certified and within the entitlement period.
Maternity leave, or Mutterschutz, includes 14 weeks of paid leave—6 weeks before the expected due date and 8 weeks after childbirth. Postnatal leave is extended to 12 weeks for cases involving multiple or premature births.
During maternity leave, mothers are entitled to their full salary. Health insurance covers a portion of this (up to €13 per day), while the employer tops up the difference to match the mother’s average net earnings over the last three months.
German law provides robust job security during maternity leave. From the beginning of pregnancy until four months after childbirth, mothers are protected against termination, and employers must hold their positions open, enabling them to return to the same role or an equivalent one
Beyond maternity leave, German parents can also take up to three years of parental leave per child. This period can be split between both parents or taken by just one and can be taken continuously or in segments.
Parents can also reserve up to 24 months of their leave to be used anytime before the child’s eighth birthday. Although parental leave itself is unpaid, parents can apply for a government-funded parental allowance (Elterngeld).
In addition to the mandatory benefits, many German employers offer a range of supplemental benefits to attract and retain top talent. These voluntary benefits can greatly enhance the attractiveness of an employer’s offer.
In Germany, private health insurance or private Krankenversicherung (PKV) is an alternative to public health insurance, available mainly to high-income employees, self-employed individuals, and civil servants. PKV offers enhanced benefits which are often limited in public insurance. Premiums for private insurance depend on age, health, and coverage level rather than income. Additionally, public health-insured employees can add supplemental private plans to cover gaps in standard public health benefits.
In Germany, private retirement plans are a popular supplement to the public pension system, as they provide additional financial security for retirement to employees. While public pensions offer reliability, they may be insufficient for a higher retirement standard. This is where private pension plans come in. They allow for more investment flexibility and personalized retirement income options, such as lump-sum withdrawals or structured payouts.
Offering both private and public pension systems to employees provides a balanced retirement approach, combining stable public pensions with the customizable benefits of private plans.
To support employee health and well-being, some employers offer subsidized gym memberships or wellness allowances, contributing to work-life balance and reducing absenteeism.
While Germany mandates 20 days of leave, companies often increase this to around 30 days, which is a valued perk for employees in a competitive job market. In Germany, additional paid time off (PTO) goes beyond standard annual leave, offering various forms of leave for significant life events and special circumstances. The most common additional PTO options include public holidays, special occasion leave, compassionate leave, and religious and personal leave. These PTO policies help employees balance work and personal life and help support family and personal well-being in the workplace.
Some companies offer transportation allowances or fully subsidized public transit passes, especially for employees commuting long distances. Others offer company cars or bike leases.
Hybrid work options, allowing employees to work remotely for part of the week, have become a popular supplemental benefit since the pandemic. Additionally, employers can allow workers to work abroad for a few weeks during the year. This is usually within the European Economic Area (EEA), to avoid tax and labor complications.
These supplementary benefits help employers stand out by boosting employee satisfaction and well-being beyond Germany’s statutory requirements.
In Germany, most employee benefits are subject to income tax and social security contributions, with certain tax exemptions for specific benefits. Benefits in kind, such as company cars or housing allowances, are generally taxable, though minor perks (like meal vouchers) may be tax-exempt within limits.
Supplemental benefits, like private pensions, often offer tax-deductible options for employers but are generally taxed as income upon payout for employees. For stock options, taxation may be deferred until transfer or employment termination, particularly for smaller companies, offering a temporary tax break.
German employers may also benefit from tax incentives when providing certain types of benefits, such as retirement contributions or childcare support. These perks are often tax-deductible, making them a cost-effective way to boost employee satisfaction.
Compliance with German labor laws is critical when offering employee benefits. Employers must adhere to strict regulations governing statutory benefits like health insurance and annual leave. Non-compliance can result in penalties, fines, and reputational damage. German labor laws also require employers to report benefits to the relevant authorities such as health insurance providers, the Federal Employment Agency (Bundesagentur für Arbeit), and the Mini-Job Central Agency (Minijob-Zentrale). This ensures transparency in tax and social security contributions.
To attract top talent, German employers often go beyond statutory requirements by offering additional perks, such as:
These perks not only enhance employee job satisfaction but also help employers stand out in a competitive job market.
In Germany, the average contribution to employee costs due to benefits—primarily social security contributions—is around 20% of an employee’s gross salary for mandatory non-wage costs. This figure includes the employer's share of contributions to statutory health insurance, pension insurance, unemployment insurance, long-term care insurance, and accident insurance.
Health insurance and pensions constitute the largest portions, with health insurance requiring 7.3% and national pension requiring 9.3% of the employee’s gross wage from the employer, while long-term care insurance requires about 1.5%, and unemployment insurance is 1.3%.
Additional voluntary benefits, like supplemental health insurance or retirement plans, can add around 4-5% of salary depending on the benefits offered, making total non-wage labor costs a significant portion of employee expenses.
To help businesses compare these costs side-by-side in different markets, Playroll offers a free employee cost calculator, helping companies budget effectively for international hires.
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