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10 Best Employer of Record Services For 2025

Read Time

September 26, 2024

10 Best Employer of Record (EOR) Providers in 2025

Your choice in EOR provider can make all the difference in your ability to successfully hire internationally. Our shortlist of best Employer of Record services for 2025 includes Playroll, OysterHR, Rippling and Papaya Global. Compare pricing and top features to make the best choice for your business.

Employer of Record

What is an Employer of Record (EOR)?

An Employer of Record (EOR) is a third-party service that legally employs workers on behalf of a company, handling all employer responsibilities such as payroll, benefits administration, tax compliance, and HR duties. This allows businesses to hire employees in foreign markets without the complexity, time, or expense of setting up a legal entity. While the EOR manages the legal and administrative aspects of employment, the company retains full control over the employee’s day-to-day tasks and responsibilities.

The benefits of using an EOR include:

  • Reduced compliance risks with expert legal and tax support
  • Faster international expansion without establishing local entities
  • Streamlined payroll and benefits management across multiple countries
  • Cost savings by avoiding the complexities of local entity setup
  • Enhanced employee experience with professional HR and administrative support
  • Greater flexibility to hire top talent globally without operational barriers

How We Picked the Best EOR Companies

We carefully evaluated a range of Employer of Record (EOR) providers based on key factors that matter most to businesses expanding internationally. Our selection process focused on:

  • Industry Expertise: We prioritized companies with a proven track record in global employment, compliance management, and HR solutions. Each EOR on our list has years of experience managing international workforces.
  • Compliance and Legal Integrity: Ensuring adherence to local labor laws and tax regulations is critical. We analyzed each EOR’s compliance framework, legal infrastructure, and ability to mitigate risks in multiple jurisdictions.
  • Global Coverage and Local Presence: The best EORs offer extensive international coverage with well-established local entities or partnerships to facilitate seamless hiring and payroll management.
  • Technology and Integration Capabilities: A modern EOR should offer a user-friendly platform with real-time reporting, self-service portals, and seamless integration with HR and payroll systems.
  • Client Reviews and Testimonials: We considered real user feedback from businesses that have used these EORs, focusing on overall satisfaction, reliability, and support quality.
  • Data Security and Compliance Standards: Since EORs handle sensitive employee information, we reviewed their adherence to global data security standards like GDPR and SOC 2 compliance.
  • Pricing Transparency and Cost Efficiency: We looked at pricing structures, ensuring that providers offer clear, competitive, and scalable pricing models without hidden fees.

10 Top Employer of Record Companies in 2025

1. Playroll

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

Read Case Study

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.

Playroll Stand-Out Features

  • Best-in-class pricing with no hidden fees or upfront commitments required.
  • Dedicated, human support for employers and employees.
  • Flexible when it comes to client needs.
  • An intuitive, user-friendly interface.
  • Compliance guaranteed, backed by the VAT IT Group, with 20+ years global employment experience.
  • Comprehensive country coverage in 180+ regions!

2. Papaya Global

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.

Papaya Global Stand-Out Features

  • Broad range of options to customize global payroll.
  • Comprehensive compliance credentials.
  • Uses AI to automate payroll and workflows.

3. G-P (Globalization Partners)

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. 

G-P Stand-Out Features

  • Offers additional services for HR support.
  • Advanced customization and data analytics.
  • Wide country coverage.

4. OysterHR

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.

Oyster HR Stand-Out Features

  • A simple platform and intuitive UI.
  • Quick onboarding times.
  • Comprehensive compliance credentials.

5. Remote

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.

Remote Stand-Out Features

  • A wide network of owned entities.
  • Advanced capabilities for IP protection.
  • Comprehensive localized benefit offerings

6. Deel

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.

Deel Stand-Out Features

  • A wide network of owned entities.
  • Comprehensive support for integrations.
  • Automating the collection of compliance documentation, and robust compliance credentials.

7. Rippling

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.

Rippling Stand-Out Features

  • A wide range of integrations.
  • Products include IT and spend management.
  • Advanced data analytics.

8. Velocity Global

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. 

Velocity Global Stand-Out Features

  • Comprehensive localized benefits packages, including equity.
  • Configurable integrations and data customization.
  • Wide country coverage.

9. Multiplier

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.

Multiplier Stand-Out Features

  • Comprehensive compliance credentials.
  • Easy automation of global payroll.
  • A good library of extra resources and tools for employers.

10. WorkMotion

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.

WorkMotion Stand-Out Features

  • Assistance with in-country registrations.
  • Simplified expense management.
  • Easy adjustment of contracts.

How to Choose an EOR Provider

Choosing the right Employer of Record company is a critical decision for companies looking to expand globally while ensuring compliance and seamless employee management. A reliable EOR can simplify hiring, payroll, benefits administration, and legal compliance, allowing businesses to focus on growth. Here’s how to select the best EOR partner for your needs.

1. Assess Compliance and Legal Expertise

One of the primary reasons for using an EOR is to navigate complex labor laws and regulations in foreign markets. Ensure the EOR has deep legal expertise in employment laws, tax compliance, and contractual obligations in each country of operation. A trustworthy EOR should provide up-to-date legal guidance and minimize compliance risks.

2. Verify Global Coverage and Local Presence

If you’re hiring internationally, confirm that the EOR has established entities or partnerships in your target countries. A strong local presence ensures smooth onboarding, payroll management, and regulatory adherence. Some EORs specialize in certain regions, so make sure their coverage aligns with your expansion goals.

3. Evaluate Payroll and Benefits Administration

A top-tier EOR should offer robust payroll solutions, including salary processing, tax deductions, and statutory contributions. Additionally, they should provide competitive employee benefits, such as healthcare, pensions, and insurance, in compliance with local laws. Ask for details on their payroll processing timelines, currency support, and error resolution processes.

4. Analyze Technology and Integration Capabilities

A modern EOR should leverage advanced technology for payroll, HR, and compliance tracking. Look for platforms that offer:

  • Automated payroll processing
  • Employee self-service portals
  • Real-time reporting
  • Integration with your HR systems

A tech-enabled EOR streamlines operations, improves transparency, and enhances the employee experience.

5. Review Service Level Agreements (SLAs) and Support

Understanding the service levels provided by an EOR is crucial. Request details on response times, dispute resolution, and issue escalation. A reputable EOR should offer dedicated account management and 24/7 support, ensuring seamless operations across different time zones.

6. Compare Costs and Pricing Models

EOR pricing structures vary—some charge a flat fee per employee, while others use a percentage-based model. Make sure you understand the full cost, including any hidden fees for contract terminations, currency conversions, or compliance updates. The right EOR should offer transparent pricing with no surprises.

7. Check Reputation and Client Testimonials

Research the EOR’s track record by reading case studies, reviews, and testimonials from businesses in your industry. An experienced EOR with a solid reputation demonstrates reliability, expertise, and a proven ability to manage global workforces.

8. Ensure Data Security and Compliance Standards

Given the sensitive nature of employee data, the EOR should comply with global data protection regulations such as GDPR and SOC 2. Ask about their cybersecurity measures, data encryption policies, and disaster recovery plans to ensure your employees’ information is secure.

Key Employer of Record Services

An EOR provides a range of essential services to simplify global workforce management. Key services include:

  • Payroll Processing: Handling salary payments, tax withholdings, and statutory deductions in compliance with local laws.
  • Employee Benefits Administration: Offering healthcare, retirement plans, insurance, and other benefits according to local requirements.
  • Compliance and Legal Support: Ensuring adherence to labor laws, tax regulations, and employment standards in each country.
  • Employment Contracts and HR Support: Drafting legally compliant contracts and providing HR services like onboarding and employee relations.
  • Work Visa and Immigration Assistance: Managing work permits, visas, and residency requirements for international employees.
  • Termination and Offboarding Services: Handling contract terminations, severance, and exit processes in line with legal requirements.

Hire Globally with Playroll

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.

Want Detailed Comparisons?

Compare the top EOR providers side-by-side, with a full breakdown on cost, support, coverage and more.

Compare Providers

The Benefits And Challenges Of Hiring International Employees

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.

The Benefits Of Hiring Global Talent

When you hire remotely, you get a ticket to talent based all over the globe and can tap into many benefits that include:

Better diversity in teams

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.

Access to wider talent pools

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. 

More affordable talent 

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. 

Increased employee satisfaction

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.

How TecEx Used Playroll To Double Their Global Team And Boost Employee Satisfaction

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.”

  • Kyle Tristan Telfer, CEO, TecEx

Learn more about TecEx’s global growth, made possible by Playroll

The Challenges And Risks Of Hiring Global Talent

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:

The hiring cost in new markets

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.

Aspect Playroll Own Legal Entities
An Employer Of Record vs. Own Legal Entities
Cost From $399/month for employees and $35/month for contractors. An estimated $20k+ in set up costs and $50K+ in operating costs per location.
Compliance As the employer of record, Playroll assumes all compliance risks. The company takes on full responsibility to comply with local labor laws.
Time Launch in a new market within minutes, and onboard team members within 24 hours. 4-6 months to set up and build a team.
Support A team of HR, legal and finance experts are available to support you at any time, in 180+ regions. Find and manage your own HR, legal, finance experts in every new market you enter.

Staying compliant with local labor laws

When you hire in a new market, you need to comply with the employment laws and probation periods 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.

Avoiding permanent establishment 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. 

Setting up payroll administration 

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.

Fair employee benefits administration

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.

Cybersecurity risk management

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.

3 Ways To Hire Remote Workers

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:

  1. Hire independent contractors
  2. Establish a Legal Entity
  3. Use an Employer of Record

Hire Independent Contractors

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:

  • Completing short-term projects
  • Tapping into the expertise of specialists based around the globe
  • Paying less mandatory employment taxes and benefits

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:

Aspect Employees Contractors
Relationship With Employer The employer sets the work hours, responsibilities and work location. The contractor has more flexibility over their work hours and work location, and can work for multiple clients.
Nature Of Work Long-term in duration, with no specified end date to the working relationship. The work is often more integral to core business needs. Short-term project work for a specified duration, for example 6 months. The work is less integral to core business needs.
Payment A regular salary with benefits. Per project, per hour or on a flat-fee basis, and is usually not entitled to benefits.
Integration With Team Culture Employees are fully integrated in your team culture. Since they operate independently of your organization, contractors are not as integrated in your team culture.

Establish a legal entity

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.

Use an Employer Of Record

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.

What is an Employer of Record Platform?

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:

  • Set up employee contracts that are compliant with local employment laws
  • Conduct automated payroll in multiple currencies
  • Manage the administration of competitive, local benefits
  • They can also help you navigate permanent establishment risk and make sure you are compliant with all required employee and employer taxes in new regions.

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. 

When Should Companies Use An Employer of Record Platform? 

Some of the most common reasons it might be time to use an Employer Of Record include:

  • You want to test new markets and have the ability to easily withdraw from the market if it doesn’t fulfill your expectations. With an EOR, you can do this without the prohibitive costs associated with setting up, then closing down, an entity. 
  • You want to make your first international hires in a new region, and can’t justify setting up an entity for a handful of employees. If you do reach the point of having enough employees to set up an entity, a flexible EOR such as Playroll can also assist with transferring  employees from their own entities to client-owned entities.
  • Easily converting contractors to full time employees, without requiring the contractor to relocate to the country where your business is located.
  • You want to offer your employees the freedom to work remotely, from any location.

How To Choose The Right Employer of Record Solution For Your Remote Workforce

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.

How To Set Up Your Business For a Remote Workforce

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.

Decide on a global compensation strategy

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. 

Do thorough compensation benchmarking 

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:

  • Use Playroll’s free employee cost calculator to compare total employer costs in different markets, and get a detailed breakdown of required contributions in 180+ regions.
  • Get an accurate idea of the cost of living in different regions using tools such as Numbeo.

Source global talent

To source remote workers in new markets, make use of the following strategies:

  • Leverage local recruitment platforms that specialize in sourcing global talent. An Employer Of Record like Playroll can also introduce you to their global talent network to ease the process.
  • Implement referral programs that make use of your existing employee’s networks, and reward employees for introducing you to quality talent that adds to your culture. This can be especially useful when expanding to new markets.

Calculate Your Employment Costs With Playroll

Get a detailed breakdown of what your new employee will cost and compare different markets with Playroll’s free employee cost calculator.

Calculate Costs

Steps For A Hiring Process That Attracts Global Talent

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.

Tailor your hiring approach to the region

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.

Have a thorough job description and be clear in communication

Be clear in your job description about the nature of the role, such as:

  • Whether it’s fully remote or hybrid, if you have an office in the country.
  • Where your various teams are based and who the successful candidate will be reporting to.

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.

Interviewing remote candidates

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: 

  • Ensure both parties have a strong internet connection, and include the interview link in all meeting invitations. 
  • Double check time zones and that you and the candidate have the same understanding on when your interview will take place.

Sending an offer to remote 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:

  • The work schedule: minimum working hours and overtime
  • Annual leave and public holidays
  • Salary and wages, as well as benefits and contributions
  • Employer taxes
  • Notice periods 
  • Intellectual property

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.

How to Cultivate a Strong Remote Team Culture

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:

Set up efficient  employment management software

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:

  • HR and financial management software such as BambooHR and Workday
  • Communication tools such as Slack or Microsoft Teams
  • Project management tools such as Trello, Asana or Monday.com

Set priorities and check-in regularly

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.

Make extra effort with connection

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:

  • Be extra conscious of making deliberate time to connect with your team members – for example, sending a message if you notice a team member being more quiet or stressed than usual can go a long way to foster genuine human connections. Give your team the space to connect with one another, whether that’s through your regular team cadences or dedicated remote team events.
  • Acknowledge important days like birthdays or work anniversaries, and be deliberate in giving recognition when team milestones are reached or you notice a job well done. 

Take care of work-life balance

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.

Encourage flexibility and trust

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.

Facilitate onboarding for new hires

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.

Arrange security training  

As a business, your data is only safe if every employee helps safeguard it. When working with international employees:

  • Arrange training on the use of VPNs to ensure secure remote connections.
  • Educate employees on cybersecurity best practices and common threats such as malware and phishing attempts.
  • Train employees on best practices when it comes to sensitive company and client information, for example being compliant with GDPR regulations if you’re operating in Europe.

Pay attention to cultural sensitivity and inclusion

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.

Building A Remote Team With Playroll

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:

  • As your partner in international hiring, Playroll will handle onboarding, payment and benefits management in new regions, freeing up your time to focus on your business and connecting with your team.
  • No need to establish foreign subsidiaries – we have a network of legal entities in 180+ regions to leverage on your behalf, and can advise you on the intricacies of hiring in every one of those countries.
  • Avoid misclassification risk and use Playroll to compliantly hire and manage your contractors, no matter where they’re based.
  • Built-in compliance and IP protection for your employment contracts.
  • A team of legal, financial and HR experts to advise you every step of the way
Guide to employee misclassification

What Is Employee Misclassification and Why Does It Matter?

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? 

  • A loss of employee benefits: Employment laws and labor standards, such as tax obligations, health insurance, and workers' compensation, termination requirements, obligations, rights and procedures, differ between employees and contractors. If they’re misclassified, employees miss out on key benefits and protections.
  • Lost revenue: When misclassifying workers, employers may not withhold the requisite amount of employment taxes required by law. Government agencies take this particularly seriously, as it means a loss of income for them. By some estimates, $3-4 billion is lost annually due to misclassification. 
  • Fines and penalties: Misclassification can result in violations of labor law and costly penalties for businesses. This could even include court orders for retrospective reinstatement (with back-pay) of the individual as an employee of the company.

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.

Important To Know

As a business, you shouldn't focus solely on how the contract with the individual is defined – i.e. simply whether the individual is labeled as an employee or independent contractor. In many countries, a “substance over form” principle is followed. This means that the objective reality of the relationship is considered and the relationship type is not merely determined by how it's labeled in a contract.

For example, a contract with an individual may be called an “independent contractor agreement”. However, a court or the government authority may find that the true nature of the relationship between the parties is actually one of employment.

What Are The Differences Between Independent Contractors and Employees?

To avoid misclassifying employees as independent contractors, you first need to know how to distinguish between them. Here are the key differences:

Tax Obligations

Employees have income tax automatically deducted from their wages, while contractors are responsible for their own tax filings.

Degree of Control

Employees follow strict guidelines from their employer on how and when to perform their tasks, while contractors have more flexibility and autonomy.

Intellectual Property (IP) Protection

IP created by employees typically belongs to the employer, while IP created by contractors remains their own unless specified in contracts.

Employee Benefits and Protections

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.

Employee vs. Contractor Compliance Checklist

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:

Question Employee Contractor
Who decides when the work is performed? The employer sets the schedule The individual decides
Who provides the equipment? The employer provides equipment such as a laptop The individual provides their own equipment
Who is required to perform the work? Personally performed by employee The work can be outsourced or subcontracted
How is the worker paid? Fixed salary or hourly Paid per project or on the presentation of an invoice
Is there economic dependence? The employee is economically dependent on the employer No economic dependence
How important is the work to the business? Integral to business operations Not central to operations
Is training provided? Training is usually provided Generally, no training is offered
What is the length of the relationship? Ongoing Generally defined by project duration

The Risks of Employee Misclassification

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:

  • Fines: Governments impose financial penalties for failing to classify workers correctly. 
  • Reputational Damage: Misclassification cases can cause significant harm to your business reputation, especially if employees publicly sue for backpay or benefits.
  • Potential Legal Battles: Misclassified workers may take legal action, leading to costly lawsuits.
  • Back-pay to Employees: Employers may need to compensate misclassified employees for lost benefits, overtime, or wages, with the additional risk of reinstatement.
  • Operational Disruption: Legal battles and regulatory investigations can distract from day-to-day business operations, affecting your business’ productivity.

Which Industries Are Most Susceptible To Misclassification?

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 Misclassifying Employees as Independent Contractors

Penalties for employee misclassification differ between countries but can include financial fines, tax penalties, and reputational damage. For example:

United States

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. 

Check out our full guide to U.S. misclassification penalties.

United Kingdom

Companies may face penalties under the UK’s Employment Rights Act, including paying back-pay for lost wages, holiday pay, and missed pension contributions.

European Union

Penalties vary but may include large fines, repayment of lost unemployment insurance benefits, and damage to the company’s standing with labor unions.

What Are Examples of Employee Misclassification Penalties?

Several notable legal cases highlight the consequences of misclassifying employees:

  • FedEx was ordered to pay millions in fines and back-pay after it was found to have misclassified drivers as independent contractors.
  • The UK Supreme Court ruled that Uber drivers were employees, entitling them to minimum wage, holiday pay, and other benefits.
  • Nike faces potential tax fines of more than $530m,  as they may have misclassified thousands of temporary office workers.
  • Microsoft paid $97 million to settle a lengthy lawsuit involving thousands of workers claiming they were entitled to employee benefits.

How to Avoid Employee Misclassification as an Employer

There are several measures you can take as a business to avoid the pitfalls of misclassification. These include:

Create airtight independent contractor agreements (and abide by them)

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):

  • The terms of engagement and type of work they’ll perform
  • The hours they’ll work or the length of the project
  • IP Protection and confidentiality

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. 

How We Tick The Box On Compliance

At Playroll, you can rely on up-to-date expertise – layered on top of intuitive technology that features built-in compliance. Here’s how we shield you from misclassification in practice:

  • On-the-ground legal and tax experts in 180 regions, to inform you of shifting regulations in any market.
  • Clear contractor agreements that protect your IP rights.
  • Track working hours, expenses and more in real-time so you’re never out of the loop.

Book a chat with our experts here to find out how we can ensure your team is correctly classified.

Stay updated on local regulations

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.

Run internal audits

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. 

Convert contractors to employees 

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 provides the worker with the benefits and protections they’re entitled to, which can boost employee satisfaction and retention.
  • They will become an integrated member of your team and wider company culture.
  • You can better safeguard your company data and IP.
  • You’ll be able to assign them work that is more critical to your business.
  • You can ensure that your business remains compliant.

Seek expert help

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.

Violeta Cirkovic, HR Generalist, Two Desperados

Read Case Study

Ensure Global Compliance When Hiring Independent Contractors with Playroll

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.

The 11 best global payroll providers

What Are The Different Available Solutions For Global Payroll?

When choosing a global payroll solution, there are a couple of different approaches you can take as a business, including:

  • Relying on local payroll providers in each of your territories across the globe. This gives you a lot of freedom and choice in meeting your needs per territory, but can make it difficult to get a unified view of your operations.
  • Use global payroll providers that act as a one-stop-shop for global payroll processing. On the downside, this typically means you need to replace all your existing local providers and in-house team with the chosen global provider, which can result in lengthy implementation time and costs. However, if you don’t wish to have multiple points of contact for global payroll, choosing among the best global payroll providers can be a solid choice for your business.
  • Use international payroll software – this is also often used by external payroll providers. Global payroll software can differ in specific features provided, but usually unifies your operations across territories and allows you to standardize and automate your payroll systems and reports. A major benefit of this approach is a quicker implementation time and less costs – with payroll software like Playroll, for example, there is no need to replace your current network of payroll providers. Instead, it consolidates your existing operations.

In this shortlist, we’ve assessed the full spectrum of solutions on offer, from top global payroll providers to innovative new global payroll software. Your choice of solution and payroll strategy will depend on the specific needs of your business.

How We Selected the Best Payroll Solutions

We Explored Top Features

Your chosen payroll solution should make it easier to handle tasks like payroll consolidation, payment monitoring, and data entry efficiently. The solutions on this list were selected based on their ability to manage the complex needs of your international employees.

Assessed the Pricing Plans

Competitive pricing for local payroll and international services was a key factor in our rankings.

Looked at the Problems the Tools Solve

These tools address common challenges such as compliance with local labor laws, accessing unified reporting and streamlining payroll operations.

Reviewed the Outcomes of Using the Tools

We considered user feedback from sources such as G2 and Capterra, to make sure these global payroll solutions deliver measurable benefits, including reduced administrative effort and improved payroll compliance.

Comparison of 11 Top Global Payroll Solutions

1. Playroll

Playroll offers a comprehensive suite of services for global employment and payroll management, suitable for businesses of all sizes. Through its Employer Of Record services you can process payroll for your international employees and contractors in 180+ regions. 

Its Global Payroll Management product allows you to consolidate fragmented payroll systems across countries, with complete freedom of choice in providers and vendors. Choose between GP Analytics, a standalone product to visualize and analyze payroll data from every country, or GP Manager for full control of global payroll processes in addition to analytics features.

Playroll has spent 25 years building their global employment infrastructure as part of the VAT IT Group, which services half of all Fortune 500 companies. 

Top Features Overview 

Playroll’s Global Payroll Management products consolidate your global payroll systems in one place, while seamlessly integrating with your current operations. Compared to other providers, you can onboard to use the software in days instead of months, and there is no costly upfront investment needed to replace your in-house payroll or trusted local providers. Instead, you can layer the software to standardize your payroll platforms, tailor payroll workflows as fits your needs and automate currency management. 

Global Payroll Pricing 

Pros

  • Exceptionally low implementation costs and time to set up software compared to alternatives.
  • No need to replace current in-house payroll operations or in-country providers.
  • Comprehensive features for currency management and real-time currency conversion.
  • Advanced features to automate payroll processes across 180+ regions.
  • Built-in standardization of compliance checks.
  • Dedicated customer support from payroll experts for businesses of all sizes.
  • Services available to hire and pay international employees and contractors. 

Cons

  • More limited third-party HR tools integration, though support for additional tools is currently expanding.
Playroll payroll solution
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Playroll payroll solution
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Simplify Global Payroll And Cut Costs with Playroll

Save time and money while ensuring compliance in 180+ countries. Switch to Playroll for seamless payroll management tailored to your needs.

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2. ADP Global Payroll

Top Features Overview

Especially suited for large enterprises, ADP is a well-established global payroll solution founded in 1949. It offers robust multi-country payroll software with advanced analytics for payroll data insights. 

Global Payroll Pricing 

Custom quotes based on business size and needs.

Pros

  • Comprehensive reporting and analytics features.
  • User-friendly UI.
  • ADP also offers benefits administration and other supporting HR services.

Cons

  • Higher price point compared to other global payroll outsourcing providers has been reported, with hidden fees and high implementation costs.
  • Strict cut-off dates for payroll processing.
  • Intricate software that has a steep learning curve, requiring investment in team training.
ADP payroll solution


3. Deel

Top Features Overview

Deel is a well-known global workforce platform that offers payroll solutions alongside EOR and contractor management services.  It integrates global payroll solutions with its HR software, so it’s easy for businesses to manage their HR admin, payments and reporting in one place. 

Global Payroll Pricing 

From $29 per employee/month for global payroll

Pros

  • Wide integration support.
  • Customizable dashboards and reporting.
  • Comprehensive compliance support with updates on regulatory changes.

Cons

  • More limited country coverage compared to other providers.
  • A more expensive solution compared to other providers with reports of hidden fees.
  • High implementation costs and long onboarding times that can take 3+ months.
  • Slow customer service and issues getting technical support have been reported.
Deel payroll solution


4. Oyster HR

Top Features

Oyster HR is a user-friendly global employment solution – when it comes to running payroll, their solution is best-suited to pay international employees and contractors hired via their EOR service, in 130+ countries. They also offer options to pay your direct employees, but have limited coverage where this is concerned. For their supported regions, they offer easy options to review and approve payroll, approve expenses, and download monthly payroll reports.

Global Payroll Pricing 

Starting at $25 per employee/month

Pros

  • User-friendly interface.
  • Access to payroll specialists to streamline operations
  • Good reporting options and ability to see various cost breakdowns in one dashboard.

Cons

  • Limited country coverage for global payroll, with less than 30 countries supported.
  • More limited integrations compared to other providers.
  • If you want to use Oyster to pay your direct employees, set-up time and costs can be significant when onboarding to Oyster.
Oyster HR payroll solution


5. CloudPay

Top Features

CloudPay offers end-to-end payroll solutions that includes global payroll and salary payments in a cloud-based system. It features comprehensive reporting features and centralized payroll data management to consolidate all payroll data into one system. It also offers features to automate manual payroll tasks. 

Global Payroll Pricing 

Custom quotes available for multi-region businesses.

Pros

  • Features to consolidate payroll data in one place
  • Comprehensive automation capabilities
  • Good data security

Cons

  • Cloudpay has a more complicated user interface than competitors
  • Slow response times and support are reported
  • Lengthy onboarding time to use CloudPay as your sole payroll provider, and implementation can be costly
  • No additional services for employing employees and contractors and no other built-in HR features, like some other competitors on this list.

6. Payslip

Top Features

Payslip provides a centralized platform for managing global payroll, designed for large enterprises that need to handle payroll across multiple regions. It integrates with your existing HR tools and financial systems, which can help businesses streamline their overall operations. 

Global Payroll Pricing 

Custom pricing based on the number of employees and countries served.

Pros

  • Good capabilities to integrate your payroll and HR data.
  • Features to manage payroll, payroll providers, and make payments.
  • Supports compliance with local labor laws.

Cons

  • Best suited for larger organizations with a well-established global footprint, which might make it overkill for small businesses.
  • Reporting and analytics features are less user-friendly and intuitive than competitors, with reviews on a lack of flexibility.
  • Not as user-friendly as competitors.
Payslip payroll solution

7. Dayforce

Dayforce is a comprehensive HR services platform that offers real-time payroll processing across multiple countries. It has add-on services for workforce management, talent management, and timekeeping, which can make it a solid choice for businesses looking for an all-in-one HR tools solution. It offers comprehensive features to help companies maintain compliance with local labor laws and regulations in various jurisdictions. 

Global Payroll Pricing 

Custom pricing based on the scope of services and the size of your workforce.

Pros

  • Comprehensive country coverage with support for 200+ regions.
  • Add-on services for HR and workforce management
  • Includes a mobile app.

Cons

  • The time to transfer from established providers and vendors to Dayforce can reportedly take 6+ months, which can be costly and negatively impact business operations.
  • Reviews of slow customer service and dedicated support can come at an extra cost.
  • The system can be complex to implement and may require significant training – provided onboarding material is less comprehensive than some competitors.
  • Not ideal for smaller businesses with simpler payroll needs.
Dayforce payroll solution

8. Paylocity

Top Features

While Paylocity is primarily known for its domestic payroll solutions, it also offers capabilities for global payroll management, especially for companies with an expanding international presence. Paylocity integrates payroll processing across multiple countries and provides a centralized platform to manage international employees. The platform offers country-specific payroll calculations and tax compliance. It also automates the payroll data flow for businesses operating in multiple countries.

Global Payroll Pricing 

Custom pricing based on the scope of international payroll services.

Pros

  • Supports global payroll management with local compliance for multiple countries..
  • Additional services available to simplify payroll and global HR across borders using one platform.
  • Offers an employee self-service portal for accessing pay stubs and benefits.

Cons

  • International payroll capabilities may not be as robust as specialized global payroll outsourcing providers.
  • Best suited for businesses expanding into international markets rather than fully global enterprises with complex payroll needs.
  • Reports of slow customer service and difficulty getting hold of dedicated support.
  • Reports of difficult and lengthy implementation times.
  • Different modules of the product do not integrate well with one another.
Paylocity payroll solution

9. Remote

Top Features

Remote is a good choice for businesses with a global workforce, offering options to consolidate payroll for international employees and contractors. It provides comprehensive HR tools for managing benefits, payroll processing, and ensuring compliance with local labor laws in over 50 countries.

Global Payroll Pricing 

$29 per employee/month.

Pros

  • Makes it easier to pay both full-time employees and contractors while handling tax payments.
  • Has a wide network of global entities to support global services.
  • Automatic compliance checks when running global payroll.

Cons

  • Requires you to transfer all existing payroll providers and vendors – onboarding and implementation can take several months and come at significant cost.
  • Limited support for larger organizations or those needing complex payroll structures.
  • Some features may be underdeveloped in niche markets.
  • Reports of slow customer service, issues with payments and multiple points of contact, which can cause issues if you’re transferring your current operations and require hands-on support.
Remote payroll solution

10. Rippling

Top Features

Rippling is a comprehensive global workforce management platform designed to handle global payroll processing, benefits management, and HR functions. It stands out for its wide integration capabilities, and its ability to handle payroll, benefits administration, and HR tools in a single platform.

Global Payroll Pricing 

Pricing varies depending on the services and the number of employees.

Pros

  • Wide integrations of various HR tools.
  • Comprehensive products for managing payroll, benefits, and employee data.
  • Advanced reporting capabilities, though some features come at a premium.

Cons

  • More expensive pricing compared to competitors.
  • Advanced payroll features can be complex to set up, with a steep learning curve for the product.
  • Reports of slow customer service, with no direct support for employees.
  • Requires you to transfer from existing local providers and vendors, which can result in a lengthy and costly onboarding experience.
Rippling payroll solution

11. Multiplier

Top Features

Multiplier is a platform designed for businesses expanding internationally. It supports global payroll processing, tax compliance, and employee benefits administration. The platform’s strength lies in its ability to automate complex payroll tasks across multiple countries, which can be a good fit for rapidly scaling companies.

Global Payroll Pricing 

Custom pricing tailored to the number of employees and countries covered.

Pros

  • Automates payroll processing for global workers.
  • Simplifies tax compliance and employee benefits management.
  • Strong support for global workforce needs with additional services to employ and manage benefits for your team.

Cons

  • May not be the best fit for smaller businesses.
  • More limited country coverage than some competitors.
  • Reports of slow customer service with multiple points of contact.
  • Requires you to transfer from existing local providers and vendors, which can result in a lengthy and costly onboarding experience.
Multiplier payroll solution

Simplify Your Payroll Operations with Playroll

If you’re looking for global payroll solutions to simplify your international expansion, there’s a wealth of services to choose from – it can be overwhelming to make the best choice for your business.

At Playroll, we understand the challenges at hand. Above all, we are dedicated to providing personalized customer service, for businesses of all sizes. Our platform combines automated, easy-to-implement global payroll management software with hands-on support. All in the name of making global payroll and expansion truly simple.

Book a chat with our team to learn more about consolidating your payroll operations, no matter where your team is located. 

Want Detailed Comparisons?

Compare more top Global Payroll solutions side-by-side, with a full breakdown on features, support, coverage and more.

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What Is An Employer of Record? 

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. 

Questions To Ask When Evaluating The Best Employer Of Record

1. What Business Model Do They Follow to Employ Remote Workers?

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:

  • It gives you more control and consistency, as the EOR has direct oversight of all operations. 
  • This model often results in better compliance and reduced risks, since your data is shared with fewer third parties. 
  • It’s likely that an EOR provider with many owned entities will have better support services, since they don’t have to exclusively liaise with other parties before responding to queries you might have. 

Selecting an EOR partner with a robust network of wholly owned entities can give you advantages in all these areas.

2. How Does The EOR's Pricing Work? 

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. 

3. What Level Of Support Can You Expect From The EOR?

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.

4. How Extensive Is The EOR Country Coverage?

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. 

5. Do They Support Hiring Both Full-Time Employees and Contractors?

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.

6. Do They Offer a Robust Portfolio of Local and Global Benefits?

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.

7. How Will Payroll Work for Your Remote Employees?

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.

8. How Do They Keep Your Data Safe?

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.

9. What Is Their Approach to Mitigating Compliance Risks?

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.  

10. How Flexible Are They When It Comes to Employment Contracts?

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. 

11. How Will the EOR Help with Employment Terminations?

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.

12. Do They Support the Transfer Between EOR Entities and Client-Owned Entities?

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.

Your Checklist Of Questions For EOR Services

Questions To Ask When Assessing EOR Services
Feature Questions To Ask
Business Model Does the EOR use wholly-owned entities, partner with local vendors or use a combination of these approaches?
Pricing Are there any hidden fees?
Is the pricing transparent and flexible?
Does the provider offer monthly charges or require annual commitments?
Support What level of dedicated support is provided for employers and employees?
Do they offer multi-channel support?
Do they have a track record of quick response times?
Country Coverage How many countries does the EOR cover?
Do they charge fixed offboarding fees?
Hiring Full-Time Employees and Contractors Does the EOR support both full-time employees and contractors, in all the regions you’re interested in?
Can they help convert contractors to full-time employees?
Benefits Portfolio What local and global benefits are offered?
Does the EOR manage benefits and provide visa support services?
Payroll How reliable is the payroll system?
Does it provide transparency and accuracy in payments?
How will invoicing work?
Can you see all transactions in one place?
Data Security What certifications does the EOR hold (e.g., GDPR, SOC2)?
Compliance Risk How does the EOR manage compliance with local labor laws?
Will they help you assess misclassification risk?
Employment Contract Flexibility Is the EOR flexible in creating customized employment contracts?
How quickly can they amend contracts?
Employment Terminations What is the process for managing employee terminations?
Is it compliant and supportive of both employer and employee?
Transfer Between EOR and Client-Owned Entities Does the EOR offer a flexible transfer process or require a 'resign and rehire' procedure?
How might this affect employee relationships?

Grow Your Global Team Confidently With Playroll

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.

Why Should You Hire Overseas Employees?

If you aim for global growth, hiring internationally isn't just an option — it's a game-changer. Embrace the diversity that sparks innovation and fuels creativity. The trend of hiring overseas employees, as highlighted in the World Economic Forum's analysis, reflects a strategic response to global labor market dynamics and technological advancements. 

Some of the top benefits include:

  • Larger talent pools: Hiring globally expands your candidate pool, bringing in diverse skills and experiences from around the world to find the best talent regardless of location.
  • Increased diversity: Embracing global hiring increases cultural, ethnic and gender diversity in your team, in turn boosting creativity, problem-solving and business profitability, according to a McKinsey report.
  • Higher employee satisfaction with remote work: Remote work boosts satisfaction and productivity, with a growing preference for better work-life balance and reduced commuting stress.
  • Cost savings: Hiring in regions with a lower cost of living can help you stay within budget for your roles while still accessing high-quality talent.
  • Growing your global presence and better market insights: A diverse team across regions provides local market insights and cultural understanding, which is crucial for global expansion.
  • Flexible workforce management: Operating globally allows round-the-clock operations and better customer service, leveraging different time zones for continuous support.

How To Choose Countries When Hiring Remotely

Ready to explore new markets to reap the benefits of a global workforce? When looking at hiring in a new country, assessing it according to these criteria can help you make the best choice for your business:

  • High levels of education: Hiring from regions known for their strong educational backgrounds ensures you have access to highly skilled professionals.
  • Good infrastructure: Reliable infrastructure, including top-notch internet connectivity and modern communication networks, helps your remote team to collaborate seamlessly.
  • Cost of living and employee benefits: Evaluate the cost of living and factors such as statutory employee benefits and employer taxes in each region, to get an idea of the cost of an employee in that region. For example, hiring in countries with lower cost of living and a lower cost to the employer can help you save on hiring costs. Use tools like Playroll's cost calculator to compare and optimize your employer costs effectively.
  • Shared time zones: Time zone alignment fosters real-time collaboration and can help your global team operate more efficiently.
  • Availability of digital nomad visas: Regions offering digital nomad visas or attractive tax incentives not only attract skilled remote workers but also creates a more supportive environment for your team.
  • Appetite for remote work: Embrace regions with a strong appetite for remote work, meaning your team members are motivated and committed to achieving shared goals no matter where they are.
  • Quality of lifestyle: Consider regions that offer a good lifestyle for employees, with access to many natural landscapes, vibrant urban centers, and diverse cultural experiences.
  • Political stability and safety: Choose regions known for their stability and safety, providing a secure environment for your team.
  • English proficiency: Ensure effective communication by selecting regions where employees have strong English proficiency or the necessary language skills to collaborate across borders and cultures.
  • Strong legal frameworks: Prioritize regions that protect remote workers' rights and have robust employment regulations. This creates a supportive and compliant work environment for your team to thrive.

Top 10 Countries to Hire International Employees

Based on criteria such as high education levels, reliable infrastructure, probationary periods, competitive cost evaluations, political stability, language proficiency, and robust legal protections, here’s our choice of top 10 countries to hire international employees. In no specific order:

1. Germany

Boasting a high level of education and robust infrastructure, Germany offers a competitive cost of living and attractive employee benefits. The country is increasingly embracing remote work, heightening its appeal to international employers.

Germany is renowned for its exceptional quality of life, which includes political stability and safety. Moreover, most professionals in Germany are proficient in English, making it an ideal environment for global business operations.

2. The United States

The United States features a world-class education system and advanced infrastructure, providing competitive employee benefits and strong legal protections. It accommodates various international business needs with convenient time zones and a diverse range of lifestyle options. English proficiency is also widespread in the U.S.

3. Portugal

The Portuguese have high levels of education, and there is an increasing emphasis on international programs and partnerships. The cost of living is generally lower compared to other European countries, while still having attractive benefits on offer to employees.

This makes it an attractive option for cost-effective international hiring. The country offers a high-quality lifestyle with pleasant climates, cultural richness, and affordable healthcare. Portugal is known for its political stability and safety.

4. Singapore

Singapore is known for its world-renowned education system and advanced infrastructure, particularly in technology and business sectors. Positioned in GMT+8, it facilitates global business interactions.

Initiatives like digital nomad visas and Tech Pass welcome skilled professionals and entrepreneurs, promoting a strong remote work culture.

5. Canada

Canada has a robust education system and advanced infrastructure tailored to modern business needs. Its convenient time zones facilitate global interactions, making it a favorable environment for international employers. Canada's openness to skilled professionals is evident through its various immigration programs, which support a strong remote work culture with progressive policies.

6. Australia

Australia also has an excellent education system and welcoming visa programs that encourage a diverse workforce. The country promotes remote work through flexible arrangements and progressive policies, ensuring a high quality of life. 

Australia is also noteworthy for its excellent healthcare, safety, and cultural amenities, supported by a stable political environment and strong legal frameworks.

7. Japan

Japan has advanced technology infrastructure and digital nomad visas on offer, promoting a strong work culture with flexible arrangements and innovative policies. 

The country offers a high quality of life, featuring excellent healthcare, robust safety standards, and rich cultural experiences. Japan's stable political environment and robust legal protections create a secure and supportive setting for both employers and employees.

8. South Africa

Well-known for its breathtaking natural landscapes, South Africa also has a relatively low cost of living compared to many Western countries along with a multi-cultural workforce that is proficient using English as a primary business language. It also recently rolled out digital nomad visas to boot.

Positioned in the GMT+2 time zone, South Africa facilitates convenient business interactions across Europe and Africa, making it an attractive location for international employers.

9. The Netherlands

The Netherlands is celebrated for its education system and advanced infrastructure. With fast internet and a flourishing technology sector, the Netherlands is an excellent location for businesses that need highly skilled employees.

Its strategic location within the GMT+1 time zone heightens its appeal as a hub for European and global commerce. The country is politically stable and offers a secure environment for residents and businesses alike, supported by a strong legal framework that ensures transparency and protection for both employers and employees.

10. South Korea

South Korea is distinguished by its prestigious education system and cutting-edge infrastructure supporting technology and commerce. The country promotes a thriving culture of remote work with progressive policies and a digitally adept workforce. 

South Korea boasts a high standard of living, including exceptional healthcare, stringent safety standards, and a vibrant cultural scene, making it an appealing destination for international hiring.

Up And Coming Countries for Remote Work

Several countries are actively implementing remote-friendly policies to facilitate the hiring of international employees. Notable examples include: 

Estonia

Estonia has introduced a digital nomad visa, which allows international remote workers to live and legally work in the country for up to a year. This initiative supports Estonia's reputation as one of the most digitally advanced countries in Europe.

Mexico

Mexico offers a Temporary Resident Visa, suitable for remote workers who can prove they have the financial means to sustain themselves. The country’s affordable cost of living and vibrant culture make it an attractive destination for digital nomads.

India

India is improving its digital infrastructure and regulatory frameworks to attract more remote workers. The country’s vast talent pool in IT and customer service makes it a viable option for companies looking to outsource these functions.

Brazil

Brazil has introduced visas that are more favorable for remote workers and improved internet connectivity across the country. These moves are part of broader efforts to boost economic activity by attracting international talent.

Vietnam

Vietnam is becoming increasingly popular among remote workers due to its low cost of living and high-speed internet. The government is exploring more formal policies to support remote workers, including extended visas and tax incentives.

Costa Rica

Costa Rica offers a specific visa for remote workers and digital nomads, allowing them to stay for up to two years. The country’s rich biodiversity, stable political climate, and high-quality healthcare system add to its appeal as a remote work destination.

Get Free Hiring Guides

Explore our country hiring guides for 180+ regions, covering everything from leave and benefits to payroll.

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How Playroll Can Help You Hire International Employees

Navigating the complexities of global hiring isn't easy – especially if you first need to set up costly legal entities in new markets. Playroll simplifies this process by offering Employer of Record (EOR) services, handling hiring, onboarding, and management of international employees through our network of established legal entities in 180+ regions.‍

Speak with our experts to discover how Playroll can help you make your next international hire effortless, no matter where they are based.

Read Time

July 11, 2024

Top 10 Countries For Hiring International Employees

What are the best locations for hiring international employees? Discover the benefits of hiring remotely in our shortlist of countries, and how to simplify the process with Playroll.

Global HR

What Countries Have Free Healthcare?

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.

Top 10 Countries with Free Healthcare

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

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.

United Kingdom

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

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.

Norway

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

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.

France

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

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

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

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

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.

Challenges Facing Free Healthcare Systems

Free and universal healthcare systems offer numerous benefits, but they come with challenges, including:

  • Funding challenges
  • Rising healthcare costs
  • Long wait times
  • Inadequate access to specialists
  • Health inequalities

Managing a Global Workforce with Playroll

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:

  • Administering competitive, localized benefits for your team, with support from our team of local experts.
  • Payroll's Global Talent Finder to source and hire the best talent.
  • Payroll solutions to ensure accurate, on-time pay.
  • HR support to help you relocate workers abroad.
  • HR solutions and EOR support to manage remote teams effectively.
  • EOR expertise to navigate regional employment regulations and ensure tax compliance.
  • Country playbooks to help businesses understand country-specific labor laws and regulations in 180+ regions.

Book a demo with our team to find out how we can help you scale your remote team with ease.

Bi-Weekly vs Semi-Monthly Payroll

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.

What is Bi-Weekly Payroll?

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.

Pros

  • Easier budgeting for employees: Workers know the exact day they’ll receive payment. Thus, they can plan and budget their expenses.
  • 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.

Cons

  • Increased administrative workload: Frequent payroll processing may burden HR and payroll teams. The extra 2 paychecks per year mean that payment has to be processed 3 times during certain months
  • Potential cash flow challenges for employers: Money goes out every two weeks to pay workers, and 3 times during some months. That may cause cash flow issues for businesses due to inconsistent monthly expenses, increased payroll costs, budgeting challenges, and impact on cash reserves.

What is Semi-Monthly Payroll?

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.

Pros

  • Predictable pay dates:  Salaries are spread evenly on fixed monthly dates, enabling employees and employers to plan their finances.
  • Reduced administrative burden: Less pay periods save time on payroll processing and make it easier to manage benefit deductions.

Cons

  • Less frequent payments: Bi-monthly has two pay periods less bi-weekly. That means employees on a bi-monthly payroll receive two paychecks less per year.
  • Challenges for employees with monthly bills: Monthly bills like rent, utilities, and the rest may not align well with the payment schedule, forcing employees to juggle payments.

Key Differences Between Semi-Monthly vs Bi-Weekly Payroll

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. 

Bi-Weekly vs Semi-Monthly Payroll
Aspect Bi-Weekly Semi-Monthly
Definition Employees are paid once every two weeks on a specific day of the week, usually on a Friday. Workers are paid twice a month on specific dates, usually on the 1st and 15th, or the 15th and 30th.
Pay periods Has 26 pay periods in a year. Has 24 pay periods per year.
Payday timing Paydays occur on the same day of the week. Paydays may vary and fall on a non-working day resulting in early or late payment.
Administrative burden & payroll costs More administrative burden and payroll costs due to extra pay periods. Reduced administrative burden and payroll costs due to fewer pay periods.
Pros Frequent payments, easier budgeting for employees. Predictable pay dates, reduced HR burden.
Cons Increased HR burden, potential cash flow issues for employers. Less frequent payments, changing paydays.

Factors Influencing Bi-Weekly vs Semi-Monthly Payroll Choice

When determining the optimal payroll schedule, employers often choose between bi-weekly and semi-monthly pay periods. Each approach has distinct implications for payroll processing, cash flow management, and employee satisfaction. Understanding these differences is crucial for making an informed decision that aligns with your organization's operational needs and supports your

1. Payroll Processing and Administrative Load

  • Bi-Weekly: Processing payroll bi-weekly involves more pay periods (26 per year), which can increase the administrative burden and associated costs. However, the consistency of paydays simplifies scheduling for payroll departments.
  • Semi-Monthly: With only 24 pay periods, semi-monthly payroll reduces the number of processing instances annually. This can lessen administrative efforts but may introduce complexity due to varying paydays and the need to adjust for non-business days.

2. Cash Flow Management

  • Bi-Weekly: Employers must plan for months with an extra pay period, which can impact cash flow. This requires careful financial planning to ensure funds are available for the additional payroll run.
  • Semi-Monthly: The fixed nature of semi-monthly pay periods allows for more predictable cash flow management, as payroll expenses remain consistent each month.

3. Employee Budgeting and Satisfaction

  • Bi-Weekly: Employees benefit from receiving paychecks on the same weekday, aiding in personal budgeting. The occurrence of two extra paychecks in certain months can also be advantageous for employees.
  • Semi-Monthly: While employees receive larger paychecks due to fewer pay periods, the varying paydays can make personal budgeting more challenging, especially if pay dates fall on weekends or holidays.

4. Overtime Calculation

  • Bi-Weekly: This schedule aligns well with hourly employees, as it simplifies the calculation of overtime over two-week periods.
  • Semi-Monthly: Calculating overtime can be more complex, as pay periods may split workweeks, requiring careful tracking of hours worked across different pay periods.

5. Regulatory Compliance

Employers must ensure that their chosen pay schedule complies with state and federal labor laws, which may dictate minimum pay frequencies or specific requirements for different types of employees.

Best Practices for Implementing Payroll Systems

Implementing an effective payroll system is crucial for ensuring accurate compensation, maintaining compliance, and enhancing overall organizational efficiency. Below are best practices to guide employers through a successful payroll system implementation:

  • Needs assessment: Surveys can help you understand company payroll needs and employee payday frequency preferences.
  • Selecting the appropriate payroll system: Choose a payroll system that integrates seamlessly with your existing processes and software. Prioritize features such as automated tax calculations, compliance management, and user-friendly interfaces. Scalability is also essential to accommodate future organizational growth.
  • Communicate changes: Explain to your workers the reasons for transitioning to a new payroll schedule and support them as they adjust.
  • Review and adjust: Monitor the effectiveness of your payroll system and use employee feedback to make changes and adjust accordingly.
  • Comprehensive planning: Begin by thoroughly assessing your organization's payroll requirements. Consider factors such as employee count, classification types (e.g., full-time, part-time, contractors), and specific payroll complexities like multiple pay rates or locations.
  • Employee classification accuracy: Ensure that all employees are correctly classified according to their roles and responsibilities. Employee misclassification can lead to compliance issues and financial penalties. Regularly review classifications to maintain accuracy, especially when roles evolve.

Key takeaways

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.

Streamlining Payroll With Playroll

Playroll is an innovative global employment platform that offers EOR services and global payroll solutions to help you hire and manage global teams through:

  • Expert guidance to help you choose the right pay schedule
  • Payroll dashboard to manage pay periods
  • On-time, accurate payroll solutions
  • Automation of payroll taxes and deductions

Book a chat with our experts to find out how you can scale your global team with ease.

The Remote Working Shift

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.

Top 7 Must-Have Remote Management Tools

This article covers the seven types of remote administration tools for businesses in 2024 and beyond.

Communication and Collaboration Tools

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:

  • Zoom
  • Microsoft Teams
  • Google Meet
  • Slack
  • Google Chat

Project Management and Task Tracking Tools

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:

  • Trello
  • Jira
  • Asana
  • Monday.com

Time Tracking and Productivity Tools

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:

  • Timeular
  • Toggl Track
  • Monday.com
  • Buddy Punch

Playroll's HR and payroll management software integrates with time tracking and productivity tools to automatically log working hours and generate accurate payroll.

File Sharing and Cloud Storage Tools

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:

  • Google Workspace
  • Dropbox
  • Microsoft 365
  • Livedrive
  • Box
  • iCloud Drive

Remote Desktop and Access Tools

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:

  • TeamViewer
  • AnyDesk
  • RemotePC
  • Dameware

Employee Monitoring and Productivity Tools

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:

  • ActivTrak
  • DeskTime
  • StaffCop Enterprise
  • Traqq
  • Controlio

Security and Data Protection Tools

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:

  • HashiCorp Vault
  • FortiGate Next-Generation Firewall
  • Egnyte
  • Check Point Software Technologies
  • Google Apigee Sense

Integrating Remote Management Tools With Playroll

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.

Maternity Leave Laws Around the World

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.

The Americas

Maternity leave in the Americas
Country Maternity Leave
Argentina 12.8 weeks of fully paid leave
Brazil 17.1 weeks of fully paid leave
Canada Paid at 55% average insurable weekly earnings with a cap of $63,200 per year
Chile 18 weeks paid at an average of 73.2% of earnings
Costa Rica 16 weeks at full pay
Mexico 12 weeks of fully paid leave

Europe

Maternity leave in Europe
Country Maternity Leave
Bulgaria Up to 90% of pay depending on the prior 24 months of social security contributions
Czech Republic 28 weeks of 70% paid leave for a single birth
France Full pay calculated at average income over the past 3 months subject to French social security ceiling
Germany 14 weeks paid leave; pay is capped at approx €13 per day (% will depend on salary)
Greece 17 weeks is at full pay capped at the highest social security bracket; the following 24 weeks are additional which can be taken at the minimum wage rate + holiday and leave allowance
Italy 20 weeks at 80% of salary
Norway 15 weeks at 100% pay or 19 weeks at 80% pay
Poland 20 weeks maternity leave at 100% pay. Subsequent parental leave is 100% for 6 weeks, then 60% for 26 weeks. OR: both maternity and parental leave can be taken at 80% pay.
Spain Full pay but subject to a social security ceiling
Sweden No maternity leave; instead, 480 days of shared parental leave (240 days per parent), paid at 80% of salary for the first 390 days and 180 SEK/day for the remaining 90 days.
United Kingdom Eligible for 52 weeks of maternity leave, with Statutory Maternity Pay for 39 weeks: 90% of average weekly earnings (AWE) for the first 6 weeks, then the lesser of £172.48 or 90% AWE for weeks 7-39.

Asia-Pacific

Maternity leave in the Asia-Pacific region
Country Maternity Leave
Australia 12 months unpaid leave, plus a Paid Parental Leave Scheme offering 20 weeks at the national minimum wage of $176.55 per day before tax.
India 26 weeks of fully paid maternity leave, based on average salary.
Japan 14 weeks of 67% paid leave to a maximum of ¥284,415 per month
Malaysia 98 days (14 weeks) of consecutive paid maternity leave, based on average salary.
New Zealand 26 weeks of fully paid leave
Singapore 16 weeks maternity leave for children who are Singaporean; first 8 weeks paid by the employer at usual gross salary, next 8 weeks funded by the government, capped at $10,000 every 4 weeks (up to $20,000 per child). Non-Singaporean children qualify for 12 weeks only.

Africa/Middle East

Maternity leave in Africa and the Middle East
Country Maternity Leave
South Africa 16 weeks of unpaid leave, potentially paid by the employer. Contributors may receive maternity benefits from the Unemployment Insurance Fund (UIF), covering a portion of your salary for up to four months.
Nigeria 12 weeks of leave paid at 50% of salary (including allowances) by the employer.
Israel Maternity leave varies by tenure—15 weeks for those with less than a year of employment and 26 weeks for more than a year. Only the first 15 weeks are paid in full; any additional time (up to 11 weeks) is unpaid.

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?

The Impact of Maternity Leave on Employer Obligations and Practices

Let's examine the common employee rights during maternity leave to better understand the scope of employer obligations and practices.

No Pregnancy Discrimination

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.

Extended Maternity Leave

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.

Parental Leave

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.

Guaranteed Previous Position Following 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.

Transparency is key

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.

Challenges and considerations

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.

Managing Maternity Leave in Remote Work Environments

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. 

Addressing Cultural and Societal Norms Impacting Maternity Leave

In some cultures, there may be stigma or pressure surrounding maternity leave, leading to reluctance among employees to take time off.

Mitigating Legal Risks Associated with Maternity Leave

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.

Supporting Fathers and Non-Birth Parents in Parental Leave Policies

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.

Final Thoughts

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.

The Latest

Contractor Management

Read Time

February 20, 2025

If you’re thinking of hiring independent contractors, you’re not alone. In recent years, remote work has drastically changed how businesses manage their workforce. The demand for skilled freelancers has skyrocketed due to the flexibility, specialized skills, and cost savings they offer businesses. In the U.S. alone, 35% of the workforce are gig workers, with this number expected to increase in the coming years.

At the same time, businesses are increasingly hiring across borders, making good contractor management software essential for managing international payments, compliance, and contracts of global contractors.

There are many platforms for contractor management on the market, each with its own business model, set of features and pricing. To remain compliant and efficient as a business, making the right choice from the get-go matters. That’s why it’s so important to carefully weigh up your choices.

Below, we’ll dive into the details of our shortlist of the best contractor management software on the market. Here’s a summary of their main stand-out feature, as well as pricing. 

Overview of the Best Contractor Management Software

Contractor Management Software Key Features Pricing
Playroll Affordable pricing and built-in compliance to hire and manage contractors or employees globally. $35 p/contractor. Flat fee per month.
Fiverr Large marketplace and advanced filters to find freelancers. Service fees of 5.5% per purchase amount. For purchases under $100, an additional $3.00 is added per purchase.
Upwork Project management and time tracking functionality. Between 5-10% service fees, some plans include contract initiation fees per contract. Custom fees for enterprise customers.
Deel Comprehensive compliance support for global contractors. Starts from $49 per contractor/month.
Rippling Automated payroll in multiple currencies. Not disclosed
ClickUp Customizable templates and extensive integrations. Freemium and paid options.
Worksuite Centralized invoice management. Starts from $500 per month.
Remofirst Automated invoicing and payment processing. Starting at $25 per contractor/month.
Remote Automated compliance checks. $29 per contractor/month.

What Is Contractor Management Software?

Contractor management software is a digital solution that helps businesses manage the entire lifecycle of hiring, managing, and paying contractors. Some typical features of contractor management systems include automated manual processes such as setting up contractor agreements, making payments and conducting compliance checks.

What Are the Benefits of Contractor Management Software?

It’s tempting to manage contractors yourself to save costs as a business. However, going the manual route can quickly get time-consuming, and it’s especially risky if you’re hiring contractors in multiple countries. Contractor management software can offer the following benefits over managing everything yourself: 

  • Guaranteed Compliance: Ensures all contractors comply with local tax and labor laws, reducing compliance risks and potential fines or penalties.
  • Simplified Payment: Automates payment workflows, ensuring timely payments – most software also offers the ability to pay in multiple currencies.
  • Streamlined Management: Easily oversee work orders, agreements, and performance from one platform.
  • Performance Monitoring: Track contractor performance, ensuring you have visibility into work progress.
  • Time and Cost Efficiency: Reduces administrative time and costs by automating manual processes and minimizing human error. This can be especially useful if multiple people in your organization interact with contractors, by offering one standardized platform to manage everything.

How We Picked the Best Contractor Management Services

‍ Selecting the top contractor management services required a comprehensive evaluation of various platforms and rating them on critical factors that ensure effective contractor management. Our selection process emphasized:

  • Industry-Specific Functionality: We prioritized software solutions tailored to the unique needs of contractor management across various industries. This involved assessing features that address specific operational requirements. This ensures that the software aligns with industry practices and standards. 
  • User-Friendly Interface: Ease of use is critical for successful software adoption. We evaluated platforms based on their intuitive design, ensuring that both administrative staff and contractors can navigate the system efficiently. The result is a faster learning and adoption process which invariably leads to increased productivity.
  • Compliance and Risk Management: Effective contractor management should adhere to legal and regulatory standards. We examined each platform's ability to manage compliance documentation, track certifications, and enforce safety protocols, mitigating potential risks associated with contractor operations. 
  • Integration Capabilities: The ability of the software to seamlessly integrate with existing systems, such as HR platforms, payroll, and project management tools, was a significant consideration. This facilitates the creation of a cohesive operational ecosystem and streamlined workflows.
  • Scalability and Customization: We assessed whether the software could adapt to the evolving needs of a growing business. This includes evaluating customization options to fit specific organizational processes and the capacity to scale in response to an expanding contractor workforce.
  • Support and Training: An on-demand support team and training resources are essential for effective implementation and ongoing use. We considered the availability of customer support, training programs, and resources that facilitate user proficiency and address potential issues quickly. 
  • Pricing Transparency: Understanding the cost structure is vital for budgeting and assessing return on investment. We analyzed pricing models for competitiveness, ensuring that the services offer value without hidden fees, and align with the financial constraints of various types of organizations.

9 Best Contractor Management Software & Solutions

1. Playroll

We admit our bias, but have a proven track record of success behind our name as a standout global employment solution to compliantly hire workers across the globe – which includes our all-in-one platform for contractor management. 

With Playroll, we’re not just getting lower costs but a true service-oriented mindset. You don't know what you're missing until you meet Playroll.

Sherene Binni, Senior Office Manager & HR People Partner, Exalate

Read Case Study

With Playroll’s contractor management system, you can hire and pay international contractors in 180+ countries. Managing and paying your team is made easy with automated contract creation, global payments in 50+ currencies, and an intuitive platform to manage work for all your contractors in one place. 

When setting up your contractor agreements, Playroll does the heavy lifting to ensure compliance with local labor laws. Each client gets their own dedicated Customer Success Manager, at no extra cost, for ongoing support.

Playroll also offers Employer Of Record (EOR) services to hire full-time employees, making it easier to scale your workforce for any type of employment need.

Pricing: $35 p/contractor. Flat fee per month.

Playroll Stand-Out Features

  • Cost-effective, straightforward pricing
  • Payments in 55+ currencies
  • Free misclassification assessments
  • Centralizes payment and contractor management
  • Expert contractor compliance support

2. Fiverr

Fiverr offers a large marketplace that allows businesses to connect with freelancers worldwide. It’s easy to navigate with advanced filtering options, making it a popular choice for companies that want quick access to talent and browse freelancers by category. 

However, managing larger teams of contractors through Fiverr may require additional tools for tracking and contractor management. They also do not offer comprehensive compliance support when hiring international contractors.

Pricing: Base service fees of 5.5% per purchase amount. For purchases under $100, an additional $3.00 is added per purchase.

Fiverr Stand-Out Features

  • Extensive freelancer marketplace
  • Dispute resolution system
  • Project-based hiring

3. Upwork

Upwork provides project management tools and time tracking to help businesses manage contractors. With access to a large talent pool, it’s a great platform for finding specialized skills or purchasing ready-made projects.

On the downside, managing payments across international borders may require third-party tools. They don’t offer compliance support for hiring international contractors. Upwork also charges high fees for its premium features, including dedicated support and customized reporting.

Pricing: Between 5-10% service fees, some plans include contract initiation fees per contract. Custom fees for enterprise customers.

Upwork Stand-Out Features

  • Project management software
  • Time tracking
  • A large talent pool of freelancers

4. Deel

Deel is a well-known platform designed for managing international contractors and employees. It automates multi-currency payments, has comprehensive compliance support, and offers an intuitive dashboard for tracking contractor performance and agreements in one place.

On the downside, they charge high fees for contractor management, starting from $49 per contractor/month, as opposed to the flat fees other providers offer. They’ve also received reviews of high exchange fees and unexpected fees. This can make it hard to properly budget for their services.

Pricing: Starts from $49 per contractor/month.

Deel Stand-Out Features

  • Automated payments in wide number of currencies
  • Compliance solutions for international contractors
  • Detailed reporting and contractor management tools

5. Rippling

Rippling is a workforce management system that also offers services to hire, pay and manage international contractors. It offers advanced capabilities to automate payment processing and compliance checks. They offer a wide range of products, including IT and finance management, that can make them a good fit for businesses looking for one platform to handle multiple aspects of their workforce.

On the other hand, Rippling has received public reviews on the steep learning curve of its products, with many products that are difficult to navigate. They do not publicly disclose their pricing, making it hard to make a straightforward assessment of whether their services fit into your budget.

Pricing: Not publicly disclosed. 

Rippling Stand-Out Features

  • Multi-currency payments
  • Automated compliance checks
  • Wide country coverage

6. ClickUp 

ClickUp is a versatile project management platform designed to boost team collaboration and productivity. For managing contractors, ClickUp offers specialized features that streamline the entire process. The platform provides customizable templates, such as the Contract Management Template, that help users efficiently track contract statuses, set deadlines, and organize stakeholder information. The platform's flexibility allows teams to tailor it to various project needs.

However, some users find the interface complex, leading to a lengthy adoption process, especially for those new to project management software. Additionally, while time tracking is available, it may not be as intuitive as other time-tracking tools.

Pricing:

  • Free Forever: $0 per month
  • Unlimited: $7 per user per month
  • Business: $12 per user per month
  • Enterprise: Contact for pricing

ClickUp Stand-Out Features

  • Comprehensive integrations
  • Customizable templates
  • Advanced time tracking

7. Worksuite 

Worksuite is a freelancer and contractor management platform designed to help organizations manage their external workforce efficiently. Users enjoy its ability to centralize contractor data, automate onboarding processes, and facilitate seamless payment workflows. The platform's customizable nature allows businesses to adapt it to their specific needs.

On the other hand, some users have noted that certain features, such as reporting and project tracking, could be more flexible and intuitive. Additionally, the user interface may feel dated to some, potentially negatively impacting user experience. 

Pricing: Starting at $500 per user per month for the Core Plan 

Worksuite Stand-Out Features

  • Global contractor payments
  • Automated onboarding
  • Compliance management

8. Remofirst 

Remofirst is a global EOR platform that also offers contractor management services, enabling businesses to onboard, manage, and pay international contractors. Remofirst's user-friendly platform is a strong point, simplifying the onboarding process and daily management tasks. Remofirst received praise for their automated invoicing and payment tracking features that improve operational efficiency.

However, there's a lack of integration capabilities with other software tools. While the contractor platform offers a robust set of features, users report the need for more advanced customization options tailored to specific organizational needs.

Pricing: $25 per contractor p/month 

Remofirst Stand-Out Features

  • Automated invoicing and payment processing
  • Global compliance management
  • User-friendly interface

9. Remote 

Remote is a platform designed to help businesses manage global payroll, taxes, benefits, and compliance for both employees and contractors. Users value its ability to handle multi-currency payments and automated compliance checks, which simplify the complexities of international contractor management. The platform's wide country coverage makes it suitable for businesses with a global presence. 

While Remote offers offers a 24/7 help centre, the company uses a chat bot and a ticketing system which means you won’t necessarily receive personalized or immediate assistance. Companies like Playroll provide comprehensive support for both employees and employers with our customer support managers. Additionally, Remote charges a premium for offering full compliance checks for contractors. 

Pricing: $29 per contractor/month. Their premium product with full compliance checks costs $99 contractor/month.

Remote Stand-Out Features

  • Localized contracts
  • Tax document management
  • Employee misclassification assessment

How to Choose a Contractor Management System

When selecting a contractor management system, consider the following factors:

  • Regulatory Compliance: Ensure the system helps your organization adhere to local and international labor laws, tax regulations, and industry-specific standards. This ensures that legal risks and potential penalties are reduced.
  • Automated Workflows: Go for software that automates repetitive tasks such as onboarding, document verification, and payment processing. This will enhance overall business efficiency and minimize manual errors.
  • Integration Capabilities: The chosen system should seamlessly integrate with your existing tools, including HR platforms, payroll systems, and project management software, to ensure data consistency and streamline operations.
  • Customization Flexibility: Select a platform that allows customization to fit your organization's unique processes and requirements, ensuring it adapts to your specific operational needs.
  • Organizational Fit: Assess how the system aligns with your company's structure and workflows, ensuring it supports your team's daily activities without causing disruptions.

Problem-Solving Capability: Identify the specific challenges you face in contractor management and evaluate how effectively the system addresses these issues, whether it's compliance tracking, communication hurdles, or performance monitoring.

Why Playroll Stands Out

While there are many strong contractor management solutions on the market, Playroll stands out for its competitive pricing, dedicated support to businesses of all sizes – and built-in compliance to hiring globally.

Avoiding Employee Misclassification Risk

While hiring independent contractors comes with many perks, government authorities worldwide have started clamping down on the issue of misclassification of employees as contractors, which can open up businesses to hefty penalties.

Playroll does free misclassification assessments to protect clients from these risks, helps set up compliant contractor agreements, and ensures that your IP belongs to you when working with contractors. Dedicated support in these areas comes free of charge, unlike many competitors. When hiring globally, these are essential features to scale your workforce without risk.

In addition, Playroll offers businesses the ability to hire full-time employees compliantly in 180+ countries, and can help convert your independent contractors to employees if needed. This helps your business remain flexible to any future workforce needs, without bringing any additional third-party services on board.

Book a chat with our team to find out how we can help you scale your global team, without the red tape.

2025 Guide To Avoid Employee Misclassification

Our comprehensive guide to employee misclassification include a checklist to distinguish correctly between employers and contractors, and top tips to avoid misclassification risks.

Read Guide

Best Contractor Management Software in 2025
Global Payroll

Read Time

February 19, 2025

Step-by-Step Guide to Paying Employees

1. Understand Payroll Basics

Let’s start with breaking down the basics of how payroll is structured, which consists of three key elements: the gross pay, deductions and net pay.

Gross pay is the total amount an employee earns before any deductions. Deductions include salary reductions from sources such as income tax, Social Security and Medicare, health insurance, and retirement contributions. Finally, net pay is the final amount an employee takes home after all deductions.  

For instance, if an employee earns $4,000 gross pay per month, and they have $800 deducted for taxes and benefits, their net pay would be $3,200. Understanding these structural components will help you calculate gross pay correctly and avoid costly payroll errors.  

2. Gather Employee Details

The first step before processing payroll is collecting essential details about each employee. This includes their full legal name, tax identification number, pay period details, and banking information for direct deposits. 

Companies must also refer to country specific requirements, such as the W-4 tax form that employees need to complete in the U.S. 

3. Ensure Compliance with Labor Laws

Each country has their specific payroll requirements, which can be complex to understand. These include minimum wage laws, overtime regulations, and tax obligations specific to their region. Companies need to do their due diligence before beginning the payroll process.

For instance, in the U.S., businesses must comply with the Fair Labor Standards Act (FLSA), which sets federal minimum wage and overtime rules. In contrast, European countries have their own tax codes and labor laws that must be followed. Non-compliance with these can result in hefty fines, or even legal action. 

Tip: Non-compliance can lead to significant financial penalties and legal consequences. Regularly review payroll regulations in your operating regions and consider using payroll software to ensure compliance.

4. Determine the Type of Compensation You Offer Employees

When structuring employee compensation, businesses must decide whether to pay employees a fixed salary or an hourly wage.  Salaried employees receive a consistent paycheck and a more consistent work contract, while hourly employees are paid based on the number of hours worked and includes overtime calculations.  

Beyond base pay, companies may also offer bonuses, commissions, or profit-sharing to reward performance to boost employee retention. 

5. Choose a Payment Method

Once the compensation structure is determined, the company needs to decide on how exactly to pay employees. There are several payment options to choose between depending on the structure and expectations of the company. Let’s break it down:

Direct deposit: This is the most common and convenient payment method, as it allows funds to be transferred regularly, automatically, and electronically to the employee’s bank account. This method is reliable and secure and ensures timely payment. 

Paper checks or pay cards: In the age of automation, this method can be slow, prone to delays, and may result in lost payments. In addition to direct deposit and paper checks, some companies offer pay cards as an alternative payment method. Pay cards can be convenient for employees who don’t have bank accounts, but they often come with high fees and limited accessibility. 

Digital wallet: This option has grown in popularity in recent years due to their speed and ease of use. However, they may not be accepted by all merchants, limiting their overall usefulness for some users.

For businesses operating internationally, managing multiple currencies and banking regulations can complicate payroll. Using a global payroll management solution can help centralize payments and ensure compliance across different regions.

Playroll’s global payroll solution centralizes multi-entity and vendor payroll data into one dashboard, enabling HR and finance teams to streamline controls and adhere to global compliance effortlessly.

6. Set Up a Payroll Schedule

A well-defined payroll schedule helps businesses manage cash flow and ensures employees are paid consistently. The most common payroll frequencies are:  

  • Weekly: Employees are paid every week.  
  • Bi-weekly: Paychecks are issued every two weeks.  
  • Semi-monthly: Employees are paid twice a month (e.g., the 15th and last day of the month).  
  • Monthly: Employees receive one paycheck per month.  

Choosing the right schedule depends on business needs and employee expectations. Some industries, like retail or hospitality, prefer weekly payroll, while office-based jobs often opt for bi-weekly or monthly schedules. To understand the best option for your company, check out our guide here. 

7. Calculate Employee Pay & Taxes

Of course, the most critical part of payroll is calculating the pay correctly. This entails three key components: determining gross pay, withholding the correct taxes, and accounting for employer contributions. 

Compliance with these regulations ensures a smooth running for your business. Let’s dive into these components in detail:

Gross Pay and Deductions:

Gross pay is the total amount of salary an employee earns before tax deduction. The pay can be determined depending on the compensation structures used by the organisation. Here’s some common ways of calculating the gross pay: 

  • Hourly Wage: This is calculated by multiplying the hours by an employee worked with the hourly rate.
  • Salary: Fixed monthly or annual compensation that is divided into pay periods (monthly/ bi-monthly) 
  • Commission-Based Pay: Compensation received on top of the salary, derived from sales or performance metrics.
  • Bonuses and Overtime: Additional pay for extra work. This is calculated based on labor laws and company policies.

Once gross pay is determined, there are some standard deductions that apply. While local taxation is the basis of deduction in every country, there may be more deductions depending on the location of the organisation. 

Here’s the deductions that could apply using the U.S. as an example:

  • Income Tax: Federal, state, and local taxes deducted from employee wages.
  • Social Security and Medicare (U.S.): Mandatory in the US, this deduction contributes to government programs.
  • Retirement Contributions: This is a deduction for employer-sponsored pension plans or retirement accounts.
  • Health Insurance Premiums: Employee contributions for employer-provided health insurance. 
  • Other Deductions: There can be external deductions, for instance, garnishments, union dues, or voluntary benefits chosen by the employee. 

Calculate The True Cost of an Employee

Get a breakdown of the taxes, fees, benefits & more you can expect to pay when hiring for a new role.

Calculate Costs

Tax Withholding:

Tax withholding is the process undertaken by the organization where they deduct a portion of the employee’s earnings before paying their salary, to ensure that employees meet their tax obligations. The amount withheld depends on several (regional) factors. Here’s the tax holdings that could apply using the U.S. as an example:

  • Employee Tax Forms: In the U.S., employees complete a W-4 form to determine withholding amounts. Other countries have equivalent tax forms.
  • Local Tax Regulations: Businesses must adhere to federal, state, and local tax laws when calculating withholdings.
  • Tax Brackets and Rates: Depending on the tax system in the country, high earning employees may be required to contribute more, affecting how much is deducted from each paycheck.
  • Additional Withholdings: Employees may request extra withholdings to cover expected tax liabilities.

Employer Taxes and Contributions:

In addition to employee withholdings, employers must contribute to various taxes and programs. These usually include:

  • Payroll Taxes: Employers pay a portion of Social Security and Medicare taxes in the U.S. or equivalent in other countries.
  • Unemployment Taxes: Employers contribute to state or national unemployment programs that support workers during job loss.
  • Social Insurance Contributions: In some countries, employers are expected to pay toward national healthcare, pension funds, or worker compensation schemes.

Properly managing tax withholdings prevents underpayment issues and ensures compliance with regulatory requirements. Employers must stay informed about changes in tax laws to ensure proper compliance.

8. Recordkeeping and Reporting

Payroll records must be kept for compliance and audits. Most labor laws require businesses to maintain payroll records for several years. For small businesses, these records include

  • Employee pay stubs
  • Timecards and attendance records
  • Tax filings and withholding details 
  • Employee contracts and benefit deductions

Proper recordkeeping helps businesses track payroll costs, resolve disputes, and ensure accurate tax reporting. This process can be simplified by automation of the payroll system, reducing the administrative burden.

 How to Avoid Mistakes When Paying Employees

Payroll errors can be costly and time-consuming, harmful to your company reputation, and increases your risk of employee churn if it happens often. It is important to stay ahead of the curve and anticipate these common mistakes:

  • Misclassifying employees: It’s essential to differentiate between independent contractors and employees, as tax and benefits obligations differ. Check out our in-depth guide on avoiding employee misclassification here.
  • Failing to stay updated on tax laws: Tax regulations frequently change, and failing to comply can result in significant penalties.
  • Relying on manual payroll processing: Manual calculations increase the risk of errors. Payroll software automates the process, ensuring accuracy and efficiency.
  • Inconsistent payroll schedules: Employees rely on timely paychecks. Delays can lead to dissatisfaction and legal issues.
  • Incorrectly tracking overtime and benefits: Failure to monitor overtime pay and benefits accurately can cause compliance issues and employee disputes.
  • Neglecting payroll audits: Regular payroll audits help identify discrepancies, prevent fraud, and ensure accurate reporting.

Regular payroll audits help businesses identify and fix potential issues before they become bigger problems.  Playroll’s Global Payroll Analytics feature provides real-time insights into your payroll costs, helping you make data-driven decisions, accurately report, and optimize spending across your business.

Simplify Global Payroll Management with Playroll

Our intuitive software makes it easy for businesses of any size to consolidate multi-vendor payroll, automate payroll operations and stay globally compliant.

Book a Demo

Running payroll involves more than just cutting a paycheck. Companies need to adhere to tax laws, regional laws, creating the right payment structure and maintaining accurate records. Automating payroll can significantly reduce errors and save time, especially for companies with global teams.  

For business owners looking for a simplified global payroll solution, Playroll offers tools that centralize multi-country payroll data, automate tax calculations, standardize payroll and ensure compliance with international labor laws. Book a chat with our team to learn how we can help you make running global payroll truly simple, while integrating seamlessly with your existing operations.

How to Pay Employees
Global Payroll

Read Time

February 19, 2025

What is the Average Salary in Brazil?

As of 2025, the average annual salary in Brazil is approximately BRL 40,200, which translates to around USD 7,025.63 per year. This figure encompasses various sectors and positions, reflecting the nation's economic growth and the increasing demand for skilled professionals.

Income levels in Brazil are influenced by factors such as industry, experience, education, and geographic location. Major urban centers like São Paulo and Rio de Janeiro typically offer higher salaries compared to rural regions, aligning with the higher cost of living in these metropolitan areas.

Comparative Profession Salary Earnings in Brazil

Here's a general breakdown of monthly and annual salary ranges in Brazil:

Category Monthly Salary (BRL) Annual Salary (BRL) Annual Salary (USD)
Entry-Level Positions R$2,170 – R$4,000 R$26,040 – R$48,000 $5,320 – $9,840
Mid-Level Professionals R$4,001 – R$8,000 R$48,012 – R$96,000 $9,842 – $19,680
Senior Professionals R$8,001 – R$15,000 R$96,012 – R$180,000 $19,682 – $36,900
Executive Roles R$15,001 – R$38,200 R$180,012 – R$458,400 $36,902 – $94,500

Note: The above salary ranges are approximate and can vary based on specific industries, company size, and individual qualifications.

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Industry-Specific Salary Earnings

Salaries in Brazil differ notably across various industries, influenced by factors such as demand for specific skills, economic conditions, and regional disparities.

Profession Average Annual Salary (BRL) Average Annual Salary (USD)
Managing Director R$175,428 $36,000
Sales Director R$123,912 $25,500
Chief Executive Officer R$114,588 $23,600
Software Engineer R$108,564 $22,400
IT Architect R$106,248 $21,900
IT Director R$103,356 $21,300
Call Center Director R$99,696 $20,500
Plant Manager R$88,740 $18,200
Marketing Director R$87,648 $18,000
Lead Developer R$82,596 $17,000
Cashier R$20,424 $4,200
Fabric Cutter R$20,388 $4,200
Textile Technologist R$20,304 $4,180
General Laborer R$20,184 $4,160
Medical Orderly R$20,112 $4,140
Packer R$19,884 $4,100
Cleaner R$19,224 $3,960
Seamstress R$19,200 $3,960
Medical Records Clerk R$18,288 $3,770

Note: These figures are approximate and sourced from industry reports and salary surveys.

Labor Market Overview

The Brazilian labor market in 2025 showcases resilience and adaptability, with an employment rate of 58.80% in November 2024. The services sector dominates employment, accounting for over 70% of the workforce, followed by industry(20.49%) and agriculture(8.73%). The country's young and educated population contributes to a dynamic labor force, with a median age of 34.8 years. However, challenges such as underemployment and job-skills mismatch persist, emphasizing the need for continuous investment in education and training.

Benefits of Hiring Employees in Brazil

Brazil offers a range of advantages for companies looking to expand their workforce:

  • Diverse Talent Pool: Access to professionals across various industries and skill levels.
  • Cost-Effective Labor: Competitive salary expectations compared to Western countries.
  • Strategic Location: Proximity to other South American markets facilitates efficient regional operations.
  • Robust Legal Framework: Established labor laws protect both employers and employees.
  • Growing Economy: Continuous economic development offers ever-expanding business opportunities.
  • Cultural Affinity: A multicultural society facilitates and eases integration with global teams.
  • Government Incentives: The government has developed and implemented programs that support foreign investments and business growth.
  • Advanced Infrastructure: The country has well-developed transportation and communication networks.
  • Language Proficiency: While Portuguese is the official language, English proficiency is on the rise, especially among professionals in urban centers. However, overall English proficiency levels in Brazil are still low, with only around 5% of Brazilians stating they have some knowledge of English.

Factors That Influence Salaries in Brazil

The salary landscape in Brazil is shaped by a variety of economic and market-driven factors. Employers looking to hire talent in the country must consider these elements to ensure they offer competitive compensation packages.

1. Economic Growth and Inflation

Brazil's economic performance directly impacts salary levels. Periods of robust growth often lead to increased demand for skilled labor, driving wages higher. Conversely, economic downturns can result in wage stagnation or reductions. Inflation also plays a critical role; as the cost of living rises, employees may seek higher salaries to maintain their purchasing power. For instance, Brazil's inflation rate decreased to 4.56%, which could influence wage adjustments.

2. Regional Disparities

Salaries in Brazil vary significantly across different regions. Urban centers like São Paulo and Rio de Janeiro typically offer higher wages due to a higher concentration of industries and a higher cost of living. In contrast, rural areas and less economically developed regions may offer lower compensation. This regional variation means that employers should consider location-specific factors when determining salary packages.

3. Industry Demand

The demand for specific skills within various industries influences salary levels. Sectors experiencing rapid growth or facing a shortage of qualified professionals often offer higher wages to attract talent. For example, the technology sector in Brazil has seen competitive salaries, with software developers potentially earning up to R$92,000 annually in 2025.

4. Education and Experience

An individual's educational background and professional experience significantly affect earning potential. Higher levels of education and specialized certifications can lead to better-paying positions. Similarly, extensive experience in a particular field often results in higher compensation, reflecting the value of seasoned expertise.

5. Government Policies and Labor Laws

Legislative changes and government policies can impact salary structures. For instance, Brazil's minimum wage adjustments influence baseline earnings across sectors. As of January 1, 2025, the minimum wage was set at R$1,518.00 per month, reflecting a 7.5% increase from the previous year.

Additionally, laws promoting equal pay and transparency, such as Law No. 14.611/2023, mandate that companies with more than 100 employees publish reports detailing any gender-based wage disparities, potentially leading to salary adjustments to ensure compliance.

Check out our in-depth guide to Brazil's minimum wage guide

Hiring Trends & Future Salary Outlook in Brazil

Understanding the evolving hiring trends and future salary projections is crucial for businesses and professionals operating in Brazil. The following key trends are shaping the Brazilian labor market:

1. Emphasis on Remote and Hybrid Work Models

  • Post-Pandemic Work Structures: The COVID-19 pandemic has accelerated the adoption of remote and hybrid work arrangements. Many companies continue to offer flexible work options to attract and retain talent.
  • Access to a Broader Talent Pool: Embracing remote work allows employers to tap into talent from various regions, potentially leading to more competitive salary offerings due to regional cost-of-living differences.

2. Growth in Technology and IT Sectors

  • High Demand for Tech Professionals: The technology sector in Brazil is experiencing significant growth, leading to increased demand for roles such as software developers, cybersecurity experts, and cloud professionals.
  • Competitive Compensation: Due to the high demand and limited supply of skilled tech workers, salaries in this sector are expected to remain competitive. For instance, software developers in Brazil can potentially earn up to R$92,000 annually in 2025.

3. Legislative Changes Impacting Employment

  • Equal Pay Initiatives: The enactment of Law No. 14.611/2023 emphasizes gender pay equality, requiring companies to publish transparency reports on wage disparities. This legislative change may lead to salary adjustments to address inequities.
  • Tax Reforms: Proposed income tax reforms aim to increase exemptions for middle-class earners, potentially affecting net salaries and disposable income. These reforms are projected to take effect in 2026.

4. Economic Factors Influencing Salaries

  • Inflation Control Measures: The Brazilian government's efforts to control inflation, including maintaining high interest rates, are expected to impact salary adjustments and purchasing power. In 2025, the inflation rate is projected to decrease to 3.0%, aligning with the central bank's target.
  • Currency Fluctuations: The devaluation of the Brazilian Real against major currencies may influence salary negotiations, especially for multinational companies and expatriate workers. In November 2024, the Real reached a record low (six Reals are required to acquire one US Dollar).

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Key Takeaways

Have a good understanding of the latest salary trends in Brazil is key for businesses aiming to attract top talent and for professionals seeking fair compensation. To make well-informed decisions as a hiring manager, consider industry benchmarks, location, experience, and cost-of-living factors. Make use of free resources such as Playroll's salary benchmarking tool and employee cost calculator to effortlessly benchmark your offerings globally.

If you're planning to hire in Brazil, ensure you offer competitive salaries, provide benefits that match industry standards, and stay updated on local labor laws to ensure a smooth and successful hiring process.

Want to simplify the process of hiring in Brazil? Playroll offers leading Employer of Record (EOR) services to make global hiring seamless. Let us handle legal employment, compliance, payroll, and benefits management, so you can freely explore new markets and focus on team growth. 

Book a chat with our team to find out how we can help scale your team in Brazil in 2025.

Average Salary Brazil 2025
Global Payroll

Read Time

February 14, 2025

What Are Payroll Taxes, and Why Are They Important?

Payroll taxes are mandatory contributions that both employers and employees must pay to fund government programs. This includes Social Security, Medicare, and unemployment insurance. These taxes help support critical social services, ensuring that retired individuals, unemployed workers, and those in need of medical assistance receive financial aid.

For employers, accurately calculating and withholding payroll taxes is necessary for a few reasons. It helps provide a full view on the cost of your employees, and is critical for legal compliance and efficient payroll management. Failing to do so can result in penalties, fines, and legal issues. In addition, accurate paycheck deductions help to build employee trust.

Types of Payroll Taxes

Payroll taxes can be categorized into taxes withheld from employees’ wages and those paid directly by employers. The employer withholds federal income tax, Social Security, Medicare, and state taxes as required. 

Below are the primary types of payroll taxes:

1. Federal Income Tax

Employers must withhold federal income tax from employee wages based on their earnings and withholding selections on Form W-4. The amount withheld depends on the employee’s taxable wages, marital status, and allowances.

2. Federal Insurance Contributions Act (FICA) Taxes

FICA taxes consist of Social Security and Medicare taxes, which are shared between employers and employees:

  • Social Security Tax: 6.2% (employee) + 6.2% (employer) = 12.4% total, up to the annual wage base limit ($160,200 in 2023).
  • Medicare Tax: 1.45% (employee) + 1.45% (employer) = 2.9% total.
  • Additional Medicare Tax: Employees earning over $200,000 (single) or $250,000 (married) must pay an extra 0.9% (not matched by the employer).

3. Federal Unemployment Tax Act (FUTA)

FUTA is an employer-paid tax that funds unemployment benefits. The standard FUTA tax rate is 6.0% on the first $7,000 of an employee’s wages. Most employers qualify for a credit up to 5.4%, reducing the effective tax rate to 0.6%.

4. State Income Tax

Many states impose state income taxes, requiring employers to withhold the appropriate amount based on state tax tables. Some states, such as Texas and Florida, do not impose state income taxes.

5. State Unemployment Tax Act (SUTA)

SUTA taxes are employer-paid contributions that help fund state unemployment programs. Each state sets its own SUTA tax rates, which may vary based on the employer’s industry and history of layoffs.

6. Local Payroll Taxes

Some cities and municipalities impose local payroll taxes in addition to state and federal taxes. These may include local income tax, school district tax, or city-specific business taxes.

Understanding these payroll tax categories ensures employers accurately withhold, contribute, and comply with tax regulations to avoid penalties and maintain smooth payroll operations.

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What Do You Need to Calculate Payroll Tax?

Before calculating payroll taxes, employers must gather specific information about their employees and payroll setup. This includes tax forms, employment classification, and details about deductions. Having accurate documentation paves the way for proper tax withholding and compliance with federal and state regulations. Here’s everything you’ll need to calculate taxes on payroll:

W-4 Certification

The Form W-4, also known as the Employee’s Withholding Certificate, is completed by employees upon hiring. It provides information on their tax filing status, dependents, and additional withholding preferences. Employers use this form to determine the correct amount of federal income tax to deduct from each paycheck.

I-9 Form

The Form I-9 is required for all U.S. employees to verify their identity and work authorization. Employers must collect and review this form along with supporting documents (such as a passport or Social Security card) to ensure the employee is legally eligible to work in the United States.

State Withholding Forms

Many states require a separate state withholding form in addition to the W-4. This form determines the correct state income tax withholding based on the employee’s residence and work location. State tax agencies provide these forms, and requirements vary by state.

Employment Status

It’s essential to classify workers correctly as either employees or independent contractors to avoid the pitfalls of employee misclassification. Employees have payroll taxes withheld, while independent contractors are responsible for paying their own taxes. Misclassification can lead to steep penalties and back taxes.

Taxable Deductions

Some deductions, such as health insurance premiums, retirement contributions, and pre-tax benefits, reduce an employee’s taxable income, ultimately affecting their home pay. Employers must correctly account for these deductions before calculating payroll taxes to ensure compliance and accuracy.

How to Calculate Payroll Taxes

So, how do you calculate payroll taxes in practice? This step-by-step guide will walk you through the details, including necessary forms, calculations, and best practices.

1. Calculate Employees' Gross Pay

Gross pay is the total amount an employee earns before deductions.

  • Hourly Employees: Multiply the number of hours worked by their hourly wage. Overtime (hours over 40 per week) is typically paid at 1.5 times the hourly rate.
  • Salaried Employees: Divide the annual salary by the number of pay periods (e.g., biweekly = 26 pay periods per year).

Example Calculation:

An hourly employee works 45 hours per week at $20 per hour:

  • Regular pay: 40 hours x $20 = $800
  • Overtime pay: 5 hours x ($20 x 1.5) = $150
  • Gross Pay: $950

A salaried employee earning $52,000 annually with biweekly pay:

  • $52,000 / 26 = $2,000 per paycheck

2. Determine Payroll Taxes Owed

Employers must withhold and contribute to several payroll taxes.

Federal Income Tax Withholding

Federal income tax is based on the employee’s Form W-4 and IRS tax tables. Employers follow these steps:

  1. Refer to the employee’s filing status (single, married, head of household).
  2. Find the appropriate bracket in IRS Publication 15-T.
  3. Subtract any pre tax deductions (e.g., health insurance, 401(k)).
  4. Apply the tax bracket to determine the withholding amount.

FICA Taxes (Social Security and Medicare)

Employers and employees share responsibility for Federal Insurance Contributions Act (FICA) taxes.

  • Social Security Tax:
    • Rate: 6.2% (employee) + 6.2% (employer) = 12.4% total
    • Applies to wages up to the annual limit ($160,200 in 2023)
  • Medicare Tax:
    • Rate: 1.45% (employee) + 1.45% (employer) = 2.9% total
    • Additional Medicare tax of 0.9% on wages exceeding $200,000 (employer does not match this)

Federal Unemployment Tax (FUTA)

Employers pay FUTA tax to fund unemployment benefits. Refer to the employee’s filing status (single, married, head of household), as their marital status affects how much federal income tax is withheld.

  • Rate: 6.0% on the first $7,000 of each employee’s wages
  • Most employers qualify for a credit up to 5.4%, reducing the effective rate to 0.6%

State and Local Taxes (If Applicable)

  • State Income Tax: Varies by state; some states have no income tax.
  • State Unemployment Insurance (SUI): Rates vary based on state and employer history.
  • Local Taxes: Some cities and municipalities impose additional payroll taxes.

3. Subtract Post-Tax Deductions

After calculating tax withholdings, deduct any post-tax contributions, such as:

  • Wage garnishments (e.g., child support, court-ordered payments)
  • Union dues or voluntary benefits

4. Calculate Employer’s Share of Payroll Taxes

Employers contribute additional payroll taxes beyond employee withholdings:

  • Social Security: 6.2%
  • Medicare: 1.45%
  • FUTA: 0.6% (after credits)
  • SUI: Varies by state

Example Calculation:

For an employee earning $4,000 per month:

  • Social Security (6.2%) = $248 withheld + $248 employer match
  • Medicare (1.45%) = $58 withheld + $58 employer match
  • FUTA (0.6%) = $24 (if under wage limit)

5. Double-Check for Accuracy

Accurately completing payroll tax calculations for your workforce can get complex, requiring attention to numerous details and regulatory requirements. Here are our top tips to prevent errors in the process:

  • Verify W-4 data matches withholding amounts, ensuring that employee withholding preferences are accurately reflected in tax deductions.
  • Check wage base limits for Social Security and FUTA to avoid over or underpayment of taxes.
  • Use payroll software to automate calculations, reduce errors, and maintain compliance with evolving tax regulations.
  • Employers can also leverage comprehensive global payroll analytics software to gain insights into tax compliance, payroll trends, and potential discrepancies in tax reporting.
  • Conduct periodic payroll audits to catch errors before filing tax returns, ensuring accurate reporting and payments.

6. Deposit Payroll Taxes

Employers must deposit withheld and employer-paid taxes on a regular schedule.

  • Federal taxes (income tax, Social Security, Medicare):
    • Use the IRS EFTPS (Electronic Federal Tax Payment System).
    • Deposits are due semi-weekly or monthly, based on payroll size.
  • FUTA: Deposited quarterly.
  • State taxes: Deadlines vary by state.

7. Making Payments to the IRS

Employers must report payroll taxes regularly.

  • Quarterly Forms:
    • IRS Form 941: Reports withheld federal income tax, Social Security, and Medicare.
  • Annual Forms:
    • IRS Form 940: Reports FUTA tax.
    • IRS Forms W-2 and W-3: Report wages and withholdings.
    • State-specific forms as required.

8. Maintain Records

Keep payroll records for at least 3–7 years, including:

  • Employee W-4 forms
  • Payroll reports and pay stubs
  • Tax deposit receipts and filings

9. Use Tools or Outsource If Needed

Many businesses use payroll software (e.g., Playroll, Gusto, QuickBooks, ADP) and payroll analytics to simplify payroll tax calculations and ensure compliance. Some may also outsource payroll management to professionals or accountants. Employers should maintain detailed payroll accounts to track employee wages, tax withholdings, and employer contributions accurately.

Examples of Payroll Tax Calculations

To better understand payroll tax calculations, let’s consider two scenarios: one for an hourly employee and another for a salaried employee.

Example 1: Hourly Employee

An hourly worker earns $20 per hour and works 45 hours in a week.

  • Regular Pay: 40 hours × $20 = $800
  • Overtime Pay: 5 hours × ($20 × 1.5) = $150
  • Gross Pay: $950
  • Federal Income Tax (estimated): $120
  • Social Security Tax (6.2%): $58.90
  • Medicare Tax (1.45%): $13.78
  • State Income Tax (varies by state, assume 5%): $47.50
  • Net Pay (after tax deductions): $709.82

Example 2: Salaried Employee

A salaried employee earns $60,000 per year and is paid biweekly.

  • Gross Pay per Paycheck: $60,000 ÷ 26 = $2,307.69
  • Federal Income Tax (estimated): $280
  • Social Security Tax (6.2%): $143.08
  • Medicare Tax (1.45%): $33.46
  • State Income Tax (5%): $115.38
  • Net Pay (after tax deductions): $1,735.77

These examples illustrate how different tax components affect employee take-home pay.

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Employers play a critical role in withholding and remitting payroll taxes, including federal, Social Security, Medicare, and state-specific taxes. Errors in tax calculations can lead to costly penalties and legal complications. 

This doesn’t have to be complex – leverage comprehensive payroll software and global HR experts like Playroll to simplify tax compliance and audits. Book a demo with our team to find out how we can help your team scale and avoid the compliance and payroll complexities.

 Calculate Payroll Tax In the United States
Legal and Compliance

Read Time

February 13, 2025

Country By Minimum Wage In 2025

Despite the ongoing debate over what constitutes an adequate minimum wage, it is a widespread tool in labor regulation, adopted by over 90% of countries globally:

Country Net minimum wage per month (U.S. dollars) Net minimum wage per month (Local currency)
Luxembourg$2,711 - $3,254€2,637 - €3,165
United Kingdom$2,578£2,114.77
Netherlands$2,504€2,435
Australia$2,461AUD 3,965.85
Ireland$2,164€2,106
Belgium$2,127€2,070
New Zealand$2,102NZ$3,760
Puerto Rico$1,818
Canada$1,805 - $2,286C$2,598 - C$3,290
Germany$1,775€2,222
South Korea$1,437₩2,096,270
United States$1,255 - $3,031
France$1,851€1,801
Israel$1,600NIS 5,800
Spain$1,216€1,184
Slovenia$1,327€1,277
Saudi Arabia$1,066SAR 4,000
Poland$1,162PLN 4,666
Lithuania$1,079€1,038
Hong Kong$1,068HK$ 8,320
Cyprus$1,039€1,000
Croatia$1,008€970
Malta$997€960
Estonia$920€886
Portugal$904€870
Greece$901€867
Taiwan$871NT$ 28,590
The Czech Republic$863CZK 20,800
Slovakia$848€816
Romania$846RON 4,050
Latvia$769€740
Hungary$751HUF 290,800
Montenegro$623 - $830€600 - €800
Turkey$612TRY 22,104
Bulgaria$572BGN 1,077
North Macedonia$563MKD 33,352
Uruguay$543UYU 23,604
Chile$536CLP 510,500
Bosnia and Herzegovina$531BAM 1,000
Serbia$481RSD 54,208
Ecuador$470
Guatemala$400 - $497GTQ 3,097 - GTQ 3,843
Albania$419ALL 40,000
Mexico$406 - $612MXN $8,364 - MXN $12,596
Bolivia$361BOB 2,500
Paraguay$355PYG 2,798,309
Colombia$341COP 1,423,500
Malaysia$336 - $381RM 1,500 - RM 1,700
Peru$304PEN 1,130
Thailand$298 - $354THB 10,110 - THB 12,000
Argentina$280ARS 296,832
Brazil$262R$1,518
Moldova$295MDL 5,500
South Africa$268R4,987
Russia$246RUB 22,440
Azerbaijan$235AZN 400
Belarus$221BYN 726
Ukraine$191UAH 8,000
Armenia$189AMD 75,000
India$201 - $244₹17,494 - ₹21,215
Kazakhstan$169KZT 85,000
Philippines$169 - $231PHP 9,812 - PHP 13,420
Vietnam$151 - $194VND 3,860,000 - VND 4,960,000
Indonesia$133 - $329IDR 2,191,232 - IDR 5,396,760
Pakistan$132PKR 37,000
Uzbekistan$88UZS 1,155,000
Nigeria$46₦70,000

Worldwide, minimum net monthly wages vary from 2,711 U.S. dollars in Luxembourg to $46 in Nigeria as of January 2025. Minimum wages must be seen in relation with price levels in a country. One popular way to measure purchasing power is the Big Mac Index.

Determining the Minimum Wage: A Global Perspective

Minimum wage regimes vary extensively worldwide, shaped by a complex mix of laws, institutional arrangements, and collective bargaining. They are not randomly assigned values but the outcome of negotiations involving a country's social and political forces—trade unions, employers' associations, and governments.

International discourse often emphasizes increasing minimum wages to counter in-work poverty, a sentiment that gained momentum during the COVID-19 crisis as essential workers' low wages came under scrutiny. With each country's approach reflecting its unique economic and labor landscape, the ongoing challenge is to strike a balance between protecting workers and fostering economic health.

Minimum Wage Variations

Picture this: in some places, there's a single minimum wage that covers everyone, no matter the job—pretty straightforward, right? This is what we call a universal regime. It's like having one rule for all, usually set by the national government.

Now, in the European Union, for example, most countries follow this universal approach with a one-size-fits-all minimum wage. But then, there are places like the United States or Canada, where things get a bit more local. States or provinces set their own minimums, which can be higher than the national floor. So, if you're in California or Ontario, the minimum wage might be different than in Texas or Quebec.

And then, there's the sectoral approach—think of it as custom-tailored wages for specific industries. Maybe you're a barista, a construction worker, or a nurse; your minimum wage is decided by the norms of your particular field.

Whether it's a universal rate that blankets the entire workforce or varied sectoral wages, the idea is to ensure you get a fair shake for a hard day's work, no matter the zip code or job title.

Exemptions and Special Cases in Minimum Wage Laws

Of the G20 countries, Argentina saw the largest increase of the net minimum wage from January 2024 to January 2025, with wages increasing by 51% percent. However, due to high inflation rates, the real purchasing power of the minimum wage has declined.

Another significant outlier over the past year is Saudi Arabia, which saw an increase of 45% in its minimum wage rate, from SAR 4,000 to SAR 5,800 per month. This increase reflects the government's efforts to enhance the standard of living for Saudi workers and encourage greater participation in the private sector workforce.

Country YoY Change to the Minimum Wage
Argentina 51%
Saudi Arabia 45%
Turkey 30%
Russia 16.6%
Mexico 12%
Brazil 7.5%
United Kingdom 6.7%
Indonesia 6.5%
United States (State-specific) 5.8%-10%
South Africa 4.4%
Australia 3.75%
Germany 3.3%
India 3.3%
Canada 2%
France 2%
South Korea 1.7%

When it comes to minimum wage, it's not always a one-rule-fits-all situation. In many places, especially across Europe, how much you should get paid at the very least might come from a national law, but it's not just plucked out of thin air. The government usually chats with employers and unions to figure it out. Sometimes, when everyone can't agree, the government steps in and sets the wage itself.

Now, let's take a quick trip north. In countries like Denmark and Sweden, instead of one blanket minimum wage, they have special pay rates for different job sectors. Think of it like a menu of wages tailored to each industry. Even in countries like Germany, which jumped on the national minimum wage bandwagon in 2015, this sector-specific approach was the go-to for ages.

And then there's Uruguay, a standout place where sector-level bargaining sets the pace, even with a national minimum wage in play. These special cases show that when it comes to ensuring fair pay, there's more than one way to bake the cake.

Ensure Accurate, Timely Wages With Playroll

Navigating miminum wage and staying compliant with ever-changing employment laws can be complex, but it doesn't have to be. Playroll is an EOR service that can help you employ, pay and manage international workers in 180+ countries. Our team of experts ensures on-time payroll for your remote workforce, every time, and ensures compliance with all local labor laws so you can focus on scaling your business.

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Global Payroll

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February 11, 2025

What Is the Average Salary in Germany?

As of 2025, the average annual gross salary in Germany is approximately €50,250, equating to around $54,000 per year. This figure reflects the country's economic growth and the increasing demand for skilled professionals.

Income levels in Germany vary based on factors such as industry, experience, education, and location. Urban areas, particularly cities like Munich, Frankfurt, and Stuttgart, tend to offer higher salaries compared to rural regions.

Comparative Profession Salary Earnings in Germany

Here’s a general breakdown of monthly and annual salary ranges in Germany:

Category Monthly Salary (€) Annual Salary (€) Annual Salary (USD)
Entry-Level Jobs (0-2 years experience) €2,500 - €4,000 €30,000 - €48,000 $32,730 - $52,368
Mid-Level Jobs (3-5 years experience) €4,000 - €6,500 €48,000 - €78,000 $52,368 - $84,456
Senior Roles & Managers €6,500 - €12,000 €78,000 - €144,000 $84,456 - $157,824
Executive & C-Level €12,000+ €144,000+ $157,824+

Note: USD equivalents are approximate, based on an exchange rate of 1 USD = 0.93 EUR.

Industry-Specific Salary Earnings

Salaries in Germany differ by industry, with highly skilled sectors such as IT and finance offering significantly higher compensation.

Profession Average Annual Salary (€) Average Annual Salary (USD)
Customer Service €36,000 $38,760
Registered Nurse €45,000 $48,300
Teacher €50,000 $53,800
Accountant €55,000 $58,900
Civil Engineer €60,000 $64,800
Software Developer €70,000 $75,100
Marketing Manager €85,000 $90,500

Note: Salaries are based on estimates from the latest salary surveys and job postings.

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Labor Market Overview in Germany

Germany's labor market has demonstrated resilience and adaptability, with an unemployment rate of 3.3% in May 2024, among the lowest in Europe. The service sector dominates employment, accounting for 75.5% of the workforce in 2024, followed by industry and agriculture. 

The country's aging population means the median age of the labor force is 45.7 years. However, challenges such as underemployment and job-skills mismatch persist, requiring continuous investment in education and training.

Benefits of Hiring Employees in Germany

Germany's robust economy and highly skilled workforce make it an attractive destination for businesses seeking to expand their operations. Here are some key reasons why companies choose to hire German talent:

  • Highly Skilled Workforce: Germany has a strong education system, producing professionals in IT, finance, healthcare, and engineering who are globally competitive. The country consistently ranks among the top nations for individuals holding university degrees.
  • Strong English Proficiency: While German is the official language, a significant portion of the population is proficient in English, facilitating seamless communication for international businesses. This linguistic capability is particularly prevalent in urban centers and multinational corporations.
  • Competitive Labor Costs: Compared to Western markets, Germany offers competitive salaries that reflect the high skill level of its workforce. This balance allows businesses to optimize labor costs and payroll taxes without compromising quality.
  • Thriving Tech and Innovation Ecosystem: Cities like Berlin and Munich are renowned for their vibrant startup scenes and technological advancements, providing access to a pool of innovative professionals in tech, finance, and creative industries. Berlin, in particular, has become a hub for entrepreneurs and tech startups, attracting talent from around the world.
  • Cultural Compatibility: German professionals are known for their strong work ethic, punctuality, and commitment to quality, making them excellent collaborators in global teams. The emphasis on work-life balance and structured work environments contributes to high productivity and job satisfaction.

Factors Influencing Salaries in Germany

The salary landscape in Germany is shaped by various economic and market-driven factors. Employers aiming to hire talent in the country must consider these elements to offer competitive compensation packages.

1. Experience & Skill Level

Experience plays a crucial role in salary determination. Professionals with several years in a field command significantly higher wages than entry-level employees. Typically, those with 0-2 years of experience earn lower salaries, while mid-career professionals (3-5 years of experience) can see earnings increase by 50% or more.

Senior-level professionals and specialists (10+ years of experience) can demand salaries that are often double or even triple the national average, particularly in technical fields.

2. Industry Demand

The industry in which a professional works heavily influences salary levels. The IT, finance, healthcare, and engineering sectors generally offer higher-than-average wages due to talent shortages and global demand for skilled professionals. For example, software developers and cloud engineers are increasingly in demand as companies shift toward digital transformation.

Similarly, healthcare professionals, particularly registered nurses and medical technologists, are seeing higher salaries due to international demand and the growing healthcare sector in Germany.

3. Location

Location is a major determinant of salary levels in Germany. Major cities like Munich, Frankfurt, and Hamburg offer higher salaries compared to smaller towns and rural areas. For example, professionals in Munich might earn up to 20% more than their counterparts in eastern cities like Leipzig or Dresden.

However, the cost of living is also higher in these metropolitan areas, which should be factored into any salary considerations.

4. Educational Background & Certifications

Higher education and specialized certifications significantly impact salary levels in Germany. University graduates typically earn 20-50% more than individuals without degrees. Certain degrees, such as computer science, engineering, finance, and healthcare, lead to higher salaries due to industry demand. In contrast, some graduates in liberal arts or education may find it more challenging to secure high-paying positions unless they specialize further.

Additionally, professional certifications can give employees a competitive edge in the job market. For example:

  • Certified Public Accountants (CPA) often earn 30-60% more than non-certified accountants.
  • Project Management Professionals (PMP) can earn salaries 25-40% higher than non-certified project managers.
  • Google, AWS, or Cisco IT certifications can lead to better-paying roles in tech and network administration.

Employers should consider offering sponsorships for professional development programs to enhance their workforce’s capabilities while boosting retention rates.

5. Foreign vs. Local Employers

Foreign companies operating in Germany often offer higher salaries, better benefits, and more career growth opportunities compared to local firms. This is especially true in industries like business process outsourcing (BPO), IT services, and finance, where multinational corporations actively hire German professionals.

For example, a foreign IT company hiring a software developer in Munich may offer €80,000 per year, whereas a local company might offer €60,000 per year for the same role. Similarly, customer service representatives working for global companies may earn 20-30% more than their counterparts in locally owned businesses.

Hiring Trends and Future Salary Outlook in Germany

Germany's labor market is experiencing notable shifts influenced by technological advancements, economic factors, and evolving industry demands. Understanding these trends is essential for businesses and professionals navigating the German employment landscape.

1. Growth in Remote Work and Outsourcing

The adoption of remote work has accelerated, particularly in sectors like IT, customer service, and digital marketing. This shift allows companies to tap into a broader talent pool, including international professionals.

Remote positions often offer competitive salaries, sometimes exceeding those of traditional office-based roles, to attract skilled workers. For instance, software developers and digital marketers can command higher wages when working remotely for German companies.

2. Impact of AI and Automation on Salaries

The integration of artificial intelligence (AI) and automation is transforming industries such as finance, manufacturing, and customer service. This transformation has led to increased demand for professionals skilled in AI, machine learning, and data analysis.

Individuals who upskill in these emerging technologies can command higher salaries, with some roles offering starting salaries upwards of €70,000 annually.

3. Expanding Opportunities in Finance and Technology

Sectors like fintech, cybersecurity, and blockchain are among the fastest-growing job markets in Germany. Professionals in these fields often earn salaries 20-50% above the national average.

For example, cybersecurity experts and blockchain developers are in high demand, leading to lucrative compensation packages.

4. Government-Mandated Salary Increases

The German government has implemented measures to enhance worker compensation. The statutory minimum wage was increased to €12.82 per hour as of January 2025, up from €12.41 in January 2024.

This adjustment reflects the government's commitment to improving living standards and addressing inflation.

5. Decline in Hiring Plans

Recent data indicates a decline in hiring intentions among German companies. The Ifo Institute reported that the employment barometer fell to 93.7 points in October 2024, the lowest since July 2020.

This downturn suggests a more cautious approach to recruitment, with companies focusing on efficiency and cost management.

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Key Takeaways

Understanding salary trends in Germany is essential for businesses aiming to attract top talent and for professionals seeking fair compensation. By considering industry benchmarks, location, experience, and cost-of-living factors, both employers and employees can make well-informed decisions.

If you're planning to hire in Germany, ensure you offer competitive salaries, provide benefits that align with industry standards, and stay updated on local labor laws to facilitate a smooth and successful hiring process. Look for free resources such as Playroll's salary benchmarking tool and employee cost calculator to easily benchmark your offering across the globe.

Want to simplify the process of hiring in Germany? Playroll offers leading EOR services to make global hiring a breeze – let us handle legal employment, compliance, payroll and benefits management, so you freely explore new markets and focus on team growth. Book a chat with our team to find out how we can help scale your team in Germany in 2025.

Germany Average Income 2025
Global Payroll

Read Time

February 5, 2025

What is the Average Salary in the Philippines?

As of 2025, the average annual salary in the Philippines is approximately PHP 539,755.48, equating to around $9,528 per year. This figure reflects the country's economic growth and the increasing demand for skilled professionals.

Income levels in the Philippines vary based on factors such as industry, experience, education, and location. Urban areas, particularly Metro Manila, tend to offer higher salaries compared to rural regions.

Comparative Profession Salary Earnings in the Philippines

Here’s a general breakdown of monthly and annual salary ranges in the Philippines:

Category Monthly Salary (PHP) Annual Salary (PHP) Annual Salary (USD)
Entry-Level Jobs (0-2 years experience) ₱15,000 - ₱30,000 ₱180,000 - ₱360,000 $3,273 - $6,546
Mid-Level Jobs (3-5 years experience) ₱30,000 - ₱60,000 ₱360,000 - ₱720,000 $6,546 - $13,092
Senior Roles & Managers ₱60,000 - ₱150,000 ₱720,000 - ₱1,800,000 $13,092 - $32,730
Executive & C-Level ₱150,000+ ₱1,800,000+ $32,730+

Source: Salary Expert

Note: USD equivalents are approximate, based on an exchange rate of 1 USD = 55 PHP.

The minimum wage in the Philippines varies widely by region. As of 2025, Metro Manila's daily minimum wage is PHP 645, while provincial areas have lower rates, around PHP 316-560 per day.

Check out our in-depth Philippines' minimum wage guide

Industry-Specific Salary Earnings

Salaries in the Philippines differ by industry, with highly skilled sectors such as IT and finance offering significantly higher compensation.

Profession Average Annual Salary (PHP) Average Annual Salary (USD)
Customer Service ₱240,000 $4,364
Accountant ₱360,000 $6,546
Software Developer ₱600,000 $10,910
Registered Nurse ₱300,000 $5,455
Teacher ₱250,000 $4,546
Marketing Manager ₱720,000 $13,092
Civil Engineer ₱480,000 $8,728

Note: Salaries are based on estimates from the latest salary surveys and job postings.

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Labor Market Overview

The Philippine labor market has shown resilience and adaptability, with an employment rate of 96% as of June 2024, according to the Philippines Statistics Authority. The services sector dominates employment, accounting for over 60% of the workforce, followed by industry and agriculture. 

The country's young and educated population contributes to a dynamic labor force, with a median age of 25.7 years. However, challenges such as underemployment and job-skills mismatch persist, requiring continuous investment in education and training.

Benefits of Hiring Employees in the Philippines

The Philippines has become a top destination for global companies looking to expand their workforce. Here are some key reasons why businesses choose to hire Filipino talent:

  • Highly Skilled Workforce: The Philippines has a strong education system, producing professionals in IT, finance, healthcare, and engineering who are globally competitive.
  • Strong English Proficiency: It's ranked among the top English-speaking countries in Asia, making communication seamless for international businesses.
  • Cost-Effective Labor: Competitive salaries compared to Western markets, allowing businesses to optimize labor costs and payroll taxes without compromising quality.
  • Thriving BPO & Remote Work Culture: The country has a well-established outsourcing industry, making it easy to find experienced remote workers in tech, customer service, and creative roles.
  • Cultural Compatibility: Filipinos are known for their adaptability and strong work ethic, making them an excellent fit for global teams.
  • Government Support for Foreign Employers: The Philippine government offers incentives for businesses setting up operations, including tax benefits and streamlined hiring processes.

Factors That Influence Salaries in the Philippines

The salary landscape in the Philippines is shaped by a variety of economic and market-driven factors. Employers looking to hire talent in the country must consider these elements to ensure they offer competitive compensation packages.

1. Experience & Skill Level

Experience plays a crucial role in salary determination, with professionals who have several years in a field commanding significantly higher wages than entry-level employees. Typically, those with 0-2 years of experience earn lower salaries, while mid-career professionals (3-5 years of experience) can see earnings increase by 50% or more.

Senior-level professionals and specialists (10+ years of experience) can demand salaries that are often double or even triple the national average, particularly in technical fields.

2. Industry Demand

The industry in which a professional works heavily influences salary levels. The IT, finance, healthcare, and engineering sectors generally offer higher-than-average wages due to talent shortages and global demand for skilled professionals. For example, software developers and cloud engineers are increasingly in demand as companies shift toward digital transformation. Similarly, healthcare professionals, particularly registered nurses and medical technologists, are seeing higher salaries due to international demand and the growing healthcare sector in the Philippines.

On the other hand, industries such as agriculture, hospitality, and education tend to offer lower salaries due to lower profit margins and economic constraints. Many workers in these fields supplement their incomes through side businesses or freelance work. Businesses in lower-paying industries can remain competitive by offering benefits beyond salary, such as performance bonuses, flexible work arrangements, and career development opportunities.

3. Location

Location is a major determinant of salary levels in the Philippines. Metro Manila, being the economic hub, offers the highest salaries, as it hosts multinational corporations, IT parks, and major financial institutions. The average salary in Manila is 30-50% higher than in provincial areas due to the concentration of businesses and the higher cost of living.

Other major cities like Cebu and Davao also provide competitive salaries, particularly in the outsourcing (BPO), tourism, and IT sectors. However, rural and less-developed areas tend to have significantly lower salaries due to fewer job opportunities and lower living costs.

A teacher in Metro Manila, for instance, may earn PHP 25,000 per month, while a teacher in a rural province might earn only PHP 15,000 per month for the same role. Employers hiring remote workers should consider adjusting salaries based on cost-of-living differentials to attract talent across various regions.

4. Educational Background & Certifications

Higher education and specialized certifications significantly impact salary levels in the Philippines. University graduates typically earn 20-50% more than individuals without degrees. Certain degrees, such as computer science, engineering, finance, and healthcare, lead to higher salaries due to industry demand. In contrast, some graduates in liberal arts or education may find it more challenging to secure high-paying positions unless they specialize further. Additionally, professional certifications can give employees a competitive edge in the job market.

For example:

  • Certified Public Accountants (CPA) often earn 30-60% more than non-certified accountants.
  • Project Management Professionals (PMP) can earn salaries 25-40% higher than non-certified project managers.
  • Google, AWS, or Cisco IT certifications can lead to better-paying roles in tech and network administration.

Employers should consider offering sponsorships for professional development programs to upskill their workforce’s capabilities while boosting retention rates.

5. Foreign vs. Local Employers

Foreign companies operating in the Philippines often offer higher salaries, better benefits, and more career growth opportunities compared to local firms. This is especially true in industries like business process outsourcing (BPO), IT services, and finance, where multinational corporations actively hire Filipino professionals.

For example, a foreign IT company hiring a software developer in Manila may offer PHP 1.2M per year, whereas a local company might offer PHP 800,000 per year for the same role. Similarly, customer service representatives working for global companies may earn 20-30% more than their counterparts in locally owned businesses.

Hiring Trends & Future Salary Outlook in the Philippines

1. Growth in Remote Work & Outsourcing

  • Many international companies are hiring Filipino professionals remotely, especially in IT, customer service, and digital marketing.
  • Remote jobs often pay higher salaries than local office-based roles.

2. AI & Automation's Impact on Salaries

  • AI and automation are reshaping the BPO and customer service industries, leading to higher demand for tech and AI-skilled workers.
  • Workers who upskill in emerging technologies can command higher salaries.

3. Expanding Opportunities in Finance & Tech

  • Fintech, cybersecurity, and blockchain are some of the fastest-growing job sectors, offering salaries 20-50% above the national average.

4. Government-Mandated Salary Increases

  • The Philippine government is gradually increasing minimum wages and strengthening worker protections.
  • Businesses should stay updated on salary regulations to remain compliant.

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Key Takeaways

Understanding salary trends in the Philippines is essential for businesses looking to attract top talent and for professionals seeking fair compensation. To make well-informed decisions as a hiring manager, consider industry benchmarks, location, experience, and cost-of-living factors. Look for free resources such as Playroll's salary benchmarking tool and employee cost calculator to easily benchmark your offering across the globe.

If you're planning to hire in the Philippines, make sure to offer competitive salaries, provide benefits that match industry standards, and stay updated on local labor laws to ensure a smooth and successful hiring process.

Want to simplify the process of hiring in the Philippines? Playroll offers leading EOR services to make global hiring a breeze – let us handle legal employment, compliance, payroll and benefits management, so you freely explore new markets and focus on team growth. Book a chat with our team to find out how we can help scale your team in the Philippines in 2025.

Philippines Average Salary
Global Payroll

Read Time

February 5, 2025

How International Payroll Works

Managing international payroll involves the complex task of compensating employees and contractors across various countries, each with its own set of regulations, tax laws, currencies, and cultural expectations. Ensuring timely and accurate payments while maintaining payroll compliance with local laws is crucial for businesses operating globally.

While the technical aspects of payroll differ depending on the business’s size, type and location, all payrolls follow the same basic protocols. The international payroll process can be managed manually or through specialized payroll software. 

Let’s deep-dive into how each of these approaches work in practice.

Manual International Payroll System

In a manual payroll system, businesses handle payroll tasks internally without automated tools. This process involves several key steps:

  • Employee Information Collection: Gather comprehensive details for each employee, including personal information, employment contracts, tax identification numbers, and bank account information.
  • Time and Attendance Tracking: Manually record working hours, overtime, and leave using methods such as spreadsheets or physical timecards.
  • Wage Calculation: Compute wages by applying agreed-upon salary rates and accounting for adjustments like bonuses or deductions.
  • Currency Conversion: For international employees, convert salaries into local currencies, carefully monitoring exchange rates to ensure accurate payments.
  • Tax Compliance: Manually apply appropriate tax rates and deductions according to each country's laws, including social security contributions and other statutory deductions.
  • Benefits Administration: Ensure compliance with local regulations regarding mandatory benefits such as health insurance and retirement plans.
  • Payroll Disbursement: Initiate international bank transfers or other suitable payment methods manually, followed by the creation and distribution of payslips to employees.
  • Record-Keeping and Reporting: Maintain meticulous records for auditing and compliance purposes, and prepare and submit required reports to local tax authorities and government agencies.

This manual approach requires careful attention to detail and a thorough understanding of various regulations to ensure accurate and compliant payroll processing.

International Payroll Process Using Software

Utilizing payroll software automates many aspects of the payroll process. This enhances efficiency and accuracy throughout the payroll process. The automated process includes the following steps:

  • System Configuration: Set up the software to comply with local laws, tax regulations, and employment standards for each country.
  • Employee Profile Creation: Input personal information, job details, and compensation structures into the system.
  • Automated Data Management: Integrate with time-tracking tools to capture working hours, overtime, and leave in real-time.
  • Regular Updates: Ensure the system reflects current exchange rates, tax laws, and regulatory changes.
  • Payroll Processing: Automatically determine an employee’s gross pay, apply deductions, and calculate net pay (taking currency differences into account).
  • Compliance Management: Receive automatic updates on changes in local labor laws and tax regulations. This facilitates timely tax filings and statutory reporting.
  • Benefits Administration: Manage accurate enrollment to benefits schemes, relevant tax deductions, and adherence to local benefits requirements.
  • Payment Distribution: Automate timely disbursements to employees through preferred methods such as direct deposits or digital wallets (accompanied by electronic payslips).
  • Reporting and Analytics: Generate customizable reports on payroll expenses, tax liabilities, and compliance status, providing valuable insights into payroll trends to inform a business’s strategic decisions.

By making use of comprehensive payroll software, businesses can streamline the complexities of international payroll. This helps ensure accuracy, compliance, and boost efficiency when managing a global workforce.

How to Process Payroll for an International Business

Now that you know how payroll works, let’s take a closer look at setting up a payroll abroad. By following the below steps, you can set up your international payroll and boost your employee happiness regardless of whether you’re using dollars, euros, or yen.

Step 1: Understand Local Payroll Regulations and HR Laws

Understanding international tax and HR laws should be your first step in setting up an international payroll. Like tipping etiquette and TV channels, tax and HR codes differ based on your employees’ locations. The last thing you want is to apply the same tax laws you knew in Madison, Wisconsin, to your burgeoning business in Mexico City.

To set up your global payroll for success, take note of the following information:

  • Employees’ country tax system: Tax systems vary by country. While some countries like the Bahamas and Qatar don’t tax local and foreign incomes, other countries, like the United States and Hungary, do. Many other countries tax local incomes while abstaining from taxing foreign incomes. Knowing your employees’ home income tax codes is highly beneficial when it comes to setting up your payroll system. You should also fill up the relevant tax forms in a timely fashion.
  • Exemptions: In some countries, foreign employers are exempt from withholdings, pensions, and contributions. This gives big financial advantages to businesses whose employees reside in these tax-friendly countries.
  • Registration requirements: In some countries, like the United States, you must register your business in order to set up your payroll process. However, some countries simplify this process by requiring that you only register your payroll. You might still be required to pay local taxes and withholdings, but you won’t have to spend time formally establishing your business on foreign soil. Knowing how to do payroll in different countries is essential in navigating these variations.
  • Minimum wage: If your business employs minimum wage workers, you’ll want to know the minimum wage laws of your international employees’ countries. While some countries have a fixed federal minimum wage, other countries have no minimum wage laws on the books.
  • Holidays: If your business offers holiday bonuses or overtime pay, you’ll need to note the holidays in your employees’ countries for payroll purposes.

While understanding your employees’ country-specific tax laws might seem like an unachievable task, you don’t have to wade through international payrolls alone. Instead of checking out every international tax codebook at your public library, engage a company that can provide you with all the country insights you need to seamlessly set up your global accounts.

Step 2: Establish Your Employer Identification Number (EIN)

An Employer Identification Number (EIN), also known as a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN), is a unique nine-digit number assigned by the Internal Revenue Service (IRS). An employer’s EIN is recorded on the W-4 Form in the "Employers Only" section, along with the employer's name, address, and the employee's start date All business entities operating within the United States are required to obtain an EIN for tax identification purposes and can do so by following these key steps: 

  1. Ensure that your business entity is legally formed.
  2. Identify the “responsible party” who controls or manages the entity and include their name and Taxpayer Identification Number (SSN, ITIN, EIN) in the EIN application. This individual must be a natural person, not another entity. 
  3. Complete an online, fax or mail EIN application. EIN applicants whose principal place of business is outside the U.S. are able to apply for an EIN by phone, fax or mail

Keep in mind that you can only apply for one EIN per day, irrespective of the application method used. Some states require employers to obtain state or local tax identification numbers, often referred to as state tax ID numbers or state EINs, depending on the state's regulations. In the U.S., local tax ID’s are used for state-level tax obligations, such as sales tax collection, state income tax withholding, and other state-specific taxes.

Step 3: Classify Employees Correctly

The type of employee your international business hires is just as important as the employee’s location. Understanding how to do payroll for different employee types is crucial for accurate payroll processing.

Employees may occupy one of several employment categories, and each category directly impacts your running payroll. For both international and domestic businesses, the most common employee types include:

  • Full-time: Full-time employees typically work 40+ a week and are eligible for benefits. That said, the number of hours full-time employees are required to work to meet their full-time classification differs based on the business and country. These workers are also usually salaried.
  • Part-time: In most U.S. businesses, part-time employees put in less than 40 hours a week and are ineligible for benefits. Additionally, part-time employees are usually hourly workers. If you hire part-time employees with different hourly wages, you’ll need to enter each employee’s hourly wage into your payroll.
  • Temporary: As their classification implies, temporary employees are workers hired for a specific amount of time. As a result, temporary employees may be either full-time or part-time workers. Temporary employees tend to be popular hires for international businesses. That said, if you’re thinking of adding temporary employees to your global payroll, make sure to comply with their country's specific tax laws.
  • Seasonal: Although seasonal and temporary employees sound similar, there’s one big difference: temporary employees are hired throughout the year, while seasonal employees are typically hired to fulfill a company’s needs during a given season. For example, if you’re an international tax agency, you might hire seasonal employees only during tax season.
  • Freelance: If temporary workers are hired for a specific amount of time, freelancers are hired per job. Many international businesses choose to hire freelancers because they’re not technically employed by the business. Instead, freelancers are self-employed independent contractors untethered to an employer’s payroll.

Taking time to learn more about employee types and correctly classifying your employees is critical for businesses to ensure compliance with tax laws and labor regulations. Employee misclassification can lead to significant legal issues, financial penalties and reputational damage. 

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Step 4: Select Your Pay Cycles

Once you’ve classified your international employees, you’ll want to update your payroll with their pay cycles.

Most domestic and international businesses use one of the following pay cycles:

  • Monthly 
  • Semi-monthly 
  • Biweekly 
  • Weekly

Regardless of the pay cycle, ensure that your payroll has enough funds to pay your employees on their specified pay dates. It’s equally important to pay attention to country-specific payday regulations: For example, Luxembourg mandates that employees be paid on the last working day of the month, while Mexico has different pay cycles for different workers: weekly for “blue-collar” workers and biweekly for “white-collar” workers.

Step 5: Select a Global Payroll System or Provider

Selecting an appropriate global payroll system is crucial for employers managing international teams. The right payroll solution should  ensure timely and compliant compensation across various countries. When businesses are looking for the right global payroll system or provider, they should keep the following in mind: choose a solution that supports multi-country payroll processing. Viable options include:

  • In-House Payroll Software: Implementing internal software allows for direct control over payroll processes. However, it requires substantial resources to manage diverse international regulations and compliance requirements.
  • Global Payroll Providers: These providers specialize in handling payroll across multiple countries, ensuring compliance with local laws.

A business could also choose to work with an Employer of Record (EOR)

  • Partnering with an EOR allows businesses to employ workers in foreign countries without establishing a local entity. The EOR manages compliance, payroll, and benefits management for global teams. Playroll, for example, offers comprehensive solutions to pay international employees, with multi-currency payments and built-in compliance with complex tax regulations in different jurisdictions.

Step 6: Gather Employee Information

To facilitate accurate and compliant payroll processing across various countries, employees should provide the following general information:

  • Personal Details: Full name; residential address; date of birth; contact information (phone number and email).
  • Identification Numbers: National identification or social security number (if applicable); tax identification number.
  • Banking Information: Bank account details for salary deposits; preferred currency for payment, if options are available.
  • Employment Documentation: Signed employment contract; work permit or visa documentation, if required.
  • Tax and Financial Forms: Completed tax withholding forms specific to the country; details of existing insurance coverage.
  • Emergency Contact Information: Name and contact details of a designated emergency contact.

Step 7: Set Up Compensation and Benefits

If you offer domestic employees benefits, be prepared to offer comprehensive global benefits packages (depending on their classifications). The most common benefits include health insurance and retirement plans. The good news is that some governments already provide employee benefits in the form of health insurance and retirement packages.

Other governments, however, require that businesses provide employee benefits regardless of where they’re based. Knowing how to do payroll in such cases becomes crucial. If your employees live in countries that mandate government benefits, your payroll may still be affected for benefits—even if you don’t provide them domestically.

Step 8: Calculate Your Payroll Taxes

Calculating payroll taxes is a fundamental aspect of managing employee compensation and ensuring compliance with tax regulations. While specific tax rates and regulations vary by country, the general process involves the following key components:

Income Tax Withholding: Employers are typically required to withhold a portion of an employee's earnings to cover income taxes. The amount withheld is based on the employee's earnings and applicable tax rates, which can be progressive (meaning higher earnings are taxed at higher rates).

Social Security Contributions: Many countries require contributions to social security programs, which provide benefits such as retirement pensions and disability insurance. These contributions are often shared between employers and employees and are calculated as a percentage of the employee's gross wages. For example, if the social security contribution rate is 6% for both the employer and the employee, the employee’s contribution would be $180 ($3,000 x 6%) and the employer would be expected to match this contribution. This means that the total contribution to the social security fund for this pay period would be $360 ($180 from the employer and $180 from the employee).

Healthcare Premiums: In some countries, employers and employees contribute to national healthcare systems through payroll deductions. Alternatively, employers may offer private health insurance, with premiums partially or fully paid by the employee through payroll deductions. If an employer provides health insurance with a total monthly premium of $400 and splits the cost equally with the employee, the employee’s contribution would be $200 ($400  ÷ 2) and so would the employer’s.

In this case, the employee's $200 share is deducted from their paycheck.

Step 9: Distribute Paychecks

Distributing paychecks involves calculating each employee's net pay by deducting applicable taxes and contributions from their gross earnings. Employers then distribute the net pay through methods such as direct deposit, paper checks, or payroll cards, accompanied by pay stubs detailing the deductions from employees’ paychecks and their net pay. Maintaining accurate records of these transactions is essential for compliance and future reference. 

Step 10: Comply with Tax Filing and Reporting

Ensuring compliance with tax filing and reporting requirements is crucial for businesses to avoid legal penalties and maintain smooth operations. Key steps include:

  • Submitting Required Tax Returns and Social Contributions: Regularly file payroll tax returns and remit social contributions to local tax authorities as mandated by law. This includes reporting wages, taxes withheld, and employer contributions.
  • Providing Employees with Tax-Related Documentation: Issue necessary tax documents to employees, such as W-2 forms in the U.S. or P60 forms in the U.K., detailing their annual earnings and tax withholdings. These documents are essential for employees' personal tax filings.
  • Maintain Accurate Payroll Records: Keep detailed records of all payroll transactions, including employee wages, tax withholdings, and filed tax returns. Accurate recordkeeping is vital for compliance and audit purposes.

Utilizing a comprehensive payroll management system like Playroll’s Global Payroll Manager can streamline these processes. Playroll offers features such as automated payroll calculations, real-time tracking with complete audit trails, and seamless integration with various HR data sources. These capabilities help boost efficiency and ensure compliance with evolving local tax regulations.

The Pitfalls of Manually Processing Payroll

Manually processing payroll presents several challenges that can impact a business's efficiency and compliance:

Human Error

Manual data entry increases the risk of mistakes in calculations, tax withholdings, and employee information, potentially leading to incorrect tax payments and compliance issues.

Time-Consuming Processes

Processing payroll by hand is labor-intensive, diverting valuable time from strategic business activities and reducing overall productivity. 

Compliance Challenges

Keeping up with constantly changing tax laws and regulations is difficult without automated systems, increasing the risk of non-compliance and associated penalties. 

Data Security Risks

Storing sensitive employee information in physical formats or unsecured systems heightens the risk of data breaches and unauthorized access. 

Lack of Real-Time Reporting

Manual processes often lack the capability for real-time payroll data analysis, hindering informed decision-making and timely financial reporting.

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Compliance Considerations for Processing Payroll

Ensuring payroll compliance is essential for employers to meet legal obligations and avoid penalties. Employers can remain compliant when processing payroll by focusing on the following key areas: 

  • Understand Local Leave Laws: Familiarize yourself with national and regional regulations regarding various types of leave, such as annual, sick, and parental leave. Ensure your payroll system accurately reflects these leave entitlements.
  • Stay Informed on Jurisdictional Laws: Labor laws can vary significantly between states and countries. Regularly review and update your payroll practices to align with the specific regulations in each area where your employees work.
  • Calculate and Remit Taxes Properly: Ensure correct withholding of income taxes, social security and Medicare taxes, and other mandatory deductions. Practice timely submission of tax returns and payments to the appropriate authorities.
  • Utilize Advanced Payroll Solutions: Implementing a comprehensive system to manage payroll can automate calculations, ensure timely filings, and help maintain compliance with diverse regulations. 

Alternatives to Processing Payroll Yourself

Managing payroll in-house can be complex and time-consuming. Here are alternative approaches to streamline the process and enhance accuracy:

  1. Outsource to a Payroll Service Provider: Partnering with an external payroll service can alleviate the administrative burden. These providers handle tasks such as wage calculations, tax withholdings, and compliance with local regulations, allowing your team to focus on core business activities. 
  2. Hire a Staff Accountant: When you outsource payroll management tasks to an accountant, it ensures accurate calculations, compliance with tax laws, and allows business owners to focus on core operations.
  3. Utilize Payroll Management Software: Implementing specialized payroll software, like Playroll’s Global Payroll Manager, automates calculations and record-keeping. This approach reduces the risk of human error in tax calculations, ensures timely processing and helps businesses avoid compliance issues.

How to Make Global Payroll Truly Easy

Expanding your business internationally is a thrilling step – but can mean a lot of work. Not only do you have to keep up with multi-national accounts, but you also have to make sure your payroll systems are in tip-top shape to pay your people in time. To reduce the complexity, take advantage of Playroll’s comprehensive payroll services and products. Playroll’s Global Payroll (GP) suite makes keeping up with international payroll a breeze.

Global Payroll Analytics allows you to consolidate multi-vendor payroll data into an all-in-one dashboard. Connect and visualize rich data sources to make more informed decisions for your business, and easily monitor payroll Key Performance Indicators (KPIs).

Use Playroll’s GP Manager to optimize your existing payroll system. Our product helps you streamline multi-country payroll operations and processes in one convenient platform. Book a chat with our team to find out how you can offload the complexities of global payroll, so you can focus on growth.

How to Do Payroll for an International Business

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