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July 26, 2024

The Ultimate Guide to Hire Remote Workers In 2025

Ready to hire remote workers and access global talent? Learn how to hire international employees, with tips on staying compliant and managing remote teams.

Global HR

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 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
See detailed payroll breakdowns per region

Simplify Global Payroll And Cut Costs with Playroll

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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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10 Best Employer of Record Services For 2024

What is an Employer of Record (EOR)?

An Employer Of Record (EOR) is a third-party service that assumes all employer responsibilities on behalf of another business, including payroll and benefits management for employees. EOR services are widely used by companies that are hiring employees internationally, without the hassle, time and cost of establishing a legal entity first.

The EOR acts as the legal employer paper, while you manage the employee's daily activities. 

Top EOR Providers 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.

Why Playroll Stands Out

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.

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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.

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.

Read Time

January 6, 2025

Which Countries Have Free Healthcare in 2025?

Recruiting and retaining talent in countries with free healthcare means lower healthcare-related costs for business, fewer sick days, and little-to-no absence from work. That can help companies build a motivated, satisfied, and more stable workforce.

Employee Benefits

Semi-Monthly vs Bi-Weekly

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.

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.

What is Semi-Monthly vs Bi-Weekly 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.

Understanding 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.

Advantages

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.

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

Disadvantages

  • 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.

Exploring 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.

Advantages

  • 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.

Disadvantages

  • 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.

Factors Influencing Payroll Choice

Several factors come into play when choosing between semi-monthly vs bi-weekly payroll. Below is a list of top factors that influence payroll choice.

  • Company size and structure
  • Industry norms and standards
  • Nature of the workforce (hourly vs. salaried employees)
  • State laws governing payday frequencies

Best Practices for Implementing Payroll Systems

Below are the key considerations and best practices for implementing an effective payroll schedule:

  • Needs assessment: Surveys can help you understand company payroll needs and employee payday frequency preferences.
  • 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.

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.

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, 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.

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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.

The Latest

Work Permits & Visas

Read Time

January 8, 2025

The National Minimum Wage Commission (Conasami) has set the general daily minimum wage at MX$278.80, which amounts to about MX$8,364 (US$493) per month.

In the Northern Border Free Zone, a key economic region, the daily wage is now MX$419.88, or roughly MX$12,596 (US$742) per month. This separate region, implemented in 2019, continues to maintain its distinct wage rate.

This guide provides HR managers with updated information to adjust wage structures and manage payroll effectively.

Year General Minimum Wage (per day) Northern Border Free Zone (per day)
2024 MX$249.00 MX$375.00
2023 MX$207.44 MX$312.41
2022 MX$172.87 MX$260.34
2021 MX$141.70 MX$213.39
2020 MX$123.22 MX$185.56

Understanding Mexico's Minimum Wage

The latest surge in the nation’s minimum wage impacts one-third of Mexico’s registered workers, underscoring the government’s aim to improve the standard of living. 

The General Minimum Wage applies to most regions of Mexico City and the rest of the country, while the Northern Border Minimum Wage addresses the higher living costs along Mexico's northern border with the United States. 

The Northern Border Free Zone encompasses several municipalities across multiple states including Baja California, Sonora, Chihuahua, Coahuila, and Tamaulipas. Major cities such as Tijuana, Mexicali, and Juarez are part of this initiative.

Mexico lacks a minimum hourly wage, but averages to MX$31.12 and MX$46.86 for Mexico and the Northern Border, respectively.

The minimum wage per day guaranteed by law in Mexico was decreed to increase by approximately 20% between 2022 and 2023. The Northern Free Zone located near the northern border was the exception. (Source: Statista)

How The Minimum Wage Is Calculated

The National Minimum Wage Commission (CONASAMI) determines the minimum wage annually. The 20% increase in 2024, benefiting 6 million workers across Mexico, was achieved through consensus among employers, unions, and the federal Government. As reported by Reuters, this hike marks the sixth consecutive year of double-digit increases in the general minimum wage. 

President Lopez Obrador's administration aims to tackle income inequality through such measures. The determination of minimum wage rates considers inflation, GDP growth, and employment rates, ensuring the purchasing power is doubled between 2018 and 2024. 

The increase in general minimum wage for 2024 also applies to 61 trades and special jobs

The minimum wage has seen consistent double-digit increases under AMLO's presidency, with a rise from MX$88 (US$5.20) per day in the first year to MX$248.93 (US$14.70) per day in 2024. The Northern Border Free Zone offers higher wages due to tax incentives and economic activity, including manufacturing company and export services.

Mexico City’s minimum wage rate over the past 10 years (Source: Trading Economics)

Common Challenges in Navigating Mexico’s Minimum Wage

  1. Keeping up with minimum wage updates and changes: The biggest challenge in navigating Mexico’s minimum wage regulations is keeping up with updates. Minimum wage rates undergo frequent changes, which can be challenging for businesses to track and implement effectively.
  2. Affect how businesses make decisions: Changes in the minimum wage affect business decisions like where to invest or expand. 
  3. Following labor unions: With labor unions becoming more powerful in determining Mexico’s labor laws, businesses need to be flexible in how they hire and compensate people.

Minimum Wage Increase in 2025

Region Previous Minimum Wage (per day) New Minimum Wage (per day)
General (26 states) $207.44 $248.93
Northern Border Free Zone (6 states) $312.41 $374.89

Minimum Wage Increases Under AMLO since 2019

Year Percentage
2024 20%
2023 20%
2022 22%
2021 15%
2020 20%
2019 16.2%

Strategies for Managing Minimum Wage Increases in Mexico

Implement Monitoring Systems

Adopt sophisticated monitoring systems to keep track of minimum wage updates. 

Ensure Transparent Compensation Practices

It is important to maintain fair compensation practices across all worker categories. This helps reduce legal risks by ensuring that all employees are paid according to the updated regulations.

Engage with Stakeholders

Work closely with labor unions and government agencies. This collaboration helps to understand regulatory changes and navigate compliance more effectively.

Integrate Technology in Payroll Management

Use advanced payroll management systems to enhance the efficiency of wage management. These systems help streamline processes and reduce the administrative burden, making compliance with minimum wage laws easier.

Minimum Wage Comparison: Mexico vs. Colombia

Country Minimum Wage per Month Minimum Wage in USD (per month)
Mexico MX$7,508 US$ 439.72
Colombia Colombian Pesos 1,368,800 US$ 347.54

Employee Benefits

Read Time

January 6, 2025

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.

Global HR

Read Time

December 11, 2024

Types of International Expansion Models

Businesses can choose from various market entry strategies based on their objectives and resources:

  • Licensing and Franchising: For a fee, you grant rights to a foreign entity in your target market to use your company's trademarks, patents, or other intellectual property. It's a great way to expand internationally while maintaining some level of control over your business.
  • Mergers and Acquisitions (M&A): You merge with or acquire an already established company in the target market, benefiting from all their resources, including, supply chains, distribution networks, human resources, market information, and more. It's a great way to enter new markets quickly.
  • Exporting: You can export directly to customers, or indirectly through intermediaries. It's a cost-effective way to enter new markets without the need to establish a physical presence in the target region.
  • Joint Ventures and Strategic Alliances: You form a partnership or alliance with a local company in the target region. Both parties contribute resources to the venture and share costs, making it a more financially viable option to enter new markets.
  • Foreign Direct Investment (FDI): This is a great international expansion strategy for big companies with the financial muscles to establish new, wholly-owned subsidiaries in the target country. Also known as a greenfield venture, it works fine for businesses that want direct ownership and complete control of their business operations.
  • Partnering with an Employer of Record: Engaging an EOR like Playroll to manage employment, compliance, and payroll in the foreign market on your behalf. This is an excellent option for businesses looking to easily explore and enter new markets at speed and at a fraction of the cost of establishing new owned entities themselves.

5 Global Expansion Strategies

There are many international expansion strategy examples out there, but what can you not do without? Here’s our pick of the five strategies for expanding internationally you need to take into account: 

1. Conduct Market Research and Feasibility Studies

Identifying a viable addressable market is crucial for successful international expansion. Conduct thorough market research to understand:

  • Target Markets: Assess economic conditions, consumer behavior, and demand for your products or services. Adapt your products as needed according this research,
  • Customer Needs and Preferences: Tailor offerings to meet local tastes and cultural nuances.
  • Local Competitors: Analyze competitors' strengths and weaknesses to identify market gaps.
  • Regulatory Environment: Understand local laws, regulations, and compliance requirements.

2. Build Local Partnerships and Networks

Collaborating with local partners can facilitate market entry and growth:

  • Leverage Local Expertise: Partners provide insights into the local market, culture, and business practices.
  • Access Established Networks: Benefit from existing relationships with suppliers, distributors, and customers.
  • Navigate Regulatory Hurdles: Local partners can assist in understanding and complying with regulations.

3. Adapt to Cultural and Legal Norms

Customization is key to resonating with local markets:

  • Localization: Adapt products, services, and marketing materials to align with local languages, cultures, and preferences.
  • Compliance: Ensure adherence to local laws, including labor laws, tax regulations, and industry standards.

Overcoming cultural differences and language barriers is a significant challenge in international expansion. Utilizing services like Playroll's HR support and EOR expertise can help adapt your offerings to local markets effectively.

4. Leverage Technology for Global Growth

Digital tools can streamline international operations:

  • SaaS Platforms: Utilize software for international payroll, compliance, and workforce management.
  • E-Commerce: Platforms like Shopify, Amazon, and Alibaba enable global sales with minimal upfront investment.
  • Digital Marketing: Employ strategies such as social media marketing, SEO, and email campaigns to reach international audiences.

Engaging a global EOR can simplify market research and compliance, making international expansion more achievable.

5. Scale Gradually and Monitor Progress

A phased approach allows for controlled growth:

  • Pilot Programs: Test products or services in select markets before full-scale launch.
  • Key Performance Indicators (KPIs): Track metrics such as sales, customer acquisition costs, and market share.
  • Continuous Improvement: Use data to refine strategies and address challenges promptly.

Challenges in International Expansion & How to Overcome Them

Common challenges when expanding internationally include:

Regulatory Complexity

Each country has its set of regulations for international business, and the last thing you want is to be at loggerheads with authorities on foreign soil. That can result in hefty fines, penalties, and costly lawsuits that can cripple your expansion efforts.

Cultural Differences

Overcoming cultural differences and language barriers is a big challenge that you'll face when leveraging digital technologies to enter new international markets.

That means you may need to translate content and change your marketing materials and branding to communicate effectively and appeal to customers in the target region.

Supply Chain Management

Establishing efficient logistics in new markets can be costly and take a long time.

Talent Acquisition

You need to hire a professional workforce that will implement your international expansion strategy. Depending on the market entry method you choose, you may need to hire local talent, send expatriates, or engage remote workers.

However, recruiting the best talent pool and managing cross-cultural employees in foreign markets isn't an easy feat. Playroll’s country hiring guides can help you understand Payroll, benefits, and hiring of top talents in different countries.

Financial Planning and Risk Management

To reap the benefits of international expansion, you need to have a long-term financial plan in place. That means carrying out financial analysis and preparing detailed financial projections, then coming up with an adequate budget to fund your global expansion strategy.

You can mitigate risks by relying on current and historical data and projections from experts to create a hedging strategy or choose countries with less political and economic uncertainty.

Steps you can take to mitigate the challenges include:

  • Set clear goals: For instance, market or risk diversification, revenue growth, increasing customer base, cost cutting, economies of scale, and more.
  • Choose target markets wisely: Select markets with favorable economic conditions and demand for your offerings.
  • Carry out market research and analysis: Gather important market data, including customer demographics, industry trends, consumer behavior, cultural differences, and more.
  • Analyze your competitors: Understanding their market share, marketing and pricing strategies, distribution networks, and more.
  • Lean on experts in legal and regulatory requirements:

An Employer of Record like Playroll can help you navigate the legal and regulatory landscape in the target country. They are well-versed in local regulations and labor laws, so you can shift focus to scaling your business with peace of mind. They can also assist with navigating payroll and tax requirements, and setting up compliant employee contracts to avoid intellectual property protection issues. 

They also often have wide networks with established recruitment and other partners in global expansion to ease your market entry. For example, the ConnectaVerse, a trusted global services marketplace, leverages decades of expertise to connect companies with ideal partners for growth. From leading EORs like Playroll to specialists in compliance, company formation, global payroll, and more, the ConnectaVerse simplifies international expansion by matching businesses with trusted local providers tailored to their unique needs.

Going Global With Playroll’s EOR Services

The choice of expansion model depends on factors like desired control, financial capacity, and business objectives. Partnering with an Employer of Record (EOR) can streamline the process, regardless of the chosen strategy.

Playroll offers comprehensive EOR services to facilitate your international expansion, including:

  • Regulatory Compliance Management
  • Payroll and Benefits Administration
  • HR Support and Management
  • Risk Mitigation
  • Global Workforce Management
  • Market Entry Support

With Playroll, expanding your business internationally in 2025 becomes truly simple. Start by booking a demo with our team – we handle the red tape, so you can expand with ease while keeping your costs low.

Partner with Payroll for Seamless Global Expansion

Expand your business confidently with a trusted payroll solution. Simplify compliance, manage payments effortlessly, and grow your global team with ease.

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5 Strategies for Global Growth in 2025
Legal and Compliance

Read Time

December 10, 2024

How to Define Full-Time vs Part-Time Employees

What is Considered Full-Time Employment?

In general, full-time employment refers to an employee who works full-time hours each week, typically ranging from 35 to 45 hours, depending on the employer’s policies and local labor laws. Full-time employees are often eligible for a wide range of benefits, including health insurance, paid leave, and retirement plans.

  • Legal Definitions and Eligibility: In the U.S., the Fair Labor Standards Act (FLSA) does not universally define full-time status, though certain benefits are tied to the number of hours worked. 
  • Typical Hour Thresholds: While the number of hours varies by employer, full-time employees generally work between 35 and 40 hours a week. This threshold can differ based on country or regional laws, but it serves as the basis for determining eligibility for benefits and other perks. 

What is Considered Part-Time Employment?

Part-time employment typically refers to employees who work fewer hours than full-time employees, often around 20 to 30 hours per week. These roles offer more flexibility but may come with fewer benefits and less job stability compared to full-time positions.

  • Legal Definitions and Eligibility: Again, labor institutions like the FLSA do not have a single, universally accepted legal definition for part-time employment. However, part-time workers generally work less than 30 hours per week. Employees who work part-time are usually not eligible for the same benefits as full-time employees unless specified by the employer or governed by local regulations. For instance, only 30% of part-time workers in the U.S. have access to employer-sponsored health insurance. However, many employers are choosing to offer more competitive benefits to part-time workers to attract and retain top talent.

Only 30% of part-time workers recieve employer-sponsored health insurance

"In the U.S., 85% of full-time workers recieve health insurance from their employers, but only 30% of part-time workers do." - Sci-Tech Today

  • Typical Hour Thresholds: Part-time employees generally work fewer than 30 hours per week. This threshold can vary, and in some countries, part-time status is determined based on a specific number of hours set by labor laws or employer policy.

Employment Type Comparison Chart

How Do Part-Time and Full-Time Employees Differ?

Eligibility for Benefits

Full-time employees often enjoy more comprehensive benefits than part-time workers. These benefits can include:

  • Health Insurance: Under the Affordable Care Act (ACA), employers with 50 or more full-time equivalent employees (also known as an Applicable Large Employer or ALE) are required to offer health insurance to those working 30 hours per week or more. Part-time employees are not automatically eligible for employer-sponsored health insurance under the ACA. 
  • Retirement Plans: Full-time employees are more likely to be offered retirement benefits, such as a 401(k), and employers may match contributions. Part-time employees may not receive retirement benefits or may be offered limited options.
  • Paid Leave: Full-time employees often receive paid time off (PTO), including vacation and sick days. Part-time workers may have limited or no paid leave, depending on the employer.

Job Stability and Scheduling

Full-time employees generally experience more predictable and stable work schedules, as their hours are set for the week. This stability can be attractive to employees seeking job security and to employers looking for a more stable workforce and consistent coverage.

In contrast, part-time employees may have more flexible schedules, which can be a benefit for workers seeking flexibility, but may result in less predictable hours for both the employee and employer.

Wages and Overtime

  • Wages: Full-time employees are often salaried, though some are paid hourly. Part-time employees are generally paid hourly, and their earnings are proportional to the hours worked.
  • Overtime: Full-time employees who are non-exempt (workers who qualify for certain protections under the FLSA) may be entitled to overtime pay for hours worked over 40 hours a week. Part-time employees can also be eligible for overtime if they work more than 40 hours per week, depending on their exempt or non-exempt classification.

Full-Time vs Part-Time Misclassification Risks

Employee misclassification occurs when an employer incorrectly classifies a worker as an independent contractor or part-time employee (rather than a full-time employee) or fails to properly classify the worker's exempt or non-exempt status under the FLSA. Misclassification can lead to violations of labor laws and a range of legal and financial consequences for both the employer and the employee.

Compliance and Legal Risks

Misclassifying employees as part-time when they should be full-time can lead to serious legal ramifications. For instance, employers who fail to provide health benefits under the ACA to employees who work 30 or more hours per week could face penalties.

Misclassification can also result in failure to pay overtime wages to workers who are entitled to them, violating laws laid out in the FLSA. This can lead to fines, back pay, and lawsuits.

Stay Compliant, Avoid Penalties

Avoid costly misclassification errors. Playroll automates payroll, ensuring your team is properly classified and compliant with all regulations.

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Financial Impacts

Misclassification can have significant financial consequences. These include:

  • Fines: Labor boards and tax authorities can impose fines for failing to comply with classification requirements.
  • Back Pay: Employers may owe back pay for overtime or benefits owed to misclassified employees.
  • Taxes: Incorrect classification can also result in additional taxes due to discrepancies in how employee hours and wages are reported to tax authorities.

Damage to Employer Reputation

Misclassification can damage the employer’s reputation, leading to:

  • Employee Dissatisfaction: Employees who are not receiving the benefits they’re entitled to may feel exploited, leading to poor morale.
  • Public Disputes: Disgruntled employees may take legal action or make complaints public, harming the company’s image.
  • Trust Erosion: Misclassification can undermine the relationship between the employer and employees, impacting retention and future recruitment efforts.

Create a culture...

“As a leader, you’ll want to create a culture not just of legal and regulatory compliance but more fundamentally grounded in reliability, ethics, and goodwill.” -Nien-hê Hsieh, Harvard Business School Professor

How Does Employment Type Impact Payroll? 

The employment type (full-time vs. part-time) plays a critical role in determining how payroll is structured and managed. 

  • Full-time employees often have more consistent paychecks, eligibility for a wider range of benefits, and access to overtime pay. 
  • Part-time employees typically receive hourly compensation with fewer benefits and may have a more flexible work schedule, but they are still subject to the same payroll tax deductions. 

Employers must carefully track employee hours, classification, and benefits eligibility to ensure accurate payroll processing and compliance with labor laws.

How Playroll Helps Employers Manage Employee Classifications & Payroll

Managing employee classifications and payroll across diverse global workforces can be complex, especially when dealing with evolving labor laws, tax regulations, and benefits requirements. Playroll’s suite of tools simplifies this process, ensuring compliance and cost efficiency for employers with international teams.

Playroll’s platform offers powerful all-in-one solutions, such as global payroll, for managing global workforces, helping employers stay compliant with local labor laws, tracking employee hours and compensation, and optimizing payroll costs. By automating payroll processes, offering real-time compliance monitoring, and providing detailed reporting, Playroll ensures that businesses can confidently manage employee classifications and compensation, no matter where their teams are located.

Book a chat with our team to find out how we can simplify global employment and payroll for your team.

Employee Benefits

Read Time

December 6, 2024

What Are Employee Benefits in Mexico?

In Mexico, employee benefits are categorized into mandatory statutory benefits and supplemental benefits. Mandatory benefits, such as maternity leave, Christmas bonus (Aguinaldo), and access to Mexican social security, are required under the Federal Labor Law (Ley Federal del Trabajo). Supplemental benefits, like private health insurance and transportation allowance, are offered by employers to attract and retain talent.

Who Is Entitled to Employee Benefits in Mexico?

Full-time employees in Mexico are entitled to the full range of statutory benefits outlined by law. Part-time and contract workers may receive limited benefits depending on their employment terms and duration. Employers in Mexico are obligated to ensure compliance with benefit provisions for all eligible workers.

Overview of Employee Benefits in Mexico

Mandatory Benefits Supplemental Benefits
Social Security Contributions Private Health Insurance
Aguinaldo (Christmas Bonus) Life Insurance
Profit Sharing (PTU) Savings Funds (Fondo de Ahorro)
Paid Leave Education Assistance
Overtime Pay Food Vouchers (Vales de Despensa)
Maternity and Paternity Leave Transportation Allowance

Types of Workers Who Can Receive Benefits 

  • Full-time workers in Mexico are employees with formal contracts who typically work up to 48 hours per week (day shift) as defined by the Federal Labor Law, and are entitled to all mandatory benefits. 
  • Part-time workers in Mexico are employees who work fewer hours than the standard full-time schedule set by Mexican labor law, and they’re entitled to certain protections and benefits even with reduced hour arrangements. 

Mandatory Employee Benefits in Mexico

In Mexico, mandatory benefits are legally required provisions that employers must offer to employees under the Federal Labor Law. These benefits ensure basic worker protections and financial security. Below is an overview of these mandatory benefits:

Social Security Contributions

In Mexico, social security contributions fund benefits like healthcare, disability, life insurance, pensions, unemployment support, and childcare through the Mexican Social Security Institute (Instituto Mexicano del Seguro Social or IMSS). 

Employers contribute about 20-35% of an employee’s salary depending on the benefits covered, the employee’s tax bracket, and the industry’s risk category, while employees pay around 2.375%. Contributions are based on the Integrated Daily Salary (Salario Base de Cotización or SBC ) and include funding for retirement accounts (Administradoras de Fondos para el Retiro or AFOREs). 

Employers must register employees with the IMSS and make monthly payments. Non-compliance leads to penalties and legal action.

Benefit Employer Contribution (%)
Occupational Risk Insurance Varies based on the industry and risk level (between 0.5% and 15% of salary).
Healthcare Insurance Approximately 6.45% of salary
Pension Fund (Retirement and Old Age) 5.15% of salary
Disability and Life Insurance 1.75% of salary
Childcare and Social Services 1% of salary
Housing Fund (Instituto del Fondo Nacional de la Vivienda para los Trabajadores or INFONAVIT) 5% of salary

Aguinaldo (Christmas Bonus)

The Aguinaldo (Christmas Bonus) in Mexico is a mandatory year-end bonus required by law. Employees are entitled to a minimum of 15 days' salary, which must be paid by December 20th each year. The bonus is proportional for those who work less than a full year. It applies to all employees, including full-time, part-time, and temporary workers.

The bonus is subject to income tax, but at a lower rate – the first 30 days of the bonus are exempt from tax. The Aguinaldo helps workers cover holiday expenses and is a key part of Mexico's labor benefits.

Profit Sharing (PTU)

Profit Sharing (Participación de los Trabajadores en las Utilidades or PTU) in Mexico requires companies to distribute 10% of their annual taxable profits to employees. This is mandatory for all companies, except those with no profits or specific exemptions like small businesses. PTU is divided into two parts: 50% is distributed equally among employees, and 50% is based on salary and days worked (the number of working days during the year).

Employers must pay PTU by May 31st of the following year or within 60 days of filing their taxes. PTU is taxed at a lower rate than regular income and is subject to the progressive income tax system, with rates ranging from 1.92% to 35% based on total taxable income. The benefit encourages employee engagement and motivates workers by sharing in the company's success.

Paid Leave

Vacation Leave: 12 days minimum of paid vacation after the first year of work, increasing by 2 days annually until reaching 20 days in the 4th year, then increasing by 2 days every 5 years. Employees also receive a 25% vacation premium in addition to their regular salary.

Leave for Public Holidays: Employees are also entitled to paid leave on mandatory public holidays such as New Year’s Day, Labor Day, Independence Day, Revolution Day, and Christmas Day. If employees are required to work on public holidays, they are entitled to double pay (100% of their salary plus the regular pay for that day).

Sick Leave: Sick Leave in Mexico provides paid time off for employees who are unable to work due to illness or injury. The first 3 days are paid by the employer at 100% of the salary. After 3 days, the IMSS covers 60-100% of the employee's salary for ongoing sickness.

Sick leave is available for short-term illnesses and long-term conditions, with a maximum of 1 year of IMSS benefits. Work-related injuries are covered by IMSS from day one at 100% of salary. Sick leave pay is taxable but usually at a lower rate than regular salary. Employees must be registered with IMSS and provide a medical certificate to qualify for sick leave.

Overtime Pay

The standard workweek in Mexico is 48 hours, typically spread over 6 days (8 hours per day). Alternatively, some companies may have a 40-hour workweek spread over 5 days (8 hours per day, 5 days a week). Work performed beyond the regular 8-hour workday or 48-hour workweek is considered overtime and must be compensated accordingly.

Employees who work more than the regular hours are entitled to 1.5 times their regular hourly rate for the first 9 hours of overtime. If the overtime exceeds 9 hours in a week, the overtime rate increases to 2 times the regular hourly rate for any additional hours worked. If an employee works on a public holiday or their scheduled rest day, the overtime pay is three times the regular hourly rate.

The Federal Labor Law limits overtime to 3 hours per day and a maximum of 3 times a week. This means an employee can work up to 9 hours of overtime per week. In exceptional cases, and with the employee’s consent, employers may request additional overtime, but these limits should not be routinely exceeded. Payment of overtime cannot be deferred or substituted by time off unless agreed upon by the employee and employer under specific conditions.

Maternity Leave

In Mexico, female employees are entitled to 12 weeks of maternity leave – 6 weeks before the expected delivery date and 6 weeks after childbirth to allow the mother to recover and bond with the baby. Employees who adopt a child are also entitled to 6 weeks of paid leave, which begins when the child is legally placed in the adoptive parent's care.

If the mother experiences complications during childbirth or develops a serious health condition related to pregnancy, the IMSS may extend the maternity leave for up to 4 additional weeks. The employee will continue to receive full salary during this extended period, provided the condition is certified by a doctor. Upon returning from maternity leave, the employee is entitled to return to the position she held before she took maternity leave. Alternatively, she can take up an equivalent position with the same pay and benefits.

During maternity leave, women are entitled to receive 100% of their regular salary, which is paid through the IMSS. To qualify for this benefit, the employee must be registered with the IMSS and have made sufficient contributions. The amount paid is based on the salary registered with IMSS, and it may differ from the actual salary if some additional benefits are not included in the calculation reported to IMSS.

Paternity Leave

Paternity leave is a benefit provided to fathers after the birth of their child. While not as extensive as maternity leave, paternity leave is a legal right under the Federal Labor Law and provides fathers with time to support the mother and care for their newborn child. Under Mexican law, fathers are entitled to 5 days of paid paternity leave following the birth of their child. This leave is granted to fathers regardless of their marital status or whether they are the biological parent. Paternity leave must be taken immediately after the birth of the child. It cannot be postponed or extended unless the employer agrees to additional time off.

Provide Competitive Benefits In Mexico

Attract and retain talent globally with Playroll's tailored benefits. Let our experts manage benefits to ensure compliance with local laws so you can scale your business globally with ease.

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Supplemental Employee Benefits in Mexico

Supplemental benefits (also known as prestaciones adicionales or beneficios adicionales) refer to the non-mandatory benefits provided by employers to enhance the compensation package and improve the welfare of their employees. These benefits are offered in addition to the mandatory benefits required by Mexican labor law.

Private Health Insurance

Private health insurance in Mexico provides additional coverage and access to private healthcare services, supplementing the public options available through the Mexican Social Security Institute (IMSS) or Instituto de Salud para el Bienestar (INSABI). While public healthcare offers basic medical services, private insurance gives individuals the option to receive faster, higher-quality care at private hospitals and clinics, with a wider selection of specialists and medical facilities.

There are various types of private health insurance plans. These plans can be purchased individually, for families, or through group coverage provided by employers. The cost of private insurance varies depending on the level of coverage, the individual's age, and health conditions. 

In Mexico, private health insurance plans can be tailored to individual or family needs and are an attractive option for those seeking faster and higher-quality healthcare, either as a supplement to public health coverage or as a comprehensive standalone solution.

Life Insurance

Life insurance is an important employee benefit that provides financial security to employees and their families in case of death or permanent disability. Typically offered as group life insurance, these policies are often funded by employers and may cover death, disability, and in some cases, accidental death.

Employers may also offer employees the option to purchase additional coverage at discounted rates. Life insurance is generally tax-free for the employee and can be an attractive part of a compensation package, especially in high-risk industries.

Savings Funds (Fondo de Ahorro)

Savings funds are a common employee benefit designed to help workers build financial security through regular contributions, typically from both employers and employees. These funds are often part of broader employee benefits packages that aim to encourage long-term savings and provide a safety net for workers. 

Savings funds in Mexico can take various forms, and their structure depends on the type of plan offered by the employer, with the most common being the Retirement Fund Administrator (Administradora de Fondos para el Retiro or Afore) system, voluntary savings plans, profit-sharing programs, and thrift plans.

Tax Implications of Employee Benefits in Mexico

In Mexico, employers can benefit from various tax incentives and exemptions by offering certain employee benefits. Key tax breaks include:

  • Meal Vouchers (Vales de Despensa): Exempt from income tax up to a daily limit, reducing payroll tax liabilities.
  • Savings Funds (Fondo de Ahorro): Employer contributions are tax-exempt up to 13% of an employee's salary.
  • Transportation Vouchers (Vales de Transporte): Partially exempt from income tax up to a daily limit.
  • Medical and Dental Plans: Exempt from income tax if within certain limits, and deductible for employers.
  • Pension Plans: Employer contributions to retirement savings are tax-exempt, and employers can deduct these contributions.
  • Life and Disability Insurance: Tax-exempt if within specific coverage limits and deductible for employers.
  • Housing Benefits: Housing loans may be tax-exempt up to a certain amount.
  • Bonuses: The mandatory annual bonus (aguinaldo) is tax-exempt for up to 30 days of salary.
  • Education Assistance: Some education benefits may be exempt from tax and deductible for employers.
  • Corporate Social Responsibility (CSR) Activities: Donations and social programs are deductible from taxable income.

These benefits help reduce the tax burden for both employees and employers, providing a financial incentive to offer comprehensive employee benefits. Employers should ensure compliance with the limits and conditions for each benefit to maximize the tax advantages.

Legal Considerations for Employee Benefits in Mexico

In Mexico, employers must comply with labor laws and tax regulations when providing employee benefits. Key legal considerations include:

  • Mandatory Benefits: Employers must provide certain benefits by law, including the annual aguinaldo (Christmas bonus), vacation days and bonuses, and profit sharing (PTU). Non-compliance with these obligations can result in fines, labor lawsuits, and penalties.
  • Tax Compliance: Employers must report employee benefits to the Tax Administration Service (SAT), ensuring the correct withholding of taxes on taxable benefits. Benefits like meal vouchers and savings funds may be tax-exempt up to certain limits, but must still be documented accurately.
  • Social Security Contributions: Employers must pay social security contributions on benefits like health insurance and pensions, which must be calculated and reported to the Mexican Institute of Social Security (IMSS).
  • Penalties for Non-Compliance: Employers face fines, tax audits, labor lawsuits, and reputational damage for failing to comply with legal requirements. Penalties can include financial fines, back taxes with interest, and legal fees.
  • Best Practices: To ensure compliance, employers should maintain accurate records of all benefits, stay updated on labor and tax laws, consult with professionals, and educate employees about their benefits and tax implications.

Additional Benefits in Mexico to Attract Talent

  • Education Assistance: Employers may offer benefits like tuition reimbursement, scholarships, training, language classes, and certification programs to support employees' education, along with flexible work arrangements or study leave.
  • Food Vouchers (Vales de Despensa): In Mexico, food vouchers are provided monthly to help employees cover grocery and food costs, usually in the form of prepaid cards or paper vouchers.
  • Transportation Allowance: This benefit helps employees cover commuting costs, provided as a fixed monthly amount, reimbursements, or transportation passes.
  • Productivity Bonuses: Employers may offer performance-based bonuses to reward employees for meeting targets, though these are not required by Mexican labor law.

How Benefits Impact Employee Cost in Mexico

In Mexico, the cost of hiring an employee goes beyond just their salary. Employee benefits can add around 20% to 35% to the total cost of employment. This includes mandatory benefits like social security contributions, retirement savings, housing funds, and paid time off.

Some of these benefits are required by law and, depending on the salary and the employee’s length of service, can add a significant amount to the total payroll costs.

For a side-by-side comparison of how benefits impact employee costs in Mexico versus other countries, check out our free employee cost calculator

Provide Competitive Employee Benefits in Mexico with Playroll

Managing employee benefits in Mexico can be complex due to the wide range of mandatory benefits and varying requirements across regions. With Playroll, you can streamline and simplify this process, ensuring compliance while offering competitive benefits to your team.

Playroll’s platform, trusted by businesses across 180+ countries, centralizes and automates onboarding, payroll, and benefits administration. 

With Playroll, you can offer a comprehensive, competitive benefits package to your employees in Mexico, while minimizing the administrative burden. Let us handle the hard part so you can focus on growing your business.

Get started today and simplify your employee benefits management with Playroll.

Employee Benefits in Mexico
Global Payroll

Read Time

December 6, 2024

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
Get a bird's-eye view of your payroll operations
Playroll payroll solution
See detailed payroll breakdowns per region

Simplify Global Payroll And Cut Costs with Playroll

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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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The 11 best global payroll providers
Employee Benefits

Read Time

November 27, 2024

What Are Employee Benefits in the Netherlands?

Netherlands employee benefits include statutory benefits required by Dutch labor law and supplemental perks offered to enhance employee satisfaction. Mandatory benefits include paid annual leave, pension contributions, and health insurance. Supplemental benefits, such as remote work flexibility and professional development, cater to evolving employee expectations. Together, these benefits ensure employees in the Netherlands are supported and motivated.

Who Is Entitled to Employee Benefits in the Netherlands?

Access to employee benefits in the Netherlands depends on the type of employment:

  • Full-Time Employees: These employees are entitled to all statutory benefits, including pension contributions, social security, and maternity leave.
  • Part-Time Employees: These workers receive proportional statutory benefits based on their contracted hours.
  • Temporary and Contract Workers: Often eligible for minimum wage and basic statutory benefits but may lack supplemental perks unless specified in their contract.
  • Freelancers and Contractors: Typically excluded from statutory benefits but may negotiate tailored packages with employers in the Netherlands.

Overview of Employee Benefits in the Netherlands

Mandatory Benefits Supplementary Benefits
Paid Annual Leave Retirement Plans
Maternity and Paternity Leave Additional Health Insurance
Paid Sick Leave Flexible Work Arrangements
Pension Contributions Transportation Allowances
Social Security Contributions Professional Development
Health Insurance Performance Bonuses
Parental Leave Additional Leave
Meal and Daily Stipends

Mandatory Employee Benefits in the Netherlands

Mandatory benefits are legally required provisions employers in the Netherlands must offer their workforce. These ensure a baseline of care and support for all employees. Let’s explore each benefit in more detail: 

Paid Annual Leave 

In the Netherlands, employees are entitled to a minimum of 20 days of paid annual leave for a standard 5-day workweek, with leave accrued proportionally throughout the year. Part-time workers receive leave based on their hours. Statutory leave must be used by June 30 of the following year, or it expires unless exceptional circumstances apply. Employees are paid their regular wage during leave, often with an 8% vacation allowance. 

Maternity Leave 

Maternity leave in the Netherlands is known as zwangerschapsverlof en bevallingsverlof. It is regulated under Dutch labor law and provides paid leave before and after childbirth.

Mothers are entitled to 16 weeks of maternity leave in total: leave starts 4 to 6 weeks before the expected due date (flexible by choice) and continues for 10 to 12 weeks after childbirth, regardless of when the baby is born. All pregnant employees are entitled to maternity leave, regardless of their employment type (full-time, part-time, or temporary contracts). 

Mothers receive 100% of their daily wage, up to a maximum capped by the Dutch government, funded by the Employee Insurance Agency ( Uitvoeringsinstituut Werknemersverzekeringen or UWV). Maternity leave can be extended if the baby is born late, ensuring mothers still receive 10 weeks of postnatal leave. In cases of multiple births (such as twins), additional leave may apply. Employees can choose to take the prenatal portion of leave (4 to 6 weeks) earlier or closer to the due date.

Paternity Leave

Paternity leave in the Netherlands, known as partner leave (partnerschapsverlof), provides partners the opportunity to support their families during and after childbirth. Partners (which include fathers or the second parent) are entitled to 1 week (5 working days) of paid leave, to be taken within 4 weeks after the birth of the child. Employers must pay 100% of the partner’s regular wage during this period.

Partners can take up to 5 additional weeks of leave within the first 6 months after the child’s birth. During this period, they receive 70% of their daily wage, funded by the UWV. The extended leave can be taken all at once or spread over the 6-month window, depending on the partner’s needs and employer agreement.

Parental Leave 

In the Netherlands, parents are entitled to 26 weeks of unpaid parental leave per child, which can be taken until the child turns 8 years old. Additionally, parents can take 9 weeks of partially paid leave during the child’s first year, receiving 70% of their daily wage, funded by the Employee Insurance Agency (UWV). Parental leave is flexible, job-protected, and available to all working parents, including adoptive and foster parents.

Sick Leave

Employees can receive sick leave payments for up to 2 years if they are unable to work due to illness. Employers are required to pay at least 70% of the employee’s wage during sick leave. In the first year, this amount can be increased to 100% based on the employment contract or collective agreements.

In the second year, the payment remains at 70% of the wage. After the 2-year period, if the employee in the Netherlands is still unable to work, the UWV assesses their eligibility for long-term disability benefits.

Pension Contributions 

In the Netherlands, pensions are part of a three-pillar system: state pensions (Algemene Ouderdomswet or AOW) funded through social security taxes, workplace pensions contributed by employers and employees, and private pensions for additional savings. Individuals, especially self-employed workers (Zelfstandigen Zonder Personeel), can opt for third-pillar pensions to supplement state and workplace pensions. Unlike workplace pensions, employers do not contribute to private savings plans. 

Employers often cover a large portion of workplace pension contributions, which typically range from 15–25% of gross salary, while employees contribute the rest. Freelancers must arrange their own private pensions. 

Employees can transfer the pension benefits they have accrued with one employer to another pension fund when they switch jobs, ensuring continuity in their retirement savings.

Social Security Contributions

In the Netherlands, social security contributions are mandatory payments by employers and employees to fund benefits like pensions, unemployment, disability, and healthcare. Employers cover a significant portion (approximately 18–23% of an employee’s gross salary), while employees contribute through payroll deductions (typically ranging from 27–30% of income). Contributions also support maternity leave, childcare subsidies, and basic healthcare. Rates vary annually and are calculated as a percentage of gross salary. Self-employed individuals manage their own contributions but have limited coverage. 

Health Insurance 

Employers in the Netherlands are required to pay an income-dependent healthcare contribution of 6.68% of an employee’s gross salary (up to an income ceiling of approximately €66,956 in 2024). This means that even if an employee earns more than the cap, an employer won’t be required to contribute more than €4,473 yearly. 

This payment is made directly to the Dutch Tax Authority to fund the healthcare system. Employees remain responsible for their own health insurance premiums, while employers may optionally offer additional health-related benefits such as reimbursements or wellness programs (more details on this below).

Provide Competitive Benefits In The Netherlands

Attract and retain talent globally with Playroll's tailored benefits. Let our experts manage benefits to ensure compliance with local laws so you can scale your business globally with ease.

Read More

Supplemental Employee Benefits in the Netherlands

While not required by law, supplemental benefits help employers stand out and attract top talent.

Retirement Plans 

In the Netherlands, supplemental retirement plans enhance mandatory pensions, offering greater financial security. Employers may provide additional contributions to pension funds or private savings plans, often through defined contribution schemes. These plans are tax-advantaged, allowing contributions to grow tax-free until retirement. Employees can adjust contributions or transfer benefits when changing jobs.

Additional Health Insurance

Many employers offer supplemental health benefits to enhance the mandatory basic health insurance. Employers may cover or subsidize the cost of supplementary health insurance for services not included in the mandatory basic plan, such as dental or vision care, physiotherapy sessions, mental health support and preventative care (such as annual health check-ups, vaccinations, and wellness screenings). 

Some organizations offer flexible health benefit packages, allowing employees to choose options that best suit their needs. Employers can benefit from tax advantages when offering certain health-related perks, making it cost-effective to invest in employee health.

Flexible Work Arrangements 

Flexible work arrangements have become a highly valued supplemental benefit in the Netherlands. These arrangements allow employees to tailor their working conditions to personal and professional needs. Popular flexible work arrangements include remote work, flexible hours, part-time roles, and job sharing. These arrangements allow employees to tailor schedules to personal needs, including parental responsibilities. Employers benefit from improved retention, productivity, and access to diverse talent.

Transportation Allowances 

Transportation allowances are a common supplemental benefit in the Netherlands, designed to assist employees with commuting expenses and encourage sustainable travel options. These allowances reflect the country’s emphasis on convenience and environmental awareness. The allowances in the Netherlands provide financial relief for employees while supporting sustainable commuting practices, making them a valuable addition to benefits packages.

Employers may offer tax-free reimbursements up to €0.23 per kilometer, public transport subsidies, cycling incentives, or parking benefits. These allowances reduce employee expenses, support work-life balance, and align with sustainability goals, benefiting both employees and employers.

Professional Development 

Professional development is a highly valued supplemental benefit in the Netherlands, reflecting the country's commitment to lifelong learning and workforce skill enhancement. Employers often provide various resources to support employees’ career growth and personal development. These resources include funded training, personal development budgets, access to e-learning platforms, and mentorship programs. Employers may also offer study leave and sponsorship for workshops or certifications, with tax deductions available for training expenses. These benefits enhance employee skills, boost satisfaction, and strengthen talent retention.

Performance Bonuses 

Performance bonuses are a popular supplemental benefit in the Netherlands, designed to reward employees for achieving individual, team, or company goals. These bonuses incentivize productivity, recognize contributions, and align employee efforts with organizational success. They can include individual bonuses, team incentives, company-wide profit-sharing, or holiday bonuses (13th-month pay). While taxable, they can be offered as cash, leave, or other perks, benefiting both employees and employers.

Additional Leave 

Additional leave in the Netherlands offers employees time off beyond the statutory 20 days, including extra vacation days, sabbaticals, mental health days, or volunteer leave. These benefits enhance work-life balance, support well-being, and boost job satisfaction. Employers gain improved retention, productivity, and appeal as an employer of choice.

Meal and Daily Stipends

Meal and daily stipends are popular supplemental benefits in the Netherlands, offering financial support for employees' meals or daily expenses. Offered as allowances, vouchers, or reimbursements, these benefits can be tax-free under the Work-Related Costs Scheme (WKR).

Tax Implications of Employee Benefits in the Netherlands

Employers in the Netherlands can leverage various tax incentives when offering employee benefits. Key highlights include:

  • 30% Ruling for Expat Employees: Allows up to 30% of gross salary as a tax-free allowance for relocation costs, with a phased reduction over time and a salary cap of €233,000 per year.
  • Work-Related Costs Scheme (WKR): Enables tax-free benefits up to a set threshold, with excess amounts subject to employer levies.
  • R&D Tax Incentives (WBSO): Provides tax relief on wages for employees involved in research and development.
  • Employee Stock Options: Stock options are typically not taxed at the time they are granted to the employee. The employee is only taxed when they exercise the option (when they purchase the shares) or when they sell the shares.

Legal Considerations for Employee Benefits in the Netherlands

Employers in the Netherlands must adhere to strict labor laws, fulfill reporting obligations, and avoid penalties for non-compliance. Key points include:

  • Compliance with Labor Laws: Employers must provide mandatory benefits like pension schemes and overtime pay as outlined in employment contracts or collective agreements.
  • Reporting Obligations: Employee illnesses must be reported to the Employee Insurance Agency (UWV) within specific timelines.
  • Penalties: Failure to comply with benefit provisions or reporting requirements can result in financial penalties, legal action, and reputational risk. 

Additional Benefits in the Netherlands to Attract Talent

Childcare Support

Childcare support is a sought-after benefit in the Netherlands, helping employers attract and retain talent while enhancing productivity. Options include financial aid, on-site childcare, vouchers, flexible work hours, and emergency services. These perks reduce stress for working parents, improve workplace loyalty, and align with Dutch tax advantages, creating a family-friendly and inclusive work environment.

Technology Perks

Technology perks in the Netherlands attract talent by enhancing productivity and supporting remote work. Employers can offer laptops, smartphones, home office allowances, and reimbursements for software or online learning tools. These benefits improve work efficiency and personal development, while Dutch tax exemptions make them a cost-effective option for both employers and employees.

Housing Assistance

Housing assistance in the Netherlands helps attract and retain talent by easing relocation and reducing housing costs. This is particularly attractive given that the Netherlands is currently facing a shortage of approximately 401,000 homes. Benefits may include housing allowances, relocation packages, employer-leased accommodations, and support navigating local housing regulations.

How Benefits Impact Employee Cost

In the Netherlands, employee benefits significantly influence the overall cost of hiring. On average, employer contributions to benefits such as social security, pensions, and mandatory insurance can range from 25% to 35% of an employee’s gross salary. This percentage may vary depending on the specific benefits provided and the employee's salary level.

Mandatory benefits like health insurance contributions and leave entitlements contribute the most to these costs. Offering additional perks, such as housing allowances, childcare support, or professional development programs, can further increase the total cost but also enhance the appeal of your offer to potential talent. 

To accurately assess and compare employee costs across countries, employers can use Playroll’s free global hiring cost calculator. This tool provides a detailed breakdown of employment expenses, including benefits, enabling businesses to make informed decisions when expanding their global workforce.

Hire With Confidence in the Netherlands

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Provide Competitive Employee Benefits in the Netherlands with Playroll

Playroll simplifies managing employee benefits in the Netherlands by ensuring compliance with local laws and streamlining payroll, onboarding, and benefits administration. From mandatory contributions like social security to additional perks such as housing and childcare, our benefits solution centralizes and customizes benefit offerings. Operating in over 180 countries, Playroll ensures cost efficiency, compliance, and seamless scalability for your global workforce. 

Book a demo to discover how Playroll can take your benefits strategy to the next level.

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November 20, 2024

6 Challenges of Global Payroll Management

Navigating the payroll and compliance challenges in globalization can be a significant roadblock for businesses. Here are six key challenges to be aware of, with practical tips to overcome each. By proactively tackling these challenges, HR and finance leaders can avoid problems with payroll and focus their attention where it matters – growing the business.

1. Varying Payment Dates

Managing payroll across multiple countries means navigating a maze of different pay cycles, local holidays, and banking practices. What is a standard payday in one country might be a non-working day in another, leading to potential delays and confusion. 

These varying payment dates can create significant challenges in payroll processing, such as late payments, compliance violations, and dissatisfied employees. The complexity increases when considering time zone differences and the need to process payroll data at the right moment to meet each country's specific deadlines. 

Without a cohesive global payroll strategy, businesses often struggle to keep up with these demands, resulting in errors and a lack of trust from their global team.

How to Solve it: Unify Your Reporting

To address this challenge, unifying your payroll reporting is essential. Consolidate your payroll data into one centralized system, so you can gain a bird's-eye view of all payment schedules across different countries. 

This unified approach allows you to synchronize payment processes and meet deadlines regardless of time zones or local holidays. 

Implementing global payroll solutions that standardizes data formats and integrates with local payroll systems can help streamline this process. Such a system improves coordination within your payroll team and strengthens your overall data security. It also helps you remain compliant with local payroll regulations. 

By having all your payroll information in one place, you can accurately forecast costs and provide a consistent payroll experience for your global workforce.

2. Diverse Payment Elements

Managing a global workforce means dealing with a multitude of payment elements that vary from one country to another. These variations can include:

  • Allowances
  • Bonuses
  • Overtime rates
  • Benefits
  • Tax deductions

Each country has its own set of regulations and standards governing these elements, which can significantly complicate payroll processing. For example, what qualifies as taxable income in one country might be tax-exempt in another. This can easily lead to miscalculations and compliance issues.

The complexity increases when these diverse elements must be accurately reflected in your payroll systems, where you need to ensure that each employee receives the correct compensation according to their local laws and regulations. If handled incorrectly, incorrect payments will risk dissatisfaction among employees.

How to Solve it: Standardize Your Payroll

To address this challenge, standardize your payroll processes across the business. Set up a global payroll framework that can accommodate local variations, while maintaining overall consistency to mitigate errors and compliance risks. Create standardized policies and procedures that can serve as a baseline for all payroll activities, regardless of location. 

Another option is to use a global payroll management system, that can streamline your global payroll operations and allows for customization to handle country-specific requirements. This reduces the likelihood of errors and helps build trust with your international employees.

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3. Disparate Payroll Systems And Reports

Managing payroll across multiple countries often means dealing with a variety of payroll systems and reporting methods. Each country may have its own software, processes, and standards, leading to a fragmented approach that can hinder efficiency. 

This disparity makes it challenging to consolidate payroll data, monitor compliance, and gain a holistic view of payroll expenses. The lack of uniformity can result in data inconsistencies, errors, and increased administrative workload. 

Companies may struggle with global payroll management due to these fragmented systems. This can lead to payroll issues such as delayed payments, inaccurate tax filings, and difficulties in adhering to local regulations. 

This complexity not only impacts the payroll team but can also affect employee satisfaction and the overall financial health of the organization.

How to Solve it: Consolidate Payroll Systems

To address this, consolidate disparate payroll systems into a unified platform. By integrating payroll processes across all operating countries, businesses can standardize their data formats, reporting procedures, and compliance checks. This consolidation provides better visibility into payroll operations, allowing for real-time monitoring and more accurate financial forecasting. 

A centralized system simplifies the management of employee data, reduces the risk of errors, and streamlines communication within the payroll team. 

One option is to use a global payroll solution that can accommodate local requirements and provide comprehensive insights into payroll activities worldwide.

Global payroll management
Consolidate and access all your payroll data at a glance wth Playroll.

4. Overcoming Language Barriers

Managing payroll across different countries often means dealing with multiple languages and varying payroll terminologies. Language barriers can lead to misunderstandings and errors in payroll processing.

For instance, specific payroll terms or legal requirements may not have direct translations, making it difficult for a centralized payroll team to grasp the nuances of local regulations. This can result in compliance issues, incorrect payments, and a lack of clarity in communication with international employees. 

What’s more, important documents, tax codes, and employment laws are often documented in the local language, which further complicates the payroll process. These challenges can prevent effective global payroll management and create obstacles in maintaining a cohesive payroll system.

How to Solve it: Make Use of Local Integrations

To overcome language barriers and terminology differences, leveraging local integrations is a practical solution. 

By integrating with local payroll services or customizing HR reports to country-specific needs, businesses can ensure that payroll data is accurately processed according to regional standards and that all communications and documentation are in the correct language. This approach minimizes the risk of errors due to misinterpretation and ensures you stay compliant with local laws. 

You can also look for a comprehensive global payroll solution, such as Playroll, that allows for locally customized integrations and reports.

5. Accounting For Fluctuating Exchange Rates

Managing payroll for a global workforce involves handling multiple currencies, each subject to the ebb and flow of foreign exchange markets. Fluctuating exchange rates can significantly impact payroll calculations, budgeting, and financial forecasting. 

A sudden shift in currency values can lead to increased payroll costs or discrepancies in employee compensation when converted to local currencies. This volatility poses a challenge when it comes to providing consistent and fair pay for international employees. Any discrepancies and payroll errors can seriously affect morale and trust among your team. 

Additionally, exchange rate fluctuations can complicate compliance with local tax laws and reporting requirements, adding another layer to the existing global payroll challenges. Without proper management, these fluctuations can disrupt financial stability and create unforeseen expenses for the company.

How to Solve it: Automate Your Currency Management

To address this, consider investing in good payroll software and tools that can automate your currency management and allow for real-time currency conversion. Automation reduces the risk of human error associated with manual conversions and allows for consistent application of rates across the entire payroll process. 

Such systems can also provide alerts for significant currency movements, enabling the payroll team to anticipate and adjust for potential impacts on payroll expenses ahead of time. 

Additionally, automated currency management can facilitate compliance with local regulations by accurately calculating tax withholdings and deductions based on up-to-date exchange rates. 

By streamlining currency conversions, you can improve your team’s efficiency and minimize exchange rate risks. This approach not only simplifies one of the more complex global payroll management tasks but also contributes to a more stable and transparent compensation structure for your international employees.

6. Manual Input and Human Errors

In the realm of global payroll management, relying heavily on manual data entry can significantly increase the risk of human errors. Mistakes such as incorrect employee information, miscalculations of wages, or overlooking important compliance requirements can easily occur when processes are not automated. These errors can lead to delayed payments and compliance violations, not to mention strained employee relations.

The risk of human error is greater when you’re managing payroll across multiple countries, each with its own set of regulations, tax laws, and reporting standards. Manual processes make it challenging for your team to keep up with these variations, resulting in potential financial losses and even legal issues. 

These payroll issues not only affect the immediate payroll operations but can also harm the company's reputation and impact overall employee satisfaction.

How to Solve it: Automate Processes for Error Reduction

To mitigate these risks, automating payroll processes is a highly effective solution. Automation reduces the reliance on manual data entry by utilizing software and technologies that handle repetitive and complex tasks with greater accuracy. 

 Automated systems can also integrate with other business tools, such as HR and time-tracking software, to synchronize employee data.

By automating compliance checks, companies can stay up-to-date with the ever-changing data protection laws and payroll regulations in different countries. This not only improves accuracy but also ensures you’re adhering to local payroll compliance standards. 

Automation also allows the payroll team to focus on more strategic activities, such as analyzing payroll data for insights or improving employee engagement, rather than getting bogged down with manual tasks. 

One way to do this is to implement a software solution that can streamline everything from data collection and calculations to reporting. We offer this at Playroll, helping to ensure your payroll data is error-free.

Overcome Global Payroll Challenges With Playroll 

Global payroll management solution

In a world where managing global payroll is increasingly complex, partnering with a global payroll provider makes all the difference. Playroll's Global Payroll Software addresses all the challenges of international payroll – from unified reporting, consolidated payroll systems and currency conversions, to offering local integrations and ensuring global payroll compliance.

Whether you operate in three countries or thirty, Playroll transforms payroll management into a streamlined, scalable process. Consolidate your operations, reduce manual errors, and simply focus on growing your global team with confidence. 

Book a chat with our team to learn more about our features, pricing and hands-on support to manage global payroll in 180+ regions.

We’ve seen thousands of companies struggle with the pain of fragmented payroll systems. The challenges of global payroll leave you needing to decide between using huge resources, or staying in the dark to what is often the largest and most important cost factor of your business. However, with the right solutions in place, businesses can gain real-time management of their global payroll, without thousands of hours of manual work or a premium price tag. That’s what we’re aiming for at Playroll.

David Avshalom, VP of Product Strategy and Operations, Playroll

The top 6 global payroll challenges

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