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