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Global HR

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October 18, 2024

Why Hire Remote Software Developers?

Hiring remote developers offers several benefits that are reshaping how companies build their teams. Here are key reasons why remote hiring makes sense:

  • More Affordable Talent: Hiring from countries with lower costs of living can reduce payroll expenses while still providing quality new team members.
  • Wider Talent Pools: You aren’t restricted to your local job market and can access top talent globally, helping you fulfill your urgent roles faster. This is particularly valuable in a highly competitive industry like software development.
  • Increased Employee Satisfaction: Remote job opportunities often boosts work-life balance and job satisfaction for employees, improving your retention rates.
  • A Better Brand Reputation: Hiring from diverse regions helps to grow your company’s global footprint in the long term, as well as boosts your reputation as a leading employer.

How To Choose Where To Hire Remote Developers

Remote hiring means the world’s talent is open to you. That’s exciting – but too much choice can also be daunting. How do you decide where to place your focus? Take some time to think of your team’s unique needs, and narrow down strategic regions according to these key factors:

  • Skills: In your vetting process, ensure that the developers in the region you’re looking at have the hard skills you need, such as required programming languages and frameworks. Also evaluate for soft skills like the ability for project management or good communication skills in the hiring process.
  • Affordability: Salary bands, cost of living and requisite employer taxes all differ per region. Do your research on these costs per region to find a fit for your budget – you might even find plenty of countries that save you costs while still providing quality talent.
  • Time Zone Compatibility: For smoother collaboration, pick locations with overlapping work hours. Alternatively, plan asynchronous work processes and make sure that your business is aligned in following this approach to remote work.
  • Infrastructure & Internet Stability: Ensure the country has good internet connectivity and invests in technological infrastructure to support remote work.
  • Language Proficiency: Opt for countries where language barriers won't hinder communication with your remote team. This counts for both programming and spoken languages!

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Shortlist Of Top Countries To Hire Software Developers

Salary ranges displayed show a summary of average salaries spanning seniority levels. Salaries are shown in dollars. We also provide an average of remote engineer salaries in the region. Keep in mind that average remote salaries can be higher than the national average in some countries, given the fact that these developers often work for global companies.

Salary sources: Glassdoor; levels.fyi, arc.dev; OfferZen ; weworkremotely.com; tecla.io; devitjobs.nl 

India

It’s easy to see why so many companies hire remote developers from India, one of the most popular outsourcing destinations in the world for software engineering. This is thanks to its affordable rates and one of the largest pools of talent in the world at nearly 5 million software engineers.

  • Average software engineer salary: $6,000 - $40,400 p/year. The average remote software engineer salary is $48,900 p/year.
  • Timezone: GMT+5:30
  • Official Languages: English, Hindi
  • Top Technologies: Python, Java, C++, C#, JavaScript

Brazil

Brazil has become a hub for tech talent, with a growing startup ecosystem and large community of developers. It has a particularly favorable time zone for North American businesses, and the largest economy in Latin America.

  • Average software engineer salary: $21,300 - $55,300 p/year*. The average remote software engineer salary is approximately $63,300 p/year.
  • Timezone: GMT-3
  • Official Languages: Portuguese
  • Top Technologies: JavaScript, React, Node.js, Python

South Africa

Why hire remote developers from South Africa? With approximately 120 000 software developers in the country, the country boasts a growing tech ecosystem. It offers access to highly skilled software developers with a strong grasp of English, an advantageous time zone for European businesses, and low employer costs.

  • Average software engineer salary: $16,000 - $63,000 p/year. The average remote software engineer salary is approximately $68,900 p/year.
  • Timezone: GMT+2
  • Official Languages: English, Afrikaans, Xhosa, Zulu, and more.
  • Top Technologies: JavaScript, C#, TypeScript, Python

Portugal

Portugal has become a top location for hiring skilled software engineers, with a high proportion of STEM graduates – the country has approximately 230,000 IT specialists. It’s a particularly attractive location for European companies looking for high-quality remote developers – Portugal also offers incentives for foreign investment and remote work, including digital nomad visas.

  • Average software engineer salary: $34,100 - $66,700 p/year. The average remote software engineer salary is around $61,600 p/year.
  • Timezone: GMT+1
  • Official Languages: Portuguese, English
  • Top Technologies: Java, C#, PHP, JavaScript, SQL

The Philippines

The Philippines has a fast-growing tech industry, supported by substantial investment in education and improvements in technological infrastructure. The country’s developers are known for their fluency in English and cost-effectiveness.

  • Average software engineer salary: $7,900 - $26,500 p/year. The average remote software engineer salary is approximately $41,200 p/year.
  • Timezone: GMT+8
  • Official Languages: Filipino, English
  • Top Technologies: JavaScript, Python, PHP, Java, SQL.

Ukraine

Ukraine is known for its high-quality developers, especially in software development and IT services, offering strong technical skills at competitive rates. The local industry is showing resilience and innovation despite the ongoing war.

  • Average software engineer salary: $38,400 - $66,000 p/year. The average remote software engineer salary is approximately $59,800 p/year.
  • Timezone: GMT+2
  • Official Languages: Ukrainian, Russian
  • Top Technologies: JavaScript, Java, Phyton, C#, TypeScript, PHP, Kotlin

Argentina

Argentina has a healthy tech scene, with over 1000 active startups contributing to its economy. It offers talented software developers at affordable rates, making the country a particularly attractive location for North American companies.

  • Average software engineer salary: $21,600 - $82,500 p/year.  The average remote software engineer salary is approximately $58,300 p/year.
  • Timezone: GMT-3
  • Official Languages: Spanish, English
  • Top Technologies: C++, C#, JavaScript, Python 

Mexico

Mexico is an ideal location for US-based companies due to its proximity, time zone compatibility, and large, technically skilled labor force – with its technology sector seeing average yearly growth rate over 10%.

  • Average software engineer salary: $24,600 - $87,400 p/year. The average remote software engineer salary is approximately $64,300 p/year.
  • Timezone: GMT-6 to GMT-8
  • Official Languages: Spanish, English, and more.
  • Top Technologies: JavaScript, Java, Python, SQL, C++

The Netherlands

The Netherlands has a firmly established, thriving tech industry that’s rooted in entrepreneurship. Skills like data analytics and cybersecurity are seeing a boom in particular. With an educated and skilled workforce that enjoys a high quality of life, it’s a prime location for hiring experienced software engineers.

  • Average software engineer salary: $45,000 - $90,000 p/year. The average remote software engineer salary is approximately $75,600 p/year.
  • Timezone: GMT+1
  • Official Languages: Dutch, English
  • Top Technologies: Java, Python, JavaScript, Node.js, C#

Nigeria 

Nigeria has one of the fastest-growing IT markets in Africa, with a multitude of startups located in Lagos. It's becoming a leading player in Africa's software development scene, with a large, diverse workforce. The cost of hiring is also very competitive.

  • Average software engineer salary: $3,000 - $22,600 p/year. The average remote software engineer salary is approximately $53,600 p/year.
  • Timezone: GMT+1
  • Official Languages: English, Hausa, Yoruba, Igbo
  • Top Technologies: Java, Python, PHP, C#, Swift, Ruby

The United Kingdom

The UK’s thriving tech industry employs more than 1.7m people, and has more than 150 startups that are considered unicorns with a valuation of at least $1 billion. It offers a highly skilled workforce with a strong emphasis on innovation, and English proficiency makes communication seamless.

  • Average software engineer salary: $87,600 - $166,290 p/year. The average remote software engineer salary is approximately $72,100 p/year.
  • Timezone: GMT
  • Official Languages: English
  • Top Technologies: Java, Python, Ruby, JavaScript, SQL

Poland

Poland has one of the largest IT industries in Europe, with over 410 000 IT specialists, making it particularly attractive for European companies looking to hire high-quality remote developers.

  • Average software engineer salary: $47,500 - $83,000 p/year. The average remote software engineer salary is approximately $71,300 p/year.
  • Timezone: GMT+1
  • Official Languages: Polish, English
  • Top Technologies: Java, Python, JavaScript, SQL

Kenya

Kenya is another growing tech hub in Africa, which is seeing significant investment in its technological infrastructure and offers affordable rates for businesses hiring remotely. In addition, its time zone overlaps with both European and American business hours. The country’s emphasis on technology education and innovation is fostering a vibrant tech ecosystem.

  • Average software engineer salary: $9,100 - $47,500 p/year. The average remote software engineer salary is approximately $51,200 p/year.
  • Timezone: GMT+3
  • Official Languages: English, Swahili
  • Top Technologies: JavaScript, Python, Java, C#, SQL, Go, Kotlin

Spain

Spain’s technology sector is one of the fastest growing industries in Spain over the past decade, reflecting the country’s commitment to digitalization. It has over 333 000 software developers. Spain is also among the European countries that offer digital nomad visas to encourage foreign investment in the country.

  • Average software engineer salary: $41,000 - $76,500 p/year. The average remote software engineer salary is approximately $68,200 p/year.
  • Timezone: GMT+1 (GMT+2 during daylight saving time)
  • Official Languages: Spanish, Catalan, English
  • Top Technologies: JavaScript, Python, Java, Ruby on Rails

Canada

Canada's tech industry sees rapid growth year on year – many of the world’s largest companies are established in the country. With its highly skilled workforce and many programs to support tech talent, it’s an attractive international hiring location. Compared to some other countries on this list, you will come across higher average salaries.

  • Average software engineer salary: $72,000 - $128,000 p/year. The average remote software engineer salary is around $90,300 p/year.
  • Timezone: GMT-3.5 to GMT-8
  • Official Languages: English, French

Top Technologies: JavaScript, C#, Python, Java

Hire Remote Software Developers, Without The Red Tape

Hiring remote developers from any country can be complex due to shifting labor laws, tax requirements, and employment regulations. A traditional option to expand globally while staying compliant is to establish your own legal entity in the country. This can be a time-consuming and costly process, and not a viable option if you want to quickly explore new markets.

Playroll’s Employer of Record (EOR) services simplifies the process of hiring remote full-time employees, with on-the-ground experts to handle compliance with local regulations and payroll. This frees you up to hire top software engineering talent globally without the hassle of establishing your own legal entities.

Ready to hire top software talent without the complexity?

Work Permits & Visas

Read Time

October 16, 2024

What is a Work Permit Or Visa in Spain?

In Spain, a work visa allows non-EU nationals to legally live and work within the country. For employers, the process typically involves securing a work permit for the employee before they apply for a visa. While the work permit is authorization from the Spanish government allowing the employee to work in the country, the visa grants them the right to enter and reside in Spain.

In Spain, a work permit and a work visa are two distinct but interconnected components for hiring non-EU nationals:

Work Permit: Authorization from the Spanish government that allows a foreign national to legally work in Spain. It is secured by the employer before the employee applies for a visa.

Work Visa: An entry document that allows the individual to enter and reside in Spain legally. It is applied for at the Spanish consulate in the employee’s home country after the work permit is approved.

Employers need to consider both when hiring a non-EU citizen, but will be dealing with work visas when sponsoring a foreign workers in Spain.

Who Needs a Work Permit Or Visa in Spain?

All non-EU/EEA nationals require a work permit and visa to legally work in Spain. Once granted, this is usually issued along with a residence permit.

Failure to ensure that employees have the necessary work authorization can lead to fines, penalties, and the invalidation of employment contracts. Employers are responsible for verifying that their foreign workers have valid work permits and ensuring that employees adhere to the terms of the permits.

Common types of workers requiring work authorization checks include:

  • Non-EU skilled professionals
  • Employees relocating from non-EU countries
  • Au pairs or domestic workers arriving in Spain under specific work agreements

In order to hire an international worker in Spain, the job must be listed as a shortage occupation, meaning there were no suitable candidates in Spain or the EU.

Citizens of the EU or EEA member states don’t require a work permit or visa to work in Spain. They include nationals from the following countries: 

Austria; Belgium; Bulgaria; Croatia; Cyprus; Czech Republic; Denmark; Estonia; Finland; France; Germany; Greece; Hungary; Ireland; Italy; Latvia; Lithuania; Luxembourg; Malta; Netherlands; Poland; Portugal; Romania; Slovakia; Slovenia; Spain; Sweden; Iceland; Liechtenstein; Norway

Playroll offers a streamlined solution to handle all complexities of compliance, ensuring a smooth process from onboarding to employment verification.

Types of Work Visas in Spain

There are several types of work visas in Spain, each tailored to a different context. Any work visa that is valid for longer than 3 months falls under the category of a long-stay visa in Spain.

Below is an overview of the most common work visas. 

Visa Type Description
Highly Qualified Professional (HQP) Visa Designed for highly skilled non-EU citizens, often in manager and executive positions. Applicants must meet specific salary thresholds, and the visa is valid for up to two years.
Standard Work Visa Usually valid for one year. Requires a work contract with the employer.
EU Blue Card Intended for highly qualified workers from outside the EU, giving them the right to live and work in an EU country. This visa also provides the right to live and work in Spain. Applicants must hold a higher education qualification equivalent to the level 6 of European Qualifications Framework, or have five years of professional experience.
Au Pair Visa Aimed at young people coming to Spain to live with a host family and provide childcare services in exchange for lodging and pocket money. Requires an au pair agreement.
Temporary Work Visa For non-EU nationals employed for a short-term project or role in Spain. Validity typically lasts from 3 months to 1 year, depending on the contract.

What are the Requirements for a Work Permit or Visa in Spain?

Each type of work visa has its own set of eligibility criteria and documentation requirements. 

The requirements for a work visa could include:

  • The applicant must have a valid job offer in Spain for the role
  • Proof of accommodation
  • The role must meet salary thresholds, which vary based on the position and industry
  • Higher education qualifications or a number of years’ professional experience

Documents Required:

  • Valid passport
  • Employment contract and job description
  • Proof of qualifications or professional experience
  • Criminal record certificate from the home country
  • Medical certificate
  • Marriage certificate (for accompanying spouses)

For other visa types, similar documentation is needed, with slight variations based on the specific visa category. Employers should ensure that all documents are translated into Spanish by a sworn translator.

The Requirements For A Digital Nomad Visa in Spain

Spain introduced a Digital Nomad Visa in January 2023 to allow remote workers to live and work in Spain while employed by a non-Spanish company. The digital nomad visa is intended to encourage foreign investment and stimulate the local economy. It can also be a great benefit to employers, as it opens up the door to attracting and retaining a wider pool of international talent. 

Applicants must prove they have sufficient financial means and can work remotely. The visa is valid for one year and can be renewed.

Some requirements include:

  • A minimum income of €2,400 per month, with required income going up if accompanied by a spouse or more dependents.
  • The applicant is working remotely for more than 3 months for a foreign company.
  • Income from Spanish companies doesn’t exceed 20% of your total income

Other Considerations for Visas in Spain

  • Dependent Visas: Family members, such as spouses and children, can apply for dependent visas to join the primary visa holder in Spain. Documentation includes certified marriage and birth certificates.
  • Tax Implications: Depending on the visa type, employees may be subject to Spanish income tax. Employers should be mindful of tax compliance when hiring foreign nationals.

Sponsoring a Foreign Worker for a Job in Spain

Employers in Spain play a key role in ensuring a successful visa application for their foreign workers. Employer support includes providing the required employment contract, assisting with gathering necessary documents, and sometimes covering application fees. 

Application Process for Work Permits:

  1. The employer files for authorization for temporary residence and employment permit to hire a worker for a period of more than ninety days and less than five years. You can read more about this process here
  2. Upon approval, the employee applies for a work visa at a Spanish consulate in their home country.
  3. Once the visa is granted, the employee can enter Spain and begin work. They must register with Spanish Social Security and apply for their Foreigner Identity Card (Tarjeta de Identidad de Extranjero) within three months of their entry, at the local Foreigner’s Office or Police Station. This phase usually takes 30 days and the applicant will need to collect it personally.

Important To Know

To sponsor an employee in Spain, you need to be registered as a legal employer in Spain – traditionally, this requires you to establish a legal entity in the country. Want to explore the market and compliantly hire employees without the cost and time required to establish an entity? 

Using an Employer Of Record such as Playroll is a simple alternative. By leveraging our existing, wholly-owned infrastructure in Spain, you can compliantly employ foreign workers without the red tape.

Processing Time for a Spanish Work Permit Or Visa

Processing times for Spanish work visas vary, but typically range between 2-3 months. This includes the time it takes to collect the necessary documents and secure appointments at consulates. Delays in processing can have a significant impact on an employer’s ability to onboard new hires promptly, so planning ahead is crucial.

Example: A Highly Qualified Professional Visa typically takes 2-3 months to process. Employers should anticipate delays and factor in the time needed for document collection and consulate appointments.

Extending a Work Permit Or Visa in Spain

The validity of work permits in Spain varies. Work permits are generally valid for 1 year, but this can be longer depending on the type of visa. For example, a Highly Qualified Professional Visa is valid for up to two years, with the option to renew if the original employment conditions are still met.

After five years of continuous legal residence in Spain, workers can apply for permanent residency.

Navigating Work Visas in Spain with Playroll

Hiring foreign talent in Spain doesn't have to be complicated. Playroll supports the visa application process in Spain. With a wholly owned entity and on-the-ground experts in the country, we ensure compliance with Spanish work permit regulations and offer end-to-end support for employers and employees. 

By leveraging Playroll's EOR services, you can focus on scaling your business, while we handle the paperwork.

Contractor Management

Read Time

October 11, 2024

What Is Contractor Management Software?

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

What are the benefits of contractor management software?

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

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

Shortlist Of Top Contractor Management Services

1. Playroll

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

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

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

Read Case Study

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

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

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

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

Playroll Stand-Out Features

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

2. Fiverr

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

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

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

Fiverr Stand-Out Features

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

3. Upwork

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

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

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

Upwork Stand-Out Features

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

4. Deel

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

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

Pricing: Starts from $49 per contractor/month.

Deel Stand-Out Features

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

5. Rippling

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

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

Pricing: Not publicly disclosed. 

Rippling Stand-Out Features

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

Why Playroll Stands Out

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

Avoiding Employee Misclassification Risk

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

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

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

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

2024 Guide To Avoid Employee Misclassification

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

Read Guide

Company Updates

Read Time

October 8, 2024

Year One: Laying the Foundation

In our first year, Playroll hit the ground running, quickly becoming a trusted leader in global compliance. With the VAT IT Group's 25 years of experience backing us, we entered the market as seasoned experts who understood the challenges businesses face when hiring internationally.

We’re competitively priced and built on VAT IT’s two decades of global hiring expertise. We weren’t starting from scratch—we knew the issues and used our wealth of knowledge to address them head-on. The question was: If not now, when? With the infrastructure, expertise, and passion in place, it was time to power global compliance with Playroll."

Brendon Silver, Co-Founder, Playroll

By launching our Employer of Record (EOR) and Contractor Management services, we aimed to disrupt the market with a seamless blend of technology and service. Our user-friendly platform and customer-first approach positioned Playroll as a human-centered solution designed to enhance the global employment experience from day one.

Celebrating the opening of our first office in the United Kingdom (helped by plenty of pizza).
We hit play on our very first marketing stand
Our team spread the word on Playroll far and wide – even when going to Dua Lipa concerts.
Just like our clients, we're going places – filling up our second office in Johannesburg, to be exact!

Year Two: Expanding Our Global Footprint

In our second year, Playroll truly hit its stride, deepening partnerships with businesses of all sizes worldwide. We became a trusted ally, helping companies manage international teams while navigating the complexities of ever-changing local regulations.

Reflecting on this milestone, Brendon Silver, Co-Founder of Playroll, shared, “One of our proudest moments was successfully migrating a client from a competitor and securing our first customer with over 50 employees. Today, we're thriving across multiple regions and doing it with excellence.”

Year two was marked by significant growth. We introduced integrations with top HRIS platforms like BambooHR and HiBob, launched our Open API, and expanded our reach to over 110 countries. With thousands of employees and contractors now relying on our platform, we enhanced our services by rolling out localized benefits tailored to meet the growing demand. This year was all about scaling our vision and increasing our impact on the global employment landscape.

This marks the year we started celebrating our birthday across multiple countries too, from the UK to South Africa.
Raising a glass on Women's Day
We take the 'play' in our name seriously, too – the team always makes time to attend a wedding (or two)!
Growing the Playroll Family... Literally! 💍🎉

Year Three: Redefining What's Possible

At three years strong, Playroll is redefining the global employment landscape with a perfect balance of product innovation and human-centered excellence. We've truly come into our own, supporting businesses in over 180 countries and seamlessly onboarding thousands of employees and contractors.

We're showing our customers that you can trust your external HR provider completely. We care deeply about their success, respond quickly, and stay dedicated to their needs. EOR was just the beginning—global payroll is next!

Erez Golan, Co-Founder, Playroll

As we continue to grow, we're pushing the limits of what’s possible, creating advanced solutions that streamline payroll, compliance, and payments across borders. Playroll isn’t just keeping up with the industry—we're leading it, driving the future of global employment through innovation, care, and unwavering commitment. The journey has just begun!

Hello, Cape Town! Another year, another office opening to celebrate.
In our spare time, we go bowling.
Playroll's UK off-site brought one of the few days of sunshine in London.
A Playroll brand refresh is well underway, too.

Looking Ahead: The Journey Continues

As we celebrate three years of Playroll, we’re not just reflecting on our successes—we’re charging full speed ahead into the future. With the confidence gained from our past milestones and the lessons we’ve learned along the way, Playroll is poised to continue reshaping the global employment space, pushing boundaries, and innovating like never before.

Reflecting on the company’s growth, Erez shared: 'Our journey has been like building a championship team, with everyone playing their part and putting in the work. While it's rewarding to see how far we’ve come, what excites us most is the potential that lies ahead.'

Success in business comes down to one simple formula: find the best talent, share a clear and inspiring vision, and then empower them to achieve it in their own unique way. When you give great people the freedom to use their skills, the possibilities are endless.

Brendon Silver, Co-Founder, Playroll

Here’s to the next chapter of bold growth, innovation, and reimagining what’s possible. The future is brighter than ever, and at Playroll, we’re just getting started! 🌍🚀

Contractor Management

Read Time

October 4, 2024

What Is Employee Misclassification and Why Does It Matter?

Employee misclassification is the incorrect categorization of a worker as an independent contractor when they should be classified as an employee due to the true nature of the relationship, regardless of the type of contract they had entered into. This misclassification occurs when companies fail to meet legal criteria that distinguish employees from contractors.

Why is this problematic? 

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

Employee misclassification is particularly challenging because the criteria for determining employment status vary between countries and states.

For example, a worker classified as a contractor in the US may be seen as an employee in the UK based on local labor standards. Because these rules can be complex, many businesses rely on expert assistance to ensure compliance across different jurisdictions.

Important To Know

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

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

What Are The Differences Between Independent Contractors and Employees?

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

Tax Obligations

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

Degree of Control

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

Intellectual Property (IP) Protection

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

Employee Benefits and Protections

Employees are entitled to mandatory benefits such as health insurance, unemployment insurance, and workers' compensation, while contractors usually do not receive these same benefits.

Employees are also generally entitled to protection from discrimination and harassment, whilst contractors may not be afforded the same level of protection.

Employee vs. Contractor Compliance Checklist

Correctly distinguishing between employees and contractors can get surprisingly complex: several tests exist for this reason, for example the Economic Reality Test test in the U.S. 

There are, however, some common hallmarks of misclassification. Here’s your checklist of the most common questions that government authorities use to determine misclassification. If you’ve hired a contractor and find your answers aligning with the characteristics of an employee, it’s a red flag that they may be misclassified:

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

The Risks of Employee Misclassification

There are several risks to employee misclassification, whether unintentional or not – though the repercussions tend to be most severe if government authorities find that a business has intentionally misclassified workers or committed fraud. 

Some of the repercussions can include:

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

Which Industries Are Most Susceptible To Misclassification?

Whilst any industry is susceptible to employee misclassification, some industries have longer standing practices of misclassification than others or it’s generally more common. 

For example, businesses in sales, IT, high-tech, hospitality, entertainment, logistics and construction industries should be especially aware of misclassification risks. 

Penalties for Misclassifying Employees as Independent Contractors

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

United States

The IRS imposes heavy fines for unpaid payroll taxes, along with penalties for failure to provide benefits like health insurance or workers' compensation. The Wage and Hour Division of the U.S. The Department of Labor also actively pursues claims. For example, you can be subject to a $50 fine for each unfiled Form W-2, or charged a percentage of wages. 

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

United Kingdom

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

European Union

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

What Are Examples of Employee Misclassification Penalties?

Several notable legal cases highlight the consequences of misclassifying employees:

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

How to Avoid Employee Misclassification as an Employer

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

Create airtight independent contractor agreements (and abide by them)

Ensuring compliance and the correct classification starts at the recruitment and onboarding stages. When hiring contractors, make sure your contractor agreement is set up correctly in line with local labor laws. It should cover, amongst others (see checklist above):

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

In a worst-case scenario, a robust contractor agreement can be used in your defense in legal cases – assuming you truly haven’t misclassified the worker.  

Whilst the content of the contractor agreement is important, employers should still be aware of the “substance over form” principle, discussed above, and determine if it is applicable in the countries in which they hire individuals. 

How We Tick The Box On Compliance

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

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

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

Stay updated on local regulations

Employment laws are constantly evolving, especially in the context of remote work.

Spend time researching local regulations for the regions you’re interested in, before taking the next step and hiring an independent contractor or employee.

Run internal audits

Regularly review the status of all your workers to ensure they are correctly classified. Make sure this forms part of your standard policies or procedures, and assign ownership of the audit to a specific person or department so these checks don’t fall through the cracks of your business. 

Convert contractors to employees 

If a contractor's role has evolved to more closely resemble that of an employee, consider offering them a formal employment contract. This can also hold the following benefits:

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

Seek expert help

It can take significant time and resources to stay compliant as a global business when hiring remote workers. That’s why many businesses choose to use global employment services like Playroll,  that have experts on-hand to help you make sense of local labor laws and stay fully compliant when hiring across borders.

I always feel completely calm and safe with Playroll, which is very important to me and the people we employ. I have complete trust that everything is done by the law.

Violeta Cirkovic, HR Generalist, Two Desperados

Read Case Study

Ensure Global Compliance When Hiring Independent Contractors with Playroll

Employee misclassification can get complicated, but it doesn’t have to be a bottleneck to scale your global team.

Playroll can help businesses sidestep employee misclassification risk by ensuring compliance with employment laws in over 180 countries. No matter what type of worker you want to hire, Playroll’s team of experts will do the heavy-lifting to ensure your workforce is correctly classified and compliant – freeing you up to focus on your business growth.

Book a free chat with our team and get a compliance consultation, to ensure your business is not at risk of misclassification.

Employee Benefits

Read Time

October 1, 2024

What Are Employee Benefits in Spain?

In Spain, employee benefits are divided into mandatory and supplemental categories. Mandatory benefits are stipulated by the Spanish Workers’ Statute (Estatuto de los Trabajadores). In contrast, supplemental benefits are often offered to enhance compensation packages and remain competitive in the job market.

Mandatory Benefits Supplemental Benefits
16 weeks of maternity leave Private Health Insurance
30 calendar days (22 working days) of paid annual leave Additional paid time off
Sick leave (up to 18 months) Supplemental retirement benefits
16 weeks of paid paternity leave
14 paid public holidays
Social Security (Instituto Nacional de la Seguridad Social-INSS)
Workers Compensation
13th and 14th Month Pay

Types of Workers Eligible for Benefits in Spain

Not all Spanish employees are entitled to the same benefits. For example, Spanish full-time employees work an average of 40 hours per week. These types of Spanish employees are entitled to all statutory benefits including maternity/paternity leave, annual leave, and paid sick leave under Spanish law. 

On the other hand, part-time employees are defined as Spanish employees who work up to 20 hours per week. These employees receive proportional benefits, based on the hours worked, in line with Spanish law.

Contractors and freelancers (autónomo)  in Spain work independently of any employing entity. In Spain, these workers can sign up to a special scheme for freelancers called RETA. This regime requires that freelancers contribute a specified amount to the social security system (Tesorería General de la Seguridad Social – TGSS). In exchange, they can enjoy benefits provided by the system such as medical treatment, sick pay, and retirement. 

Mandatory Employee Benefits in Spain

Mandatory employee benefits in Spain are statutory requirements outlined by labor laws, ensuring employees receive basic rights such as paid time off, leave for family-related events, and social security.

Maternity and Paternity Leave

Spanish labor law ensures that new mothers receive 16 weeks of paid maternity leave after the birth or adoption of their child. There is an additional guarantee of two extra weeks of paid leave per child in cases where the mother gives birth to multiple babies or babies born with disabilities. 

Paternity leave (or “partner leave” as it is officially called by the Spanish government) has recently also been extended to 16 weeks of paid leave, to accommodate fathers of newborn or adopted children. Both types of leave are funded by the country’s Social Security. 

Annual Leave

Employees in Spain are entitled to 30 calendar days or 22 working days of paid annual leave each year, as outlined in the Workers’ Statute (Estatuto de los Trabajadores). However, the Collective Bargaining Agreements (CBAs) may secure additional days for workers in certain industries. 

Sick Leave

Employees unable to work due to illness are eligible for paid sick leave. This is typically covered by the Social Security system, with up to 18 months of paid sick leave depending on the severity of the illness. The first three days of sick leave are unpaid. The employee can receive 60% of pay between the fourth and 20th day and is eligible to receive 75% of pay from the 20th day onward. 

Statutory Holidays 

In addition to paid annual leave, Spanish employees are entitled to up to 14 paid days off in observance of national holidays (that are region-specific). All Spanish employees must be allowed to celebrate the nine nationwide holidays such as New Year’s Day (Año Nuevo), Good Friday (Viernes Santo), and Labor Day (Día del Trabajo). Other holidays granted to employees are dependent on provincial and regional customs. 

Social Security (INSS) 

In Spain, the social security fund is made up of several funds that address various aspects of employees’ lives such as illness, unemployment, disability, and retirement. 

  1. Healthcare: Employers are required to provide their employees with medical insurance under Spanish labor law. To be eligible, employers must enroll their staff with the General Social Security Fund (TGSS). The total social security deduction is 28.3%. Employers contribute 23.6% and employees contribute 4.7% towards the fund. 
  2. Unemployment: The Social Security fund provides financial support for individuals who are not currently working but are willing and able to work. 
  3. Pension: Individuals who turn 66 (the retirement age) or are eligible for early retirement can claim a pension from the INSS.  
  4. Disability (temporary and permanent): Individuals who have suffered temporary or long-term disabilities qualify to receive financial support from the INSS. 

Employers contribute 30.48% and employees contribute 6.47% (a total of 36.95%) towards INSS contributions. 

Workers’ Compensation 

Workers’ compensation is also referred to as Collective Agreement Accident Insurance (Seguro de Accidentes de Convenios Colectivos) because the provisions are usually dependent on the outcome of CBA negotiations for specific industries. 

This insurance provides healthcare and financial support to individuals who have suffered from job-related accidents and illnesses that prevent them from working. 

13th and 14th Month Pay 

While this pay is usually an additional perk in other countries, employers are required to provide their workers with two annual bonuses (13th and 14-month pay). Each bonus is equal to one month of an employee’s salary and is also subject to income tax.

Supplemental Employee Benefits in Spain

While mandatory benefits ensure basic rights, supplemental employee benefits can significantly enhance a compensation package and help attract top talent. Common non-mandatory benefits in Spain include:

Private Health Insurance 

Employers often provide additional health benefits, such as private medical insurance, to cover employees and their families, complementing the public healthcare system. Health insurance can cost Spanish employees an additional 100 to 200 euros per month so offering private health insurance will be greatly valued by employees. Private healthcare gives employees access to better quality healthcare (when compared to Spain’s public healthcare system).  

An additional benefit that addresses employees’ physical health can make your compensation package more competitive. This can involve offering your employees additional medical coverage that includes expenses such as dental, vision, and disability that are not covered by mandatory health insurance. 

Additional Paid Time Off 

Spanish federal labor law ensures paid leave in certain circumstances such as maternity and paternity leave. However, additional paid time off is a powerful benefit to add to your benefits package as additional days off help employees manage unforeseen circumstances or celebrations in their personal lives. This is sure to boost company morale and improve employee work-life balance. 

Supplemental Retirement Benefits 

Many employers in Spain offer private pension plans to supplement the mandatory public pension system.

Tax Implications of Employee Benefits in Spain

Certain employee benefits, such as pagas extraordinarias (extra pay), and meal vouchers, can have tax advantages for both employers and employees in Spain. Employers may receive tax deductions for offering specific benefits like private health insurance or childcare and meal vouchers, reducing the overall cost of providing supplemental benefits. 

Legal Considerations for Employee Benefits in Spain

Compliance with Spanish labor laws is crucial when offering employee benefits. Employers must adhere to regulations outlined in the Estatuto de los Trabajadores (The Worker’s Statutes) and ensure they meet legal obligations. Spanish labor law requires that employers provide base-level benefits to their employees. If employers fail to do so, this can lead to penalties, including fines and legal disputes. 

Mandatory benefits are merely the bare minimum as outlined by Spanish Federal law. Employers can and should consider offering additional perks to their employees. 

Stay Compliant With Playroll

Daunted by the complexity and red tape of complying with local labor laws? Playroll does the heavy lifting to ensure you always tick the box on compliance, so you can focus on building your business.

Additional Benefits in Spain to Attract Talent

To remain competitive in the Spanish market, companies often provide additional perks, including:

  • Lunch Vouchers: Meal vouchers are a popular benefit and can be tax-efficient.
  • Flexible Working Hours: Many employers provide flexible schedules to promote work-life balance.
  • Company Vehicles: For qualified employees, this is a common incentive in Spain.
  • Health and wellness programs: Whether it’s a gym membership, yoga classes, or an in-office gym, these programs make it easier for employees to stay healthy. 
  • Public transportation passes: This can ease the commute for employees who need to head into the office.

How Benefits Impact Employee Costs in Spain

Employee benefits significantly contribute to the total cost of hiring in Spain. On average, statutory and supplemental benefits can account for around 30-40% of an employee's total compensation. 

For a detailed breakdown of how benefits affect your employer costs, use Playroll’s Free Global Employee Cost Calculator for country comparisons.

Calculate Your Employment Costs With Playroll

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

Calculate Costs

Provide Competitive Employee Benefits in Spain with Playroll

Managing employee benefits can be overwhelming, but Playroll simplifies the process. With a presence in over 180 countries, our platform ensures seamless onboarding, payroll, and benefits administration. Playroll ensures compliance with local labor laws while providing a competitive edge through attractive, localized benefits.

Book a chat with our team to learn how we can scale your global team with ease.

Book A Demo

Employer of Record

Read Time

September 26, 2024

What is an Employer of Record (EOR)?

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

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

Top EOR Providers in 2024

1. Playroll

Yes, we admit our bias, but can point to a proven track record of success when it comes to compliantly employing, managing and paying remote teams for businesses of any shape and size.

Playroll simplified our expansion into new markets by providing a comprehensive understanding of local regulations. Through this partnership, we could immediately tick the box on compliance, at no risk to BET Software.

Gizelle Govender, Senior People Partner, BET Software

Read Case Study

As a global Employer Of Record, Playroll stands out for its cost effective pricing, without compromising on the quality of its EOR services or support. It offers truly human customer support for both employers and employees to simplify international employment. This is in contrast to many competitors that rely on ticketing systems, do not offer dedicated support, or upcharge for support. We are uncommonly flexible when it comes to the needs of our customers, going the extra mile to customize contracts and facilitating transfers between EOR and client entities as needed.

Playroll’s user-friendly platform allows you to employ, pay and manage employees and contractors alike in 180+ countries, and provides a team of experts that ensures compliance with shifting employment regulations. Other services include comprehensive localized benefits packages, immigration support, and streamlining global payroll operations.

Pricing: From $399 per month, per employee. No annual commitment required for affordable prices.

Playroll Stand-Out Features

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

2. Papaya Global

Papaya Global is especially known for its comprehensive support in payroll processing, and is innovative when it comes to integrating AI within HR tech.  They have a broad range of customization options available to customers.

On the downside, Papaya Global relies fully on third party partners to provide their services, instead of having its own infrastructure of owned entities. This can mean extra fees being passed on to customers, on top of already hefty monthly EOR fees. It also means the EOR provider always has to liaise with third-party partners when providing customer support, which can significantly delay their response times.

Pricing: From $599/month, per employee.

Papaya Global Stand-Out Features

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

3. G-P (Globalization Partners)

G-P is a popular EOR choice that offers a broad range of products. They split their  EOR services between a core and premium offering. This can be useful for businesses that are looking for a broad range of options to pick and choose from. They also have many options to tweak and customize services, and advanced data analytics.

Globalization Partners does have its cons. Their pricing is complex and obscure, with reports of high monthly fees. Many of their EOR features are only available with their premium product, and they’ve received some negative feedback for slow customer service. Overall, this could make them a poor fit for smaller companies that have more limited resources and require more hands-on support to make their first international hires.

Pricing: Not publicly disclosed. 

G-P Stand-Out Features

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

4. OysterHR

OysterHR is known for their fun branding and user-friendly platform, with quick onboarding times reported. They have a wide country coverage, and solid compliance credentials behind their name. 

On the other hand, they are priced at the upper end of the market for their EOR services, which can quickly prove to be a financial bottleneck for companies hoping to hire more than just a handful of international employees. In addition, there have been some reports of payroll mistakes and delays on public review sites. 

Pricing: From $599/month, per employee if paying annually. Monthly plans are priced from $699 p/month.

Oyster HR Stand-Out Features

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

5. Remote

Remote is a well-known EOR provider, with a focus on providing services through their own network of owned entities, which can be useful for businesses that want to avoid dealing with any additional third parties in the equation. 

On the downside, their EOR fees are very high compared to some other names in the business, and they have received some negative reviews on slow customer service and multiple points of contact. They also don’t offer a very wide network of country coverage for EOR services, with less than 100 countries covered, which can limit your ability to scale as a business.

Pricing: From $599/month, per employee.

Remote Stand-Out Features

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

6. Deel

Deel is another well-established player in the EOR space, offering options to manage full-time employees and contractors in 150+ regions. They can be a good fit for businesses looking for an EOR partner with many owned entities, and a comprehensive range of integrations.

That said, Deel’s fees are expensive and require annual commitments for cheaper pricing, and they’ve received many negative reviews of hidden fees and unexpected costs. This can make it hard to properly budget for their services, and can prove too expensive for smaller businesses looking to scale globally.

Pricing: From $499/month, per employee if paying annually. Monthly plans are pricier, at $599 p/month.

Deel Stand-Out Features

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

7. Rippling

Rippling is a popular workforce management solution, and is especially known for their broad range of products that include payroll, finance and IT management. This can make them a good choice for companies looking for a single solution to workforce management.

If you’re looking for a specialist in global employment and EOR services though, there are some cons to consider. Their pricing is not publicly disclosed, though high fees are reported – and they’ve received negative reviews of a bloated product with a steep learning curve, as well as payroll errors.

Pricing: Not publicly disclosed.

Rippling Stand-Out Features

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

8. Velocity Global

Velocity Global stands out for its wide country coverage as an EOR provider, at 185+ regions, which can make them a good choice for employers interested in stable support for any future growth plans. 

They are another example of an EOR provider that doesn’t disclose their pricing publicly, with reports of steep monthly fees. Another downside is the many negative reviews they’ve received for slow customer service and multiple points of contact, which can make them a frustrating provider to deal with if you value quick response times to enquiries.

Pricing: Not publicly disclosed. 

Velocity Global Stand-Out Features

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

9. Multiplier

Multiplier offers good pricing for the EOR services, and has a solid library of extra global hiring resources available for employers. They also have all compliance credentials needed to mitigate risk for employers looking to hire internationally. 

On the other hand, they take a complex approach to invoicing, and have received some reviews of slow and faulty payroll services. They’ve also received negative feedback on slow customer service. Overall, this can mean risk to your business if you value simple, timely payroll for employees.

Pricing: From $400/month, per employee.

Multiplier Stand-Out Features

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

10. WorkMotion

WorkMotion is an EOR service that specializes in supporting European companies, and can also assist with in-country registrations – which can make them a good choice for EU companies looking to expand their business.

As for its cons, WorkMotion charges very high EOR fees that only become more affordable when hiring many employees. They also don’t offer any support in hiring independent contractors, which can be detrimental to businesses that are looking for a single service to hire any type of worker across the globe. Lastly, they don’t have SOC2 certification, which many businesses require to safeguard their data when working with EOR providers.

Pricing: €649 p/month ($724) per employee for up to 4 employees. Price decreases if onboarding more people.

WorkMotion Stand-Out Features

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

Why Playroll Stands Out

Playroll ticks the boxes on robust compliance, broad country coverage and many owned entities. This is similar to many of the competitors mentioned on this list, and are some of the standard offerings you should look out for when choosing an EOR provider that offers comprehensive services.

Overall, though there are many strong EOR contenders on the market, Playroll stands out for its competitive pricing, as well as its on-the-ground support for businesses of all sizes – with dedicated support and flexibility for both employers and employees. 

We believe quality support is the single most important trait for an EOR provider, since EORs support businesses that are expanding into jurisdictions they’re often unfamiliar with. This means quick responses to tricky compliance questions, flexibility to customer needs and a truly human touch is invaluable. 

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

Want Detailed Comparisons?

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

Compare Providers

Global HR

Read Time

September 20, 2024

The Remote Working Shift

Remote working is increasingly becoming ingrained in the UK corporate culture.  According to StandOutCV, 58% of UK employers offer remote work, with 16% of the UK workforce working full-time from home in 2023.

Cutting-edge business technology, robust internet connection, and the peak of the COVID-19 restriction in 2020 are the top reasons for the increasing shift to this new work culture.

That creates the need for remote management tools to help businesses streamline workflows, manage and monitor remote teams, and ensure secure access to company systems and networks.

Playroll is an all-in-one payroll and HR management platform that offers employment and payroll solutions to help businesses build and manage remote teams efficiently.

Top 7 Must-Have Remote Management Tools

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

Communication and Collaboration Tools

Effective communication and collaboration are essential when employees work remotely from different locations. Video conferencing tools and instant messaging apps are the top remote management tools in this category that help bridge the gap and create a seamless work environment.

For instance, video conferencing tools facilitate face-to-face meetings and remote presentations. With messaging apps, remote teams can create groups or channels to organize conversations by topic or project and communicate in real-time.

Reliable communication and collaboration tools to check include:

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

Project Management and Task Tracking Tools

With about 12.7% of employees working full-time from home, project management and task-tracking tools are absolutely essential for businesses. They enable managers and supervisors to plan projects, schedule tasks, and allocate resources.

From behind a computer screen, managers can set deadlines, assign tasks, and set clear responsibilities to enable remote teams to collaborate on projects. Again, these tools provide important reports and insights to help managers track overall project progress, identify issues, and make adjustments accordingly.

The best remote management tools in this category include:

  • Trello
  • Jira
  • Asana
  • Monday.com

Time Tracking and Productivity Tools

The 9-to-5 working schedule is lost when employees work from home. That makes it difficult to monitor their home office activities because supervisors don’t have physical access to their remote computers and mobile devices.

Time tracking and productivity software help solve this problem. They work in the background to track down employees' activity and non-activity time. That enables companies to determine time spent on assigned projects or tasks to evaluate performance and productivity.

Time tracking tools also ensure that working hours are fully recorded to enable HR managers to generate payroll easily and quickly. Top remote management tools in this category include:

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

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

File Sharing and Cloud Storage Tools

Cloud-based storage systems are great remote management tools for file sharing. Unlike in-house file storage systems that are only accessible locally, files on the cloud are accessible to team members at any time regardless of their geographical location.

That enables team members to create, store, edit, share, and access content from any device. Teams can easily collaborate and work on projects or tasks on shared files where everyone can see updates and track file versions. That helps eliminate slowdowns and ensure faster completion of workloads.

The best remote management tools in this category include:

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

Remote Desktop and Access Tools

Remote desktop and access tools help technical support teams and managed service providers (MSPs) offer remote support without needing physical access. These tools are embedded in operating systems on company devices, including laptops, computers, tablets, or even mobile devices.

That enables technical support teams to respond to issues quickly without the need to travel on-site. They can remotely manage operating systems' updates, troubleshoot networks, and transfer files. They can also send a command line of tasks to multiple PCs, configure devices, and if necessary, shut down remote computers. 

Top remote desktop and access tools include:

  • TeamViewer
  • AnyDesk
  • RemotePC
  • Dameware

Employee Monitoring and Productivity Tools

If implemented well, employee monitoring has been found to increase employee productivity by 7%. Remote monitoring and management tools help businesses track and analyze how employees utilize working time and company resources.

They track and monitor employees' activities like internet use & browsing, emails, phone calls, or even video surveillance. Such data is then analyzed to draw important insights and identify areas of improvement.

That helps companies ensure remote workers perform their duties efficiently, adhering to company policies and ethical standards. It also helps protect and identify insider threats that can result in damaging data breaches.

Best remote management tools for employee monitoring include:

  • ActivTrak
  • DeskTime
  • StaffCop Enterprise
  • Traqq
  • Controlio

Security and Data Protection Tools

With companies spending an average of $4.37 million to recover from damaging data breaches, the need for robust data security tools cannot be overlooked.

These tools ensure real-time monitoring of computer networks to identify and report threats. They also scan and remove viruses and malware apps to improve the security of remote and hybrid work environments. Top remote management tools for data security include:

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

Integrating Remote Management Tools With Playroll

As remote working continues to take root, remote administration tools are becoming an indispensable part of modern business operations. Therefore, business owners should consider using the above tools to ensure hassle-free remote monitoring and management of their workforce.

Playrooll's HR and payroll management system integrates with your remote management tools to ensure streamlined HR and payroll processing for remote teams.  Request a demo to see how you can optimize your remote management with Playroll.

Employee Benefits

Read Time

September 18, 2024

What Are Employee Benefits In The United States?

In the U.S., employee benefits are divided between legally required employee benefits and supplemental benefits that vary depending on the state or the employer's discretion. Federally mandated benefits apply to all 50 states across the United States under federal law whereas benefits at a state level are dependent on the respective laws of the 50 states. 

Federally mandated benefits are benefits that companies with full-time employees are legally required to provide to their workers. State-level requirements refer to benefits that may differ from one state to another. For example, employers in certain states (such as Colorado and New York) must provide paid leave to their employees due to state law. 

Federal law and state law mandate certain benefits for full-time employees, while others, like voluntary benefits, are commonly offered to attract and retain talent.

Employee Benefits In The United States
Federally Mandated Benefits in the United States Supplemental Benefits in the United States
Social Security and Medicare Retirement Contributions
Unemployment Insurance (Federal and State) Private Healthcare
Family and Medical Leave Paid Time Off
Workers’ Compensation Insurance Vision and Dental Insurance
Equity Benefits

Full-time employees are entitled to all statutory benefits, while part-time employees may qualify for limited benefits, such as workers' compensation or unemployment insurance. Benefit entitlements can also vary based on employer size and location.

As an employer, it is important to be able to distinguish the types of employees in your workforce. Full-time employees are =employees who work more than 35 hours a week whereas anyone who works less than 35 hours per week is considered a part-time employee. 

These characteristics may differ from one business to another. In some cases, the law outlines the maximum number of hours an employee can work to be considered part-time. Once exceeded, they will be afforded the same benefits as full-time workers For example, the Fair Labor Standards Act (FLSA) states that non-exempt employees are entitled to overtime pay any time they work more than 40 hours per week. 

Statutory Employee Benefits Required By Law In The U.S.

Employers should take the time to understand what each mandatory benefit means to remain compliant with the law and provide the legally required employee benefits to their workers. These benefits were put in place to protect workers’ rights.   Statutory employee benefits can be broken down into four subgroups namely: 

  • Social Security and Medicare
  • Federal Unemployment Insurance
  • State Unemployment Insurance
  • Workers’ Compensation Insurance. 

Social Security and Medicare 

Social Security is a federally mandated benefits program that provides income support for retired workers (and their dependents) as well as for workers with disabilities and survivor benefits. Both employers and employees contribute 6.2 percent of the employee's wages and self-employed individuals pay 12.4% of their earnings. 

Medicare is a public health insurance program primarily for individuals aged 65 and older. Social Security taxes and contributions made by employers and employees fund this program.

Workers’ Compensation Insurance

This is a nationally mandated benefit that covers medical care for retired individuals and provides financial support to individuals affected by loss of work and disability. It also covers liabilities resulting from workplace injuries and illnesses. This disability insurance is mandatory in nearly all 50 states in the U.S. and protects employers from lawsuits related to workplace injuries. 

Family and Medical leave

The Family and Medical Leave Act (FMLA) states that eligible employees are entitled to 12 weeks of unpaid annual leave for specific family and medical reasons. These reasons include the birth of a child or caring for a family member with a serious illness.

To qualify for family and medical leave, an employee must have worked for their employer for at least 1,250 hours in the past 12 months and their employer must have 50 or more employees.

Unemployment Insurance

Unemployment insurance provides temporary financial assistance to workers who lose their jobs but are willing and able to work. It is funded through employer taxes of 6% on the initial $7,000 of an employee’s annual salary.

The 6% employer-only contribution exists at a federal government level, but the taxes paid towards the State Unemployment Tax Act (SUTA) differ between states. 

Supplemental Employee Benefits In The United States

It’s often not enough for an employer to only offer their workers statutory benefits. In order to attract the best talent in the U.S. and beyond the country’s borders, employers should think about which supplemental benefits are best suited to their workforce’s needs. 

Retirement Contributions 

While employees in the U.S. are ensured social security benefits, most employees appreciate increased coverage from popular retirement plans such as 401(k)s. These retirement savings plans allow employees to save comprehensively for their futures, often through contribution-matching policies with their employers. 

Private Healthcare 

Certain businesses are required to provide health insurance coverage to their employees under the Affordable Care Act (ACA). Employers may go beyond this statutory requirement by providing broader coverage such as private health insurance to their employees. Offering private healthcare is highly valuable to employees given the high cost of healthcare in the States. According to the Centers for Disease Control and Prevention (CDC), 12.2 % of Americans in the workforce did not have health insurance in 2022. 

Paid Time Off (PTO) 

This highly desirable benefit typically includes paid vacation days, sick leave, and personal days for employees. While this benefit is not legally required, it certainly helps improve employees’ work-life balance and general well-being. 

Vision and Dental Insurance 

A basic employee healthcare plan may not include vision and dental coverage. If this is the case in your business, consider offering your employees this additional coverage that will give them access to optometric and dental care. 

Equity Benefits 

Equity benefits are an investment opportunity that employers can present to their employees in the form of non-cash payments. When implemented, this benefit makes employees partial owners of the company they work for. As an added bonus, employees tend to be more motivated to ensure the company’s growth if they have a personal stake in it. 

Tax Implications Of Employee Benefits In The United States

Employee benefits in the U.S. can have tax implications. For instance, fringe benefits like health insurance and retirement contributions are often tax-deductible for employers. Additionally, some benefits may qualify for tax breaks or incentives, helping companies, like small businesses, manage the cost of offering comprehensive benefits packages.

The Internal Revenue Service (IRS) clearly outlines that any benefit provided by an employer is subject to employment taxes and must be included in the employee’s pay unless it is categorized as an excluded benefit by the IRS

Legal Considerations For Employee Benefits In The United States

Failure to provide required benefits can result in severe penalties for employers. The consequences for neglecting to provide employees with benefits vary by state and type of benefit. 

For example, failing to provide adequate Workers’ Compensation Insurance is considered a criminal offense in California, New Jersey, and Pennsylvania. Offenders can be subject to fines of $10,000 and prison time in some cases.  

Some employers intentionally misclassify their workers to avoid providing them with mandated employee benefits. In such cases, employers will be subject to steep fines, lawsuits, and reputational damage.  

Additional Benefits In The United States To Attract Talent

There are other perks you could add to your benefits package to make it more attractive to top talent such as:

  • Additional PTO
  • Lunch vouchers
  • Flexible hours
  • Wellness programs
  • Tuition assistance 
  • Childcare 

These perks go beyond basic benefits and contribute to a positive work environment that can set your company apart in a competitive talent market.

How Benefits Impact Employee Cost

Offering statutory benefits can significantly increase the cost of hiring employees. On average, legally required benefits like Social Security, Medicare, and workers' compensation account for around 10-15% of total employee costs. According to the Bureau of Labor Statistics (BLS), employee’s benefits cost between 20-40% of their salary. 

Having a clear grasp on the costs associated with employee benefits is essential for accurate budgeting as an employer. For a detailed comparison of employee costs across different countries and U.S. states, check out Playroll’s free employee cost calculator.

Provide Competitive Employee Benefits in the United States with Playroll

Managing employee benefits can be complex, especially with varying regulations across states and industries. With Playroll, you can streamline onboarding, payroll, and benefits administration in over 180 countries. 

Our platform simplifies global workforce management, ensuring compliance with all statutory benefits required by law while offering flexible options for supplemental benefits. Ready to provide top-notch benefits to your U.S. employees?

Work Permits & Visas

Read Time

September 11, 2024

What Is A Work Visa In South Africa?

A work visa in South Africa is a government-issued document that allows foreign nationals to legally live and work in South Africa for a specified period. This document is a tool that governments leverage to ensure that non-citizens are employed per immigration and labor protection laws.

A work visa is a type of nonimmigrant visa. This visa category stipulates that foreign individuals must return to their home country upon the expiration of their visa. Visa holders may apply for extensions or renewals to remain in the country. 

Work permits and visas are often used interchangeably but are not synonymous and serve different purposes. Work permits are typically long-term and linked to a specific employer, whereas work visas may be short-term or tied to specific projects. Understanding these distinctions is crucial for employers to ensure compliance and avoid legal pitfalls.

If you’re sponsoring an employee to enter the country and work for you in South Africa, you will mainly be dealing with work visas. We will primarily be discussing work visas for the purposes of this article.

Who Needs A Work Permit Or Visa In South Africa?

Any non-citizen intending to work in South Africa must obtain the appropriate work visa or permit. Employers should have thorough verification processes to ensure that any foreign national they hire has authorization to work in the country. Failure to do so will be considered non-compliance with immigration laws and can have severe ramifications, including fines and potential legal damage. 

 Playroll offers visa support services in South Africa. Our experts help simplify the process of building a global workforce, and ensure you stay compliant every step of the way in the process.

What Are The Types Of Work Visas In South Africa?

South Africa’s robust economy, manufacturing sector, and technological advancements have made the country a hub of employment opportunities. As a result, South African work visas and permits are in high demand. 

South Africa offers several types of work visas and permits, each catering to different employment needs. Employers should be familiar with these options to effectively aid their employees’ application processes:

  • General Work Visa
  • Critical Skills Work Visa
  • Intra-company Transfer (ICT) Work Visa
  • Corporate Visa

The Types Of Work Visas In South Africa

Visa Type 

Description 

General Work Visa

The General Work Visa is a non-immigration work visa issued to foreigners with general qualifications. Applicants must have a valid job offer in South Africa. According to the South African government, it is the employer's responsibility to prove (beyond reasonable doubt) that there are no South Africans and permanent citizens available with the skills or experience required to fill the position.

This work visa is issued for a maximum period of 5 years. 

Critical Skills Work Visa 

A Critical Skills Visa is a work visa issued to individuals with skills listed on South Africa’s Critical Skills List. The visa authorizes the holder to work in the country within a specific occupation related to a sector. 

 

The application requirements differ in some aspects depending on the specific skill and sector. However, the applicant must at least meet the minimum NQF level set requirements of the skill they claim to possess and comply with the local regulatory requirements of the occupation and sector.

 

The Critical Skills Visa is issued for a period not exceeding 5 years. 

Intra-Company Transfer Work Visa

The Intra-Company Transfer Work Visa is a work permit that allows multinational corporations to transfer employees from their foreign offices to a branch, subsidiary, or affiliate of that company based in South Africa.


An employer does not have the burden to prove there are no South African citizens or permanent residents available in the case of a multinational employee transfer.


The Intra-Company Work Visa is non-renewable and issued for a maximum period of four years.  

Corporate Visa 

A Corporate Visa enables South African corporate entities to employ a pre-approved number of foreign skilled/semi-skilled/ unskilled workers in specific roles for three years.

Employers should have an in-depth understanding of the eligibility criteria, duration, and specific conditions for each visa type to make optimal decisions for their workers and businesses.

What Are the Requirements For A Work Visa In South Africa?

Employees applying for a work permit or visa in South Africa must provide a range of documents that are outlined by the Department of Home Affairs on its visa webpage. This includes documentation the employer should supply. Here’s a summary of the key documentation required:

General Work Visa

The general requirements for a General Work Visa include:

  • A completed application form;
  • A valid passport;
  • Payment of the prescribed fee;
  • A vaccination certificate (if required);
  • Proof of financial means to cover expected living expenses in the country until the applicant receives a salary.;
  • Medical and radiology reports; 

  • A police clearance certificate from each country in which you resided for 12 months or longer since the age of 18 years;
  • 
A written undertaking by the employer accepting responsibility for the costs related to the deportation of the applicant and their dependent family members, should it become necessary; 


An application for a General Work Visa should be accompanied by: 


  • A certificate from the Department of Labour 

  • Proof of qualifications evaluated by SAQA and translated by a sworn translator into one of the official languages of South Africa. 

Relevant requirements for employers include:

  • A contract of employment signed by both the employer and employee.
  • Full particulars of the employer, including proof of registration with the Registrar of Companies.
  • An undertaking by the employer to inform the Director-General upon the employee no longer being employed by such employer or when employed in a different capacity or role.

  • All required documentation for a spouse and/or children if they intend to accompany the applicant.  


Critical Skills Work Visa

The general requirements for a Critical Skills Work Visa include:

  • A completed application form
  • A valid passport
  • 
Payment of the prescribed fee. 

  • A vaccination certificate (if required). 

  • Proof of financial means to cover projected living expenses until the applicant receives a salary. A cash deposit equivalent to the value of a return to the applicant’s home country or an agreement to cover the cost from the employer. 

  • Medical and radiology reports.
  • 
A police clearance certificate from each country in which the applicant resided for 12 months or longer since the age of 18 years. 

  • Proof of application for a certificate of registration with the accredited professional body, council or board recognized by the South African Qualifications Authority (SAQA). 

  • Proof of evaluation of the foreign qualification/s by SAQA translated by a sworn translator into one of South Africa’s official languages. 


Requirements for employers include:


  • Proof of employment within 12 months after obtaining a Critical skills work visa in the form of an employment contract specifying the occupation and capacity in which the foreigner shall be employed.

Intra-Company Transfer Work Visa

The general requirements for a Intra-Company Transfer Work Visa include:

  • A completed application form
  • 
A valid passport 
  • Payment of the prescribed fee. 

  • A vaccination certificate (if required). 
  • Proof of financial means to cover expected living expenses in South Africa until the employee receives a salary. 
A cash deposit of equivalent value to a return ticket to the applicant’s home country. 
  • An employment contract with the company abroad. 

  • A letter from the employer/company abroad confirming that the employee will be transferred to a branch/affiliate company in South Africa. 

  • A letter from the South African company where the employee will work, confirming the transfer from the parent/affiliated company abroad. This letter should specify the occupation and capacity in which the employee will be employed and verify that the maximum duration of employment will not exceed four years. 

  • Medical and radiology reports. 

  • A police clearance certificate from each country where the applicant resided for 12 months or longer since 18 years. 

  • All required documentation for a spouse and/or children if they intend to accompany the applicant. 


Noteworthy requirements for employers include:


  • An agreement that the applicant will leave South Africa once the 4-year period comes to an end. 
  • Confirmation that the applicant’s passport is valid and that the applicant will be employed in the position for which the permit is issued. 


The Visa Sponsorship Process In South Africa

Employers must support their employees throughout the visa application process to ensure the smooth and legal onboarding of foreign workers. This support includes providing the employee with detailed job descriptions, employment contracts, and letters of confirmation. 

The employer also has certain responsibilities throughout the application process. These responsibilities include confirming the validity of the applicant’s documents, ensuring that the employee leaves the country on the expiration of their visa, providing proof of efforts to hire locally, and paying a cash deposit or guarantee for the foreign workers in the case of a corporate visa. 

Check out our table above for the exact details on what would be required of you as an employer during the visa sponsorship process, depending on the specific work visa at stake.

What Are The Fees For A Work Visa In South Africa? 

The fees for obtaining a South African work permit or visa vary depending on the type of visa and the applicant's nationality. Employers should be aware of these costs and factor them into their budgeting for international hires. Additional fees may be associated with mailing and visa renewals, or extensions. 

The schedule of fees below was taken from VFS Global,  the official partner of the Department of Home Affairs (DHA) in South Africa in visa facilitation services. It should be treated as an estimate of application fees for 2024. 

The Fees For A Work Visa In South Africa

Visa Type

Application Fee ( Amount in ZAR incl. VAT)

General Work Visa

DHA Processing Fee: R1520

VFS Service Fee: R1550

Premium Lounge (Optional):  R500

Critical Skills Work Visa 

DHA Processing Fee: R1520

VFS Service Fee: R1550

Premium Lounge (Optional):  R500

Intra-Company Transfer Work Visa

DHA Processing Fee: R1520

VFS Service Fee: R1550

Premium Lounge (Optional):  R500

Corporate Visa 

DHA Processing Fee: No fee (for the applicant or employee) 

R1520 (for the employer or corporate entity)  

VFS Service Fee: R1550

Premium Lounge (Optional): R500

 

What Is The Processing Time For A South African Work Visa?

South African visa applications take different times to process depending on the country of the application and the embassy or commission where it is lodged. We have compiled a list of approximate wait times. However, we recommend that you consult with the relevant institution.

The Processing Time For A South African Work Visa

Visa Type 

Expected Processing Times 

General Work Visa

2 to 3 months from the time of lodgement.

Critical Skills Work Visa 

30 to 40 working days from the time of lodgement.

Intra-Company Transfer Work Visa

3 to 4 weeks from receipt of the application.

Corporate Visa 

Up to 3 to 4 weeks from receipt of the application. 

 

 

Familiarizing yourself with processing times is essential, particularly when operating on an employee onboarding timeline, as South Africa’s Department of Home Affairs is not immune to delays. Incomplete or incorrect information may also contribute to delays in your application. 

 Extending A Work Visa In South Africa

South African work visas are valid for three to five years depending on the visa type. Most employment-based visas can be extended or renewed (other than an Intra-Company Work Visa) on the condition that visa holders apply for extensions 60 days before the expiry of their current visa. The applicants must meet all of their visa requirements again for the extension to be approved. 

As such, employers and sponsors need to stay up to date with any changes in visa requirements and criteria to sufficiently support their employees. 

Additionally, you must submit your application in person or at any VFS Global Offices in South Africa, as you cannot submit extensions outside of South Africa. 

What Are The Requirements For A Digital Nomad Visa in South Africa?

The South African government introduced a digital nomad visa on May 20, 2024. This non-immigration visa will effectively allow non-citizens who are freelancers or self-employed to live and work in the country for a year. This can be a great benefit to employers, as it opens up the door to attracting and retaining a wider pool of international talent.  

The details of the official application process have not yet been made clear as the official government papers have yet to be signed. However, the South African government has stipulated that applicants must earn at least R 1 million (approximately $56 thousand) to qualify for this visa category. 

Visa holders who reside in the country for more than six months will be expected to register as taxpayers in South Africa. 

Other Considerations For Work Visas In South Africa

An employee’s immediate family members such as a spouse or dependents (usually young children) may accompany them to South Africa. Employers should familiarize themselves with the visa process for dependents of foreign workers. This process could include a separate visa application process.

Work sponsorship could mean tax implications for both the employer and the employee. Employers have obligations including deducting employees’ tax from their employee’s income even when it comes to foreign workers. Ensuring compliance with all these factors is critical to avoid legal complications.

Navigating Visas And Work Permits In South Africa With Playroll

Sponsoring foreign workers in South Africa can be a complicated and rigorous process. Simplify the process of obtaining work permits and visas for your foreign employees while ensuring compliance with South African laws with Playroll. Our visa sponsorship support platform offers comprehensive support, from the initial application to renewal, helping you manage your global workforce efficiently.

Legal and Compliance

Read Time

September 6, 2024

Country By Minimum Wage In 2024

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

Net minimum monthly wages worldwide in 2024
Country Net minimum wage per month (U.S. dollars)
Luxembourg $2,459
Netherlands $2,326
Australia $2,150
Ireland $2,020
New Zealand $1,977
United Kingdom $1,937
Germany $1,729
Canada $1,633
United States $1,619
Belgium $1,617
France $1,505
Puerto Rico $1,476
South Korea $1,415
Israel $1,175
Spain $1,134
Saudi Arabia $960
Cyprus $953
Slovenia $946
Hong Kong $887
Malta $869
Estonia $821
Taiwan $821
Poland $785
Lithuania $762
Portugal $756
Croatia $729
The Czech Republic $722
Greece $718
Slovakia $662
Latvia $647
Turkey $596
Hungary $499
Montenegro $484
Uruguay $461
Romania $450
Serbia $435
Chile $423
Bosnia and Herzegovina $418
Ecuador $417
Guatemala $402
Bulgaria $398
Mexico $397
Albania $367
North Macedonia $353
Paraguay $330
Colombia $328
Bolivia $298
Argentina $297
Malaysia $282
Brazil $263
Peru $240
Moldova $239
South Africa $233
Thailand $203
Azerbaijan $186
Indonesia $184
Russia $180
Belarus $164
Vietnam $161
Kazakhstan $160
Philippines $156
Ukraine $156
Armenia $136
Pakistan $114
India $99
Uzbekistan $75
Nigeria $68

Source: Statista, 2024

Worldwide, minimum net monthly wages vary from almost 2,500 U.S. dollars in Luxembourg to 68 dollars in Nigeria as of January 2024. Minimum wages must be seen in relation with price levels in a country. One popular way to measure purchasing power is the Big Mac Index.

Determining the Minimum Wage: A Global Perspective

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

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

Minimum Wage Variations

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

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

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

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

Exemptions and Special Cases in Minimum Wage Laws

Of the G20 countries, Argentina saw the largest increase of the net minimum wage from January 2023 to January 2024, with wages increasing by almost 140 percent. This must be seen in relation to the country's soaring inflation rates. The same can be said of Turkey, where minimum wages almost doubled from 2023 to 2024.

Annual net change of net minimum monthly wages in G20 countries, January 2023 - January 2024
Country YoY Change To The Minimum Wage
Argentina 138.4%
Turkey 99.9%
Russia 18.5%
Mexico 12.6%
South Africa 9.4%
Brazil 8.3%
Australia 7.4%
United Kingdom 7.3%
Indonesia 7.1%
Canada 6%
India 5.9%
United States 4.5%
France 3.4%
South Korea 3%
Germany 2.8%
Saudi Arabia 0%

Source: Statista, 2024

Of the G20 countries, Argentina saw the largest increase of the net minimum wage from January 2023 to January 2024, with wages increasing by almost 140 percent. This must be seen in relation with the country's soaring inflation rates. The same can be said of Turkey, where minimum wages almost doubled from 2023 to 2024.

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

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

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

Ensure Accurate, Timely Wages With Playroll

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

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

Employee Benefits

Read Time

September 6, 2024

What Are Employee Benefits In South Africa?

In South Africa, a benefits package will include mandatory employee benefits such as paid time off, Unemployment Insurance Fund (UIF), and overtime pay and may include additional perks such as retirement plans and health benefits.

Not all workers are entitled to the same benefits. Workers can be separated into full-time, part-time, and fixed-term contract employees or independent contractors.  

Full-time employees refer to employees who typically work 40 to 45 hours per week. These employees generally receive a more comprehensive benefits package than part-time workers (employees who work less than 40-45 hours per week but more than 24 hours a week). An employee on probation is not guaranteed supplementary benefits but will still have access to statutory benefits. Employees on fixed-term contracts (individuals whose employment runs through a specified date) may be eligible for certain benefits depending on the agreement with their employer. 

However, independent contractors (individuals hired to complete a specific task or project) do not qualify to receive benefits. 

Mandatory Benefits Supplemental Benefits
Paid Time Off Retirement Funds and Pension Schemes
Maternity Leave Health Insurance
Paternity Leave 13th Month Bonus
Sick Leave
Family Responsibility Leave
Overtime Pay
Unemployment Insurance Fund
Compensation for Occupational Injuries and Diseases
Skills Development Levy

Mandatory Employee Benefits In South Africa

In South Africa, employee benefits include statutory benefits (benefits guaranteed by law) and supplementary benefits (additional privileges provided at the employer’s discretion).

Paid Time Off (PTO) 

According to the Basic Conditions of Employment Act, employees are guaranteed annual leave of at least 21 consecutive days (not including public holidays), one day for every 17 days worked, or 1 hour for every 17 hours worked. 

The employee and employer must reach a mutual agreement regarding the timing of the leave. The employer makes the final call if a mutual agreement cannot be reached. Employers may only grant leave up to six months after the end of the annual leave cycle and may not offer payment in place of granting annual leave (except on the termination of employment). 

Maternity Leave

Pregnant employees are entitled to at least four consecutive months of maternity leave. The clock on these four months begins four weeks before the expected birth date, but employees may begin their leave earlier than this. Employers are not obligated to pay their employees during this time; however, the UIF covers 60% of their salary for up to 121 days. 

Employees may request to extend their maternity leave. However, this request must be accompanied by a medical certificate specifying the extension's expected length. 

Paternity Leave

Companies are only required to offer a less generous ten-day paternity leave following the birth or adoption of a child. In an adoption case, the child must be younger than two years old.

Paternity leave is unpaid; however, employees may claim 66% of their regular earnings from the UIF subject to the maximum income threshold. 

Sick Leave

Based on the Basic Conditions of Employment Act, workers are entitled to the number of days they would regularly work in 6 weeks every 3 years. For example, someone who works five days per week will have 30 days in their bank of sick leave days every three years. 

However, during an employee’s first six months, they are only entitled to one day of paid sick leave for every 26 days they worked. 

Employers have the right to request a medical certificate before paying employees who take more than two consecutive sick days or are absent more than twice in 8 weeks. 

Family Responsibility Leave 

Certain South African employees are eligible to receive paid leave under certain circumstances, namely, the birth of a child, to care for their child that has fallen ill, or upon the death of an immediate family member. 

The term “immediate family member” only includes the following individuals in this case: 

The employee’s: 

  • Spouse or life partner
  • Parent or adoptive parent
  • Child 
  • Adopted child
  • Grandchild
  • Grandparent
  • Sibling

To qualify for Family Responsibility Leave, an employee must work for longer than four months for the same employer and work more than four days a week. 

Overtime Pay

South African employers are required to pay their workers overtime pay. Overtime is capped at 3 hours per day and 10 hours per week. Employees can agree to work up to 15 hours of overtime, but only for up to two months a year. 

If employees agree to work overtime, their employer must pay them 1.5 times their standard hourly pay rate. Employees who regularly work on Sundays must be paid 1.5 times their regular wage. However, employees who do not usually work on Sundays must be paid double their regular wage.

An employee may agree to accept PTO in exchange for working overtime.

Unemployment Insurance Fund (UIF)

Both employers and employees contribute to the Fund, which is set up to offer temporary financial support in cases of unemployment, adoption, parental leave, or illness. Dependents of deceased contributors may also claim from the UIF.

The employee must contribute 1% of their remuneration to the Fund, and the employer must match this 1% contribution. 

Compensation For Occupational Injuries And Diseases (COIDA)

COIDA is a program that compensates workers injured or infected with diseases during their employment. This program covers dependents of workers who die on the job as a result of work-related accidents or contraction of occupational diseases. 

Skills Development Levy 

The Skills Development Levy (SDL) is a tax imposed on businesses to develop and improve workforce skills. Unlike UIF, employees are exempt from paying SDL, but employers must contribute 1% of the total amount paid in salaries to employees each month.

Supplemental Employee Benefits In South Africa

Supplemental benefits (also called fringe benefits in South Africa) are not required by law, but can help you stand out as an employer and attract top talent. They include:

Retirement Funds And Pension Schemes

South African employers are not legally obligated to contribute to employees’ retirement funds. However, future planning is essential to any enticing benefits package.

In many cases, employees are given the option to contribute towards a retirement contribution system; employers in some industries make this a requirement. The idea is that employers invest a percentage of the employee’s remuneration in a retirement fund to provide employees with a source of income once they retire. 

Medical Aid

While South Africa’s public healthcare system is free, its quality is not comparable to private care. Medical aid is invaluable to employees’ lives as it covers medical services and healthcare expenses from private institutions. 

Employers may offer their employees various health insurance systems, including medical aid schemes, hospital plans, and comprehensive medical coverage, to attract world-class talent.

13th Month Bonus 

In South Africa, there is no statutory requirement to give employees bonuses at the end of the year. However, it is commonplace to give employees performance-based bonuses in December. These bonuses are usually equivalent to one month’s remuneration. 

Tax Implications Of Employee Benefits In South Africa

In addition to drawing in the best talent, employee benefits offer various advantages, including tax breaks or incentives. For example, as of 1 March 2016, contributions made to a pension or provident by an employer on behalf of an employee are tax deductible. This deduction comprises the sum of both the employee and employer contributions. 

Legal Considerations For Employee Benefits In South Africa

Interfering with employee benefits in South Africa should be taken seriously. Depriving employees of the benefits they’re entitled to can lead to the employee lodging a case against the employer at the Commission for Conciliation Mediation and Arbitration (CCMA). Failure to comply with South African labor law is treated as unfair labor practice and can result in significant penalties. 

Employers also have an obligation to report all work-related incidents. For example, work-related injury and contraction of diseases must be reported to COIDA and other relevant parties.  

Additional Employee Benefits To Attract Talent

There are various perks you should consider offering to current and potential employees in addition to the benefits discussed above: 

Remote Work Opportunities

The COVID-19 pandemic made employers and employees aware of the advantages of working from home. These benefits include increased productivity, flexibility and improved work-life balance for workers. 

Since the pandemic, there has been an upward trend in adopting remote work, so much so that some workers look exclusively for fully remote positions. If you want access to a broader talent pool, consider offering various work arrangement options such as partial remote work, hybrid work models, or fully remote positions.  

Flexible Hours

Employees not restricted by rigid schedules enjoy a better work-life balance. Flexible work hours allow employees to manage their time in a way that reflects their personal needs and expectations. Increased flexibility gives employees more autonomy regarding how they spend their time. This will invariably increase productivity and employee satisfaction and will help manage stress. 

Employee Wellness Programs

Any competitive benefits package must include an element of physical and mental wellness. Employee wellness programs give workers access to resources that support their physical and psychological care. These include partnerships with local wellness institutions such as gyms, in-house counseling, and health and wellness workshops. 

How Employee Benefits Impact Employee Cost

Employee expenses significantly contribute to overall business spending in South Africa. Stats SA found that employers spent about 14% of total expenditure on employees. These costs include salaries and wages, training expenses, and the mandatory and supplementary employee benefits discussed above. That said, South Africa has a relatively low employment cost compared to other countries – studies have shown that European companies can save up to 50% on staff by hiring South Africans.

Use Playroll’s free global employee cost calculator to get a detailed breakdown of mandatory employer taxes and contributions in South Africa and to easily compare different market costs side-by-side.

Provide Competitive Employee Benefits in South Africa With Playroll

Managing employee benefits in South Africa can be complex, but Playroll simplifies this process. With a footprint in over 180 countries, our centralized platform streamlines onboarding, payroll, and benefits administration, and ensures compliance with ever-changing employment regulations. Partner with Playroll to attract and retain top talent with benefits tailored to meet the needs of South African employees. 

Book a demo with our team to learn how we can help you offer competitive employee benefits packages to scale your team. 

Legal and Compliance

Read Time

September 5, 2024

Why should businesses care about the risks of misclassifying employees as contractors?

In recent years, the gig economy has seen a sharp increase as employers enjoy the flexibility of hiring skilled workers on a project-by-project basis.  However, between 10-30% of US employers are misclassifying their workers, according to the National Employment Law Project. 

There are a few reasons the authorities take this especially seriously:

  • A loss of revenue on income taxes: When misclassifying workers, employers may not withhold the correct amount of employment taxes required by law. By some estimates, $3-4 billion is lost annually due to misclassification.  
  • A loss of employee benefits and protections: Misclassification deprives employees of their statutory benefits and employee protections, such as leave, insurance and social security, leading to potential reputational harm and legal fallout for you as an employer. 
  • Employers who misclassify their employees could gain an unfair advantage over compliant businesses by avoiding certain required employer costs and legal obligations.

While this guide focuses on U.S. regulations, businesses operating internationally should be aware that employee misclassification carries similar risks across many countries, with varying legal frameworks.

What are the differences between employees and independent contractors in the U.S.?

There  are several distinct differences between full-time employees and independent contractors. Here’s a summary of the key differences:

Type Employees Independent Contractors
The differences between independent contractors and employees
The nature of work Employees are appointed with the intention of performing work in the long-term for a single employer, often with no fixed end date to the employment contract. Contractors are hired for short-term work on a project-by-project basis, often with a fixed end date attached to a contract. They can work for multiple employers.
Control Employers have more oversight when it comes to the work performed by employees. Contractors have more freedom to conduct the work as they see fit, since they are in business for themselves.
Employee benefits Full-time employees have access to mandatory employee benefits and protections. In the United States, this includes Medicare, Social Security, unemployment insurance, and workers' compensation, as well as overtime pay, a set minimum wage and paid or unpaid sick leave. Independent contractors are not entitled to employee benefits or protections, and may need to purchase their own health insurance or other benefits.
Income tax Employers are responsible for withholding and paying certain taxes for their employees, including income tax, social security taxes, and payroll taxes. Independent contractors are responsible for their own tax obligations, including paying self-employment tax, which includes social security and Medicare tax.

The penalties of misclassifying employees as independent contractors in the U.S.

If an employer misclassified workers as independent contractors, they may be required to pay back taxes, penalties, and interest on unpaid taxes. Employers may also be subject to legal action by the Internal Revenue Service (IRS) or other US tax authorities. Misclassified employees may not get tax benefits like the earned income tax credit if they are labeled as independent contractors. 

Here are all the potential consequences of employee misclassification:

Civil Penalties

Misclassifying employees as independent contractors can trigger IRS audits. If the misclassification is deemed unintentional, civil penalties include:

  • A $50 fine for each unfiled Form W-2.
  • 1.5% of wages, along with 40% of unpaid FICA taxes (Social Security and Medicare), plus the employer’s full share of FICA taxes.
  • Interest penalties on these amounts, accruing from the due date.
  • A failure-to-pay penalty of 0.5% per month, up to 25% of the total tax liability​.

Additional penalties for fraud or intentional misconduct

If the IRS identifies fraudulent intent, additional penalties may include:

  • 20% of wages.
  • 100% of FICA taxes (both employer and employee portions).
  • Criminal fines up to $1,000 per misclassified worker and possible imprisonment​.

Class-action lawsuits and back pay

Employees can sue for back wages, including unpaid overtime and benefits, if misclassified. This may involve costly retroactive compensation for benefits like health insurance and retirement plans that the employee was entitled to​

Damage to your reputation

Besides pure financial cost, the long-term effects of being found guilty of employee misclassification can be devastating. Bad press, drawn out legal battles and the impression that you are treating workers unfairly will impact your ability to attract new talent and retain your existing staff. 

Examples of misclassification penalties

How have cases of misclassification played out in practice? These prominent legal cases highlight how hefty the consequences of misclassification can get:

  • In 2022, Uber and its subsidiary, Rasier LLC, paid $100 million in unpaid state payroll taxes and penalties in New Jersey, after being convicted of misclassifying nearly 300,000 drivers.
  • Nike faces potential tax fines of more than $530m,  as they may have misclassified thousands of temporary office workers.
  • FedEx paid a $228 million settlement in a lawsuit alleging that they had incorrectly classified more than 2000 drivers in California. 

How to determine if your worker is an independent contractor or an employee in the U.S.

So, how can you be certain that you’re classifying your workers correctly? It can get surprisingly complicated to distinguish correctly between employees and independent contractors. 

There are a number of tests in the US that can guide employers to distinguish correctly between the two. Two of the most relevant tests that businesses can use include:

Common-law test

The IRS distinguishes between workers under common-law rules according to the categories of behavioral control, financial control and the relationship between parties. Some questions the IRS asks as part of this test includes:

  • Does the company control how the worker completes the work?
  • Does the company reimburse expenses and cover the costs of necessary tools and supplies?
  • What is the nature of the written agreements between the worker and the company? 
  • How permanent is the working relationship? 
  • Is the work integral to the business of the organization?

Get more details on the questions the IRS asks for each of these categories here

Companies and individuals can also file IRS Form SS-8, requesting that the IRS conduct an official audit to determine a worker’s status.

The Economic Reality Test

In January 2024, the Department of Labor (DOL) published a final rule revising how employees and independent contractors are classified under the Fair Labor Standards Act (FLSA). The final rule looks at these six factors when distinguishing between contractors and employees:

  • Opportunity for profit or loss depending on managerial skill
  • Investments by the worker and the potential employer
  • Degree of permanence of the work relationship
  • The nature and degree of control
  • The extent to which the work performed is an integral part of the employer's business

Get more details on the economic reality test here.

The reasonable basis test

This test looks at how the courts and the IRS have classified similar workers in your company or your industry in the past, rather than examining the nature of the working relationship. There are several conditions in this test, that could mean you have a reasonable basis for classifying a worker as a contractor. 

These include, for example:

  • A court ruling exists that treats workers in similar circumstances as non-employees.
  • There is a past IRS payroll audit that didn't find workers in similar positions at your company to be employees.

Get more details on the reasonable basis test here.

How Other Countries Handle Employee Misclassification

Employee misclassification is not unique to the United States and is an issue in many countries around the world. Employers should be aware of the labor laws in the countries where they operate and ensure that they are correctly classifying their workers. 

Many countries have laws and regulations that are similar to those in the United States, such as tax obligations for employers. In addition, some countries have specific laws and regulations related to worker classification that employers must follow.

Avoid The Risks Of Employee Misclassification With Playroll

Employee misclassification is a complex issue with significant legal and financial repercussions for US companies. One way to avoid the penalties of misclassification, is to partner with a team of experts that know the rulebook when it comes to compliance.

An Employer Of Record like Playroll removes the risk of hiring full-time employees and contractors alike, in the United States and beyond. Dedicated legal and HR experts will help you correctly classify your workers, and convert contractors to employees if needed.

Playroll helps companies expand their teams worldwide and keep talented employees, with a robust infrastructure of established entities in over 180 countries, ensuring ongoing compliance.

Employee Benefits

Read Time

September 3, 2024

What Countries Have Free Healthcare?

So, which countries have free healthcare systems? Well, few countries offer completely free healthcare services. However, most developed countries offer government-funded universal healthcare systems to citizens and residents where most services are free, or low cost.

The United States is a notable exception of a highly developed country that does not offer universal healthcare. On a global scale, the World Health Organization has noted that the world is off track in making progress towards universal health coverage, with improvements to health service coverage stagnating since 2015.

Top 10 Countries with Free Healthcare

Below, we have compiled a list of the top 10 countries with universal healthcare or public health insurance, considering accessibility, quality, and coverage of healthcare services.

Canada

Canada tops our list of countries with free healthcare systems. Medicare, the Canadian universal healthcare system, is publicly funded and run by individual provinces and territories.

Healthcare services are available to all Canadian citizens and permanent residents. Free healthcare services include doctor's visits, lab tests, hospital care, and prescription drugs.

United Kingdom

The United Kingdom has a free and universal healthcare system called the National Health Service (NHS), which is praised for its accessibility and efficient primary care services. NHS free health care services are structured regionally and funded by the government through taxation.

All United Kingdom citizens and residents have access to comprehensive free health care services, including hospital care, medical consultations, doctor's visits, maternity care, mental health care, prescription medications, and more.

Australia

Australia stands out among the countries that have free healthcare. Known as Medicare, the Australian free healthcare system is funded through general taxation and offers essential healthcare services to citizens and permanent residents.

Residents have access to free basic medical services, hospital care, doctor's appointments, prescriptions, and some diagnostic tests. For high-quality services and faster access to specialists and elective procedures, Australians have the option of purchasing private health insurance.

Norway

The Norwegian universal healthcare system stands out among countries that have free healthcare because of low wait times, emphasis on patient outcomes, and quality of services. Norway’s healthcare system is funded through taxation and social security contributions and is available to all residents. 

Free health care services include hospital care, prescription medication, and medical consultations. Individuals looking for additional coverage and faster access to services have the option to purchase private medical insurance.

Our Norway playbook can help you understand the country’s labor laws and regulations.

Germany

Germany is among the countries that have achieved universal health coverage through a government-run " sickness fund" that requires all citizens to have medical insurance. Germany's healthcare system is funded through a combination of taxes, social insurance contributions, and copayments.

That ensures all citizens and legal residents have access to comprehensive high-quality medical services, preventive care, long-term care, and more.

France

Listing countries with free healthcare is hard without mentioning France. Its universal health care system is reputed as one of the best in the world for accessibility, quality care, and efficiency.

Healthcare services, including hospital care, prescription drugs, and doctor's visits are available to all citizens, legal residents, and even visitors residing in the country for more than 3 months.

Sweden

Sweden has made it to our list of countries with free healthcare systems because it has achieved universal health coverage with comprehensive healthcare services. The Swedish healthcare system is government-funded and is accessible to all citizens and legal residents.

Residents have access to many healthcare services, including hospital care, maternity care, preventive services, primary care, specialist consultation, and dental care for children and young adults.

Brazil

Brazil stands out as the model of countries that have free healthcare. The Brazilian free and universal healthcare system is funded by the government and is accessible to any person in Brazil, including citizens, legal residents, tourists, and even refugees and immigrants.

Patients have access to free health care services at the point of care, including hospital care, outpatient care, vaccinations, surgeries, preventive care, and more.

South Korea

South Korea is among the countries with the best healthcare systems in the OECD funded through government subsidies and monthly contributions from both employees and employers.

The Korean universal health system is accessible to all Korean citizens, residents, and even foreigners. The government-run health system covers 60% of healthcare costs and the remaining expenses are covered through a private health insurance fund.

Denmark

Denmark closes our list of top ten countries with free healthcare. Denmark's free and universal healthcare system is government-funded through taxes and offers free healthcare services to all residents.

The country’s healthcare system is highly regarded for its patient-centric services, preventive care, and comprehensive access to medical services, including prescription medicine, doctor's visits, hospital care, and more.

Challenges Facing Free Healthcare Systems

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

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

Managing a Global Workforce with Playroll

As healthcare policies worldwide continue to shift toward building free and universal government-funded healthcare systems, more countries are expected to join the list of countries with free healthcare.

That may impact where employees choose to live to access free or low-cost healthcare services or where businesses source talent to reduce workforce-related healthcare costs.

To help businesses navigate the challenge, Playroll offers HR solutions and Employer Of Record services for hassle-free management of a global workforce, including:

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

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

Employer of Record

Read Time

August 28, 2024

What Is An Employer of Record? 

An Employer Of Record (EOR) is a third-party service that handles employment responsibilities for your company, like payroll, taxes, benefits, and compliance with local labor laws. The EOR legally employs your global team on paper, while you manage the employee's daily activities. 

Questions To Ask When Evaluating The Best Employer Of Record

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

EOR providers typically operate under these business models: using their own wholly-owned local entities, partnerships with local providers, or a combination of these two approaches. A wholly-owned EOR model means the provider sets up its own entities in each country and retains full control over hiring and payroll. 

In contrast, some EORs partner with local vendors and outsource these tasks. While this can be cheaper for the EOR, it may lead to less reliable service for you.  Wholly-owned entities has the following advantages:

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

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

2. How Does The EOR's Pricing Work? 

It's important to find an EOR with transparent pricing. Some providers may have hidden fees, like onboarding and offboarding charges, which can increase costs unexpectedly. Look for an EOR that clearly communicates all potential expenses upfront, is straightforward in their invoicing, cost effective and offers a clear breakdown of what’s included in their pricing. 

Lastly, they should offer flexibility in their pricing models that suits the needs of your business: this includes offering monthly charges for full-time employees over requiring annual commitments for lower rates. 

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

The level of support an EOR provides can make or break your global employment strategy. Quick response times and hands-on support are essential, especially when dealing with complex issues like payroll queries or legal compliance in jurisdictions you might be unfamiliar with.

Before bringing an EOR provider on board, check their public reviews on platforms like G2 and Trustpilot. Additionally, ensure that the EOR offers dedicated support for your employees to ensure employee satisfaction and retention. Be sure to ask if dedicated support comes free of charge, as some EOR providers charge extra for this service.

4. How Extensive Is The EOR Country Coverage?

Your EOR provider should have a strong presence in the countries where you wish to expand in the short-term and in the long run. In cases where they do not operate in your desired country, your growth might be hampered if you're locked into a contract you’re unhappy with. Some providers also charge fixed offboarding fees – it’s a good idea to ask whether this is the case before you commit to a provider.

Identify a company with comprehensive country coverage. For example, Playroll operates in over 180+ regions and offers the extensive coverage required to support your global ambitions. 

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

An ideal EOR should help you hire both full-time employees and contractors legally. This flexibility is essential as your workforce needs may evolve over time. It’s much easier to use one service provider that can cater for all potential needs, than having to choose different providers to hire full-time employees and contractors.

Additionally, the EOR provider should be able to assist with classifying your workers correctly to avoid the penalties associated with misclassifying employees as contractors, and convert contractors to full-time employees if needed. 

Check that your chosen EOR provider will support hiring different types of workers, in all the regions you’re interested in.

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

Competitive employee benefits are a key component of attracting and retaining top talent. Your EOR should offer a comprehensive benefits package that includes both local benefits and global options. 

Enquire about additional services like benefits management and visa support. The more robust and flexible the benefits, the better equipped you’ll be to support your international team no matter any curveballs that might come your way.

7. How Will Payroll Work for Your Remote Employees?

Timely and accurate payroll is a non-negotiable part of your day-to-day operations when managing a global workforce. Having delayed and faulty payroll can result in great reputational harm to your business and potential legal fallout. Ensure the EOR has a proven track record of paying employees on time and offers a user-friendly payroll system.

Before committing, ask for a demonstration of how their payroll system works and whether it provides a clear view of all transactions in one place. Ask how their invoicing system works, as some providers can make this needlessly complex.

8. How Do They Keep Your Data Safe?

Your data should always be safe, and data security is an important consideration while choosing an EOR. Ensure this by checking the certifications the EOR holds, such as GDPR and SOC2, and inquire about the measures they take to protect your Intellectual Property. An EOR provider should guarantee that all contracts are compliantly set up to ensure your IP will belong to you. 

Be wary of EORs that rely heavily on third-party partners since this can increase the risk of data security issues.

9. What Is Their Approach to Mitigating Compliance Risks?

Compliance with local labor laws is one of the main reasons to partner with an EOR. The right EOR should have a team of experts on hand to help you navigate challenges such as employee misclassification risk, and meeting all compliance requirements in new markets. Again, be sure to check if the EOR provider has a track record of quick response times, as you might need fast support when it comes to questions of compliance.

Ask about their legal expertise in the specific countries you’re interested in and how they help you stay compliant with local regulations.  

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

Employment contracts can vary across different regions and your EOR should be flexible to your specific needs and can create customized agreements if needed. Ask about their process for amending contracts and how long it typically takes. 

Flexibility in this area ensures your contracts are aligned with both local laws and your business objectives. 

11. How Will the EOR Help with Employment Terminations?

Employee terminations can be difficult and complicated, making it a matter that should be handled carefully. Ensure the EOR has a clear and compliant process for managing terminations, including support for both the employer and the employee during the offboarding process. Understand this process thoroughly before entering into a partnership to prevent legal issues in the future.

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

If you're considering moving an employee from an EOR to one of your own entities, many EOR providers require a ‘resign and rehire’ process. During this process,  the employee resigns from the EOR and is rehired by your entity. This approach can complicate the businesses’ relationship with the employee.

Clarify with the EOR if they offer a flexible transfer process.

Your Checklist Of Questions For EOR Services

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

Grow Your Global Team Confidently With Playroll

Choosing the right EOR partner is fundamental for your business’s global expansion. Playroll stands out by meeting the criteria mentioned above, offering extensive country coverage at 180+ regions with a robust network of wholly owned entities. 

Enjoy transparent, best-in-class pricing, dedicated support for employees and employees, and a flexible approach to employment contracts – with a team of HR, finance and legal experts on hand every step of the way.

Compare EOR providers and book a demo with Playroll today to explore how we can support your international growth.

Employee Benefits

Read Time

August 23, 2024

In today's competitive global job market, crafting an appealing employee benefits package is no longer just an option, it's a necessity. This is especially true in India – with its diverse workforce, strategic geographical location and a population proficient in English, it’s an increasingly popular location for companies seeking skilled international employees. 

Understanding the intricacies of employee benefits in India can set your company apart, helping you attract and retain world-class talent.

The landscape of employee benefits in India can get complicated, with a mix of government-mandated statutory benefits and optional fringe benefits. Partnering with a global HR platform like Playroll can make navigating this environment easier, ensuring that your company stays compliant while offering a benefits program that truly resonates with employees in India.

Who is Entitled to Employee Benefits in India?

In India, the entitlement to employee benefits primarily extends to full-time employees. These individuals are covered under a range of statutory benefits mandated by Indian labor laws. However, part-time employees, contract workers, and those in more flexible employment arrangements may also receive benefits, depending on their specific employment agreements and the policies of the company they work for.

It's essential to recognize that while statutory benefits are designed to protect full-time workers, employers can choose to extend certain benefits to part-time or contract workers as a gesture of goodwill or to enhance their employment package.

What Does an Employee Benefits Package Consist Of?

An employee benefits package in India typically includes a combination of statutory benefits—those required by law—and fringe benefits, which are additional perks provided at the discretion of the employer. A well-rounded benefits package is vital for ensuring employee satisfaction and retention. In India, such packages often include health insurance, retirement plans, paid leave, and other allowances designed to support the financial security and well-being of employees.

Statutory Employee Benefits in India

Statutory benefits are the backbone of any employee benefits package in India, as they are legally required and ensure that employees receive essential protections and rights. Here’s a closer look at the key statutory benefits that employers must provide:

Maternity Leave in India

Maternity leave is a critical statutory benefit in India. Female employees are entitled to 26 weeks of paid maternity leave, provided they have worked for the employer for at least 80 days in the 12 months before the expected delivery date. This leave is designed to support women during and after childbirth, ensuring they have adequate time to recover and bond with their newborn. 

Paternity Leave in India

While paternity leave is not mandated by Indian law, an increasing number of companies are recognizing its importance and offering paternity leave voluntarily, with periods ranging from 5 to 15 days.

Annual Leave

Annual leave is another crucial statutory benefit. In India, employees are entitled to a minimum of 15 days of paid time off after completing 240 days of work in a year. This leave allows employees to take a break from work, rest, and recharge, which is essential for maintaining productivity and mental health. 

Some companies may offer more generous leave policies as part of their efforts to create a supportive work environment.

Besides these mandated annual leave days, employees in India are entitled to 10 public holidays a year.

Sick Leave

Sick leave is vital for employees who need time off due to illness without the worry of losing income. In India, the entitlement to sick leave can vary depending on state laws and company policies, but generally, employees receive around 12 days of paid sick leave per year. This benefit helps ensure that employees can recover from illnesses without financial stress, which in turn fosters a healthier and more productive workforce.

Provident Fund (PF)

The Employees Provident Fund (EPF) is a cornerstone of retirement benefits in India. This statutory benefit requires both employers and employees to contribute to a retirement fund, which employees can access upon retirement or resignation. The standard contribution rate is 12% of the employee’s basic salary, with the employer matching this contribution. The EPF not only provides financial security for employees in their retirement years but also fosters a culture of savings.

Gratuity

Gratuity is another key statutory benefit in India, awarded to employees who have completed at least five years of service with the same employer. It serves as a financial reward for long-term service, calculated as 15 days of the last drawn salary for each year of service. This benefit is an excellent way for employers to recognize and reward the loyalty and dedication of their long-serving employees.

Fringe Benefits in India

While statutory benefits are required by law, fringe benefits are additional perks that employers can offer employees to improve job satisfaction and retention. These benefits can vary widely depending on the company and industry but often include:

Medical Insurance

Medical insurance is one of the most valued fringe benefits in India. Many employers offer comprehensive health coverage that extends to employees and their families, including medical, dental, and vision insurance. In addition to these, companies may provide access to wellness programs and preventive care services, helping employees maintain good health and reducing absenteeism due to illness.

Retirement Plans

Beyond the mandatory Provident Fund, employers in India often provide additional retirement savings options, such as pension schemes or employer-matched retirement plans. These benefits give employees greater financial security after retirement and are a significant factor in attracting mid-career professionals who are planning for their future.

Performance Bonuses

Performance-based bonuses are a common way for companies in India to reward employees for meeting specific goals or contributing to the company's success. These bonuses are often tied to individual or team performance and can be a substantial part of an employee’s total compensation. Offering performance bonuses not only motivates employees to excel but also aligns their efforts with the company’s strategic goals.

Flexible Work Arrangements

The rise of remote work has made flexible work arrangements increasingly popular in India. Employers are offering options like work-from-home days, flexible hours, and compressed workweeks to help employees achieve a better work-life balance while working from home. This flexibility is especially appealing to younger employees and those with family commitments, making it a valuable component of a modern benefits package.

Gym Membership

In a country where workplace stress is common, access to a gym can help employees manage stress, improve physical health, and boost productivity. This benefit also demonstrates a company's commitment to the well-being of its workforce. For employers, such initiatives are valuable in attracting and retaining top talent in a competitive job market

Employee Benefits Management with Playroll

Managing employee benefits across multiple countries, each with its own set of regulations and cultural expectations, can be overwhelming. That’s where Playroll comes in. With a footprint in over 180 countries, Playroll offers a centralized platform that streamlines the administration of employee benefits, payroll, and onboarding to your distributed workforce with EOR services.

Our platform ensures compliance with local laws and helps you design competitive benefits packages tailored to your global workforce's needs. Whether you’re managing a team in India or expanding into new markets, Playroll can take the complexity out of global HR management, allowing you to focus on what really matters—growing your business.

Want all the facts to hire in India with confidence? Check out our detailed country hiring guide.

Ready to simplify your global HR management? Easily manage employee benefits, payroll, and more for your global workforce in one centralized platform with Playroll. 

Scale your global workforce with Playroll EOR Services

 

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