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Calculating pay for international remote workers, 01/04/2022

 

International remote working policies are a great way to attract and retain talent. However, determining salaries for these arrangements is complex and hard to get right.


The great shift to remote working during the past two years is now firmly rooted and seemingly here to stay. Organisations across the world have adapted, and are still adapting, to widespread working from home, hybrid working and flexible working patterns – a dramatic shift made necessary by the COVID-19 pandemic, but one that has proven successful.


One version of remote working that’s been gaining traction and making headlines is international flexible working. As we found in our recently published Global Mobility Now Survey, approaches to this kind of remote working vary wildly. Some companies have adopted a ‘work from anywhere policy’ that allows employees to work in another country for up to 30 days – our survey found that one in four companies impose this time limit. At the other extreme, one in five companies would allow these working arrangements to continue indefinitely. Across the board, organisations report that approval for these kinds of moves hinges on the legal implications – i.e. the employee having the right to work, and the organisation having an entity, in the country in question – as well as business needs. But regardless of the parameters – in the context of the ‘Great Resignation’ and battle to attract and retain global talent, offering flexibility and prioritising the employee experience can be an effective way for employers to gain a competitive advantage. In some cases, it could also help companies to reduce their climate impact, if replacing regular cross-border commuting by car or air. 


This said, there are some substantial challenges that come with international remote working. The best known and most discussed are compliance issues – with income tax, social security, permanent establishment risk and immigration rules all notoriously difficult to navigate. The question of remuneration, however, cannot be neglected. Pay for these international flexible workers is complex and difficult to get right, but essential to the success of these arrangements.


Read the rest of this blog post on our website here

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