1 December, 2011

Split Payroll: where international employees pay social security contributions?

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Por: María Jurado – PBS OneWorld

It is becoming increasingly more common for workers to be required to render services not only in their countries of residence but also in foreign countries where work centres of the same company, companies of the same group, or clients are located, or where there is an intention to open-up new markets.

The trend for market globalization has created a new manner of rendering services that obliges workers to travel temporarily to countries other than those where they reside. In these cases, work tends to be performed in two or more countries, either simultaneously or alternately over time.

In response to this situation, companies have created a method for the payment of salary which may be adapted to those employees who perform their work in more than one country, which consists of paying part of their salary in the currency of the home country and the other part of their compensation in the currency of the country or countries to which they travel.

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