When it comes to global payroll, change is the only constant.
Tax laws, labor regulations, and compliance requirements are different in different countries. Also, they change when the respective country decides to make a change.
- How can an organization manage its payroll when it operates in more than one country?
- Can their software handle all the variations in payroll processes and regulations?
- What is the Global Payroll Complexity Index?
- Is the Indian payroll the most complex in the world?
greyHR had a conversation with a payroll expert to get these questions answered. He not only addressed these questions but also made an eye-opening presentation on the topic of Global Payroll Management: Trends and Challenges in 2024.
If yours is a company with operations outside India, this edition of the PSP Parichay webinar was a must-watch! Missed it? No worries. We have a complete recording for you.
Do you prefer a quick recap right now? 👇
8 Key Takeaways from the Webinar on Global Payroll Management
- India ranks #21 in the Global Payroll Complexity Index, a list of 40 countries ranked in terms of payroll complexity. This complexity is based on the top three factors: Mandatory deductions, social security, and compulsory reporting types.
- In terms of payroll complexity, France, Germany, and Switzerland are the top three in the same order.
- Saudi Arabia is ranked #40 (lowest) in the Global Payroll Complexity Index.
- As Indian SMEs open offices in other countries, payroll professionals must prepare themselves for the changing regulations/complexities in those countries.
- Payroll is like an equation; it's a combination of people, processes, and regulations. A payroll expert must understand the country's regulations to build the right processes and hire the best people to run these processes.
- Many countries expect the reporting to be in their native language. Therefore, local expertise is essential to handle payroll in those locations.
- Payroll is moving from a traditional back office to a more strategic business function. The HR Business Partner will now have a new competitor: The Payroll Business Partner!
- Different countries have their own data privacy laws. Payroll professionals have to keep abreast of the same since they handle a lot of personally identifiable information (PII).
“When we talk about global payment, it is not only about the local expertise, but it also extends to tax laws, employment regulations, social security, reporting requirements, and local language.”
Akash Mahagaonkar V, Director, Relativity Management Solutions India Private Limited
Do you want to hear it directly from the expert?
Watch the Webinar Recording
