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Country Compliance Updates

Regulatory updates
for Global Employers

Navigating global compliance can be tough with shifting regulations. We’ve compiled the latest updates across the globe to help you benchmark your efforts and stay aligned with local standards.

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All Updates & Releases

October 9, 2024

Kenya launches Digital Nomad Visa

🌎
Global
Country Flag
Kenya
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Kenya has become the latest African country to introduce the Digital Nomad Visa to attract remote workers and boost economic growth.

Requirements for applicants of the Class N: Digital Nomad Visa include:

  • A valid passport
  • Proof of remote employment with a company outside of Kenya
  • A minimum annual income of at least $55,000
  • Accommodation within Kenya
  • A clean criminal record

August 5, 2024

Singapore: EORs can no longer sponsor work permits of foreign workers

🌎
Global
Country Flag
Singapore
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.

July 9, 2024

Slovakia Increases Minimum Meal Voucher Value for Employees

🌎
Global
Country Flag
Slovakia
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

The Slovak Ministry of Labor has raised the mandatory value of meal vouchers to €6.23, effective immediately. While employers must meet this minimum, many are increasing the voucher value to €6.30 to remain competitive and attract talent.

July 1, 2024

Mauritius Revises Wage Ceiling for National Savings Fund Contributions

🌎
Global
Country Flag
Mauritius
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

The Mauritius Revenue Authority has updated the minimum and maximum basic wage ceilings for National Savings Fund (NSF) contributions, now capped at 25,475 MUR. This revision ensures that both employers and employees contribute based on the new wage limits, enhancing savings for employees while requiring payroll adjustments to meet compliance standards.

July 1, 2024

Chile Increases Minimum Wage and Updates Insurance Contributions for 2024

🌎
Global
Country Flag
Chile
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Chile's minimum wage has been gradually increased, with the final adjustment to $500,000 pesos taking effect on 1 July 2024. This increase boosts employees' baseline earnings, improving living standards and disposable income. For employers, it necessitates payroll adjustments to stay compliant with the updated wage regulations.

July 1, 2024

Pakistan 2024-25 Income Tax Update: New Rates for Salaried Employees

🌎
Global
Country Flag
Pakistan
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Pakistan’s updated tax rates for salaried individuals, effective July 2024, now range from 0% for salaries below Rs. 600,000 to 35% for those exceeding Rs. 4,100,000.

June 7, 2024

Australia Announces Superannuation and Income Tax Changes for 2024

🌎
Global
Country Flag
Australia
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

As of 1 July 2024, Australia's superannuation guarantee rate increased from 11% to 11.5%, enhancing employees' retirement savings. Additionally, individual income tax rates decreased with rates like 19% dropping to 16%, and tax thresholds increasing for higher earners. These changes directly affect employees' take-home pay, increasing net earnings while boosting long-term retirement benefits.

May 14, 2024

Digital Nomad Visas are introduced in South Africa

🌎
Global
Country Flag
South Africa
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

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 South African government has stipulated that applicants must earn at least R 1 million (approximately $56 thousand) to qualify for this visa category.

October 9, 2024

Kenya launches Digital Nomad Visa

🌎
Global
Country Flag
Kenya
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Kenya has become the latest African country to introduce the Digital Nomad Visa to attract remote workers and boost economic growth.

Requirements for applicants of the Class N: Digital Nomad Visa include:

  • A valid passport
  • Proof of remote employment with a company outside of Kenya
  • A minimum annual income of at least $55,000
  • Accommodation within Kenya
  • A clean criminal record

August 5, 2024

Singapore: EORs can no longer sponsor work permits of foreign workers

🌎
Global
Country Flag
Singapore
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Non-Singapore entities that want to employ an individual in Singapore who is not a Singapore national or permanent resident may no longer use an Employer of Record (EOR) to sponsor that individual for a work permit. Contact our experts for help on how to navigate global employment in Singapore.

July 9, 2024

Slovakia Increases Minimum Meal Voucher Value for Employees

🌎
Global
Country Flag
Slovakia
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

The Slovak Ministry of Labor has raised the mandatory value of meal vouchers to €6.23, effective immediately. While employers must meet this minimum, many are increasing the voucher value to €6.30 to remain competitive and attract talent.

July 1, 2024

Mauritius Revises Wage Ceiling for National Savings Fund Contributions

🌎
Global
Country Flag
Mauritius
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

The Mauritius Revenue Authority has updated the minimum and maximum basic wage ceilings for National Savings Fund (NSF) contributions, now capped at 25,475 MUR. This revision ensures that both employers and employees contribute based on the new wage limits, enhancing savings for employees while requiring payroll adjustments to meet compliance standards.

July 1, 2024

Chile Increases Minimum Wage and Updates Insurance Contributions for 2024

🌎
Global
Country Flag
Chile
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Chile's minimum wage has been gradually increased, with the final adjustment to $500,000 pesos taking effect on 1 July 2024. This increase boosts employees' baseline earnings, improving living standards and disposable income. For employers, it necessitates payroll adjustments to stay compliant with the updated wage regulations.

July 1, 2024

Pakistan 2024-25 Income Tax Update: New Rates for Salaried Employees

🌎
Global
Country Flag
Pakistan
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

Pakistan’s updated tax rates for salaried individuals, effective July 2024, now range from 0% for salaries below Rs. 600,000 to 35% for those exceeding Rs. 4,100,000.

June 7, 2024

Australia Announces Superannuation and Income Tax Changes for 2024

🌎
Global
Country Flag
Australia
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

As of 1 July 2024, Australia's superannuation guarantee rate increased from 11% to 11.5%, enhancing employees' retirement savings. Additionally, individual income tax rates decreased with rates like 19% dropping to 16%, and tax thresholds increasing for higher earners. These changes directly affect employees' take-home pay, increasing net earnings while boosting long-term retirement benefits.

May 14, 2024

Digital Nomad Visas are introduced in South Africa

🌎
Global
Country Flag
South Africa
New
Improvement
Feature
Coming Into Effect
In Effect
Proposed

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 South African government has stipulated that applicants must earn at least R 1 million (approximately $56 thousand) to qualify for this visa category.

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Latest Updates and Releases

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June 28, 2024

Work Permits And Visas In The United States: A Guide For Employers

Hiring in the United States can be complex to navigate as an employer, whether you’re hoping to employ someone in the country or want to relocate them. Either way, you need to do your due diligence as an employer and ensure your employees’ paperwork is in order so they can legally work for you.

The U.S. has many types of work permits and visas, each with specific requirements that can impact your responsibilities as an employer. This process can be especially daunting if you have limited knowledge of the U.S. legal landscape.

To help you navigate these complexities, here is a detailed guide to work visa and permit requirements, outlining your responsibilities as an employer in the U.S. 

Which Workers Require Work Authorization Checks?

Making sure your employees are authorized to work in the U.S. is your responsibility as an employer. Non-compliance with work authorization requirements can lead to severe penalties, including fines and legal action.

Employers should verify the employment status of all employees, whether they’re U.S. citizens or foreign nationals, to comply with the Immigration Reform and Control Act (IRCA).

Work authorization checks are required for various types of workers, including:

  • Permanent employees
  • Temporary or contract workers
  • Interns and trainees
  • Seasonal workers

What’s The Difference Between Work Permits, Work Visas and Green Cards?

There’s a difference between work permits, work visas and green cards in the U.S:

Work Visa

A work visa permits foreign nationals to enter the U.S. temporarily for employment purposes. It is linked to a specific job or industry and is generally required before entering the U.S. This visa is employer-specific and often tied to specialized occupations.

Work Permit (Employment Authorization Document - EAD)

An EAD allows foreign nationals already residing in the U.S. to work legally for any employer. This document is frequently issued to individuals with certain visa categories or statuses, such as asylum seekers, students, or spouses of visa holders. Unlike a work visa, it offers greater flexibility in employment.

Green Card

A green card provides permanent residency and serves as proof of employment authorization. Holders of a green card have the right to live and work in the U.S. indefinitely without needing additional documentation. This status is distinct from the temporary nature of work visas and the more limited scope of work permits.

If you’re an employer sponsoring someone to enter the U.S. for work purposes, you will be dealing with work visas. There are various types of work visas, each with different stipulations regarding the duration of stay in the U.S.: 

Work Visa Types in the U.S.

What Is a Non-Immigrant Visa?

Non-immigrant visas are intended for temporary stays in the U.S. for specific purposes such as employment, education, or tourism. 

When it comes to employment, some of the most common types of visa include:

H-1B Visa: For specialty occupations requiring specialized knowledge and a bachelor's degree or higher. A typical H-1B visa allows an individual to work in the U.S. for three years, extendable to a maximum of six.

L-1 Visa: For intra-company transferees in managerial or executive positions or positions requiring specialized knowledge.

O-1 Visa: For individuals with extraordinary ability or achievement in their field.

E-2 Visa: For investors and their employees in enterprises in which they have invested a substantial amount of capital.

TN Visa: For professionals from Canada and Mexico under the USMCA (formerly NAFTA).

B-1 Visa: For business visitors attending meetings, negotiating contracts, or consulting with business associates.

What Is an Immigrant Visa?

Immigrant visas are intended for individuals who want to live and work permanently in the U.S. These work visas are issued before the holder receives their green card, which means they become permanent residents of the United States. 

Examples include:

EB-1 Visa: For priority workers, including individuals with extraordinary ability, outstanding professors and researchers, and multinational executives and managers.

EB-2 Visa: For professionals with advanced degrees or exceptional ability in the sciences, arts, or business.

EB-3 Visa: For skilled workers, professionals, and other workers.

EB-4 Visa: For special immigrants, including religious workers and certain international organization employees.

EB-5 Visa: For immigrant investors who invest a substantial amount of capital in a new commercial enterprise that creates or preserves at least ten full-time jobs for U.S. workers.

The Requirements for a Work Visa in the U.S.

To obtain a work visa in the U.S., employees must meet specific eligibility requirements, including:

  • Proof of a job offer from a U.S. employer
  • Valid passport and travel documents
  • Evidence of qualifications and experience
  • Labor condition application (LCA) approval for certain visas
  • Payment of applicable fees

The process for obtaining a work visa involves several steps:

  1. The employer files a petition with the U.S. Citizenship and Immigration Services (USCIS).
  2. Once the petition is approved, the employee applies for a visa at a U.S. consulate or embassy.
  3. The employee attends an interview and provides biometric data.
  4. Upon approval, the employee receives their visa and can travel to the U.S. to begin work.

The Process for Work Visa Sponsorship in the U.S.

As an employer, you’ll need to support your employees with the visa sponsorship process. Here’s what it involves:

  1. Filing the necessary petitions and forms with USCIS. For nonimmigrant employment visa sponsorships, employers would submit Form I-129. For immigrant visas, you would submit Form I-140.
  2. Providing documentation and evidence to support the visa application, which will include a sponsorship letter. 
  3. Covering application fees and related expenses.
  4. Offering legal assistance and guidance throughout the process.
  5. Ensuring compliance with all legal and regulatory requirements.

How Playroll Can Simplify International Hiring and Compliance

As the process for work visa sponsorship shows, relocating foreign workers to the U.S. can get complex and costly, and requires in-depth knowledge of compliance that can put you at risk if you take any missteps. That’s why many businesses opt to use an Employer Of Record like Playroll to simplify global employment and working with distributed talent. 

Playroll assists with hiring, onboarding, and managing employees in over 180 countries, including the U.S., ensuring compliance without the substantial costs of setting up legal entities in new markets.

Ready to simplify your international employment process? Chat with our team of experts to learn more about how Playroll can help scale your global team.

FAQs

What are the employment laws in the United States?

Check out Playroll's detailed U.S. country guide for a breakdown on employment laws, payroll and employment taxes in the United States.

What is a distributed workforce?

A distributed workforce is a model where employees are geographically dispersed, working collaboratively through digital channels.

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September 6, 2024

2024 Guide to Minimum Wage: A Global Overview

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.

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February 29, 2024

Digital Nomad Taxes in Spain: What to Know and What To Avoid

In a significant 2023 breakthrough, Spain introduced a digital nomad visa, revolutionizing the remote work landscape and solidifying its status as a premier destination for global nomads. This game-changing policy caters to modern digital workers' lifestyles and opens up new vistas for understanding and managing tax obligations in Spain. 

Dive into the essentials of this new era, where Spain doesn't just promise sun and culture but a comprehensive framework for digital nomads to thrive financially and legally.

What You Have to Know About the Startup Law

Spain's recent enactment of the Startup Law marks a significant pivot towards embracing the digital nomad lifestyle, offering a fresh perspective on tax obligations for remote workers from across the globe. This groundbreaking legislation simplifies the process of living and working in Spain through a specialized digital nomad visa. Also, it introduces enticing tax benefits, signaling Spain's commitment to becoming a hub for digital innovation and international talent.

Under this new law, digital nomads are granted the opportunity to live and work in Spain with greater ease than ever before. The digital nomad visa, a highlight of the Startup Law, permits non-EU/EEA remote workers and freelancers to reside in Spain for up to five years. This visa facilitates an extended stay in Spain and allows the visa holders to include family members, travel within the Schengen Zone, and access previously unavailable tax benefits. 

Furthermore, the law simplifies the tax landscape for digital nomads, potentially lowering their tax liabilities and offering a clearer path to financial planning while in Spain. With requirements such as proving a sustainable income of at least €2,500 per month and possessing a clean criminal record, the law sets a framework that ensures digital nomads' security and economic contribution to Spain. 

This strategic move enhances Spain's appeal as a destination for digital nomads and aligns with the country's broader objectives to boost entrepreneurship and attract foreign investments. As a result, Spain is rapidly becoming one of the most sought-after countries for digital nomads seeking the joy of Mediterranean life and the benefits of a supportive legal and tax environment.

Benefits of the Startup Law for Digital Nomads

The Startup Law is a game-changer for digital nomads eyeing Spain as their next destination or home base. The law's comprehensive benefits package caters to the unique needs of remote workers. This initiative underscores Spain's commitment to attracting skilled professionals and fostering a diverse, dynamic expat community.

  • Extended Stay: The digital nomad visa allows for a stay of up to five years in Spain, offering a stable base for remote work.
  • Family Inclusion: Visa holders can include family members, ensuring a smooth transition for those moving with spouses, partners, or dependents.
  • Schengen Zone Travel: The visa grants the freedom to travel across the Schengen Zone, ideal for nomads wishing to explore Europe.
  • Tax Benefits: Special tax considerations are part of the package to reduce the fiscal burden on digital nomads.
  • Pathway to Permanent Residence and Citizenship: Compliance with the visa conditions can lead to eligibility for permanent residence and, eventually, Spanish citizenship.

Understanding the Tax Benefits

In assessing eligibility for certain tax benefits, digital nomads should be aware of the 'bona fide residence test' and the 'physical presence test' commonly used in international tax law. These tests help determine a taxpayer's tax residency status and eligibility for exclusions like the foreign earned income exclusion. While the specifics of these tests might not apply directly under Spanish law, understanding their principles can be beneficial for digital nomads managing their worldwide income tax obligations.

The tax benefits introduced under Spain's Startup Law aim to significantly alleviate the fiscal responsibilities of digital nomads who choose Spain as their base. These special tax considerations are designed with the modern remote worker in mind, offering a range of incentives that make Spain an even more attractive destination:

  1. Reduced Income Tax Rates: Digital nomads may qualify for reduced rates on their income taxes, depending on their earnings and the length of their stay. This reduction aims to lighten the financial load on professionals contributing to the Spanish economy through remote work.
  2. Double Taxation Agreements: Spain has agreements with numerous countries to prevent double taxation, ensuring that digital nomads aren't taxed twice on the same income — once in their home country and again in Spain.
  3. Deductions for Start-up Costs: The law offers deductions for initial business expenses for digital nomads who decide to launch their startups in Spain.
  4. Exemptions on Foreign-Sourced Income: Specific exemptions may be available for income earned outside of Spain, reducing the tax burden on digital nomads whose clients and projects are globally dispersed.
  5. Social Security Contributions: Adjustments in social security contributions can also be part of the tax benefits, offering more favorable terms for digital nomads, which can lead to savings and a lower overall cost of living.
  6. Family Inclusion Benefits: Tax benefits extend to family members who join the digital nomad under the new visa, creating a more welcoming and financially viable environment for families.

Step-by-Step Process to Apply for the Digital Nomad Visa

Embarking on the journey to obtain the digital nomad visa under Spain’s Startup Law involves several steps. Starting with eligibility assessment and document collection, the process is designed to be thorough yet straightforward, ensuring applicants are well-prepared for their new adventure.

By following each step, digital nomads can confidently navigate the bureaucratic waters, setting the stage for a successful and enriching experience in Spain.

  1. Assess Eligibility: Ensure you meet the criteria, such as having a degree or work experience in your field, working for a company outside Spain, and proving a sustainable income.
  2. Gather Required Documents:
  • Valid passport
  • Criminal record certificate
  • Proof of financial means
  • Health insurance documentation
  • Proof of work arrangement or self-employment
  1. Apply for a NIE Number: Necessary for all financial and legal transactions in Spain.
  2. Submit Your Visa Application: Apply in person or through a representative at your local Spanish consulate with all the required documentation and the visa application fee.
  3. Wait for Approval: The processing time is approximately ten days. Be prepared for additional requests for information or an interview.
  4. Register for a Residence Permit: Upon arrival in Spain, register for a residence permit within 30 days to legalize your stay.

Tax Obligations for Digital Nomads Under the Startup Law

While the law introduces tax benefits and potentially reduced rates, navigating the tax landscape requires careful planning and compliance. With the right approach, digital nomads can optimize their tax situation.

  • Income Tax: Digital nomads will be taxed on their worldwide income if they establish tax residency in Spain (spending more than 183 days in the country). The Startup Law may offer reduced tax rates or exemptions to simplify this.
  • VAT and Social Security: If engaging in self-employment within Spain, be aware of VAT registration requirements and social security contributions. The exact implications depend on the nature of your work and income levels.
  • Benefiting from Tax Treaties: Spain has tax treaties with numerous countries — such as the United States, United Kingdom, Canada, Australia, China, India, and Japan — to prevent double taxation. Understanding these can help maximize your tax benefits.

For digital nomads establishing tax residency in Spain, it's important to understand how Spain's tax laws interact with international taxation standards, such as the '330 days rule' associated with the physical presence test. This rule, often crucial in determining one’s tax obligations in their home country, particularly for U.S. citizens, can influence how digital nomads plan their stays and manage their tax liabilities across borders. While Spain's Startup Law provides a framework for reduced tax rates and exemptions, digital nomads should also consider how their days spent in and out of the country impact their tax status globally.

Practical Tips and Resources for Digital Nomads in Spain

Navigating the tax landscape in Spain as a digital nomad can be smooth with the proper preparation and resources. Here’s how to stay ahead:

  • Consult a Tax Professional: Engaging with a tax advisor experienced in expat and nomad taxes is invaluable. They can provide personalized guidance, ensuring you benefit from all available tax advantages and comply with Spanish and home country tax laws.
  • Educate Yourself: Dive into resources offered by official Spanish tax authority websites, expat forums, and financial advisory blogs specializing in digital nomad issues.
  • Leverage Playroll's Services: Playroll offers tailored solutions for digital nomads, streamlining tax and payroll processes. Unlike traditional methods, which can be cumbersome and time-consuming, Playroll simplifies the management of tax obligations, ensuring compliance and efficiency.

Embrace these tips and resources to navigate Spain’s tax system confidently, making your digital nomad experience as fulfilling and hassle-free as possible.

Conclusion: Digital Nomad Taxes in Spain

The Startup Law represents a significant positive shift for digital nomads considering Spain as their base. By understanding the benefits, following the application process carefully, and being mindful of tax obligations, digital nomads can make the most of what Spain has to offer.

For those looking for expert guidance tailored to the unique needs of digital nomads, Playroll offers comprehensive solutions designed to simplify your tax and payroll processes, allowing you to focus on what you do best: exploring the world and thriving in your remote work endeavors.

Ready to navigate your tax journey in Spain with ease? Request a demo with Playroll today and discover personalized assistance and solutions tailored specifically for digital nomads like you in Spain.

Read time

March 19, 2024

Maternity Leave: A Guide for International Employers

Maternity Leave Laws Around the World

Understanding the average maternity leave by country helps employers grasp the global landscape, ensuring their policies are competitive and in line with international standards.

According to the ILO (International Labour Organization) standards, maternity leave is a universal human and labor right and should last at least 14 weeks. Still, the ILO recommends increasing that period to 18 weeks of paid parental leave so the mother can have more time to rest and recover properly.

However, regarding maternity leave requirements, two variables change between the 152 countries that offer the benefit: leave duration and financial compensation. During said leave, the mother can either be fully paid maternity leave, paid in part, or not paid at all.

To guarantee compliance, employers must keep up-to-date with each country's maternity leave laws. Here are some examples of maternity leave by country around the world. This section highlights the differences in paid maternity leave by country, illustrating how compensation during leave varies globally.

The Americas

Maternity leave in the Americas
Country Maternity Leave
Argentina 12.8 weeks of fully paid leave
Brazil 17.1 weeks of fully paid leave
Canada Paid at 55% average insurable weekly earnings with a cap of $63,200 per year
Chile 18 weeks paid at an average of 73.2% of earnings
Costa Rica 16 weeks at full pay
Mexico 12 weeks of fully paid leave

Europe

Maternity leave in Europe
Country Maternity Leave
Bulgaria Up to 90% of pay depending on the prior 24 months of social security contributions
Czech Republic 28 weeks of 70% paid leave for a single birth
France Full pay calculated at average income over the past 3 months subject to French social security ceiling
Germany 14 weeks paid leave; pay is capped at approx €13 per day (% will depend on salary)
Greece 17 weeks is at full pay capped at the highest social security bracket; the following 24 weeks are additional which can be taken at the minimum wage rate + holiday and leave allowance
Italy 20 weeks at 80% of salary
Norway 15 weeks at 100% pay or 19 weeks at 80% pay
Poland 20 weeks maternity leave at 100% pay. Subsequent parental leave is 100% for 6 weeks, then 60% for 26 weeks. OR: both maternity and parental leave can be taken at 80% pay.
Spain Full pay but subject to a social security ceiling
Sweden No maternity leave; instead, 480 days of shared parental leave (240 days per parent), paid at 80% of salary for the first 390 days and 180 SEK/day for the remaining 90 days.
United Kingdom Eligible for 52 weeks of maternity leave, with Statutory Maternity Pay for 39 weeks: 90% of average weekly earnings (AWE) for the first 6 weeks, then the lesser of £172.48 or 90% AWE for weeks 7-39.

Asia-Pacific

Maternity leave in the Asia-Pacific region
Country Maternity Leave
Australia 12 months unpaid leave, plus a Paid Parental Leave Scheme offering 20 weeks at the national minimum wage of $176.55 per day before tax.
India 26 weeks of fully paid maternity leave, based on average salary.
Japan 14 weeks of 67% paid leave to a maximum of ¥284,415 per month
Malaysia 98 days (14 weeks) of consecutive paid maternity leave, based on average salary.
New Zealand 26 weeks of fully paid leave
Singapore 16 weeks maternity leave for children who are Singaporean; first 8 weeks paid by the employer at usual gross salary, next 8 weeks funded by the government, capped at $10,000 every 4 weeks (up to $20,000 per child). Non-Singaporean children qualify for 12 weeks only.

Africa/Middle East

Maternity leave in Africa and the Middle East
Country Maternity Leave
South Africa 16 weeks of unpaid leave, potentially paid by the employer. Contributors may receive maternity benefits from the Unemployment Insurance Fund (UIF), covering a portion of your salary for up to four months.
Nigeria 12 weeks of leave paid at 50% of salary (including allowances) by the employer.
Israel Maternity leave varies by tenure—15 weeks for those with less than a year of employment and 26 weeks for more than a year. Only the first 15 weeks are paid in full; any additional time (up to 11 weeks) is unpaid.

Evaluating the best maternity leave by country allows employers to understand which nations offer the most comprehensive support for new mothers, setting a benchmark for global maternity policies.

Also Read: What Are the Best Countries for Maternity Leave?

The Impact of Maternity Leave on Employer Obligations and Practices

Let's examine the common employee rights during maternity leave to better understand the scope of employer obligations and practices.

No Pregnancy Discrimination

Pregnant workers may feel entitled to take legal action if they are treated less favorably due to their pregnancy or family responsibilities or if they’re asked to perform tasks not suitable for someone in their state.

Extended Maternity Leave

Some countries allow employees to take more leave in exchange for disadvantages, such as not being paid for the extra time or pausing their career progression.

Parental Leave

In addition to paid maternity leave, 63% of countries offer parental leave. However, the leave duration is often smaller than the mother’s, usually under three weeks of maternity leave.

Guaranteed Previous Position Following Leave

This is one of the more important things to keep track of. Every mother has the right to return to her previous position upon returning to work, no matter how much time she spends on leave.

Transparency is key

A great thing to do when implementing maternity leave policies in your company is to plan and disclose everything in advance. That way, you can ensure you and your team are up-to-date with all respective duties and procedures, avoiding any possible hiccups.

Here are some tips that will help you through this process:

●  Previously define those eligible for a paid maternity leave, stating criteria such as length of service, full-time status, etc.

●  Establish the leave duration, including possible extensions and other additional arrangements.

●  Declare the pay and all the benefits employees receive during the maternity leave beforehand.

●  Specify the notice requirements. Let your team know when they should inform you about their pregnancy and when they plan on taking maternity leave.

●  Assure job protection. Your employees must know their positions will remain secure.

●  Adapt your company to better accommodate pregnant employees and those returning from maternity leave. The gold standard is creating flexible work schedules.

Challenges and considerations

Maternity leave policies have evolved significantly in recent years to reflect the changing dynamics of the modern workforce. With globalization and the rise of remote work, employers face new challenges in managing maternity leave across borders and in diverse cultural contexts. Here are some challenges that global employers may encounter and tips on how to deal with them.

Managing Maternity Leave in Remote Work Environments

The advent of remote work has blurred traditional boundaries, presenting opportunities and challenges for managing maternity leave. Remote employees may require flexible arrangements to balance work and caregiving responsibilities effectively.

Employers should prioritize communication and collaboration, offering remote-friendly maternity leave policies that accommodate the unique needs of remote workers. 

Addressing Cultural and Societal Norms Impacting Maternity Leave

In some cultures, there may be stigma or pressure surrounding maternity leave, leading to reluctance among employees to take time off.

Mitigating Legal Risks Associated with Maternity Leave

Legal risks associated with maternity leave include potential discrimination claims, wrongful termination lawsuits, and labor law violations. Employers must take proactive steps to mitigate these risks by implementing fair and equitable maternity leave policies, providing adequate training to managers, and fostering a culture of inclusion and diversity within the organization.

Supporting Fathers and Non-Birth Parents in Parental Leave Policies

While maternity leave is typically associated with birth mothers, it's essential to recognize the importance of supporting fathers and non-birth parents in parental leave policies. Employers should offer gender-neutral parental leave benefits that enable all parents to bond with their newborns and support their families.

By encouraging fathers and non-birth parents to take advantage of parental leave, employers can promote gender equality, strengthen family bonds, and create a more inclusive workplace for all employees.

Final Thoughts

In an increasingly interconnected and diverse world, managing maternity leave requires a nuanced understanding of legal, cultural, and societal factors. Employers must prioritize compliance, equity, and inclusion, recognizing the role of maternity leave in supporting working parents and promoting gender equality.

That’s where Playroll comes in. Our expert and global team of HR professionals are ready to help you safely navigate maternal leave and offer your international workforce all the benefits they seek. Don’t worry about all the legal hurdles: count on us. Request a demo today.

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July 18, 2024

German Work Visa And Residence Permit Requirements: A Guide For Employers

Looking to hire foreigners in Germany, or want to relocate international employees? When hiring distributed talent, it’s important to familiarize yourself with work permit and visa regulations before you kick off the hiring process. 

Employment in Germany can be challenging if you’re not familiar with the labor laws or the requirements for a work visa or residence permit.

That’s why we’ve put together this guide for employers, that outlines your responsibilities to support your employees. The good news is, it is generally considered easy for candidates to receive a work permit in Germany in contrast to other countries!

As an Employer Of Record, Playroll can help you simplify the process of hiring international employees even further, and also offer visa support services in Germany. 

What’s The Difference Between A German Work Visa, Work Permit and a Residence Permit?

A visa is temporary and allows someone to enter Germany for a short period of time for a specific purpose, and is obtained before they enter the country. It is not necessarily tied to employment. For example, a Schengen visa allows someone to enter Germany for 90 days in any 180 days period, but doesn’t mean they can take up employment. 

If an employee wants to stay and work in Germany in the long-term, they’ll need a residence permit (Aufenthaltstitel), a term that is used interchangeably with a work permit or work visa. 

Who Needs a Residence Permit or Visa To Work in Germany?

An employee’s citizenship status and current country of residence will affect whether they need to apply for a visa, a residence permit, or both when entering Germany for employment purposes. The differences are as follows:

  • EU nationals and citizens from Iceland, Liechtenstein, Norway or Switzerland don’t need a visa or residence permit to enter Germany and start working.
  • Citizens of the following countries don’t need a visa to enter the country, but will need a residence permit to work in the country after their arrival in Germany: Australia, Israel, Japan, Canada, the Republic of Korea, New Zealand, the United Kingdom, Northern Ireland, and the United States of America.

Citizens of other countries should apply for a work visa to enter the country, along with a residence permit.

What Are the Types of Residence Permits or Work Visas in Germany?

Germany offers several types of work visas or residence permits to cater to different employment needs and durations:

  • The Job Seeker Visa allows foreign nationals to enter Germany for up to six months to seek employment. They will need to apply for a residence permit after receiving their job offer.
  • The work visa for qualified professionals, lasting for a maximum of four years –  this requires a degree that is recognized in Germany and a specific job offer from an employer in Germany. If qualified, the employee will obtain a temporary residence permit for qualified employment.
  • The work visa for professionally experienced workers is suited for employees who work in non-regulated professions. At least two years of vocational training is required for this visa. If qualified, the employee will obtain a temporary residence permit to take up employment as a skilled worker.
  • The EU Blue Card is designed for highly skilled workers with higher education degrees that are not EU nationals, and offers a pathway to permanent residency. It is valid for up to four years.
  • A Permanent Residence Permit, also known as the Settlement Permit, is needed for long-term employment and residency in Germany. It is typically granted to those who previously had a Temporary Residence Permit or an EU Blue Card. This permit has more stringent requirements, such as requiring proof that the permit holder has worked for five years or more, and advanced German language skills.

The Eligibility Requirements for a Residence Permit in Germany

Each type of residence permit or visa has its own set of requirements. However, some general requirements for a visa application or residence permit could include:

  • Valid Job Offer: A formal job offer from a company.
  • A minimum salary requirement is required to obtain certain residence permits, such as the EU Blue Card.
  • The employee's qualifications or academic degree must be recognized in Germany. Employees can use the Anabin database to check the validity of their qualifications.
  • Proof of health insurance coverage.
  • Evidence of sufficient financial resources.

The application process involves submitting required documentation, attending interviews, and waiting for approval. 

What is the Process for Visa Sponsorship in Germany?

There is no formal process of visa sponsorship required for employees to receive their residence permits or work visa in Germany. However, employers should support their employees in the following ways:

  • Supply all necessary documents as the employer. To process residence permits, the Federal Employment Agency requires the employer to complete the “Declaration of Employment” form, for example. 
  • Provide guidance and help employees understand the application process, timelines, and required steps.
  • Stay updated with legal requirements and ensure that all documentation and processes adhere to German immigration laws.

Does Germany Offer A Digital Nomad Visa?

No, Germany doesn’t offer a dedicated digital nomad visa. However, the freelance visa (Freiberufler) and the self-employment visa (Selbständiger) can provide similar benefits to remote workers.

Hire International Employees in Germany With Playroll

As you can see, there’s plenty of administrative work to do if you want to hire a non-citizen or relocate an employee to Germany. Each country has its own rules around immigration, employment, and tax practices. It can be overwhelming to stay on top of local legislation while hiring abroad.

Successfully hiring foreign nationals in Germany or relocating talent involves plenty of legwork from both employees and employers. You also need to ensure you remain compliant and up to date with local employment laws and tax regulations. 

It doesn’t have to be a complicated process. Playroll offers comprehensive Employer Of Record services to ensure compliance with local labor laws. An EOR simplifies hiring, paying and managing a distributed workforce, so you can focus on your business. With Playroll, you don’t need to establish your own entity to start hiring global talent.

Payroll also offers visa support services in Germany, to support any of your employees that are immigrating to the country. 

Contact our team for more information on how we can assist with hiring global talent or visa sponsorship support.

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