Tricky Benefit Packages Can Create Complications Overseas. Learn how to avoid issues when hiring an employee internationally. — Vyoma Nair Typically you’d think hiring an employee internationally would be much like the U.S. – you’d pay a salary and provide some benefits like life insurance, medical insurance, and maybe a pension contribution. Unfortunately, when you go international you soon learn that each country is quite different and that ‘benefits’ have a wider meaning. Mexican Pretax Profit for Employees Employees have certain rights which cannot be denied by any contract in Mexico. The most unwelcome news to many U.S. employers is that employees can be entitled to 10% of the company’s pretax profit! Maybe the second most unwelcome information is that they are also entitled to an extra 25% of their salary during holidays. Chinese Marriage Leave In China, an employee gets the benefit of an additional leave; “marriage leave” which varies by age. If the employee is marrying later in life, (e.g. the groom is over 25 years or the bride is over 23 years) they will be entitled to 10 additional days during which period their wages and other welfare benefits must not change. German Parental Leave Parental leave is a relatively new concept. Parents in Germany are entitled to leave for up to 14 months
during which period they must receive 67% of their net income. Fortunately for employers, the amount is capped at 1,800.00 EUR per month. More specifically, fathers have a right to leave during the first three years of a new baby’s life, but up to 12 months can be deferred and must be taken before child’s 18th birthday. Italian Monthly Salary When you agree a salary with your employee in Italy, you should remember that the employee will benefit from a thirteenth and fourteen month salary, which is equal to one-twelfth of the annual salary. Healthy Employees in Netherlands And if you are employing someone in the Netherlands, you need to know the additional health benefits provided to employees. If the employee gets sick, the company is required to pay the employee 70 % of the last earned salary for two years. If your industry has a collective bargaining agreement, the employee may benefit more. If you do not know what you should be providing or what you should be negotiating with your employee, contact the benefits experts at: www.internationalexpansionauthority.com Nair & Co. © 2008
An integrated solution is the only real security. Experience the Nair & Co. Difference. Visit www.nair-co.com or Call us at (239) 948 9820 (EST-South) | (781) 239 8135 (EST-North) | (919) 996 9859 (EST-East) | (408) 515 6887 (PST) About Nair & Co.: Nair & Co. provides businesses an integrated solution geared to making your company’s thrust to expanding business overseas less risky, stress free and more strategic in the finance, tax, HR, compliance and legal arenas. Specialized in working with the unique challenges of US-based technology companies, Nair & Co. has headquarters in the UK and offices in USA, China, Japan and India and acts for nearly 700 foreign operations in over 40 countries. Nair & Co. employs highly qualified international specialists as your one point of contact client service directors to support your international registration, tax, accounting, compliance, HR and payroll needs. Our unrivalled knowledge base, attention to detail and superior work ethics protect your company’s operations more effectively and save you time and money in the long run. For more information, visit our web site at www.nair-co.com.