To most people, an international pay slip wouldn’t seem to be a very complicated part of managing payroll. One would think it would be simple to provide these documents easily. However, when it comes to managing global payroll, this is not the case at all. Each country has a set of requirements for how pay slips are formatted and what information is required to appear on the document.
For example, in France, local pay slips can be no more than two pages long because they provide all of the social insurance payment details social insurance payments and they are considered legal documents. One situation that can occur is related to accrued vacation and needs to be adequately documented on the international pay slip. If it is not accurate, the employee could demand to be paid the higher amount based on the erroneous pay slip, and the company could be liable for the incorrect amount.
Delivery options and unique processes per country also complicate things. For instance, Mexico employees are required to sign each pay slip, while other countries will not allow for online delivery and may require paper pay slips with data online for reference purposes only. Many HCM systems will now interface directly with payroll providers and can provide the detail to the employee within their company’s HCM system, integrating the process and closing the loop on delivering payroll detail. Keen understanding of each countries requirement is still required to ensure compliance.
Many payroll providers have begun to offer online pay slip portals with unique login IDs via self-service systems where the employee can access their pay slips in a very secure way. Other countries have mechanisms in place to provide employees with secure digital mailboxes. For instance, in Denmark, all employees receive one of these types of mailboxes which are only accessible by them through their private digital signature. This mailbox is 100 percent security and provided by the Danish government. Finland offers e-salary which is an electronic pay slip that can be viewed through their banking credentials, similar to logging into your bank account and seeing your bank statement.
Even though move and more countries are beginning to offer electronic or digital ways of delivering pay slips, paper is still a prevalent mode of delivery. Paper international pay slip delivery will be around for the foreseeable future as long as there are countries that require it.
*This article references “Global Payroll” Chapter 13 of the Payroll Answer Book published by Wolters Kluwer. Chapter 13 is written by Michele Honomichl Founder & Chief Strategy Officer of Celergo LLC.
**This article is for informational purposes only. It is not intended to constitute legal advice.