Mandatory benefits are benefits employers are legally required to provide their employees. These benefits are usually related to social security and insurance. Often, employers are required to withhold sums reserved for mandatory benefits from their employees’ salaries.
Common types of mandatory benefits
Mandatory benefits vary from country to country. Still, the following benefits are fairly common:
- Social security contributions
- Retirement benefits
- Unemployment insurance
Can mandatory benefits ever be waived?
For the most part, mandatory benefits are required by law and can’t be waived. Nonetheless, there are some exceptions – for example, sometimes employees can opt out of retirement or health insurance plans.
Handling mandatory benefits for a global workforce
Because mandatory benefits vary across the globe, they can present a challenge for companies with global workforces. This can include compliance issues, regulatory changes, currency exchange rate fluctuations, cost management, and more.
Companies facing these obstacles may choose to turn to a global payroll payment platform. These solutions can offer expertise in compliance as well as technology built to handle, navigate, and automate the distribution of mandatory benefits across multiple jurisdictions.
Benefits of unified payroll payments
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