What does payroll and labour management cover?
The full employee cycle in the country: from the contract to the final settlement, with local social security and payslips filed on time.
Key points
- Contracts under the applicable law and collective agreement
- Payroll calculation and issuing
- Enrolment, leavers and contributions with local social security
- Holidays, sick leave and final settlements
- Mandatory forms and notices before the labour authority
What rules do you need to know before hiring?
Each country sets a minimum wage or leaves it to the collective agreement, and the real cost of an employee is not the gross salary: Germany adds long-term care insurance and in Italy the agreement sets the minimum by category.
Reference minimum wage data in the markets we cover:
Key points
- Portugal · 920 EUR/month over 14 payments
- Spain · SMI over 14 payments
- France · SMIC around 1,802 EUR/month
- Germany · 13.90 EUR/hour
- Italy · set by the collective agreement
- United Kingdom · National Living Wage per hour
- Andorra · its own minimum interprofessional wage
- Dubai · no statutory minimum wage
What does payroll cost per employee?
It is charged per employee and month, depending on the country. The starting price covers the contract, the payslip and the contribution; final settlements and contract changes are quoted separately.
Key points
- Spain · from 5 EUR/month per employee
- Portugal, Dubai and the United Kingdom · from 30 EUR/month
- France and Italy · from 45 EUR/month
- Germany · from 55 EUR/month
- Andorra · from 60 EUR/month
Is it worth hiring locally or using an EOR?
Hiring through an employer-of-record solves the start with no company, but costs more per employee and does not give you the direct employment relationship or your own payroll history.
If you already have a subsidiary, local payroll management usually works out cheaper from the first employee and avoids transferring contracts once volume grows.
