Global Pay

In today’s hyper-connected global economy, expansion isn’t a luxury—it’s a necessity. Ambitious companies no longer confine themselves to borders. They move fast, hire faster, and scale operations across time zones. But this global ambition hits a wall when compliance, payroll intricacies, local labour laws, and legal liabilities start piling up. That’s where the right Professional Employer Organisation (PEO) becomes not just helpful, but mission-critical. Let’s be clear—not all PEOs are built equal. The Cost of Choosing the Wrong PEO The global employment landscape is a minefield. A poorly-structured employment model can expose your business to: A low-cost, cookie-cutter PEO solution might promise the moon—but they rarely deliver it when it matters. And when things go wrong in a foreign jurisdiction, you’ll wish you had partnered with a firm that understands the nuances of your industry, your business model, and your target geography. What the Best PEOs Actually Do Differently Top-tier PEOs don’t just “hire and pay” on your behalf. They operate like stealth HR-command centres, empowering you to: They act as Employer of Record (EOR) partners, enabling your global workforce to function like an extension of your home team—with zero compromise on legal, financial, or operational control. You Deserve a Partner Who Understands the Stakes A true PEO partner is not just a service provider. They are a strategic enabler. You don’t need a vendor who simply processes payroll—you need one who anticipates cross-border compliance risks, ensures flawless local onboarding, and navigates jurisdictional red tape like second nature. Many fast-growth companies working across the US, Europe, India, and APAC have already discovered the advantage of partnering with agile, execution-driven EOR providers that don’t hide behind generic service lines. These firms work quietly in the background, powering teams in over 40+ countries, often going unnoticed—and that’s exactly how it should be. Because in global business, silence is efficiency. In Closing If your global workforce is your competitive edge, then your PEO is the edge on that edge. Choose one that doesn’t just keep you compliant—but one that helps you win. When expansion can’t wait, compliance can’t fail, and excellence can’t be compromised—you’ll know exactly who to call.

Aspect Employee on Record (EOR) Payroll Consultant Payroll Employment Status An individual engaged under an Employer of Record (EOR) arrangement is classified as a full-time employee in terms of role and responsibilities but legally employed by a third-party Employer of Record (EOR). The EOR handles all employment responsibilities, while the employee works exclusively for the client company. The consultant operates as an independent contractor, with a contractual relationship rather than an employment agreement. There is no direct employer-employee relationship. Payroll Processing The EOR manages end-to-end payroll, ensuring salaries are processed accurately and in compliance with local labor laws. The company outsources payroll complexity, making it a hassle-free arrangement. Consultants submit invoices based on pre-agreed terms (hourly, milestone-based, or project fees). Payments are made without traditional payroll deductions, simplifying the employer’s cost structure. Taxation & Compliance The EOR is responsible for withholding taxes, social security contributions, and other statutory deductions, ensuring seamless compliance with local labor regulations. Consultants self-manage their taxes, handling their own filings and there is no requirement to deduct social security contributions and other compliance related to labour laws. Taxation Structure Tax is deducted as per individual income tax slabs, just like a regular salaried employee. This means higher-income employees may fall under higher tax brackets, impacting their in-hand salary. A flat 10% Tax Deducted at Source (TDS) is applicable on consultant payments (as per Section 194J of the Income Tax Act in India). Benefits & Perks Employees under an EOR receive standard employment benefits, including health insurance, paid leave, provident fund, and even stock options where applicable. The EOR ensures these perks comply with labor laws. Consultants do not receive employment benefits. Any additional perks (e.g., health coverage, travel reimbursements) must be contractually agreed upon and may come at a higher negotiated rate. Work Control & Integration EOR employees function as internal staff, follow company policies, use internal resources, and are subject to performance reviews. The company has direct oversight over their work. Consultants work with the company while maintaining some independence in their operations. The company sets project objectives and timelines but does not control their working hours or require exclusive engagement. Consultants have the flexibility to manage their work while meeting the company’s expectations. Engagement Model Typically structured for long-term, strategic hires, aligning with the company’s workforce planning and expansion goals. Suitable for businesses needing dedicated, full-time staff without legal setup hassles. Best suited for short-term or project-based roles, where expertise is needed temporarily. Consultants are often brought in for highly specialized work without long-term obligations. Exit Process Employees under an EOR follow a structured offboarding process, including notice periods, severance (where applicable), and exit documentation. Ensures a smooth transition with minimal risk. Exits are simpler and faster, as contracts typically define clear termination clauses. Companies can disengage consultants making it a flexible staffing option. Ideal Use Case Perfect for companies expanding globally without setting up a legal entity, or those looking to hire full-time employees while outsourcing HR and compliance burdens. Ideal for businesses that require specialized skills on a flexible, cost-efficient basis, particularly for project-based, advisory, or interim roles without long-term employment commitments. INDIA Delhi Office – A-19 , Ground Floor , FIEE Complex, Okhla Industrial Area Phase – 2, New Delhi – 110020, India USA Office – 30 N Gould St Ste R, Sheridan, Wyoming 82801, United States W: https://theglobalpayroll.com

Navigating Payroll Compliance in East Asia: A Unified Solution for Global Businesses Expanding business operations into East Asia presents vast opportunities, but it also brings significant payroll compliance challenges. Countries such as China, Japan, South Korea, and Singapore have intricate labor laws, tax regulations, and reporting requirements that demand expert handling. Companies operating in these regions must navigate these complexities efficiently to avoid legal risks and ensure seamless payroll processing. The Complexity of Payroll Compliance in East Asia Each country in East Asia has its own unique payroll structure and statutory obligations. Failing to comply with these regulations can result in severe penalties, legal disputes, and operational disruptions. Below are key payroll challenges in some major East Asian economies: China Japan South Korea Singapore Why Payroll Compliance Matters Non-compliance with payroll regulations in East Asia can lead to: For companies expanding into East Asia, it is imperative to have a compliant, efficient, and well-structured payroll system to mitigate risks and ensure smooth operations. The Solution: Expert Payroll Management Across East Asia Businesses looking to establish themselves in East Asia need a centralized payroll partner to handle country-specific compliance. A dedicated payroll outsourcing provider ensures: How Our Payroll Expertise Helps Businesses in East Asia At Innothrive Solutions Private Limited, we provide tailored payroll solutions for companies operating in East Asia, offering: With our expertise, businesses can eliminate payroll complexities, reduce administrative burden, and achieve 100% compliance in East Asia.

In today’s interconnected world, businesses are increasingly seeking talent beyond their borders to harness diverse skill sets, reduce operational costs, and expand into new markets. However, navigating the complexities of Indian labour laws, tax regulations, and compliance requirements can pose significant challenges for foreign companies. This is where Employer of Record (EOR) services provide an ideal solution. What is an Employer of Record (EOR)? An Employer of Record (EOR) is a third-party entity that legally employs workers on behalf of another organization. While the client company oversees the employees’ daily work and performance, the EOR manages the administrative and legal responsibilities, including compliance with local labour laws. Effectively, the EOR becomes the official employer in India, ensuring all employment-related requirements are met seamlessly. Why Choose an EOR? Key Advantages For international companies looking to hire in India without establishing a formal legal entity, EOR services offer a streamlined, cost-effective solution. Here’s what makes them indispensable: Simplified Compliance with Indian Labour Laws India’s labour framework combines central and state-level regulations covering areas such as: Handling these regulatory requirements independently can be overwhelming. A proficient EOR partner ensures comprehensive compliance, shielding your business from penalties and legal challenges. Selecting the Best EOR Provider Choosing the right EOR partner is pivotal to a successful hiring strategy in India. Consider the following factors: Peace of Mind with EOR Services With an EOR managing payroll, tax filings, and compliance, you can focus on scaling your business without worrying about operational intricacies. This “peace of mind” model ensures that your Indian workforce is managed efficiently and lawfully. Why Partner with “The Global Pay”? At The Global Pay, we specialize in offering tailored EOR services that cater to the Indian market’s unique requirements. Here’s why we stand out: Your Gateway to Hiring in India India is a vibrant hub of talent and growth opportunities. By partnering with The Global Pay, you can leverage this potential without the complexities of establishing a local entity. Let us simplify your entry into the Indian market while ensuring absolute compliance with its diverse labour laws. Interested in exploring how EOR services can elevate your business? Contact us today to start your journey towards hassle-free global workforce management.

Introduction The Contract Labour Act, 1970, is used to employ laborers through a contract for a certain period. It is the responsibility of the contractor to hire, supervise and remunerate the laborers. The core objective of this act was to prevent the exploitation of contract workers and also ensure proper and better working conditions. This Act also regulates the employment of contract labour in various industries in India. Contract workers are hired through a contractor, often on a daily wage basis, for specific periods. The Contract labour Act aims to address the poor conditions and job insecurity that contract workers often face, ensuring they are treated fairly and have basic rights at the workplace. Applicability of the Act Non-Applicability of the Act Essential Registration/Licensing Provisions of the Act Key Objectives of the Act Conclusion: The Contract labour law plays a crucial role in safeguarding the rights and welfare of contract workers in India. While the Act provides a comprehensive framework for the regulation and abolition of contract labour, ongoing amendments and state-specific modifications continue to shape its implementation. Employers and contractors must stay informed about these developments to ensure compliance and uphold the rights of contract workers.