When budgeting for global hires, salary is only one consideration. Employers must also determine the cost of benefits packages for their staff. Most countries mandate certain statutory benefits that are obligatory for every contract. These vary by country, and their payment is essential for legal compliance. 

In addition to mandatory benefits, most employers offer a supplemental benefits package. This helps attract, onboard, and retain top talent in a competitive HR market. These optional benefits range from private health insurance to fun things like theater tickets or wellness vouchers.

At Borderless, we customize our benefits packages to each country we work in, so you can, too! So, what are the best employee benefits? 

In this article, we’ll go over the difference between a mandatory employee benefit and a supplemental benefit and give you some creative ideas on what to add to your perfect benefits package.  

What Are Statutory Employee Benefits? 

The government mandates statutory benefits. Each country sets out its own local labor laws, which have a list of benefits employers must provide for their workers. These generally include things like social insurance, medical insurance, and retirement plans. 

Typically, HR will calculate the cost of statutory benefits into the employee’s total compensation packages. The amount you pay into each scheme depends on the worker’s gross salary. The employer will withhold this amount on a monthly or annual basis.

Common Global Statutory Benefits 

Every country and sometimes state or province sets out the regulations on mandatory benefits. Usually, both the employer and employee pay a percentage of the employee’s gross salary into these funds. 

You don't need a strategy for these, as they are obligatory employee benefits. You’ll get in trouble with the law if you do not pay them. 

However, it is vital to keep them in mind and budget accordingly. Especially for global hiring, navigating the different types of mandatory benefits and contribution levels can be confusing. 

Below are a few common benefits that governments often require. 

Social Security 

Most countries have some sort of social security scheme. These may cover healthcare, pensions, unemployment, sick leave, and other social welfare benefits. 

These schemes feature specific categories or are paid as a lump sum. The percentages also vary greatly, starting at a few percent and going up to twenty, thirty, or even higher percentages of a gross salary. 

For example, employers in Malta only pay 10% in payroll taxes, while those in Italy pay nearly 30%. 

Healthcare Benefits 

Often, employers must pay into a public health insurance fund. This money goes toward public hospitals and other medical care facilities and services. In some countries, major medical coverage will be part of social security payments. In others, major medical insurance will require a separate payment process. 

Pension Fund 

Most countries also have a pension fund under social security insurance or on its own. These payments go to cover current pensions and promise employees retirement funds. 

Unemployment Insurance 

Unemployment insurance usually represents a lower percentage than healthcare, pension, or social security. It helps employees get by if they lose their jobs. This may also include disability or workers' compensation insurance in case of a work-related accident. 

Accident Insurance 

Another common statutory benefit is accident insurance. Employers, employees, or both pay into a special fund used to pay insurance to people who have a workplace accident and cannot work. These funds typically require a lower contribution than pension, health, and social insurance. 

Paid Leave 

Employers don’t usually pay extra for this benefit, although some countries have a maternity leave fund. Even so, they are legally required to provide various types of paid time off, which comes with cost considerations. 

This includes public holidays, paid vacation time, sick leave, maternity leave, paternity leave, parental leave, and so on. 

What Are Supplemental Benefits? 

In addition to statutory benefits, your company may consider offering supplemental benefits. This helps you compete for top talent in an increasingly fierce hiring market. 

There is no limit to your imagination regarding the employee benefits process. But unlike statutory benefits with required employer contributions, fringe benefits are entirely up to you and should speak to the needs of your team. 

Of course, some benefits are more welcome than others. When deciding what benefits to offer, make sure to understand the unique needs of the people who work with your company and where they are based. 

For example, if you are in a country with universal healthcare, you may not need to provide comprehensive private health insurance. However, private medical care is a must if you are in a place where public healthcare is unavailable or lacking. 

On the other hand, you may choose to stand out from the competition by offering perks that others don’t. For example, you could have different strategies for different types of workers, like creating specific benefits for your remote team. 

You might also align your benefits package to your vision and brand. Say you are an outdoor sports gear company. Likely, your employees identify with an active lifestyle, and you may want to offer benefits to help them pursue one. This could include travel stipends, discounts with tour companies and retailers in the space, and more. 

The bottom line is that your benefits packages should reflect your brand, values, and the needs of your employees. But to help you get started, here are some ideas on the types of supplemental benefits your company might offer. 

Financial Benefits

Retirement Savings Plans

Most people worry about retirement, and few national schemes provide sufficient benefits for a comfortable retirement. Many companies offer schemes to match employee pension funds or supplement their contributions.

The most common example is the 401(k), where employees can contribute pre-tax income, often with the added benefit of employer matching contributions. These additional retirement benefits help give employees peace of mind about their future. 

Stock Options or Employee Stock Purchase Plans (ESPP)

Popular among start-ups, stock options are a great way to augment employees’ packages and increase their commitment. As the company grows, so does its wealth. 

Stock options grant employees the right to purchase company stock at a predetermined price, while ESPPs permit employees to buy shares at a discount, often through payroll deductions. Sometimes, stocks are included as part of the compensation package without the need to purchase. 

Profit Sharing or Bonuses

In some countries, annual bonuses can be mandatory in the form of a 13th and 14th-month salary. Normally, though, profit sharing and bonuses are forms of financial rewards employers provide based on company performance. 

Profit sharing distributes a portion of the company's profits among eligible employees, fostering a sense of shared success. Meanwhile, bonuses are a one-time cash award. They can be based on meeting specific company goals or individual performance objectives. 

Student Loan Repayment Assistance

In countries like the United States where education is extremely costly, companies can help employees repay their student loans. This can be a massive relief for those starting on the job market but already bogged down with credit. 

Financial Wellness Programs and Counseling

Financial wellness programs support employees in managing their finances effectively. These programs may include workshops, resources, and one-on-one counseling sessions focusing on financial literacy, budgeting, and debt management skills. 

Subsidies for Housing, Travel, and Meals 

In some countries, like Slovakia, employers must provide meals during workdays. However, this is uncommon as a mandatory benefit. That said, many companies offer their employees housing, travel, or meal subsidies. 

It is also typical to offer housing and travel reimbursements for relocation packages when moving employees across the globe. Most companies choose to subsidize their employees’ day-to-day expenses. For expensive cities like Doha, this may include accommodation. Plus, if your office is far away, a commuting stipend might be a good idea. You may also offer comped breakfast or lunches. 

Health and Wellness Benefits

Comprehensive Health Insurance 

While most statutory benefits cover public healthcare, private health insurance is almost always a significant perk. In some countries, it may cover access to better, private healthcare. It will cover additional medical expenses like supplemental life insurance, vision care benefits, dental insurance, and more.

When collecting data for any type of benefit, but especially for medical insurance, make sure you have the right strategies in place for data privacy and identity theft protection.  

Mental Health Support 

As mental health took a dive during the pandemic, more and more companies are offering mental health support programs to both onsite and remote staff. 

This is often provided through Employee Assistance Programs (EAPs) that offer confidential counseling and resources to help employees manage stress, anxiety, depression, and other mental health issues. These programs can connect employees with licensed professionals who provide guidance and support, promoting mental well-being in the workplace.

Wellness Programs

Living a healthy lifestyle is important to keep your employees happy and healthy. Wellness benefits may include gym access, alternative health benefits like naturopathy, sports activities, healthy snacks, etc. 

Telemedicine or Virtual Health Services

Providing your employees with convenient healthcare can go a long way in helping them manage their health. Through telemedicine, employees can consult with healthcare professionals remotely through video calls, phone calls, or secure online platforms. 

This benefit helps employees to seek timely medical advice without leaving their homes or workplaces. It can be particularly valuable for minor health concerns or routine check-ups.

On-Site Gym or Fitness Classes

Want to make working in an office more manageable? Consider offering on-site fitness classes. This can include things like lunchtime yoga, a small gym space within your office, or even medication practice. 

Not only will your employees enjoy this perk, but your company’s productivity will benefit, too. Studies have shown that regular exercise can increase productivity and improve mental capacity. 

Work-Life Balance and Personal Development

Flexible Work Hours or Remote Work Options

Many employees are now looking for more job flexibility. This could mean a remote or hybrid work environment and a focus on outcomes rather than time spent at the office. Offering employees the benefit of working remotely will help with employee retention and satisfaction.

Remote Office Stipend 

As more companies hire remote workers, remote office stipends are gaining popularity. This is usually a one-time or annual benefit that helps your staff pay for home office expenses. 

Additional Paid Time Off

A trend that has emerged recently, unlimited paid time off (PTO) is a new way to approach paid leave. Instead of giving employees a certain number of days to take off per year, you give them the freedom to choose. This is, of course, conditional on getting their work done. 

However, you don’t need to go as far as to offer unlimited PTO. You can start by adding a few extra days off work. This could be birthdays, floating holidays, an extra week of paid leave, or various other packages that help your team rest and regain energy. 

Professional Development and Training Opportunities

Learning and development are crucial benefits for employees and employers alike. Helping your staff’s professional growth directly benefits your organization by upskilling the talent you already have. It also helps with retention and attracting top talent. 

L&D programs can include workshops and organized training to support obtaining higher education certificates and access to specialized programs. 

Family-Friendly Benefits 

Family-friendly benefits aim to assist employees with family responsibilities. These benefits can include subsidies for childcare expenses, on-site daycare facilities, flexible scheduling for parents, or parental support programs. 

While most countries legislate maternity leave, few provide significant paid leave for fathers. As such, your organization may consider providing additional parental leave benefits for new families as one of the perks in this category. 

Sabbaticals or Paid Volunteer Time

Sabbaticals are extended leaves of absence with pay, often granted after several years of service. They allow employees to take time off for personal pursuits, such as travel, education, or self-improvement. 

Paid volunteer time enables employees to dedicate working hours to volunteer activities or community service, promoting a sense of social responsibility. 

Both options contribute to personal development, well-being, and a sense of fulfillment outside regular work duties.

Perks and Recognition

Employee Recognition Programs

While creating an overly competitive environment in the workplace can be detrimental to your company culture, rewarding employees for work well done is crucial. Recognition programs do just that. They can take various forms, including awards, certificates, monetary bonuses, or public recognition. 

These programs boost employee morale, motivation, and job satisfaction by demonstrating appreciation for their efforts and achievements.

Office Amenities 

Who doesn’t love free snacks? Offering them as an office perk is a great way to boost employee morale and help your staff stay healthy. You can also think of other ways to create a more fun and comfortable office environment. 

This may include coffee, game rooms with recreational activities, and relaxation areas where employees can take breaks and recharge. These amenities enhance the work environment, reduce stress, and improve employee satisfaction.

Company-sponsored Events

Let’s face it: We’ve all felt obligated to go to a company event, although we didn’t want to. So tread carefully when planning this category of benefits. Company-sponsored events can include things like meals together, short trips, or fun activities outside the office. 

Make sure that you think about everyone’s availability and interests when planning these. Also, make it clear that they are not mandatory and don’t create a culture of pressure to go. 

Employee Discounts on Products or Services

Typically, employees will receive a discount on company services or goods. But you can take it a step further and partner with other companies to expand the range of discounts your staff can access. This can be a fun way for employees to save money and enjoy different activities outside work. 

Create the Perfect Benefits Package with Borderless

When hiring locally, you probably have a pretty good idea of the benefits packages you should offer employees. With global hiring, crafting the right package can be more complicated. You need to consider local laws and regulations and understand the work culture and your staff’s lifestyles. 

At Borderless, we create localized benefits packages that attract top talent from anywhere in the world. We then manage the package, handling withholdings, payments, and contracts. 

Take the hassle out of global hire; speak with us today. 

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