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Social Security Aspects of International Postings

The current economic situation currently has meant that many companies have had to seek new opportunities in international markets, facing the challenge of defining remuneration and benefits policies that account for the compensation of employees who are posted to another location. These processes are sometimes carried out without the necessary global perspective on the matter. And, in this context, it is worth mentioning that it is essential to define a strong expatriation policy that takes into account all the aspects involved in order to provide legal certainty in mobility processes.

It is precisely in the field of Social Security where we observe a merely bureaucratic approach, focused on determining the formal notifications to be sent to the General Treasury of the Social Security (TGSS).

Although these notifications of postings are necessary, we should not make the mistake of ridding of analysis the impact of the notifications. When managing a posting, we are aware that where the posted worker should pay contributions must be determined, but we must not forget that Social Security dynamics is a two-way street.

Therefore, if we do not assess how these contributions affect the future benefits of workers, we will be missing a fundamental aspect of international postings.

Spain does not have much experience in international mobility, so as expatriation managers, we have an obligation to anticipate possible malfunctions and correct them.

If you want to learn more about the impact of travel on contributory benefits and formal obligations with the different Administrations, read our article “Social security for International Postings. A Time Bomb”.

If you need to make any arrangements for posting workers, please feel free to contact us. Our team of specialists will be happy to help you.