Social Security • Employer’s Philosophy • International HR Strategy

Defining the benefits of your expatriates and internationally mobile personnel depends on statutory Social Security implications and on your company’s own employment philosophy.

Social Security

As a general rule, it is the country of employment which determines the consequent employer’s Social Security obligations.

Regarding expatriates and internationally mobile personnel working worldwide, the Social Security of the host country will therefore apply and not the Social Security of the home country.

However in many parts of the world social security is lacking and public coverage is limited. Adequate protection is therefore essential for expatriates and internationally mobile personnel.

Employment philosophy

Every company is aware that Employee Benefits contribute to attract, retain, reward and protect an employer’s workforce, while affecting at the same time its employer’s image.

Employee Benefits are however non-statutory and are therefore solely defined by the employer’s own HR-philosophy.

It is important to be aware that any HR-requirement regarding International Employee Benefits can be met by one of the following solutions :

  • While Group Insurances are always to be subscribed by the employer, their funding can either be employer-funded, employee-funded via payroll deduction or a combination of both.

  • Group Insurances can be subscribed for one single benefit up to all four benefits (Healthcare/Life/Disability/Pension), can be limited to specific personnel categories or functions and can include eligibility provisions based on seniority.

  • The subscribed benefits by the employer can provide very different levels of protection, varying from basic up to generous indemnities, with a few or many contractual exclusions.

International HR Strategy

The subscription of an international group contract, whether for Life, Disability, Healthcare or Pension, is the ideal implementation tool for your company’s International HR Strategy :

  • Reflects the level of protection defined and granted by your company as expatriate and internationally mobile workforce

  • Enables the creation of sub-entities (subsidiaries & cost centers) and also of different employment categories, each with its specific indemnities (junior, senior, key local, …)

  • Covers each eligible employee of your international workforce from 1st day of employment till last day of employment, with a 90 days notification period regarding personnel movements (joiners & leavers)

  • Provides more effective cover & cost solutions than domestic market group contracts

  • Pools your complete expatriate & internationally mobile workforce into one single contract, enhancing the transparency of annual claims statistics and facilitating renewal negotiations

  • Works as an efficient implementation tool for your company’s International HR Strategy