What are Statutory Benefits?
Statutory Benefits refers to all the advantages that the government of a country provides to its residents with an intention to promote population welfare through various schemes or insurances. While some employers offer additional perks as a retention strategy, all legal employers of a country must meet the mandatory employee benefits requirements as stated by the laws of that country. Statutory Benefits are not necessarily unidirectional, many times it is a combination of employer and employee contribution. Full-time employees may have more benefits than part-time or contractual workers.
Why do I need to worry about statutory benefits?
Some examples of statutory benefits are Unemployment Insurance, Work Injury insurance, National Pension, Overtime Compensation and Medical Insurance. Statutory Benefits differ with different countries and different cities. What is significant is that in some cities, the contribution rates and base might be adjusted every year, which makes compliance a big challenge! This process requires a lot of expertise and attention to detail as any error or violation can result in serious consequences like government penalties or fines. Thus, it is very common for companies to outsource their employee statutory benefits management to a local human resource service provider, many times in combination with their payroll service.
Generally, the process of Statutory and Benefits Administration consists of the following steps:
- Employee Information Declaration and Beneficiary Nomination
- Collection of Employee Personal Information
- Employee Information Registration with Government Bureaus
- Managing Employee and Employer Contributions
- Processing the payments to the Government Bureaus
- Documentation of receipts
General Process of Statutory and Benefits Administration
Reasons Why Should You Outsource Statutory Benefits?
- Legal Business Obligations – Statutory and Benefits Administration is a demanding process which requires functional experience and exactness. This is an important but cumbersome administrative process and therefore, outsourcing it to a mature service provider like NNRoad allows you to focus on your core business. Thus, NNRoad helps you to boost your company’s performance as it liberates your team off time-consuming administrative tasks.
- Functional Proficiency – Reputable HR service providers like NNRoad maintain good and healthy affiliations with government agencies. NNRoad recruits experienced employees with both local expertise and an international exposure. NNRoad also ensures the development of workforce through regularly training their team and keeping processes up-to-date with informative policy updates. Thus, over the years, it has been established that outsourcing this function has been liberating and profitable especially to small-sized or medium-sized enterprises.
- Ease of Access to Information – A professional HR service provider like NNRoad enables ease of access to information for its client’s employees by granting them access to employee personal records and social contribution acknowledgement sheets. NNRoad also assigns a dedicated customer service team to each client to handle employee queries and guide them about latest policy updates. Apart from expertise in English language service, the team is even empowered to handle employee queries in certain local languages.
- Resource Concentration – Small or medium sized companies generally have an employee strength of 300 or less. Such companies may not prefer investing their resources into non-core business activities and would prefer focusing their resources on the revenue-generating line of business, leaving the rest of the cumbersome administrative tasks to us.
- Saves Time and Money – Outsourcing statutory benefits administration to NNRoad can help small-sized or medium-sized businesses with cost-saving through affordable bespoke solutions. Companies can save money by minimizing their costs related to recruitment, development, and maintenance of an internal team to handle statutory benefits and maintain the associated documents. Unless the company has a huge local presence and have long-term business goals in the country, it is more effective to outsource your administrative tasks to a service provider instead of hiring an internal team and investing resources there. Established outsourcing companies like NNRoad can get you cost-friendly package solutions with great value!
- Risks Handling – NNRoad not only lightens your administrative burden but also safeguards your company by being accountable for the compliance-related risks. We also provide legal advisory for our clients related to any new policy updates or mandatory compliances.
What kind of companies should outsource their Statutory Benefits?
- Small-sized or medium-sized enterprises not having a strong administrative team
- Representative offices who want to test their business in a new country
- Foreign companies with sales offices in a new geography not having a local administrative team
- Companies who prefer to concentrate their resources on core-business operations
What kind of benefits management does NNRoad provide?
NNRoad statutory and benefits administration service currently covers more than 15 countries and soon will spread its operations to more countries. We aim at relieving our clients of the heavy burden of handling complex statutory benefits so that they can focus on their core business. We offer flexibility for our clients to use the NNRoad Statutory Benefits Administration Service in conjunction with NNRoad Payroll Service or to engage NNRoad Statutory Benefits Administration as a stand-alone service. At most locations, we can also help our clients with setting up their company social security-related accounts.
Statutory and Benefits Administration Service Contents
NNRoad Service Highlights
- Specialization in servicing small-sized and medium-sized businesses
- Service network coverage across 15+ countries
- Regional language support available for certain countries
- Servicing across all industry segments
- 12+ years of core robust servicing experience
- Flexible Bespoke Service Offerings
- Flexibility of local or USD currency transactions
NNRoad Service Network Coverage
- Mainland China
- Hong Kong
- South Korea
What is the process of hiring this service?
The process of outsourcing Statutory and Benefits Administration to NNRoad is efficient and easy. Usually, documentation is the most time-consuming step. Once done, NNRoad can complete the implementation and setup of a new account within a few days.
NNRoad Statutory and Benefits Administration Pricing Model
NNRoad Statutory and Benefits Administration Pricing Model is different for different geographies. On a broad view, the service fee would have the following structure:
- Monthly processing charges per headcount
- Relative local taxes only applicable on our service fees
If you are interested to know more about the Statutory and Benefits Administration Service, please get in touch with us we will come back with an appropriate solution very soon!