Social security contributions can be one of the most significant costs that employers will pay if they decide to send an employee on an international assignment.
However, these may also be the most overlooked aspects of an expatriate’s compensation package. As GM professionals, we need to be aware of the mechanisms of how social security systems work in general and how we can use this understanding to mitigate compliance risks and avoid unnecessary costs.
The biggest element is to check in which country SS contributions need to be paid (home/host/or both). Quite a few countries have a totalization/bilateral agreements in place to ensure SS contributions are paid in only one country (normally in the home country) and the applications are made either for an A1 certificate or Certificate of Coverage (CoC) to ensure coverage.
For further details and additional information, please review this link courtesy of Crowe: