According to Manpower's Annual Report, 21% of businesses in the Asia-Pacific and Middle East (APME) region face difficulties in recruiting personnel with in-depth expertise in human resources. At that time, many businesses have to deal with a thin or inexperienced team, increasing the risk of errors in salary calculation and related declarations.
At that time, outsourcing salary calculation services became a strategic solution, helping to solve the personnel and operational problems in the short and long term.
Outsourcing salary calculation service is a form of enterprise entrusting the entire or part of the salary calculation process to a professional external service provider.
The scope of services is customized according to specific contracts and usually includes one or more services such as: Calculating gross – net salary (salary on contract) and welfare benefits, allowances; paying salaries and issuing salary slips; declaring, deducting and finalizing personal income tax; registering, declaring and paying social insurance, health insurance, unemployment insurance; preparing periodic labor reports if required.
Manpower company outlines the benefits of outsourcing payroll services:
Reduce risks and ensure compliance: Limit errors in salary calculation, personal income tax and social insurance, and promptly update legal changes.
Salary information security: Salary data is a sensitive data group. Outsourcing helps businesses reduce unnecessary internal risks and control access more closely.
Reducing the burden on the internal team: The human resources department can focus more on core strategic tasks and activities instead of handling repetitive procedures that are prone to errors.
Ensuring continuity in operation: Outsourcing services help businesses limit interruptions due to internal personnel changes or lack of full-time specialists.
Accompanying in operation: Businesses can receive timely advice when problems arise in the process of implementing salaries, taxes and insurance.
Cost optimization: Businesses can reduce operating costs by not having to maintain a separate internal salary team.
Transparency reporting: Providing real-time salary, tax and insurance data, supporting more accurate decision-making and reducing risks during auditing.
Timely payment: Integrated direct transfer, reduced manual errors and improved employee experience.
Improve personnel experience: Accurate, timely and transparent salary processes help increase employee trust in the business.
