If your company employs people in more than one country—or plans to—you’ll quickly discover that payroll can get complicated, fast.
Understanding the difference between Global Payroll and Local Payroll can help you stay compliant, avoid costly mistakes, and choose the right setup as your business grows internationally.
Let’s break it down in the simplest way possible.
Imagine Payroll as an Iceberg
Payroll isn’t just about paying salaries. It’s like an iceberg.
- What you see above the water: salaries, basic taxes, pay days.
- What’s hidden below: country-specific tax regulations, benefits, employment types, labour laws, union agreements, shift patterns, and more.
Some companies only need to deal with the surface level. Others need to go deeper—and that’s where the difference between these two payroll products lies.
What Is Global Payroll?
Global Payroll is a managed service that handles payroll for employees across multiple countries and regions. You provide your employee data (e.g. names, salaries, hours worked), and your provider (like Deel) takes care of everything else:
- Payroll calculations
- Tax compliance and filing
- Local regulatory updates
- Paying employees in local currency
You don’t need to be an expert in every country’s payroll laws, because your provider is.
Benefits of Global Payroll
- One partner for payroll across multiple countries
- Simplifies expansion into new markets
- Reduces admin and overheads
- Ensures compliance with local laws
- Allows small HR teams to support global growth
Ideal For:
Companies hiring in several countries without local payroll expertise. Great for fast-growing businesses entering new markets or global companies consolidating payroll operations.
What Is Local Payroll?
Local Payroll is payroll software that gives companies full control to manage payroll directly within a specific country. It’s typically used in countries where operations are more complex, where local compliance rules are more demanding, in your headquartered country where your employee count is high, or in any country where you employ larger numbers.
With Local Payroll, you or your internal payroll team use a specialised platform to:
- Run payroll calculations
- Manage multiple employee types
- Comply with country-specific labour laws
- Handle union rules or collective agreements
- Track leave, benefits, and cost allocations
- Simulate payslips and run real-time calculations
Local Payroll systems (like Deel Local Payroll, powered by PaySpace) are built to handle the complexity of national payroll rules and give you total flexibility and control.
Benefits of Local Payroll
- Real-time payroll insights and simulations
- Complete control over scheduling and configuration
- Handles complex pay structures and union rules
- Automatically updates for tax and compliance changes
- Designed for regulated and high-headcount environments
Ideal For:
Companies of any size with established teams in specific countries, in-house payroll specialists, or industries with more complex payroll needs (e.g. manufacturing, healthcare, government contractors).
A Simple Analogy
Think of Global Payroll like booking your holiday through a travel agency.
You tell them where you want to go (submit your payroll data), and they handle the bookings, itineraries, insurance, and paperwork (payroll processing, compliance, and tax filings). You just show up and enjoy the results—stress-free and sorted.
Now think of Local Payroll like planning the trip yourself.
You choose the flights, book the hotels, and map out the itinerary. It takes more effort, but you have full control and can customise everything to suit your needs, just like configuring every detail of your payroll process in-house.
Final Thoughts
Every business is different. If you’re scaling globally, expanding into new regions, or operating in countries with complex payroll requirements, choosing between Global Payroll and Local Payroll isn’t just a technical decision—it’s a strategic one.
With Deel, you don’t have to choose just one. You can use Global Payroll to simplify operations across countries, and Local Payroll where you need more control.
Whether you’re a fast-growing start-up, an established multinational, or somewhere in between, there’s a payroll solution that fits your strategy.
Ready to find the right payroll solution for your business?
Whether you’re expanding globally or optimising operations in a single country, choosing the right payroll setup is crucial. Get in touch with our experts today to discover which payroll approach, Global or Local, best fits your needs and growth plans.