Trying to understand salaries in a single country can be tricky. Multiply that by over 100 countries, and in 2025, the challenge only seems to grow. Series B and C startups, established IT firms, HR directors, or anyone tasked with global hiring all eventually hit the same wall: How much should I pay in this market?
It sounds like a simple question. It isn’t. Let’s look at how you can reliably compare compensation around the globe, and why doing this right can set your business on the path to success, compliance, and growth.
Benchmarking compensation internationally isn’t just about “what’s fair.” It’s about competing for the best people. It’s about expansion, stability, reducing risk, and building trust with new teams. If you misjudge market rates, a few things can go wrong:
You need more than just data. You need context.
Global pay is a moving target, and it only gets faster.
Modern management consultancies like EWS Limited are repeatedly asked about the “right” amount for a particular job in a new country. But “right” changes. Often. The only way to manage this? Benchmark early. Benchmark often. But do it with rigor.
Let’s not sugarcoat it: most organizations struggle with this. Some of the biggest roadblocks include:
Add to this the challenge of remote work, as the rise of global teams in 2025 is making borders matter less for some roles. Still, if you’re paying 2020 wages in 2025, you’re out of touch. Even country-specific guides from a few years ago can seem like they belong in a museum.
Step 1: define what you’re really benchmarkingMany first-timers overlook this. Are you looking at:
If you’re doing payroll outsourcing through a firm like EWS, you’ll usually need the total employer cost. This may include taxes, social fees, insurance, and required bonuses. For talent acquisition teams, look also at total net compensation (what someone actually receives in their account after deductions). You don’t want talent walking away after the first payslip arrives, shocked by deductions you never explained.
Don’t compare apples and oranges. Define your basket.
Don’t start by benchmarking everything. Begin with positions that will make the most difference:
You may find, as outlined in employer of record global expansion, that your expansion hinges on just a few positions in the early stages.
Benchmark each role at the right career level. “Software Engineer” in Vietnam might mean three years of experience; in Canada, seven. Don’t skip this detail.
This is where so many go wrong. A spreadsheet stuffed with salary “averages” from random sources won’t help. You need information that is:
Good sources for global compensation data often include:
Don’t forget to adjust for purchasing power. Twenty thousand USD goes much further in India than in Denmark, so absolute numbers are less useful than you think.
It’s better to have accurate data for five countries than messy info for fifty.
Base pay is only half the story. Total rewards now play a key role in job decisions everywhere. According to research by Stephany et al. on AI jobs in the United States, non-monetary benefits like remote work or parental leave made roles more attractive and actually boosted cash salary levels by 12% to 20%, reflecting intense competition for talent and higher expectations of what an offer should include.
Globally, expectations can differ; in Germany, extra vacation days are a prized benefit. In Singapore, a good healthcare allowance boosts candidate interest. In Brazil, companies may need to contribute statutory transportation and meal vouchers. Failing to account for these extras will set you back.
Hiring blindly is risky. Many countries require:
Non-compliance can turn a great hire into a costly mistake.
Review regularly updated regulatory resources. The compliance checklist for international hiring in 2025 can be your starting point, but always double-check for new developments in each target country.
This catches many businesses off guard. Suppose you want to pay a remote software engineer in Thailand the same as one in London. Would that seem generous or odd? Maybe a bit of both.
Purchasing Power Parity (PPP) explains why $50,000 USD in Nigeria or Philippines leads to a very different lifestyle than the same sum in Sweden. Use an up-to-date cost-of-living calculator or consult with multipliers provided in global remuneration reports. Don’t standardize all compensation on USD values without adjustments.
In 2025, many candidates now demand transparency on why they’re paid as they are relative to peers in other countries. Be ready to explain your logic.
Step 7: review macroeconomic factors and future trendsGeo-political shocks, technological disruption (like the continuing AI wave), and abrupt regulatory changes can all affect compensation. For instance:
Setting salary benchmarks in 2025 isn’t “once and done.” It’s a process of steady fine-tuning.
Today’s offer is tomorrow’s baseline.
Especially for startups in high-growth phases, equity is often as valuable (or more so) than cash in certain markets. But the appetite for equity varies:
Carefully explain any offers—sometimes a $10,000 stock grant is worth less than a $5,000 bonus, depending on how talent in a particular region views risk versus reward.
Numbers are only as reliable as your local verification. What looks perfect on a spreadsheet can feel wildly off to candidates or managers in-country.
How do you reality-check global benchmarks?
Keep your ear to the ground. Small complaints are often early warnings.
In global organizations, process matters. Benchmarks should be documented, reviewed, and shared (even if not all detail is public). Consider:
Make review and communication part of your culture. It builds trust and preempts confusion.
Common pitfalls in global compensation benchmarkingIf you’re already deep into benchmarking, check your process against these and course-correct where needed. Sometimes, you need to rework your approach with outside expertise, especially if expanding quickly or into unfamiliar regions.
A Guide to Cross-Border Equity Vesting for Tech Startups
Expanding Into New Markets: Vendor Risks You Should Flag
Managing Intellectual Property In Remote Work
Risk Of Permanent Establishment Explained
Latam Hiring Strategy: What Global Companies Should Know
Relocation Budgeting For Global Tech Firms
Benefits Benchmarking Globally for Global Companies
How to Benchmark Compensation Across 100+ Countries in 2025
Checklist: Preparing HRIS for Fast International Scalability
Biometric Data in Global Payroll: Legal Boundaries Explained
8 Regulatory Updates Impacting Global HR in 2025
Succession Planning for Distributed Teams: A Practical Guide
What Global C-Level Leaders Miss About Digital Nomad Visas
Employer Branding for Multinational Teams: What Works Now
What are Hidden Costs of In-House Payroll?
Why Companies are Thinking Differently About Relocation
Is Your Global Mobility Program Outgrowing Spreadsheets?
Remote Work Visas: A Growing Trend in Global Mobility
Hiring in Europe Post-Brexit: What You Need to Know
Tips for Managing Multi-Time Zone Teams Successfully
Relocation Packages: What Top Talent Expects in 2025
Banking and Payroll Challenges in Saudi Arabia Markets
The Legal Risks of Misclassifying Global Workers
Why Scalability Should Drive Your Global HR Strategy
How EWS Streamlines Global Mobility for Tech Talent
Lithuania – Employer of Record
Kosovo – Employer of Record
Finland – Employer of Record
Namibia – Employer of Record
Nepal – Employer of Record
Spain – Employer of Record
Latvia – Employer of Record
Ireland – Employer of Record
Cyprus – Employer of Record
Czech Republic – Employer of Record
Italy – Employer of Record
Indonesia – Employer of Record
South Africa – Employer of Record
Tunisia – Employer of Record
Bosnia – Employer of Record
Moldova – Employer of Record
Five Tips For Improving Employee Engagement
Netherlands – Employer of Record
Germany – Employer of Record
France – Employer of Record
Portugal – Employer of Record
Bulgaria – Employer of Record
Austria – Employer of Record
Hungary – Employer of Record
Slovenia – Employer of Record
INCLUSIVITY IN THE TEAM MAKES EVERYONE WIN
Thailand – Employer of Record
Sri Lanka – Employer of Record
The Significance of an Employer of Record
Greece – Employer of Record
Mexico – Employer of Record
4 Reasons to Outsource Your Payroll
Five Recruitment Trends 2023
Malaysia – Employer of Record
Skill-Based Hiring and Benefits
Malta – Employer of Record
How To Practice Inclusive Recruitment
Israel – Employer of Record
Macedonia – Employer of Record
Jordan – Employer of Record
Macau – Employer of Record
Peru – Employer of Record
The Importance of Employer Branding
Bahrain – Employer of Record
South Korea – Employer of Record
Recruiting during a recession
Philippines – Employer of Record
USA – Employer of Record
Japan – Employer of Record
How To Setup A Business in 2023
Norway – Employer of Record
Managing Overseas Projects In 2023
Reason Of Expanding Your Workforce Globally
Croatia – Employer of Record
Colombia – Employer of Record
5 Ways To Speed Up Your Hiring Process
Egypt – Employer of Record
3 Ways To Streamline An Interview Process
Russia – Employer of Record
Saudi Arabia – Employer of Record
Hong Kong – Employer of Record
An Effective Hybrid Work Model
Turkey – Employer of Record
UAE – Employer of Record
Pakistan – Employer of Record
7 Things to Consider Before Accepting a Job
Kazakhstan – Employer of Record
3 Reasons to Encourage Employees to Generate Employer Brand Content
Denmark – Employer of Record
Sweden – Employer of Record
Bangladesh – Employer of Record
Kuwait – Employer of Record
How To Hire In The Age Of Hybrid Working
Australia – Employer of Record
Oman – Employer of Record
Qatar – Employer of Record
Ukraine – Employer of Record
Diversity – A Vital Hiring Strategy
Owning Every Moment of Your Hiring Experience
Serbia – Employer of Record
Maldives – Employer of Record
India – Employer of Record
Argentina – Employer of Record
Uzbekistan – Employer of Record
Belarus – Employer of Record
Brazil – Employer of Record
Chile – Employer of Record
Armenia – Employer of Record
3 Steps To Company Formation In The UK & Abroad
Romania – Employer of Record
Canada – Employer of Record
Morocco – Employer of Record