Can Remote Workers Keep Pay and Benefits Abroad?

International remote work gives you the freedom to live abroad and build the lifestyle you want without pausing your career. But it also raises an important question: “Can I keep my salary and benefits the same if I move to another country?”

The answer isn’t always straightforward. Relocating can raise or lower your take-home pay and influence your healthcare, retirement savings, and long-term financial planning.

For employers, it impacts compliance responsibilities, payroll cost structures, and the ability to retain talent across borders.

This article breaks down how salary adjustments work and what happens to your benefits when you move. It also explains the legal requirements you and your employer must manage in an international remote work arrangement.

Understanding remote work from another country

International remote work is an arrangement where an employee performs their job duties from a country different from their contractual or payroll location.

This location-independent setup offers meaningful benefits. You can live in a country with a lower cost of living, stay close to family, or build a healthier work-life balance. Employers benefit too because they can retain talent even when employees relocate.

Research shows that remote digital jobs continue to grow. The World Economic Forum estimates that global digital jobs will increase from 73 million in 2024 to 92 million by 2030, with the strongest growth in higher-paying roles.

Relocation, however, raises important questions:

• Pay structure: Can I receive the same pay working from different countries?
• Benefits: Can I keep the same job benefits if I move across borders?
• Legal status: Will relocating change my employee or contractor status?

Salary and compensation implications

As a remote worker, your pay may change when you relocate to another country. Employers often review compensation to maintain fairness, control costs, and meet local labor and tax requirements.

Common factors that influence pay decisions include:

• The company’s relocation policy
• The duration of your stay abroad
• The local cost of living
• Local market pay rates
• Whether you remain an employee or move to contractor status

How your pay may change in different scenarios

1. When your employer initiates the relocation

Your salary may stay the same or increase to match local norms or higher living costs in the host country.

2. When you initiate the relocation

You may keep your current salary, or your employer may adjust it based on their relocation and pay-setting policies.

3. When your employment status shifts

Moving from employee to contractor may increase your pay because you take on your own tax obligations and social protections.

Moving from contractor to employee may reduce take-home pay because the employer covers social contributions and benefits.

How employers set fair pay for international moves

A structured, transparent compensation model helps employers adjust salaries consistently across locations. It also supports compliance by aligning pay with local labor rules and gives you clarity on how your pay may change.

One common approach is location-based pay. Location-based pay is a compensation strategy where salaries are calibrated to the employee’s geographic location instead of the employer’s office location.

Your pay may rise or fall depending on whether the new country has higher or lower labor costs. If labor costs are similar, your salary may stay the same. The goal is to align compensation with local market rates while keeping pay fair across team members in the same country and job level.

Employers may use:

• Local market benchmarks: Pay aligned to what your role typically earns in the new country
• Regional pay bands: Salary ranges set by broad geographic zones, such as high-cost, mid-cost, and low-cost regions

A lower salary after relocation can feel worrying, but many workers see it as a fair trade for flexibility.

Research shows that 40% of workers would accept a pay cut of 5% or more, and 21% would accept a cut of 10% or more, to maintain remote work.

Before you move, clarify how relocation will affect your pay and contract terms. Check whether your employer can meet compliance and visa obligations, such as sponsoring the required work permit. If they cannot, your employment status may need to change, which can affect your salary.

How do currencies affect salary when working remotely internationally?

Currency fluctuations can affect how much money you actually receive when working from another country. Exchange rates may shift between payroll processing and when the funds reach your account, changing the real value of your pay.

Multi-currency payroll helps reduce these issues. It allows your employer to pay you in the local currency of the host country, which protects your income from unnecessary conversion losses.

A global payroll provider like Deel Global Payroll supports over 120 currencies. In addition to fiat currencies, you can also receive payments through digital currencies like Bitcoin and Ethereum.

Deel also offers forward rates. This lets your employer lock in an agreed exchange rate so your pay stays stable and both sides avoid sudden currency fluctuations.

Benefits and health insurance abroad

When you relocate, your benefits package, especially retirement and health insurance, may not transfer with you.

Many pension, health, and insurance plans are country-specific, which creates gaps in coverage and access. For instance, most US health insurance plans often do not cover routine care abroad.

Differences in healthcare systems, social security rules, and local eligibility requirements can also create new obligations that your original plans cannot meet.

Here is a summary of how your benefits shift when you relocate.

Some employer-provided benefits remain flexible across borders. In-kind benefits like wellness stipends, learning budgets, and equity, such as stock options, usually remain available regardless of where you live.

But core protections like health insurance, disability insurance, and some retirement schemes often do not carry over. To stay fully protected, you may need expat health insurance or enrollment in the host country’s system.

Alternatives for healthcare coverage overseas

If your home-country health insurance does not apply abroad, you will need alternative coverage. Common health insurance options include:

See also: Health Insurance Options for Contractors: Boost Loyalty and Retention

Legal and compliance considerations

Relocating to another country creates new compliance responsibilities for both you and your employer.

For workers:

• You must follow the host country’s immigration, tax, and residency rules
• You may need a visa, work permit, or local registration
• Your tax residency and social security obligations will change

For employers:

• They must confirm you have valid work authorization
• They need to meet host-country payroll, tax, and social security requirements
• Employment terms, benefits, and policies must comply with local labor laws

Failure to comply can lead to fines and tax penalties. It can also result in loss of work authorization for both sides.

For employers supporting global mobility, HR compliance means ensuring that policies and employment practices meet legal requirements in every jurisdiction involved. This often requires guidance from both domestic and foreign legal experts.

Work authorization and visa requirements

Your ability to work legally from another country depends on having the correct visa or work permit. One example is a digital nomad visa. A digital nomad visa is a residence permit that allows remote work or telecommuting for a foreign employer for a fixed period.

These documents determine whether you can perform paid work, how long you can stay, and whether your employer can keep you on payroll. Working without proper authorization can lead to fines, deportation, or compliance risks for your employer.

Because visa rules vary widely, it’s important to confirm your eligibility before making the application. Deel’s visa eligibility checker helps you identify which visas you qualify for.

Once you choose a destination, Deel’s immigration services can help you prepare documentation, submit the application, track its status, and manage renewals.

See also: Can Non-US Citizens Work for US Companies and Live Abroad?

Tax residency and payroll obligations

Tax residency determines which country has the right to tax your income. Countries use different tests, but the most common include how many days you spend there and whether you have a permanent home.

Working remotely from another country can also create payroll tax or social security obligations in the host location. The table below outlines how these factors differ between your home country and the host country.

There is a risk of double taxation when both countries tax the same income. Tax treaties help prevent this by assigning taxing rights, and you may be able to claim exemptions or foreign tax credits.

Because tax rules vary widely, both you and your employer should confirm your obligations with a cross-border tax specialist.

Employer presence and use of Employer of Record (EOR) services

If your employer does not have a legal presence in the country you are relocating to, supporting your move becomes difficult. Many countries require employers to be locally registered before they can sponsor visas, provide statutory benefits, or issue compliant employment contracts.

Without that presence, your employer may not be able to keep you on as an employee.

An EOR bridges this gap. An EOR is an organization that legally employs staff on behalf of another organization, handling local payroll, taxes, benefits, and compliance in countries where the business lacks a legal presence. This lets your employer continue your employment legally without opening a local company.

Deel EOR supports employment in over 150 countries, giving you more flexibility to relocate. It ensures you remain an employee rather than being moved to contractor status, which offers fewer protections and may not be enforceable under local law.

5 strategies employers can use to support remote workers abroad

Remote work flexibility is a valued benefit that strengthens talent retention. To make international remote work run smoothly, employers can use these five strategies.

1. A clear work-from-anywhere policy

A transparent work-from-anywhere policy defines who is eligible to work abroad, how requests are reviewed, and the responsibilities of both the company and the employee. It sets expectations around salary adjustments, benefits, and visa sponsorship.

Here are some free policy templates:

• Expat Contract Localization Policy Template
• Long-Term International Assignment Policy Template
• Short-Term International Assignment Policy Template
• Work From Anywhere: How to Create a Compliant Policy in 2025

2. A global payroll provider

Global payroll solutions help companies manage multi-country pay, statutory deductions, and social security obligations. They ensure accurate, compliant payments across borders.

3. An EOR service provider

An EOR helps employers hire and support remote workers in countries where they lack a local entity. It enables compliant employment and supports visa sponsorship.

4. Portable benefit options

Standard health and retirement benefits may not transfer across borders, so employers should offer portable options where possible.

5. Dedicated cross-border HR support

Global remote workers need clear points of contact for cross-border HR questions, immigration guidance, equipment needs, and relocation support.

How Deel supports global teams

Deel’s EOR and immigration services let employers sponsor and relocate talent compliantly. Teams get end-to-end visa and immigration support, even when the employer already has a local entity. Companies can also offer discounted relocation services to help employees move and settle abroad.

Deel Global Payroll centralizes multi-country payroll, automates local tax calculations, and keeps salaries, deductions, and filings compliant. Employers can offer competitive global benefits, including international health coverage at group rates, and manage equity from the same platform.

For international contractors, Deel’s Contractor of Record service ensures compliant engagement. It supports correct worker classification, localized contracts, and smooth contractor-employee conversions when needed.

Deel’s local HR experts support employees wherever they are. An integrated global HRIS lets employers manage contractors, EOR employees, and direct employees in one place, reducing friction across global operations.

See also: Enhance Employee Experience with a Unified HR Tech Stack

Make cross-border work easier with Deel

With the right support, international remote work becomes simpler for both workers and employers. Deel’s Global People Platform reduces friction for globally distributed teams and provides the clarity, compliance, and confidence needed to work from anywhere.

Employers: Book a free demo to see how Deel simplifies global remote work.

Contractors & freelancers: Sign up to Deel to manage your contracts, payments, and compliance in one secure place.