How to Send Salary Payments Internationally as a UK Employer

Paying overseas employees, contractors, or remote workers has become increasingly common for UK employers. Whether you’re running payroll for international staff, paying contractors abroad, or expanding into new markets, sending salary payments internationally requires careful consideration of fees, exchange rates, compliance, and payment speed.

This guide explains how UK employers can send salary payments internationally, compares the main payment methods, and highlights practical considerations for paying salaries overseas efficiently. It’s written for general information purposes and designed to support businesses that want to compare money transfer providers before setting up international payroll payments.

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What affects the cost of international salary payments?

International salary payments involve more than just transferring money from one account to another. The total cost is usually influenced by several factors.

Exchange rates and currency conversion

Some providers apply a margin to the exchange rate, while others charge a visible fee and use a closer-to-market rate. For recurring salary payments, even small differences in exchange rates can significantly affect total payroll costs over time.

Fees and additional charges

International salary payments may involve:

• Transfer fees per payment
• Exchange rate margins
• Intermediary or receiving bank charges

Understanding the total cost per employee, rather than just headline fees, is essential.

Common ways UK employers send salaries internationally

UK bank international transfers

Many employers use traditional bank transfers via SWIFT to pay overseas staff. While familiar, bank transfers often:

• Have higher exchange rate markups
• Take several business days
• Offer limited transparency on total costs

Banks may be suitable for occasional payments, but can become costly for regular payroll.

Digital money transfer services

Digital payment services allow UK employers to send salaries online using a business account or platform. These services are often used for:

• Paying remote employees
• Contractor and freelancer payments
• Small to mid-sized international payrolls

They typically offer clearer pricing and faster delivery than banks.

Currency brokers and business payment platforms

For employers paying multiple staff overseas or large payroll amounts, specialist business payment providers are often considered. These platforms may offer:

• Competitive exchange rates
• Batch or bulk payments
• Dedicated business support

This approach can suit growing businesses with regular international payroll needs.

Cost examples: international salary payments

The examples below are illustrative only. Actual costs depend on currencies, providers, and payment routes.

Paying one overseas employee £1,500 per month

At this level:

• Fixed bank fees can form a noticeable percentage of costs
• Exchange rate margins accumulate over time

Digital business payment services may offer better value for ongoing payments.

Paying a small remote team £10,000 per month

For multi-employee payrolls:

• Exchange rate differences can add up quickly
• Batch payment features can reduce admin time

Compare costs for your payroll payments.

Paying international staff £50,000+ per month

At higher payroll levels:

• Even small exchange rate margins can cost thousands annually
• Service reliability and reporting become as important as price

Specialist business-focused providers are often compared at this stage.

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How can a UK employer send salary payments internationally?

UK employers can send salary payments internationally using bank transfers, digital payment platforms, or specialist global payroll services. The best option depends on the number of employees, countries involved, exchange rates, compliance requirements, and whether payments are made regularly or as one-off international transfers.

Compliance and documentation for UK employers

When sending salaries internationally, UK employers must also consider compliance requirements.

Employer responsibilities

You may need to account for:

• Employment status (employee vs contractor)
• Local labour laws in the worker’s country
• Tax reporting and payroll obligations

Payment documentation

Providers may request:

• Business verification documents
• Source-of-funds information
• Employee or contractor payment details

Ensuring documentation is in place helps avoid delays.

How long do international salary payments take?

Delivery times vary by method and destination:

• Bank transfers can take 2–5 business days
• Digital payment services often deliver within 1–2 days
• Some local payout routes may be faster

Payroll deadlines should always factor in processing time and potential delays.

Choosing the right method for international payroll

There is no single “best” way to send salaries internationally. The right option depends on:

• Number of overseas workers
• Countries and currencies involved
• Frequency of payments
• Internal payroll processes

Comparing providers before committing to a payroll setup can help control costs and reduce admin complexity.

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Managing exchange rate risk for salary payments

For businesses paying salaries in foreign currencies, exchange rate movements can affect monthly costs. Some providers offer tools that help manage this risk, such as:

• Holding balances in multiple currencies
• Locking in exchange rates for future payments
• Scheduling transfers in advance

These features can be useful for predictable payroll planning.

Destination-specific salary payments

Payroll requirements and delivery options vary by country. Before paying overseas staff, it’s helpful to review:

• A relevant Send Money to your destination page
• A Cheapest Way to Send Money to your destination guide

These resources highlight local banking requirements and cost considerations.

Compare money transfer options for employers.

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Global payroll considerations for UK employers

UK employers managing a global workforce often need to think beyond simple international payments. Global payroll involves payroll processing across different countries, currencies, and local laws, including tax regulations, social security, and local labour laws. This becomes more complex when paying foreign employees, independent contractors, or managing international teams.

Some businesses use payroll software, payroll platforms, or international payroll services to handle payroll data, payroll taxes, and tax filings in line with local regulations. Others rely on an employer of record (EOR) or EOR services, where a third party acts as the legal employer in a country where the business does not have a local entity.

Choosing the right global payroll provider or global payroll solution depends on factors such as global coverage, compliance support, customer support, and the ability to make timely payments in local currency. For small businesses and companies supporting remote work, comparing payroll solutions helps reduce compliance risks, manage payroll operations, and support long-term global employment growth.

FAQs: International salary payments for UK employers

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