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Expatriate Compensation: Structuring Pay and Benefits for International Assignments

Expatriate Compensation: Structuring Pay and Benefits for International Assignments examines the elements of an international compensation plan, popular and commonly-used incentives, and allowances and reimbursements used for higher living costs at foreign assignments.

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Employees assigned to overseas positions usually receive pay packages different from those of domestic employees. While base salaries for the foreign-assigned employee and the domestic employee are usually comparable, the foreign-assigned employee will receive extra allowances and incentives not available to the domestic employee. These allowances and incentives cover the excess costs of living abroad and provide an incentive for overseas-assigned employees to accept and remain at a foreign assignment.

Incentives such as housing allowances, relocation benefits, and completion bonuses are amongst the many tools employers use to encourage employees to accept overseas assignments.

This report is designed to help HR professionals understand the various options used for expatriate employees and how to keep them “whole” throughout the experience.


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