Expatriation Allowance

Think of the extra cost offsets to be included in your base salary.

You decide to make an international career, which will result in an expatriate job. 

Therefore, it is strongly recommended that you negotiate your expatriation allowances and/or expatriation premiums.

What is expatriation allowance?

The current trend is for downward negotiations, so it is important to analyze the situation well before your departure and to discuss with your employer your expatriate salary, knowing that premiums and other benefits are often revised downwards.

The expatriation allowance pays for the efforts that a person makes when working in a foreign country.

The expatriation allowance applies more particularly to the detached of the company and not the expatriate who is hired under a local contract.

What type of expatriation allowance?

Differences in expatriation allowances and benefits in kind correspond to compensation for additional costs.

The main elements (allowances and benefits in kind) retained by the employer are in general:

* The cost-of-living differential will have to be taken into account in order to obtain a cost of living allowance.

- this can be an amount to add to the base salary or an index or percentage applied to increase or reduce that differential.

- it is often positive, if not, it is rarely applied.

* Taxation:

- the company may assume a portion of the income tax paid abroad.

- this allows the employee not to bear a higher tax burden than he would have paid if he had remained in his country.

* Moving and accommodation:

- these are costs that are extra and that the employee would not have had if he had stayed in his country.

- the assumption can be carried out by the company, it can correspond to:

1- the dual residence expenses and the reimbursement of furniture security,

2- the rent ceiling, whether furnished or unfurnished,

3- the reimbursement of rents or the free provision of accommodation,

4- whether or not they cover maintenance costs (gas, electricity, telephone, Internet, etc.).

* Vehicle: rental or use or purchase allowance, whether or not it covers maintenance, insurance, fuel, etc.

* Family situation:

- loss of salary of the spouse accompanying the employee abroad. Some companies may also offer assistance such as outplacement offices for the spouse to find work.

- the company pays for the schooling of the children.

* Travel: the number of journeys covered by the employer and the periodicity, beneficiaries.

Other: repatriation insurance, part of the payment of contributions to the social insurance scheme for expatriates in the country of origin, the expatriate mutual, etc.