Expatriate Salary

Be sure to negotiate your expatriate salary.

An expatriate job rhymes, for you, with a career development. To do this, it is strongly recommended to carefully analyze your expatriation contract before departure for distant horizons.

Expatriate salary: who is concerned?

Making an international career allows you to choose between two statuses that will be defined by the employer: detached or expatriate.

The status will make all the difference in terms of social protection.

Expatriate: what kind of remuneration?

Some companies prefer to employ employees under local contracts (thus with the status of expatriate) than to detach their employees because this solution is much cheaper.

Nevertheless, the company has a choice of several relatively complicated modes of remuneration which are:

Expatriate status under local contract

Base salary also named also reference salary: this method of remuneration is used for an expatriate hired under local contract, it will be his main source of income.

This method of remuneration removes the salary supplements, the bonuses and social charges for the company, however, the employee can negotiate his salary to compensate for the expatriation expenses.

Status detached by the local company

There are several income-generating solutions, namely:

* Reference wage of "country of origin": this wage corresponds to the amount you would have received if you had stayed in your country of origin.

- having the advantage of remaining positioned in the local job market when returning from expatriation.

- increasing the standard of the employee living. Often, part of the salary is paid in the local currency and the other part in dollars.

* Reference salary of "host country": this method of remuneration represents the salary paid to a local citizen for an equivalent position.

* Reference salary of "third country": this is the salary received in a country chosen by the company, it is often the one where the head office of the company is located.

* International reference salary:

- this remuneration system corresponds to the amount fixed by the company for each function.

- its advantage is to benefit from the same general increases and other benefits, such as the seniority bonus, the 13th month that are granted by the local company to its employees in the country of origin.

Expatriate salary: what is it made up of?

To encourage his collaborator to emigrate, the company will propose compensations to him that will be:

* Expatriation allowances and/or,

* An expatriation bonus.

These benefits can compensate for loss of spouse's salary, removal, accommodation, children's school fees, compensation for family benefits, etc.

Premiums and benefits are generally taxable.

Expatriate: what about bank accounts?

To receive your expatriate salary, you will have different formalities to envisage:

Bank account in the country of origin

To have a bank account in your country, non-resident account in local or international currency, will be very useful for you:

* cashing your share for the detached,

* paying your taxes and other administrative bills,

Provision should be made for a system of appropriate transfers or withdrawals and information on the conditions and costs of remittances.

It is also strongly recommended to opt for the international visa card.

Bank account abroad

Opening the bank account abroad is also important because the latter will have obligations, such as:

* transmit to the administrations of your country of origin the explanations concerning your situation of expatriate,

* provide appropriate wealth management services.

Do not overlook foreign exchange regulations which may restrict transfer opportunities or subject them to large formalities, such as longer delays.

Good to know: it is possible to keep your foreign bank account even after your return from expatriation, provided you do not forget to declare it to the tax department of your country of origin.