UK: Remuneration - How much for the expat?

UK: Remuneration - How much for the expat? - Assembling a comprehensive relocation package.

Last Updated: 31 Aug 2010

Assembling a comprehensive relocation package.

For any employer, sending an employee abroad is one of the most complex, time-consuming and expensive human resource tasks. Here is some advice on relocation packages for small companies.

Most employers who use a policy-driven approach start with a build-up method. Base salary, foreign service and hardship premiums and cost of living all combine with local tax protection to constitute a host country remuneration package. Most employers try to retain the employee in the home company pension and benefit programmes; international medical insurance for employee and family ought to be provided. UK National Insurance consequences and host country social security costs would also feature in the overall planning.

Also included in a moving-expenses package should be a disturbance allowance and other components in line with a domestic move, except house purchase assistance, both when taking up the assignment and upon repatriation.

For some locations, other common provisions include company car and driver, servants, and education provision for children.

Expatriation in almost any circumstance is costly; keeping control over cost throughout the assignment is essential. The package you develop ought to be generous in order that you do not start out with a demotivated employee - wasted time and effort, cost, and lost business opportunity will outweigh any attempt to be mean with the package offered.

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