Theo Yilmaz· Director of Benefits, Silverline Media
Posted in Global & Mobility ·
Posting our design because I found real examples hard to come by. We are a specialty chemicals business with about 3,000 people in Asia Pacific and around 50 intra-regional moves a year, mostly between Singapore, Shanghai, Bangkok, Jakarta and Mumbai.
The package is host-country salary at the local range for the grade, host benefits, plus three supports that taper: housing at 100% of a city and family-size budget in years one and two, 50% in year three, nil after; schooling at actual cost up to a city cap for three years; one home trip a year for three years. No cost-of-living allowance and no tax equalisation, but tax advice in the first two years.
Where the host range is below home, we pay a non-pensionable differential that also tapers over three years.
9 helpful · 4 replies · 154 views · 5 following
Total Rewards Manager, Meridian Health Systems
Very close to ours. How do you handle the Mumbai to Singapore direction on return? We find people localised in the higher-pay location will not go back to an Indian salary at any grade, so in effect it is a one-way policy for that corridor.
Victor UedaCEP
Job Architecture Lead, Independent
The three-year cliff on schooling is where I would expect trouble. A family with a nine-year-old cannot fund ten more years of international school on a local salary in Jakarta or Shanghai. We extended schooling to five years and added a 25% employee contribution from year four, which felt more honest than a taper to nil.
VP, Total Rewards, Meridian Health Systems
I think the tapering differential is a mistake, respectfully. If the person is worth more than the host range, pay them more as base and deal with the internal equity question openly. A shrinking allowance tells them their pay will be cut in year four, and the good ones leave in year three.
Compensation Manager, Beacon Retail Group
On the return corridor, that matches what we see: of 22 moves from India to Singapore in four years, two have gone back. We now describe it as a permanent move at the outset. I take the point on schooling and will look at a longer period with a contribution.
