Pay approach design
We help you choose between home-based, host-based and hybrid approaches for each assignment type, with the pros and cons clearly explained.
Mobility Services
Compensation and Benefits for Global Mobility
Getting compensation and benefits right is what makes employees say yes to an international move – and what keeps mobility costs under control. mitrGlobally designs fair, competitive and compliant packages for assignees and global employees, from salary approach and allowances to tax, pension and family benefits.
- Home, host and hybrid pay approaches explained and modelled
- Allowances benchmarked for cost of living, housing and hardship
- Benefits aligned with tax, social security and local law
100% secure & compliant24/7 support150+ countries
- 150+Countries served
- 18+Years of expertise
- 24/7Expert support
- 10,000+Visas delivered
- 100%Secure & compliant
Quick answer
What are compensation and benefits in global mobility?
In global mobility, compensation and benefits are the pay and support an employee receives for working abroad. They include the salary approach (home, host or hybrid), allowances for cost of living, housing and hardship, relocation benefits, schooling, health insurance, pension continuity, tax treatment and home leave – designed so moves are fair, competitive and affordable.
- Pay approachesHome-based, host-based, hybrid
- Common allowancesCOLA, housing, hardship, schooling
- Tax approachEqualisation or protection
- GoalFair, competitive, cost-controlled packages
18+years guiding employers, employees and families across borders
Overview
Compensation and Benefits That Make Moves Work
An international move changes an employee's finances in many ways. Prices may be higher or lower, taxes differ, housing costs vary hugely and children may need international schooling. If the package does not address these changes, good candidates decline – or accept and later feel short-changed.
mitrGlobally's compensation and benefits advisory helps you design packages that are fair to employees and sustainable for the business. We explain the main approaches, model costs for real moves and recommend allowances and benefits that match your policy, budget and talent goals.
Balancing fairness, competitiveness and cost
There is no single right package. A short project assignment needs a simple per diem; a multi-year family move needs housing, schooling and home leave; a permanent transfer usually moves onto local pay. We help you choose the right approach for each assignment type and apply it consistently through your global mobility policy.
Tax treatment is a large part of the cost. International principles described by the OECD shape how employment income is taxed across borders, and we coordinate with tax advisers so packages are structured efficiently and compliantly.
Beyond pay, benefits such as health cover, pension continuity and family support often matter most to employees. We make sure these are not forgotten in the rush to agree a salary.
- Balance sheet approach
- Cost-of-living allowance
- Housing allowance
- Hardship allowance
- Tax equalisation
- Pension continuity
What we do
Our Compensation and Benefits Services
Practical advisory and modelling to design packages that work.
Allowance benchmarking
Cost-of-living, housing, hardship and mobility allowances are compared with common market practice and your budget.
Package modelling
We model the full cost of packages for real moves, including tax and social security, so leaders can compare options.
Tax approach
We explain tax equalisation, tax protection and laissez-faire approaches and help you choose and document one.
Benefits continuity
Health insurance, pension and social security continuity are reviewed so employees are protected while abroad.
Family benefits
Schooling, spouse support, home leave and dependant benefits are designed to suit families relocating with employees.
Lump sum & core-flex
We design lump-sum and core-flex options that give employees choice while keeping costs predictable.
Annual reviews
Allowances are reviewed regularly for exchange rates, inflation and changes in location costs.
Who we help
Who Needs Compensation and Benefits Advisory?
Our advisory supports reward and HR teams at every stage.
Organisations starting mobility
Companies sending employees abroad for the first time who need a fair, simple package approach.
Programmes with rising costs
Employers whose mobility costs have grown and who want to reduce spend without losing talent.
Multinationals harmonising pay
Groups seeking consistent packages across regions and business units.
Employers recruiting abroad
Companies offering packages to international hires who are relocating to join them.
How it works
How We Design Your Packages
A structured approach from analysis to roll-out.
Review
We review your current policy, packages, recent moves and costs, and discuss business and talent goals.
Benchmark
Allowances and benefits are compared with common market practice for your destinations.
Model
We model the costs of alternative approaches for typical moves, including tax and social security.
Recommend
You receive clear recommendations for each assignment type with cost and fairness implications.
Document
Agreed approaches are written into your policy, templates and assignment letters.
Review annually
We update allowances and benefits regularly as costs, exchange rates and rules change.
Complete guide
Expatriate Compensation and Benefits Explained
The main concepts behind international compensation and benefits, explained simply.
The balance sheet approach
The balance sheet approach is the most widely used method for long-term assignments. It aims to keep the employee's purchasing power the same as at home. Home salary is the starting point, then allowances adjust for differences in the cost of goods and services, housing and taxes in the host country.
Its strength is fairness and simplicity of explanation; its weakness is cost, especially for high-cost locations. Many organisations now combine it with lump sums or core-flex options to control spend.
Host-based and hybrid approaches
A host-based approach pays the employee according to local salary levels in the destination, which suits permanent transfers and localisation. Hybrid approaches combine local salary with selected expatriate benefits, such as housing or schooling, for a transitional period.
Cost-of-living allowances
A cost-of-living allowance (COLA) compensates for higher prices in the host location. It is usually based on a comparison of spending patterns and prices between home and host cities, and reviewed regularly for inflation and exchange rates.
Housing and schooling
Housing and international schooling are often the largest costs of an assignment. Clear limits, approved areas and direct payment arrangements help control them while meeting family needs.
Tax equalisation vs tax protection
Under tax equalisation the employee pays a hypothetical home tax and the employer covers actual taxes. Under tax protection the employee never pays more than at home but keeps any saving. The choice affects cost and fairness significantly.
Pension and social security
Assignments can interrupt pension contributions and social security records. Certificates of coverage, home-country pension continuation and supplementary arrangements help protect employees' long-term benefits.
Glossary
Compensation and Benefits Terms Explained
Plain-English definitions of the terms you will meet during the process.
- Balance sheet approach
- A method that keeps an assignee's purchasing power equal to home by adjusting home salary with allowances.
- Cost-of-living allowance (COLA)
- An allowance compensating for higher prices of everyday goods and services in the host location.
- Housing allowance
- Support towards accommodation costs in the host country, paid as an allowance or directly to the landlord.
- Hardship allowance
- Extra pay for working in locations with difficult living conditions.
- Mobility premium
- A one-off or periodic incentive paid for accepting an international move.
- Hypothetical tax
- The estimated home-country tax deducted from an equalised assignee's pay.
- Lump-sum allowance
- A fixed payment covering relocation or assignment costs that the employee manages themselves.
- Home leave
- Paid travel back to the home country, typically once a year, for the assignee and family.
Checklist
Expatriate Package Checklist
Elements to consider when building any international package.
- Pay approach and currency
- Cost-of-living allowance
- Housing support
- Schooling for children
- Relocation and shipment
- Home leave and travel
- Health insurance
- Pension and social security
- Tax approach and advice
- Repatriation terms
Compare
Home-Based vs Host-Based vs Lump-Sum Packages
How the main package approaches compare.
| Approach | How it works | Pros | Cons |
|---|---|---|---|
| Home-based (balance sheet) | Home salary plus allowances | Fair and easy to explain | Can be costly in high-cost locations |
| Host-based | Local salary and benefits | Simple, aligned with local peers | May be unattractive from low-cost home countries |
| Hybrid | Local pay plus selected expat benefits | Balanced cost and attraction | More complex to administer |
| Lump sum | Fixed payment for costs | Predictable cost, employee choice | Employee bears cost risk |
| Core-flex | Core benefits plus options | Flexibility with control | Requires clear design |
Expert insights
5 Expert Tips for Better Mobility Packages
Practical ways to improve fairness and control costs.
Match package to purpose
Link richer packages to strategic moves, and simpler ones to short-term or development assignments.
Review allowances regularly
Exchange rates and prices move. Annual reviews keep allowances fair without overpaying.
Consider total cost
Include tax, social security and gross-ups when comparing packages, not just the headline salary.
Protect long-term benefits
Check pension and social security continuity, which employees often value highly.
Communicate clearly
Explain how each element is calculated so employees understand and trust their package.
Challenges we solve
Compensation Challenges We Solve
Common issues in mobility reward – and our solutions.
Packages that are too costly
How we solve it: We benchmark allowances and introduce lump-sum or core-flex options where they fit.
Inconsistent offers
How we solve it: Clear rules for each assignment type ensure similar moves receive similar packages.
Tax surprises
How we solve it: Tax approaches are defined upfront and modelled before offers are made.
Employees declining moves
How we solve it: Packages are designed around what matters most to employees and families.
Why mitrGlobally
Why Reward Teams Work With mitrGlobally
Practical, data-informed advice grounded in day-to-day mobility experience.
150+countries served
10k+visas delivered
18+years of expertise
24/7expert support
Reach across 150+ countries
Local partners in every major market give us current knowledge of employment law, tax and immigration on the ground.
18+ years of mobility expertise
Our consultants have supported corporates, SMEs and individuals through thousands of cross-border moves.
100% secure & compliant
Employee data is handled confidentially, and every recommendation is checked against local regulations.
24/7 support
HR teams and assignees can reach us by phone, email or WhatsApp whenever an issue comes up.
Cost modelling
We model real moves so decisions are based on full costs, not estimates.
From design to delivery
Packages flow into assignment letters, payroll and policy.
About us
About mitrGlobally
mitrGlobally is a global mobility partner that helps organisations, professionals and families move across borders with confidence. From our offices in Bangalore, India and Milton Keynes, United Kingdom, and a trusted partner network covering 150+ countries, we bring global mobility, immigration, travel and relocation services together under one roof – so every international move has one accountable team.
Our Compensation & Benefits service is part of our global mobility practice. It connects directly with our other services, which means fewer hand-offs, fewer delays and a single point of contact from the first enquiry to the final settling-in step.
With 18+ years of expertise, more than 10,000 visas delivered and 24/7 support, we combine specialist knowledge with genuinely personal service. Every case is handled securely, confidentially and in line with the laws of the countries involved.
Every engagement starts with a free consultation to understand your situation and goals. You then receive a clear written plan with realistic timelines, the documents required and transparent costs, followed by regular updates until the work is complete. Applications are submitted only through official government channels. Whether you are an HR leader moving many people each year or a family planning a single move, you get the same careful, accountable service from one team.
- Honest advice. We tell you upfront if a route is unlikely to succeed, or if a simpler option exists.
- Official channels only. Applications go through government portals, embassies and authorised centres.
- Data protection. Your documents are shared only with the authorities and providers involved in your case.
- One accountable team. A single point of contact coordinates every step across countries and services.
- Transparent costs. Service fees are agreed in advance, with government fees shown separately.
- Global MobilityAssignments, policy, employer of record, payroll and workforce moves.
- ImmigrationVisas, work permits, residency, passports and compliance documents.
- TravelFlights, hotels, travel insurance, group travel and pet movement.
- RelocationHome search, banking, registrations, schooling and settling in.
FAQs
Compensation and Benefits FAQs
Straight answers to the questions our clients ask most. Need something more specific? Our team replies quickly.
What is included in an expatriate compensation package?
Typically a salary approach, cost-of-living allowance, housing support, relocation, schooling for children, health insurance, home leave, tax support and repatriation terms. The exact mix depends on the assignment type and policy.
What is the balance sheet approach?
It is a method that keeps an assignee's purchasing power the same as at home, using home salary as the base and adding allowances for differences in costs and taxes.
How is a cost-of-living allowance calculated?
It is usually based on comparing prices and spending patterns between home and host cities, adjusted for family size and reviewed regularly for inflation and exchange rates.
Should we use tax equalisation?
Tax equalisation is common for long-term assignments because it keeps tax neutral for employees across locations. Tax protection or no tax support may suit other situations. We explain the trade-offs.
Are allowances taxable?
In most countries, allowances and benefits in kind are taxable unless specific exemptions apply. They must be reported correctly through payroll.
What is a hardship allowance?
It is additional pay for working in locations with difficult conditions, such as limited healthcare, security concerns or extreme climate.
How can we reduce mobility costs?
Options include lump-sum payments, core-flex packages, housing limits, shorter assignments, local hiring and careful tax planning.
What happens to pension contributions abroad?
It depends on the countries and agreements involved. Certificates of coverage or home pension continuation can protect contributions in many cases.
Do permanent transfers receive expatriate benefits?
Usually not long term. Permanent transfers typically move onto local pay, sometimes with transitional support such as housing for an initial period.
How often should packages be reviewed?
Allowances should be reviewed at least annually, and the overall approach every one to two years.
Can you benchmark our current packages?
Yes. We compare your allowances and benefits with common market practice and recommend adjustments.
How do we get started?
Share your current approach and typical moves through the form. We will suggest the right scope after a free consultation.
How do compensation and benefits differ for short-term and long-term assignments?
Short-term assignments usually keep the employee on home pay with a per diem, temporary housing and travel, because the family often stays at home. Long-term assignments add family benefits such as schooling, larger housing, home leave and sometimes a cost-of-living allowance. A clear compensation and benefits framework sets out which elements apply to each type, so offers are consistent and easy to explain.
Can compensation and benefits be adjusted during an assignment?
Yes. Allowances are often reviewed annually for exchange rates and inflation, and packages change if the family situation, role or location changes. Any adjustment should be documented in an amendment to the assignment letter and reflected in payroll, so the employee, HR and finance all work from the same figures.
Free consultation
Talk to a Compensation Specialist
Tell us about your assignees and current packages. We will suggest improvements and model the costs.