‘Local-Plus’ Expatriate Policies Are on the Rise

​Most U.S. multinational companies follow the balance sheet approach when it comes to paying workers who are living abroad, but many companies are finding it cost-effective to use "local-plus" policies instead.Under the balance sheet approach, expatriates stay on their home-country payrolls and retain the same salary and benefits. They generally receive allowances to compensate them for a higher cost of living in the host country, housing assistance, hardship allowances if applicable, increased tax liability on company source income, as well as educational assistance for any school-age children.However, local-plus policies are becoming more popular as an alternative.Under a local-plus approach, transferees receive a salary based on the host-country salary structure, plus additional allowances that can include housing assistance and educational assistance for children. Transferees generally do not remain on their home-country benefits plans. In general, the "plus" el
Source: New feed 2