ASSIGNMENT

Compensation Programme For Expatriates In

Microsoft.

FROM: Danish Showkat

R.no. 14036113030

MBA 4th Sem

Submitted To Owais Sir

Compensation Programme For Expatriates In

Microsoft.

Definition Of Expatriate:- An expatriate is an individual living in a country other than their country of

citizenship, often temporarily and for work reasons. If your employer sends you from

your job in its New York office to work for an extended period in its London office,

once you are in London, you would be considered an expatriate or “expat”.

Benefits given to Expatriates in Microsoft:-

1. Monetary Factors related to Base salary:-

Base Salary

Comparable to home country.

Serves as a reference point for establishing additional benefits.

Greatest point of flexibility.

Choose Method

Home country-based

Host country-based

Headquarter-based

2. Monetary Factors related to Premium:-

Assignment Premium

Incentive: persuade acceptance of international assignments.

Environmental or hardship premiums.

Mobility premiums.

3. Monetary Factors related to tax:-

Tax Considerations

Tax burden depends on location of assignment.

Solution: Tax Equalization

i Simple and easily understood.

ii Benefits both employee and employer.

iii Employee will not receive the tax burden.

iv May be high cost to Employer.

4. Monetary Factors related to Payroll:-

Payroll

Not placed on foreign location’s payroll.

May accrue Social Security benefits.

Consider exchange rates and inflation.

5. Non-Monetary Factors related to Family:-

Family Considerations

Assimilation programs.

i Support programs.

ii Call centres.

iii Language programs.

iv Cultural awareness.

6. Non-Monetary Factors related to Medical:-

Medical Coverage

27% of expatriates are dis-satisfied.

Employers provide full coverage.

7. Non-Monetary Factors related to Accommodation:-

Housing

Housing and utilities allowance.

Goods and services allowance.

Expatriates discouraged from selling their American home.

American communities in foreign lands.

8. Non-Monetary Factors related to Standards:-

Education

Match American standards.

Tuition reimbursement.

9. Non-Monetary Factors related to Holidays:-

Day’s Off

Travel Expenses

i Children.

ii Employees.

Rest and Recreation days.

10. Non-Monetary Factors related to Repatriation:

Repatriation

Employees forfeit “special” compensation.

Re-assimilation problems.

i Difficult to collaborate.

ii Resentment.

Solutions.

i Re-assimilation courses offered.

ii Promotion offered.

iii Career development programs.

iv Capitalize on foreign experiences.