6.8. Global Considerations

Compensation practices vary widely from country to country and are often subject to heavy regulation, particularly in Europe. A significant consideration when crafting a compensation package for a third-country national or expatriate is the effect on the tax situations for the employee and employer. In some countries that are highly unionized, unions have significantly more influence on compensation practices than employers find in the United States. Expatriate employees often receive some type of pay differential to ensure that their pay remains equitable with their peers and to equalize tax burdens and living costs unique to their specific situations. Many assignments include housing allowances and COLAs that help ...

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