Packages and Contracts

As discussed in the prior section, benefits and salaries offered to expats are not always equal. This is due to the fact that employers send expats to other countries on different types of packages.

The packages given are determined based on the abilities and seniority of the employee. Depending on the package, an expat might or might not have to worry about certain needs while in the host country.

Expat Packages

In general, there are two types of packages available. This would be the "expat" package and the "local" package. The difference between the two lies in the the salary, benefits, and appended compensation.

An "expat" package means you are eligible to receive the salary meant for an expat that would be more than what a local receives. As mentioned earlier, you will experience a salary increase or decrease depending on your host country.

Appropriate percentage additions or lack thereof are determined by the policy of each company. However, usually, companies have a set range of salaries for their employees, worldwide thus ensuring fair policy. Expat packages are offered as a way to tempt highly-proficient employees into moving to their other branches because his or her expertise is highly needed. Employers might find their best employees unwilling prospects because the idea of moving is truly daunting!

Within the "expat" package, there are two sub-types. The difference is important in order for you to deduce your highly-proficient employees.

1. Short-term Expat Package

This type of package has become very famous nowadays. Just like its name implies, under the short-term expat package, an expat gets sent to their host country only for a short time. This is much different from the long-term package because it would mean that you would not have to worry about moving your entire family or bringing your car, selling your house, settling your mortgages, saying goodbye to your family and friends, etcetera. This type of package has been very popular recently because employers could send their managers to another country with lesser costs than the next expat package would incur.

2. Long-term Expat Package

Long-term expat packages are of course offered to those who will be staying in another country for years at a time. The importance in the different of a short-term and a long-term package is the eligibility of one to pay taxes. You will be allowed to file a permanent residency status in many countries after 180 days or more of stay. There are countries that will oblige you to pay taxes not only to your mother country but also to them in recognition of your being a legal resident.

But being sent to another country under the long-term expat package means your company will give you top-level treatment. They offer the opportunity to you because they believe your abilities could leverage their branches in other countries. If they offer you the long-term package, it is to give you good reason to actually relocate.

Deciding to Take the Offer

Being offered a long-term expat package could be stressful and if you are really not willing to do it but are being goaded into it, you could take this chance to ensure your future raise and/or promotion. You are more in charge of your life than you think. If you use enough grit and wit, you could draw out a beneficial long-term agreement. You might have to live by their conditions for a while, but after you have met them, you will be getting your reward.

Long-term packages mostly get the whole deal. The company pays for every expense from the move to the travel and the preliminary hotel accommodations.

Your company might even provide you with your own house, car, tuition fees for international schooling if you have children, compensation for having to sell your properties (i.e., house and car) at home, and travel expenses during your frequent trips back home.

Local Package

An expat abroad on a local package means they get to have the same privileges as the locals do which usually means lower pay and limited support from the company. The most you will get from this package are travel expenses, temporary hotel accommodations, and reimbursement of expenses spent to arrange your legal documents.

Local packages are used for two situations. If your company wants to cut on costs, instead of sending a mid-level manager, they will send someone who, even if perhaps as proficient, is new to the company. In that situation, they will not be obliged to offer the newcomer what they should offer someone with a top position in the company. If you are being approached by your company to relocate abroad, make sure you negotiate your conditions and you value yourself accordingly unless you have a long term agenda in mind.