Mobility Strategy - Market Practices

Glossary of International Mobility Terms

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GLOSSARY OF INTERNATIONAL MOBILITY TERMS TERM DEFINITION Accompanied Status Assignees/employees whose spouse/partner and eligible dependents are allowed/choose to accompany them to the host country/new location. Assignee An employee on international assignment in a country other than their employment base/home country. Assignment Start Date The date an assignee arrives in the host location to begin the international assignment. This date is typically no sooner than the effective date of the work permit/visa. Balance Sheet Approach A compensation philosophy used for global assignment programs; its objective is to link assignees to their home country by using home-country base salary and adding/deducting allowances so that purchasing power is comparatively equal to that of the home country. International Assignment Letter (IAL) Document that outlines the specific terms and provisions applicable to the international assignment. The employee is required to sign the letter confirming their understanding and acceptance of the terms. May also be referenced as a Letter of Assignment (LOA) or Letter of Understanding (LOU). Base Salary The annual amount paid on a regular and recurring basis. Base pay is the salary before any addition of allowances/differentials for service on an international assignment. Cap An upper limit or ceiling used when a calculation of an allowance or other payment is made under the policy. Cash in lieu A lump sum cash payment in lieu of a specific benefit/service. Compensation Worksheet A worksheet that describes the components of the pay package and summarizes the calculation of the expatriate differentials, allowances and any appropriate deductions, or employee contributions. Compulsory Education When the home country mandates enrollment in public education. (In most countries, compulsory education begins at age 5/6). Cost-of-Living Index The ratio of the costs of goods and services for the expatriate in the host country to those same costs in the home country, where the home-country costs are expressed as 100 percent (100). For example, an index of 120 means that costs in the host country are 20 percent higher than those in the home country. When the index exceeds 100 it is "positive"; when less than 100, it is "negative." Cost Projection A calculation of the estimated costs of the entire international assignment or transfer, including compensation, allowances, relocation, and home and host/destination country taxation, as applicable.

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