Local Plus

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CornwallLocalPlus

Local Plus is a term commonly used in the context of expatriate compensation packages. It refers to a type of compensation package that combines elements of both local and expatriate packages. This approach is often used by multinational companies to manage the costs associated with international assignments while still providing adequate support to their employees.

Components of Local Plus Packages

Local Plus packages typically include the following components:

• Base Salary: The base salary is usually aligned with the local market rates in the host country. This is different from traditional expatriate packages, which often include a home-country salary component.
• Allowances: These may include housing allowances, transportation allowances, and education allowances for children. The aim is to cover the additional costs that expatriates might incur while living abroad.
• Benefits: Benefits can include health insurance, retirement plans, and other standard benefits that are provided to local employees in the host country.
• Tax Equalization: Some companies offer tax equalization to ensure that the expatriate does not pay more in taxes than they would in their home country.
• Relocation Assistance: This includes support for moving expenses, temporary housing, and settling-in services.

Advantages of Local Plus Packages

Local Plus packages offer several advantages:

• Cost Efficiency: They are generally less expensive for the employer compared to traditional expatriate packages.
• Fairness: They aim to provide a fair compensation that reflects the local market conditions while still offering some expatriate-specific benefits.
• Flexibility: These packages can be tailored to meet the specific needs of the employee and the company.

Challenges of Local Plus Packages

Despite their advantages, Local Plus packages also present some challenges:

• Complexity: Designing and managing these packages can be complex due to the need to balance local and expatriate elements.
• Perception: Employees may perceive these packages as less attractive compared to traditional expatriate packages, which can affect their willingness to accept international assignments.
• Legal and Tax Issues: Navigating the legal and tax implications in both the home and host countries can be challenging.

Related Pages

• Expatriate
• Compensation and benefits
• Multinational corporation
• Relocation (personal)
• Tax equalization

See Also

• Global mobility
• International assignment
• Cost of living adjustment