Most countries have a two tier Pay Market. The two distinct pay markets are typically an Expatriate Market and a Local Market.
The Expatriate Market is largely determined by the origin of each Expatriate. It is quite normal to have considerable differences between Expatriates doing exactly the same job, in the same country. These differences are largely caused by three factors:
On the other hand the Local Market is largely determined by local supply and demand for skills.
Depending on a number of factors, such as the availability of skills, rate of economic growth, and the type of economy, the percentage of expatriates versus locally employed people will vary.
Expatriate Pay is typically calculated by using the Expatriates salary in their Home Country as the start point and by calculating an appropriate salary in the Host Country using the Cost of Living difference, relative hardship, and exchange rate. This is either done using a company in-house policy or using an international relocation calculator.
Local Pay is typically determined by the prevailing market salary levels. These salary levels are typically reported in salary surveys run by independent Remuneration Consultancies.
We can conclude therefore that Expatriate Pay is primarily determined by factors outside the host country as well as differences between the host country and the Expatriate's home country. Local Pay is primarily determined by factors within the country, such as strength of the economy and the supply and demand for skills.
Expat Pay - What is your philosophy?
Organisations spend insufficient time creating a well designed expatriate remuneration strategy and policy. This is dangerous given that the highest employee turnover is at the beginning and end of international assignments, indicating a lack of integration of expatriate pay philosophy with the broader organisational pay philosophy.South Africa A Good News Place and Cheap to Live
When people keep reading, talking, thinking, and worrying about bad news all the time, it will end up happening because everyone is attracting it. There is plenty of good news about South Africa, which I would like to share with you to help put the constant bad news in perspective,The Secret Moving Overseas
What you will earn, will determine the school, home, medical facilities and entertainment you will be able to afford. So the secret to moving from one country to another, may be your emotional stability and happiness in the new location, however this is often determined by how much money is sitting in your bank account.