May 30th 2017

Member Query – Mobility

A member wishes to understand how other PARC members treat bonus payments for assignees or employees who have permanently moved, where bonus relates to periods in different countries and/or at time of payment the individual is a resident in a different country to where the bonus was earned?

They also ask the following:

  • Do you split the bonus such that part is paid in previous country and part in current, with tax being settled in current country; or do you pay all of it in country where resident at time of bonus payment?
  • Do you provide for any protection against FX rate movement such that employees can’t suffer any loss of bonus value due to movement?

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