Balance Sheet

The purpose of this method is to provide the expatriate with a life standard as good as it was in his home country.
The balance sheet method relies on the principle of “hole country anchor” which is egalitarian starting from the home country gross salary and resulting in the host country gross salary.

The « U Curve » displays the clear logic of this method.

 

Home country		Host country
Gross reference salary	+	Gross Expatriation Salary	=
Bonus	+
Social Charges	-
Theoretical Tax	-
Theoretical net salary	=
COLA	+	Social charges host country	+
Allowances	+
Benefits in kind	+	Host country tax	+
Guaranteed net	=	Guaranteed net	=

Variation from this method includes, for instance, the experience of the candidate as an expatriate, his ability to live locally, or the request from the expatriate to become such.