In July, AIRINC brought together global mobility professionals in the heart of Singapore for a roundtable filled with conversation, shared experiences, and fresh perspectives.
The discussion covered a wide range of topics, including expatriate compensation strategies, Cost of Living Adjustments (COLA), remote work policy trends, relocation leave practices, and hardship allowance reviews. What emerged was a picture of global mobility programs that are becoming more agile, balancing the needs of the business with the well-being of employees.
Balancing Pay Across Borders
When moving employees between low-wage and high-wage locations, companies face unique challenges. For one-way transfers to lower-wage countries, many organizations offer a one-time relocation support payment. The lower cost of living often offsets the reduced salary, and international experience is recognized as an important career development benefit.
For long-term assignments to higher-wage destinations, companies often adjust Cost of Living Allowances upward, sometimes using a higher variance level. Whether the move is initiated by the business or the employee can influence the level of assistance, with business-driven assignments typically receiving more comprehensive packages.
Maintaining Home Benefits on Assignment
Organizations following a home-based compensation approach often maintain the employee’s home country benefits while also providing host-specific entitlements, such as local public holidays or service awards. Some companies implement a global annual leave policy to standardize vacation allowances across locations. This approach helps employees stay connected to their home base while integrating smoothly into their host environment.
Reviewing Hardship and Location Premiums
Hardship allowances are reviewed differently across organizations. Some companies assess them twice per year, others annually, and a few adjust more frequently in cases of hyperinflation.
Shifting Remote Work Policies
Remote work surged during the COVID-19 pandemic, but many organizations have since introduced stricter policies. Some allow up to 20 days per year, while others prohibit remote work from “red flag” countries due to sanctions, tax risks, or intellectual property concerns. Corporate tax teams are frequently involved in setting these policies to ensure compliance and reduce business risk.
Relocation Leave Practices
Relocation leave remains a valued benefit for globally mobile employees. Most companies provide three to five days to help employees settle in at the start or end of an assignment. Some formalize this in written policy, while others leave it to leadership discretion, balancing flexibility with oversight to prevent misuse.
Assignments to Kazakhstan prompted discussions about dual employment, double taxation, and social security contributions. Many companies shared that clawbacks of host country social security payments after the assignment ends are common practice.
Repatriation Benefits and Cross-Border Commuting
For long-term assignments to Dubai, some organizations provide a repatriation allowance equivalent to two weeks of gross salary and cover End-of-Service benefits even for localized employees.
In situations where employees commute frequently between Singapore and Johor Bahru to train local hires, companies generally do not offer extra allowances. The focus is on tracking travel days to remain within tax limits and engaging immigration teams for guidance when necessary.
Key Takeaways from the Singapore Roundtable
The Singapore Global Mobility Roundtable showcased how companies are refining their mobility strategies to stay competitive while ensuring compliance and supporting employee satisfaction. From innovative expatriate compensation solutions to evolving remote work policies, the event highlighted the value of sharing best practices among peers.
AIRINC thanks all participants for their openness, insights, and collaboration. We look forward to continuing the conversation at our next regional roundtable.
