Contemporary Trends of Expatriate Compensation in India: An Overview

Today, people tend not to limit themselves to working in their home country. This new breed of people going to work in other countries is known as expatriates. This shift in workplace may be due to their compulsions or due to the strategic priorities of the organisations operating globally. Designing the right compensation package for these expatriates remains a major challenge to international HRM practitioners. Several aspects such as cost of living, inflationary tendencies, balancing between the going rate of compensation-equity factor, local taxation issues, relatively higher cost of compensation for the expatriates especially in the new economy countries like India, China, Brazil, Russia, Mexico etc. are the major parameters that dictate the compensation plan design. The trend has reversed from expatriation from India to expatriation to India. When India is discussed as the destination of expabiate engagement in corporate and any other areas, above issues remain equally relevant.