Which term describes additional compensation paid to employees who work abroad, sometimes called a mobility premium?

Which term describes additional compensation paid to employees who work abroad, sometimes called a mobility premium?

• A. Overseas premium
• B. Overhead
• C. overtime
• D. Ownership interest

Answer: (B)

When employees are sent to work abroad, their extra pay is a form of expatriate or international assignment compensation designed to offset higher costs and to make the assignment attractive. This mobility premium, sometimes called an overseas premium, covers allowances tied to living abroad such as housing, cost of living adjustments, education, and relocation costs. It is distinct from other terms: overhead refers to indirect business costs not paid to employees, overtime is pay for extra hours worked, and ownership interest relates to equity in the company.

When employees are sent to work abroad, their extra pay is a form of expatriate or international assignment compensation designed to offset higher costs and to make the assignment attractive. This mobility premium, sometimes called an overseas premium, covers allowances tied to living abroad such as housing, cost of living adjustments, education, and relocation costs. It is distinct from other terms: overhead refers to indirect business costs not paid to employees, overtime is pay for extra hours worked, and ownership interest relates to equity in the company.