Blackwell Reference Online

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An additional amount of compensation to account for additional costs of living in an expatriate's host country versus the home country. Examples of costs of living which are commonly higher in other countries are food, housing, transportation, and services. If the expatriate would normally take advantage of certain goods and services while in the home country, a living allowance is normally provided for those same goods and services in a host country. This is an important consideration for an employee considering an overseas assignment . It is also important to recognize that the degree or quality of goods or services may also vary and must be taken into consideration as well. See also compensation package (expatriate) ( 1986 ). Compensation of overseas personnel . In Handbook of Human Resource Administration , 2nd edn. New York : McGraw‐Hill . ... log in or subscribe to read full text