Sometimes global work assignments look great on paper, but go wrong wrong in reality.
George recently returned from a work assignment in Nigeria. The project went well. His employer supported him with accommodation and transport. On paper, it looked like a good opportunity. Financially, it wasn’t. George expected his salary to be tax-exempt – he was offshore for more than 183 days. But regular trips back to South Africa to see his family broke the exemption requirements. As a result, his full salary remained taxable in South Africa.
At the same time, his subsistence allowance didn’t reflect the real cost of living in Nigeria. Day-to-day expenses were higher than expected, and the allowance simply didn’t keep up.
By the time he returned, George was worse off.
And next time he’s asked to go on assignment, he’ll probably think twice.
The Lesson
International assignments don’t fail because of the work.
They fail because of poor structuring.
- The 183-day rule is often misunderstood
- Travel patterns matter
- COLA needs to reflect reality – not assumptions
Get it wrong, and even a successful global work assignment becomes a financial loss.
SAIL International helps employers and employees structure assignments properly – before decisions are made and then helps to support employees through their assignment. Click here to speak to SAIL.