What is a divided wage?

A divided wage is a method that companies often pay to pay for all employees working in a foreign country. The main feature of this type of salary structure is that the employee receives part of his payment in the currency of his home country. The rest of each paycheck is paid in the currency of the country where the employee currently lives and works.

There are several reasons for using divided wages to pay employees. One of the main advantages of this type of system is that the employee is not entirely the mercy of the constant fluctuation of the exchange rate. Since the relative value of currencies usually change frequently, any employee who is paid in one currency can be considered impossible to anticipate what the payout will be at the time it is accepted. The use of the divided wage ensures that the person always knows exactly how much will be paid in the local currency and how much will be paid in the currency of the home country. The potential costs of the Relarovnies are eliminated now for exchange of currency.

In addition, the employer also benefits from using the divided wage because it simplifies other wage accounting functions such as tax deduction. Once the initial determination is made, how much division should be in the currency of the domestic region and how much in the currency of the host country, the deductions are usually much easier. From this part of the reward, the relevant taxes from home and taxes from the host countries are detained from these funds. This system avoids the need for other calculations including the current exchange rate every time the employee is paid.

The third very important feature of this system is that it allows business in the home country in accordance with the limits of transferred by certain countries. In some countries there are regulations regarding the above amount of the country's money. Employers and employees are usually able to observe such laws by providing funds to employees in their home countries and local levels.

In addition to split wages, they are also usedOther systems. The company can only decide to provide domestic wages and pay only to all employees a change of home country. They can also decide to use only a reward based on the host, which means that employees receive the currency of the host country only as a reward. The final decision to use the payment system depends on such factors as what countries are involved, how many employees are paid and how long employees will work in the host country.