How is the hardship allowance determined?
In some assignment locations, expatriates will face difficult living and working conditions as compared to their home country. These difficulties may come from a variety of factors – crime, inadequate medical care, climate, traffic, pollution, and cultural and other living difficulties. AIRINC assesses the relative difficulty of living in the assignment location compared to the assignee’s home country. If conditions in the assignment locations are significantly more difficult than at home, a location allowance (hardship) payment will be made. The payment is determined as percent of salary and can vary from 0 to 30% in 5% increments. The location allowance percent is applied to salary up to a maximum salary of USD 175,000 or home country equivalent.
Location Allowance percentages are reviewed once a year – the percent may increase or decrease throughout an assignment if conditions change in the assignment location.