Cost of Living Allowance (COLA) Considerations
First of all, you need to work out the C&B based on COLA (cost of living allowance) for the given area. For example, London is almost 200% more expensive than Delhi or Mumbai. So, if you decide to pay someone, you must ensure that their basic five needs are taken care of:
- Accommodation (rented) (15-20%)
- Food (5-10%)
- Clothing (as per region)
- Personal care (as per region)
- Transportation (up to 10% depending on the type of work)
- Entertainment (up to 10%)
After that, you need to consider what their salary was in India and the effective salary in INR at USD 48 (average $ vs. INR over the last 6 months). Additionally, you need to determine if the person will be on your company's payroll overseas or is part of a third-party project.
Benefits and Compensation
As part of benefits, you can contribute to:
a) Employer & employee share in PF
b) Movers & Packers cost
c) Return air tickets (once a year)
All of this needs to be factored into the CTC for the given position and clearly communicated to the employee. These benefits should not exceed the set limits.