Salaries around the world: Things that may surprise expats

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Published on 2023-10-17 at 10:00 by Asaël Häzaq
Every work deserves proper compensation. However, the most awaited income can be accompanied by more or less confusing factors. It can be hard to break down a payslip, especially for an expatriate. From payment dates to bank transfers and cash issues, here are the things that can surprise expats working abroad.

Salary and payslip: from the simplest to the most complicated

You've already accomplished the most challenging part. You've worked abroad for a while and are now waiting for your salary. In principle, it will come with your payslip, an essential administrative document which, it is assumed, should be legible for everyone, with an understandable calculation method. However, the reality can be surprising for expats.

Regarding payroll, France is considered to have one of the most complex systems, followed by Belgium, Germany and Spain. Swiss and American payslips are easier to understand. Meanwhile, Mexico, the Netherlands, Indonesia and, especially the United Kingdom, have the most straightforward systems.

You're probably among those who just leave their payslip in a drawer. In fact, many people don't even bother to break down their payslips. But if you come from a country with a fairly simple system, such as the UK, you might be shocked when working in a country like France with so much bureaucracy, because salary is more than just a figure. 

Behind these figures lie issues of labor law, collective agreements and trade unionism. Sometimes, rules and regulations may vary within the same country. In the United States, for example, each region can set its own regulations in terms of pay and payslips.  

Part-payment

In some countries, employees are remunerated in several installments. In principle, nothing prevents this (at least, it all depends on the country's legislation). Therefore, you could end up not with the whole salary at the end of the month but with part of the salary being paid in several installments.

Many countries share the principle of a monthly salary paid by the employer. While the employer is free to choose the time of payment, it must be the same every month for obvious organizational reasons (on both your side and the employer's side). The employer is obliged to pay the salary regularly. Still, at the request of an employee, the salary can also be paid in several installments (as part of an advance payment, for example).

Amid the crisis, many workers are asking to receive their wages in installments, mainly to cope with the rising cost of living. There can be more constraints for expats, especially if the host country is bearing the brunt of inflation. In France, like in the United States, the United Kingdom, Senegal and Australia, more and more workers are asking for a split salary. This means receiving part of it at the beginning of the month and part of it later. Start-ups have joined the trend, introducing apps that allow workers to submit their requests for split pay directly. According to the app developers, this will save time, ensure efficiency and security, and avoid unpleasant surprises.

Weekly pay

If you are used to receiving your salary in your home country at the end of the month, you might be surprised to find out that your employer will pay you weekly. In Australia, salaries are paid on a weekly or fortnightly basis. This practice goes hand in hand with others, such as paying rent: you will often have to pay it weekly. That's why weekly pay is so useful. In Quebec, you could also be paid every fortnight.

However, there are some particular aspects to consider. Expats from countries where salaries are paid monthly claim that the faster frequency of weekly payments takes them aback. It feels like you're earning more because you're getting paid twice or four times. But weekly pay isn't your whole salary. At the end of the month, you're left with the same situation as if you'd received all your salary at once.

Conversely, expats who are used to receiving weekly pay may find it takes longer when they are in a country where salary is paid monthly. Again, adjustments are needed to get used to the new trend.

Salaries and benefits for expats

Of course, you're probably thinking that working abroad is commensurate with better pay. However, we are very far from the image of the wealthy expat (although the meaning of "wealthy" is debatable). A critical position in a foreign country can open the door to a higher salary. But it all depends on the country you are moving to. For example, you can still hold a managerial position without securing a high salary. Moving abroad doesn't necessarily mean that you will be occupying a higher position with higher pay. Overall, expats are often faced with many different realities.  

Gone is the time of expat contracts and expat packages. This type of contract used to include all an expat's "essentials", such as the cost of living, health coverage, school fees for those moving with children, car, accommodation, etc. Expats were also entitled to bonuses and allowances (mobility bonus, relocation bonus, cost of living, expatriation bonus, etc.). Added to the salary, these bonuses made such contracts attractive. Today, you're lucky if you manage to secure such contracts.

Currently, most expats have to find a job abroad on their own, and this doesn't always mean an attractive salary. Still, you can be eligible for other benefits, such as career development, networking opportunities, upgrading your qualifications and skills, living in a privileged living environment, etc. All this can contribute to making your dream come true. 

A successful international career is not only about high and regular wages but also all the benefits that, put together, contribute to your well-being.