A computer programmer from India continues to receive his or her Mumbai,India base salary and is kept on the Indian operation's balance sheet.Then the company adds various allowances for cost of living,housing,education to this base salary so that the employee's overall standard of living while working in the company's London,England office will be the same as his or her standard of living in Mumbai thus would be an example of the balance sheet approach.

Question

Quizplus · Accepted Answer

In the balance sheet approach, the employee's base salary is maintained in their home country and various allowances are added to ensure that their standard of living is equivalent to that in the host country. This approach is commonly used in international compensation.

A Computer Programmer from India Continues to Receive His or Her