A method of paying expatriates that gives part of their salary in the currency of the home country and part of their salary in the currency of the host country.

A method of paying expatriates that gives part of their salary in the currency of the home country and part of their salary in the currency of the host country.

• A. Split Payroll
• B. Dual Currency Pay
• C. Hybrid Payroll
• D. Global Salary Split

Answer: (A)

The main idea here is paying an expatriate in two currencies to manage currency risk and align with both home and host-country needs. This approach, known as split payroll, involves delivering part of the employee’s compensation in the home-country currency and part in the host-country currency. By splitting the pay, the employee maintains some purchasing power in their home currency—useful for ongoing obligations or savings—while also covering local expenses and market competitiveness in the host country. It helps stabilize earnings against exchange-rate fluctuations and supports smoother budgeting for both the employee and the employer in international assignments. Other terms are less precise in practice. Dual Currency Pay suggests two currencies but isn’t the standard term used to describe a defined split between home and host currencies. Hybrid Payroll is a broader, less specific label for combining payroll methods, not specifically about two currencies. Global Salary Split isn’t a common, recognized term in expatriate compensation.

The main idea here is paying an expatriate in two currencies to manage currency risk and align with both home and host-country needs. This approach, known as split payroll, involves delivering part of the employee’s compensation in the home-country currency and part in the host-country currency. By splitting the pay, the employee maintains some purchasing power in their home currency—useful for ongoing obligations or savings—while also covering local expenses and market competitiveness in the host country. It helps stabilize earnings against exchange-rate fluctuations and supports smoother budgeting for both the employee and the employer in international assignments.

Other terms are less precise in practice. Dual Currency Pay suggests two currencies but isn’t the standard term used to describe a defined split between home and host currencies. Hybrid Payroll is a broader, less specific label for combining payroll methods, not specifically about two currencies. Global Salary Split isn’t a common, recognized term in expatriate compensation.