Payroll: Remuneration Elements During An Assignment

In this alert, we discuss remuneration elements during an assignment. Allowances during an assignment are a central component of the remuneration policy for assignments. They serve to compensate for additional expenses, risks, and differences in living standards between the home country and the country of assignment.

We will discuss some of these forms of remuneration below using an example and assess them from a Swiss perspective.

Example

Ingo Kleiner (German citizen), a management consultant at Consult AG in Munich, is being assigned to Zurich (Switzerland) for a period of two years (from January 1, 2024, to December 31, 2025). The reason for the assignment is a project at the Swiss subsidiary of Consult AG. The costs of the assignment will be passed on to Switzerland.