The Balance Sheet Approach

The Balance Sheet is an approach originally designed by ORC that retains the expatriate in the home-country salary structure and provides allowances to enable the expatriate to maintain a standard of living broadly similar to that enjoyed at home.

ORC Balance Sheet

Base salary is analyzed into four main expenditure categories— income taxes, housing, goods and services, and reserve (pension contributions, savings and investments). The chart illustrates how these expenditures may be affected by an international assignment and how the employer maintains home-country purchasing power for the assignee.

Download a sample balance sheet here.

ORC offers several custom approaches to expatriate compensation as an alternative to the balance sheet method.

Understanding the
Balance Sheet:
A Booklet for Expatriates

ORC offers an illustrated booklet, "Understanding the Balance Sheet Approach to Expatriate Compensation," that describes for expatriates the basic principles of our Balance Sheet methodology. Contact one of our worldwide offices or use this form for information and pricing.