How much should I expect in a relocation package?

How much should I expect in a relocation package?

An average relocation package costs between $21,327-$24,913 for a transferee who is a renter and $61,622-$79,429 for a transferee who is a homeowner. Of course, this number is just an average of what larger corporations are spending on employee relocation – the relocation amount can be anywhere from $2,000 – $100,000. Companies will sometimes offer to pay for moving expenses via a “relocation package”—which could be given to an employee in the form of a lump sum payment, reimbursed at the end of the move, or handled directly by their chosen moving company. Moving is costly, so companies can help employees by offering some financial reimbursement for expenses such as moving services, mover’s insurance or transportation. While some businesses provide the funds only after the moving employee submits relevant expense reports, others opt for a single lump sum upfront. A lump sum relocation package is a standard relocation package since many employees choose this package. A lump sum package is when a set amount of money is directly given to your relocating employee so they can pay for the expenses that come with moving. The government considers this as income, making it taxable.

How much does government pay for relocation?

Payment. A relocation incentive may not exceed 25 percent of the employee’s annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years). Comparatively, relocation demands larger expenses such as shifting houses, moving goods, finding new schools, etc. These expenses can either be reimbursed by the company or directly paid to the employee as a lump-sum amount known as Relocation Allowance. A one-time payment of INR 75,000 will be offered to the Candidate/Employee to cover all expenses related to relocation. This amount will be paid along with the first payroll after deducting applicable taxes. Relocation benefits are also called relocation packages or relocation assistance. These are offers of material and other forms of assistance made by an employer to a potential employee to help them move from one location and settle in another. A typical relocation package usually covers the costs of moving and storing furnishings, household goods, assistance with selling an existing home, costs incurred with house-hunting, temporary housing, and all travel costs by the employee and family to the new location. When it comes to relocation, negotiating a better deal is good for all parties. It’ll keep you and your family happy if there’s less for you to do, and it’ll give your employer a new team member who’s ready to work sooner than later.