Many things need to be considered about remuneration and compensation in international Human Resource Management and these include the cost of living expenses in foreign countries, the taxation effects, and the expectation of the expatriates that they are suppose to receive additional compensation for the separation from part of their family in international assignments. Moreover, there is also the practical concern from many of expatriates that they do not lose out financially by going on an international mission. Usually most organizations deal with this problem by supplementing salaries to maintain the employees' standards of living as if they were in their own country. As a result, the expatriates may end up earning far more than the host-country nationals with they work, and that could create a interpersonal disaster in many cases. Therefore, expatriates remuneration and compensation may be something very complex. Wages and salary determination are normally area for conflict for national or international companies in general. Other aspects to consider would be internal and external equity, incentive and performance pay, and more latterly, packaging other benefits along with monetary remuneration that definitely increase the complexity of the problem.
One of the main problems is to define what is the salary level for the same job among different countries where the Multinational companies (MNC) operates. Parent company managers believe that the same remuneration should be paid to every employee without reference to their location. But the fluctuating exchange rates require constant attention in order to maintain constant salary rates in home country dollars. Global Payments and Benefits
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