• Spendable Income – based on 10 spending categories included in Mercer’s Cost-of-Living basket
• Other Expenses – items such as furniture, major medical expenses, holiday, etc
• Home Housing Norm – hypothetical housing expenses that help defining the difference in accommodation costs between the home city and the assignment location
• Savings

Each of these components is based on actual national spending statistics from over 15 major, developed countries around the world (including North America, Europe and Asia). The calculator adjusts the spending assumptions based on:

• Income level

• Family size (single up to married with 4 children)

The calculator helps you to identify the components of net income that need to be adjusted when developing expatriate compensation packages. This is important in a balance sheet calculation for the following:

• Spendable Income - as the portion of income on which the Cost-of-Living index is applied

• Accommodation Allowance - as the calculator provides precise amount to be deducted based on typical housing cost in the home country

• Savings - as it allows you to determine reasonable savings and home country expenditures

The calculator is ideally used in conjunction with Mercer’s Cost-of-Living Index and Expatriate Accommodation Cost Tables.

Options to Select

• Country and region
• Net breakdown options - the calculator is flexible, allowing you to breakdown net income spending based on: national spending statistics, fixed-rate spending assumptions, or your company’s preferred spending assumptions
• Display spendable income table - short or long version, if you require greater or smaller gross income steps to be displayed

Fine-tune the displayed results

You may choose to narrow your results to a specific employee by entering additional fields:

• Marital Status
• Annual Salary Details - gross or net

Results from the full net breakdown - index related spendable income