EMPLOYEE RELOCATION: FROM ISRAEL TO MOSCOW, RUSSIA
RELOCATION BENEFITS AND TERMS SURVEY
Relocation Package: Terms and Benefits
General
- The following findings refer to relocation benefits and practices for expatriates in East Europe in general and in Russia specifically.
- The findings are based on a survey conducted by ORI among Israeli and global companies relocating expatriates to East Europe.
- Our recommendations are based on the relevant market practices, ORI€s experience and know-how and the relevant legal requirements.
Employment Status
- 70% of Israeli companies are moving expatriates to the local payroll on relocation to Russia.
- 25% of Israeli companies are keeping the expatriates on the Israeli payroll.
- Only 5% of Israeli companies are putting expatriates on a Leave of Absence status in the Israeli company when they are moving them to the Russian 95% of the companies terminate the employment of the expatriate in such a case.
Term of Assignment
- 71% relocate employees for 2 to 3 years with an unlimited extension option.
- 9% relocate employees for 1 to 5 years.
- 11% relocate employees for 3 years with no extension option.
- In 9% of the companies assignment periods are determined individually.
Termination of Assignment
- 41% of the companies provide a notice term of 3 months.
- 14% of the companies provide a notice term of 2 months.
- In 11% of the companies the notice term vary according to assignment length.
- In 19% of the companies, the notice term vary between 3-6 months according to the seniority of the expat.
- 5% of the companies determine notice terms individually.
- 10% of the companies set no notice terms at all.
Severance Payments
- 77% of companies provide some form of severance payments but only 22% of companies have formal severance plans.
Pre-departure visit
- 69% of the companies cover a pre-departure visit to the employee + spouse.
- 24% of the companies cover a pre-departure visit just to the employee.
- The average cost of a pre-departure visit to an employee + spouse is $2,760.
Special Vacation
- 40% of the companies provide a special vacation of one to two weeks for the moving and settling-in period.
- 60% of the companies do not provide such a vacation and deal with it informally.
Temporary housing
- 88% of the companies provide a hotel allowance for 1 to 3 weeks.
- The average value of annual hotel allowance is $3,780.
Rental car
- 84% of the companies provide a rented car for 1 to 4 weeks.
- The average cost of a rented car allowance is $2,420.
Cargo Shipment
- 92% of the companies cover an un-attended air cargo shipment of 200 kg to 900 kg and a sea cargo of 7 CM to 40 CM when the employee relocates abroad and a sea cargo of 20 CM to 40 CM on the way back.
- The average value of the cargo shipment for a single assignee is $7,620, for married assignee $10,900 and for married assignee + 2 is 15,220.
Settling-in Allowance
- 67% of the companies provide a settling-in allowance covering all general relocation costs (hotel, car rental, etc. )
- 17% of the companies cover some of the general costs (hotel, car rental) and provide a settling-in allowance.
- The average amount of a settling-in allowance for a single assignee is $3,800, for married assignee $6,200 and for married assignee + 2 is $8,850.
Tax Consulting
- 86% of the companies cover the tax consulting costs before the assignment.
- The average cost of tax consulting is $750.
Education Allowance
- 83% of the companies provide an education allowance covering all of the tuition fees costs.
- 12% of the companies provide an education allowance covering part of the tuition fees costs.
- 5% of the companies include a partial education allowance in the employee base salary.
Accommodation Allowance
- 67% of the companies provide an accommodation allowance covering all of the accommodation lease costs.
- 12% of the companies provide an accommodation allowance covering part of the accommodation lease costs.
- 5% of the companies include a partial accommodation allowance in the employee base salary.
Real estate broker costs
- 67% of the companies cover the real estate commission up 12% of the annual accommodation lease.
Utilities Cost
- 13% of the companies pay for all utilities cost.
- 7% of the companies pay part of the utilities cost.
- The average annual cost of the benefit is $1,970.
Company Car/Car Allowance
- 66% of the companies provide a company car for the relevant level of position
- 12% of the companies provide a car allowance covering part of car costs.
Car Loan/Grant
- 3% of the companies provide a grant for a car purchase.
- 21% of the companies provide a loan for a car In 69% of those companies the loan is being converted to a grant after two to three years.
- The average amount of the loan/grant is $14,800.
Medical Insurance
- 91% of the companies provide an international medical insurance to expatriates.
Managerial Insurance (Bituch Menahalim) (in case the employee is transferred to the Russian payroll)
- 94% of the companies terminate all contributions to the Managerial Insurance plan.
- 4% of the companies continue all employer contributions.
- 2% of the companies continue only the “risk” elements (life and long-term disability insurance).
Annual vacation
- 77% of the companies provide the annual vacation package of the Russian company.
- 23% of the companies provide the annual vacation package of the Israeli company.
Holidays
- 70% of the companies provide the Russian holidays.
- 12% of the companies provide the Russian holidays + Yom Kippur.
- 12% of the companies provide the Russian holidays + all Jewish holidays.
- 6% of the companies provide the Israeli holidays.
Home Leave
- 48% of the companies finance a home leave annually.
- 21% of the companies finance a home leave annually from the 2nd year of assignment
- 13% of the companies finance a home leave once every two years.
- 14% provide home leave in varied frequencies per position/destination.
- 45% of the companies provide just the flight costs to all of the family while 55% of the companies cover additional costs (Vacation time, hotel, car rental, per-diem).
Repatriation
- All companies finance flights back to Israel
- 95% finance the shipment back to Israel of personal belonging.
- 70% of the companies provide a repatriation allowance covering general repatriation costs (hotel, car rental, ). The average amount of the repatriation allowance for a single assignee is $2,200, for married assignee $3,400 and for married assignee + 2 is $4,800.
