What is the host-based policy approach for international compensation?

Question

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The host-based policy approach for international compensation links the base salary to the salary structure of the host country. This means that the employee is paid according to the salary structure of the country in which they are currently working. However, the policy retains the home-country salary structure for other international supplements, such as bonuses, allowances and benefits. This approach is typically used when the company wants to ensure that the employee is paid fairly relative to the local market, but also considers their salary history and performance in their home country.

What Is the Host-Based Policy Approach for International Compensation