Jon, a U.S. petroleum engineer, moved his family to Saudi Arabia for a two-year assignment. The company provided him a travel allotment of $.10 a mile, a food allowance of $500 a month, and $2000 a month for housing to maintain his standard of living. What kind of pay factor was used?

Question

Quizplus · Accepted Answer

The travel allotment, food allowance, and housing allowance are all examples of differentials. These are additional payments or benefits that are provided to employees who work in difficult, overseas, or remote locations in order to attract and retain talent.

Jon, a US Petroleum Engineer, Moved His Family to Saudi Arabia for Arabia