Split Payroll

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A method a business may use to pay its employees who are on international assignments. Split pay has several functions. It reduces the effect of currency fluctuations on an employee's pay and lets him expect a certain amount of pay in his home country's currency and a certain amount of pay in his host country's currency. Without split payroll, he would have to exchange money from one currency to the other each month and being subject to the whims of exchange rates. Split pay thus transfers exchange-rate risk from the employee to his company.

[Source: http://www.investopedia.com/terms/s/split-payroll.asp]



Sayed Farrukh Ahmed
Assistant Professor
Faculty of Business & Economics
Daffodil International University