Assignment premiums are paid for a variety of reasons detailed in the sections that follow. Generally they are a percent of salary with some companies capping the maximum salary that may be used in these calculations. Premiums are rarely, if ever, used as salary for pension or other benefits, or in determining other assignment allowances. These issues include separation from family members, friends, and business colleagues. Other issues include difficulties with language and cultural differences that the family will have to adjust to.
International premiums fall under many forms.
Typically the premium comes under different names depending on payment methodology. Foreign Service Premium -Generally paid each pay period and based on a percent of pay. This premium accrues over the length of the assignment so that the total paid out would be similar in level to the foreign service premium. Company practice regarding the payment of premiums tends to be industry-specific. In addition, there has been a trend to move away from premiums.