Spendable income is determined from home country spending patterns and is based on a comparison of the cost of a standard market basket of goods and services. The allowances are calculated from an index provided by a recognized authority. The amount can be positive or negative, although most U.S. businesses do not offset negative amounts. Most companies provide a substantial portion of the expatriate's housing allowance and utility expenses to enable employees to live in a dwelling comparable to the one in their home country. While the company usually expects expatriates to assume a portion of the housing costs similar to what they pay at home, this amount is typically related to an average and bears little relationship to what the employee actually pays in the home country.
Most companies discourage their expatriates from purchasing a dwelling in the new destination.
Likewise, they discourage these employees from selling their home country dwelling and often will arrange for property management while the family is abroad. Most companies pay for schooling of the expatriate's dependents during the assignment. They normally cover tuition, fees and books. This benefit serves to recognize that dependent children need to maintain their home country curriculum so they can reenter their home school systems. Room and board is subsidized in a few cases.