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Negotiating your relocation package: school provisions

Most expat package negotiations focus on salary and housing. The school provisions are often left in the boilerplate. For families with school-age children, that is where the most money usually sits, and it is the area where employers most often have flexibility.

What employers typically offer

Three patterns recur. (1) A capped per-child school fee allowance, paid directly to the school where possible. (2) A flat cash education allowance, taxable as benefit in kind. (3) Nothing, with a higher cash salary instead. Each has different tax and net-cost implications.

What to push for

A per-child cap that matches actual premium fees at the destination. Capital levies and one-time fees explicitly covered. Sibling discounts factored. Cover for the transition year if the assignment ends mid-school year. Cover for repatriation school-search if you return mid-academic-year.

The tax piece

In most jurisdictions, employer-paid school fees are taxable as benefits in kind. The Gulf is the major exception. UK, US, Canada, Australia and most EU countries treat them as taxable income to the employee, which means the gross-up matters. Net it into your negotiation.

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