How to Calculate Salaries for Mobility Within the EU

Employee mobility has become increasingly common within the EU, giving individuals valuable opportunities to gain international experience while contributing their expertise across borders. Transnational secondments, where an employee from one EU country works temporarily in another, depend on getting the mobility salary right, alongside the visa and work permit requirements that make the assignment possible.

Why mobility salaries matter

A well-structured mobility salary is more than a paycheck. It is a compensation package built to support employees during an assignment abroad, combining a base salary with allowances, benefits, and perks tailored to the host country and the employee's needs. Getting this right is essential for attracting and retaining talent and keeping employees motivated and productive throughout the assignment, while also helping companies build a diverse, skilled workforce across EU member states.

Core components of a mobility salary

• Base salary: the foundation of the compensation package, determined by job role, experience, and qualifications, and used as the benchmark for calculating the other components
• Secondment allowance: covers the additional cost of living and working in a foreign country, including accommodation, transportation, and other living costs, and can be adjusted for factors like family support
• Housing assistance: financial support or pre-arranged housing options that help employees secure comfortable accommodation quickly
• Health insurance: coverage that gives employees access to quality healthcare while abroad, protecting them from unexpected medical costs
• Tax and social security considerations: since tax regimes vary significantly between countries, employers need to provide guidance and handle the paperwork needed to avoid double taxation and keep earnings compliant

Minimum wage compliance

Ensuring posted workers, including drivers, receive the minimum wage applicable in their host country is a major priority for authorities across Western Europe. The European Labor Agency's IMI platform requires transport operators to register and declare posted drivers before each trip, streamlining verification of proper wage payments across EU member states. Complying with minimum wage laws is a legal obligation, and doing so protects employees from exploitation while reinforcing a company's reputation as a responsible employer.

Transnational posting allowances

Transnational posting allowances are a key part of employment contracts for posted drivers, used to calculate the applicable minimum wage. They are distinct from per diems, which cover accommodation, transport, and meal expenses, and should be clearly defined in employment contracts to keep salary calculations accurate and fair. These allowances are designed to bridge wage disparities between an employee's home country and the host country.

For drivers, the allowance is typically set at 50 percent of the average daily base salary. There is a cap on how much can be paid without becoming taxable, generally 2.5 times the legal per diem value in Romania. Any amount above that threshold is taxable, and because the allowance can vary month to month based on the number of working days, employers need to track and record it carefully to stay compliant.

Worked examples

Andrei, a software developer in Romania, is seconded to his company's Madrid office for eight months starting July 2023. His mobility salary combines a base salary of 45,000 euros per year (3,750 euros per month), an 800 euro monthly secondment allowance, and a 500 euro monthly housing stipend, along with extended health insurance and covered travel expenses. That brings his total monthly salary in Spain to 5,050 euros, or 40,400 euros across the eight-month assignment.

Maria, a marketing specialist, is seconded to her company's Berlin office for 12 months. Her base salary of 36,000 euros per year (3,000 euros per month) is combined with a 700 euro monthly secondment allowance and a 600 euro monthly housing stipend, plus extended health insurance, for a total monthly salary in Germany of 4,300 euros, or 51,600 euros across the assignment.

These figures are illustrative case studies. Employers should always check local laws and regulations to determine the correct remuneration for each seconded employee.

Inspection and compliance

Inspection of minimum wage payments is handled differently across EU member states. Romanian inspectors only have jurisdiction within Romania and cannot sanction Romanian companies for non-compliance abroad, but authorities can request information through the IMI platform, and companies must provide the required documentation within eight weeks. Maintaining accurate records of salary calculations and payments is essential to demonstrate compliance if inspected.

The role of A1 certificates

A1 certificates are essential for documenting relevant activity in Romania for posted workers, and are particularly useful in the event of a workplace accident. They confirm that a posted worker's social security contributions are paid in their home country, protecting their social benefits, so employers should ensure these certificates are obtained and maintained throughout the secondment.

Why this matters

Mobility salaries are central to successful transnational secondments within the EU, alongside the visa, residence permit, and work permit process. Getting each component right, from base salary to allowances, housing, health insurance, and tax treatment, helps employers attract and retain talent while giving employees a positive, well-supported experience during their international assignment.

Sources: European Labor Agency, Romanian Labor Inspectorate, EU Mobility Package