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TEXT BOOK IS Compensation by Milkovich, Newman and Ratnam 9th edition, page-488, chapter International Pay systems? Case 4b. Mr. Sadman took a sip of water
TEXT BOOK IS Compensation by Milkovich, Newman and Ratnam 9th edition, page-488, chapter International Pay systems?
Case 4b. Mr. Sadman took a sip of water and started again, "listen, probably you know that our factory at Dubai is going to start its operation from next month. In a board meeting yesterday, we have decided our Director Operation (DO) Of Ashulia's factory Mr. Labib has to join our Dubai's factory as DO. He shall have to join by the end of this month. As you know, our Directors are well paid here in Bangladesh but that is not good enough to sustain in an expensive city like Dubai with family and two high school going children. Mr. Labib's monthly earning here in Bangladesh (Base Country) all exclusive is around Tk. I had an informal talk with him and came to know that his monthly expenses are as under: (1) (2) (3) (4) (5) (6) Taxes: Tk. 60,000/- Housing: Tk. 80.000/- Children Education: Tk. 50,000/- Goods and Services: Tk. 60,000/- sending to Father: Tk. 30,000/- Reserve: Tk. 50,000/- Basing on above, judiciously asses and calculate how much monthly compensation should be given to Mr. Labib in Dubai. You should use Balance Sheet Approach in doing so. as it is available in your text book. Show all calculation in terms of Bangladeshi Taka. Remember, an employee at Mr. Labib's level has to pay 30% Of his total compensation as tax. However, Bangladesh will not tax his earnings".
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