Q: Issued salary of the company is not the same currency of where the employee is based, this results to $10 less
The deduction is believed to be the commission of the bank due to the currency difference, who should pay this? employer or employee?
A:
If an employee is based in a country where the currency is different from the currency of the company that issued their salary, it is common for banks to charge a commission or a foreign currency conversion fee for processing the transaction.
In general, it is the responsibility of the employee to bear this cost, as it is a result of the currency conversion and not an expense related to their employment. However, some employers may choose to cover this cost as a form of employee benefit or to attract and retain talent from different countries.
It is important for the employer to communicate clearly with the employee about the currency conversion process and any associated fees or charges, so that the employee understands their net pay and can plan their finances accordingly.
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