Average Relocation Packages in 2024 [Employee Job Relocations] (2024)

FAQs

Average Relocation Packages in 2024 [Employee Job Relocations]? ›

Relocating an existing employee who is also a homeowner, the costs can be anywhere up to $97,000 or more. If the new employee is a rental tenant, the costs are usually less than $24,000.

To create a relocation moving budget, start with the facts, such as the distance of your move, whether you plan to hire movers, the size of your move (in the number of bedrooms), and your move date. Then, you can factor in the estimated costs of each moving expense.

Temporary living expenses when transferees must meet hard-moving deadlines. Storage costs for household goods before employees can move into new homes. Spousal employment assistance in the new location. Childcare costs and elder help for transferees caring for elderly parents.

The actual cost of your move depends on your personal situation. $5,000 – $15,000 is an entry level management position or similar. This is a DIY move, you will likely not be able to afford professional movers or temporary housing. These moves often have out of pocket costs, and are stressful.

According to Dwellworks, the typical lump sum received in a relocation package is around $7,200, primarily for travel costs. If the company covers the entire relocation, that lump sum averaged around $12,000.

A lump sum relocation package is a standard relocation package since many employees choose this package. A lump sum package is when a set amount of money is directly given to your relocating employee so they can pay for the expenses that come with moving. The government considers this as income, making it taxable.

Gas, insurance and dollies can increase costs, as well. In total, expect to pay somewhere between $150 to $400 for a local move if you plan to do it yourself. Hiring a professional mover can make moving less stressful, but with prices for an average three-bedroom home costing around $2,200, it does come at a cost.

Relocation packages can range in worth from $2,000 to $100,000. What services and the amount of money you decide to cover is entirely up to you and your company. However, keep in mind that the more you are willing to give, the harder it may be for a candidate to refuse your offer when you negotiate moving expenses!

The less stuff you have to move, the less you will pay. Tip: When deciding what to keep and what to get rid of, have a floor plan of your new home or apartment handy, and refer to it often. This helps ensure you don't waste your relocation bonus moving things that will not fit in your new residence.

If moving for work, an employer should be able to foot the bill for temporary housing. Of course, they may only be willing to cover hotel costs or home rentals for a short amount of time. Be sure to ask how long they are willing to cover these costs before moving to a new city.

What is a fair relocation bonus? ›

A typical relocation bonus can vary from $2,000 to more than $10,000 depending on the company and the position.

Not without a job. It's enough for you to get a place for a while, especially if you have roommates, but it's not enough by itself for you to live indefinitely forever. At best, $4,000 will generate you about $400 a year in income. That's nowhere close to enough.

Like a recruitment incentive, a relocation incentive may not exceed 25 percent of the employee's annual rate of basic pay in effect at the beginning of the service period multiplied by the number of years (including fractions of a year) in the service period (not to exceed 4 years).

56 percent of companies offered lump sum relocation assistance for travel expenses. 44 percent said that lump sums were used to cover the entire cost of the relocation. Of those companies, most companies are providing anywhere from $2,500 to $4,999.

Relocation Lump Sum Tax

A lump sum payment is when an employer provides the employee with cash or a check to cover the cost of their relocation upfront. It is the employee's responsibility to pay tax on the money they receive as it is classed additional income on top of their salary.

The amount of relocation fees due to the tenant by the landlord depends on whether the tenant is an eligible or qualified tenant, the length of tenancy, and the tenant's income. Relocation Assistance is paid per unit, not per tenant.

You budget for moving expenses based on three main factors: the size of your move, the distance of your move, and the type of mover you plan to use. For example, renting a moving truck for an in-town studio apartment move may only cost a few hundred dollars.

To calculate a relocation gross up, take one minus the tax rate and divide the taxable expenses by that amount.