A umzugsvergilch is money that an employer gives a relocated employee to help
cover moving expenses, which can be quite costly. Typical relocation packages offer
enough funding to pay for professional movers, temporary housing, house-hunting
costs and all travel expenses incurred by the employee to their new destination.
They also often include allowances to assist with selling a home and buying another
one. The size of the package varies based on the company, its financial resources
and the nature of the relocation.
If an employee is relocating because of a job promotion, it’s likely that their new
employer will be willing to foot some of the bill for the move. A well-negotiated
package can save both parties a great deal of time and hassle.
Whether or not the relocation package includes financial assistance for selling and
purchasing homes will depend on the type of role being offered, the distance
between the two sites and a host of other variables. For example, it may only be
covered if the position is a hard-to-fill job that will not be filled in the local area, and
if there’s at least a 30 percent increase in salary. It is also common for companies to
include a spousal allowance, which can cover job recruitment and interview costs.
Some relocation packages will pay for the cost of shipping household goods to a new
location. The size of the home and the amount of furniture being shipped will play a
role in how much this expense will be. Ehrlich says her company recently helped
someone who moved from a small apartment to NYC and, because of the volume of
books, the weight of the shipment was significantly higher than anticipated.
Temporary housing allowance: Not everyone will find their dream home in their new
town right away, and it’s usually unrealistic to expect employees to find somewhere
to live before they arrive in the city. That’s why some relocation packages will offer
a lump sum to help with the costs of renting accommodation for a month or two.
Travel: Relocation packages covering longer distances will usually cover travel for
the family. Depending on the situation, this could be airfare or train tickets, or even
a rental car.
Other costs commonly included in relocation packages are real estate consultations
and home sales support, the cost of arranging childcare, a settling-in allowance
(which can include items such as cleaning services), a monetary gift to help with
children’s schooling, and the cost of obtaining visas for spouses and other family
members. These are typically provided by third-party service providers and are
designed to help ease the burden of a lengthy move. They can also ensure that the
movers, painters and other service providers are vetted to provide quality work at
reasonable prices. In some cases, these fees are also tax-deductible for the
employer. In other cases, the employer may pay the employee in cash.