Relocation assistance is a type of service that assists people who relocate to a new place. Relocation assistance can be done in many ways, but it is generally divided into three categories: financial, professional, and personal. In addition, there are various types of relocation packages that have different prices depending on what you need. In this article, we will go through all these aspects and provide information about relocation policy and how much the package should cost for relocating to a new place.

What is Relocation Assistance?

Relocation assistance means when a company assists recruits of an existing employee, which can help him find financial assistance when relocating work from one location to another. It is also for the employee’s benefit because while moving employee doesn’t have any financial burden on them. And by this employee can start in his new position as soon as possible.

The employee usually gets relocation assistance benefits to make it easy for them in their new location. In some companies, if employees have a family, they also receive spouse and children’s move with the employee called domestic partner relocation (DPR).

Types of Relocation Assistance

Direct billing means the hiring company directly deals with the moving company and pays the bill for the move, including selling old home and services for helping in relocating.

Lump-sum – In this, a certain amount of money is given to the employee directly to pay the moving company and related expenses. And if the moving cost is more than the amount given to the employee, he has to pay from his pocket.

Reimbursement – In this, the employee pays from his pocket for the move, and after moving, the company reimburses the amount to the employee. But drawback in this is the employer has to keep all the records of the move carefully.

Third-party relocation – All the logistic, rental expenses, and real estate related to the move are outsourced to the third party, which coordinates with the services and takes care of them.

What is Included in Relocation Package?

Most expenses are included, like interim living, lodging, meals, etc.

  • The company may also offer a relocation bonus or reimbursement.
  • A moving allowance is also included, which helps the employee transport their goods from one place to another on an expense basis. Temporary housing until the new home purchase is completed and includes any additional costs, such as security deposits, utility connection fees, etc., incurred in making this transition is also covered by some companies.
  • Unreimbursed expenses like increased childcare for children under 12 years old while at school; pet care if there’s no family member available to take care of them during the move can be reimbursed by companies too. It also includes selling the old home, moving and storing, furnishing, and other household goods.

What is Included in Relocation Policy?

In relocation policy, mostly short-term hosing, selling and purchasing fees, furniture, and moving costs are covered.

  • It is usually up to the company’s discretion how much of a relocation package they would be willing to offer their employees. The average length for an employee in this process can range from one day or less to three months, depending on what type of work you do and where it needs to happen.
  • Mileage reimbursement can also be included as part of your benefits package if you’re required by federal law, state law, or local ordinance laws to maintain driving records for business purposes. All mileage will need receipts that must include the date and miles traveled between destinations, destination location address with zip code (i.e., hotel name), and vehicle used during travel time.

Are Relocation Packages Common?

In the past years’ relocation was only for the high level of employees. But in today’s global economic scenario and global workforce development, it is common to offer relocation assistance as part of the compensation package.

  • Most employers are trying to save money by not having employees relocate themselves and provide everything they need in one location.
  • Most companies have started offering this type of benefits packages for their key members because more people were looking for employment opportunities outside their current locations. This trend has continued, so now even small businesses are giving out similar packages.


If you need help moving, it is best to get a relocation package. Relocation packages are common and can be used for any move (local or long distance). A relocation policy will detail what the company offers in terms of assistance with packing, unpacking, transporting furniture, etc., as well as how many days off work employees receive if they have to relocate. You may also want to determine whether there’s an option for reimbursement for travel expenses like gas money or plane tickets. Please feel free to contact us.

Guest Contributors: Komal Shah

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