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Typical relocation package information

Updated October 10, 2018

Whether it is a job promotion or a company-requested reassignment, corporations typically pay for expenses associated with relocation if the new job is based in another city. While there is a wide range of packages, typically companies cover certain expenses.

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Expense Types

Companies generally cover expenses associated with current home sale (or lease) and new home purchase as well as the transfer of personal possessions. Rules and limits may apply for these expenses.


Typical limits may relate to how quickly a home sells, and how long the company will pay for temporary living expenses at the new location. As such, companies may require that the asking price be within a certain percentage of the appraised value, encouraging a quick sale.


Most relocation packages provide payment of mortgage closing expenses, a house-finding trip to the new location and relocation of an automobile. Most also include a monetary allowance to pay for incidental home improvement items, like draperies. There may be also exclusions, such as moving household lumber.


Not all packages within the same company are identical. Higher paid employees often receive a more generous package than lower compensated staff, such as child care or elderly care services for a family member.


In an effort to control costs, some companies are offering a "cafeteria-style" program, where employees may choose a number of benefit options up to a certain monetary limit. In addition, some companies may take total control of the home sale and compensate the employee for its fair market value.

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About the Author

Jeff Fulton is a writer specializing in business, travel and culture. He has worked in international sales, customer relations and public relations for major airlines, and has written for Demand Studios since May 2009. Jeff holds a Bachelor of Science in journalism from Northwestern University and a Master of Business Administration in marketing from the University of Chicago.

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