As organisations scale across regions and countries, a single question becomes more urgent: how do we support and reward employees fairly, wherever they work?

New research from Towergate Employee Benefits has found that just 36% of UK companies with overseas employees tailor their health and wellbeing support to the specific country in which employees are based. A majority 57%  provide identical support, regardless of local healthcare access, risk factors, or cost of living.

At the same time, a Resolution Foundation study highlights persistent regional pay inequalities in England. The Power of Place report reveals that early-career workers in lower-paying regions like Dudley can experience a 5% place-based pay penalty (equal to £1,300 a year) compared to peers in high-paying markets like Harrogate. In extreme cases, weekly pay in London is nearly double that of towns like Liskeard, Cornwall.

Same Policy, Different Needs

“Offering the same health and wellbeing benefits to everyone may seem fair, but it ignores real differences in access, risk, and cost across regions,” says Sarah Dennis, Head of International at Towergate. “Support needs to be localised, factoring in everything from infectious disease risk to the remoteness of medical facilities and the mental toll of working abroad.”

Even in countries with developed healthcare systems like Australia, UK citizens on assignment may face large out-of-pocket costs for basics like GP visits, prescriptions or ambulances, despite reciprocal agreements.

Pay Transparency ≠ Pay Parity

When it comes to compensation, the assumption that fairness means flat pay doesn’t hold up either. According to Barbara Matthews, Chief People Officer at Remote, fairness means applying clear, transparent logic that employees can understand.

“Employees should understand not just what they’re paid, but why,” says Matthews. “That includes how factors like location, role expectations, and market benchmarks are considered.”

Organisations are now exploring different models of location-based pay:

• Location-agnostic: Everyone in the same role earns the same, regardless of location.
  
  
• Fully localised: Salaries reflect the market and cost of living in each employee’s region.
  
  
• Location differentials: A base salary (often HQ-based) is adjusted up or down by location.

The right choice depends on company values, compensation philosophy, and growth goals. But one principle cuts across all models: transparency is critical.

Skills and Impact Over Postcodes

According to Lorna Ferrie, Legal and Compliance Director at Mauve Group, companies should shift focus toward frameworks that reward impact, skills, and responsibilities not just geography.

“Clear career progression models and outcome-based rewards ensure employees are recognised for their contributions, not penalised by their postcode,” Ferrie explains.

Whether supporting health and wellbeing or setting pay, a global workforce requires local awareness. Employers can no longer afford to treat location as a footnote. It shapes the cost, experience, and risk of workingand it should shape the strategy.

As Dennis concludes: “A full and rounded health and wellbeing programme, tailored to local needs, ensures employees are healthy, happy, and productive and that the business stays compliant and resilient.”