Pay & Benefits for Overseas Contractors

Why Overseas Contractor Pay Is High

Overseas contractor positions often pay 30–100% more than equivalent stateside roles. This is due to hardship pay, danger pay, TCOLA (Temporary Cost of Living Allowance), and the Foreign Earned Income Exclusion (FEIE).

The Foreign Earned Income Exclusion (FEIE)

If you qualify as a bona fide resident of a foreign country or meet the physical presence test (330 days outside the U.S. in a 12-month period), you may be able to exclude up to $126,500 (2024) of your foreign-earned income from U.S. federal taxes. This is one of the biggest financial benefits of overseas contracting.

Typical Benefits Package

• Health, dental, and vision insurance
• Paid housing or housing allowance (MIHA)
• R&R (Rest and Recuperation) flights
• Hazard/danger pay (varies by location)
• 401(k) with employer match
• Life insurance and AD&D coverage