Last PPP coefficients update: October 2024
Purchasing power parity (PPP) is an economic practice that compares the purchasing power of various world currencies to one another to determine an exchange rate that allows you to buy approximately the same amount of goods and services in every country. 🌎
Bonusly customers with international employees can take two approaches to delivering an equitable experience for all employees, and we encourage your team to determine which option is best for your team.
PPP On: Cost of rewards will be impacted by both the cost of living and exchange rate
Employees will receive the same buying power with their points across all countries, but the monetary value will differ
PPP Off: Cost of rewards is only impacted by the exchange rate
Employees can redeem the same monetary value with their points across all countries
Bonusly uses basket price and exchange rates to calculate PPP ratesfor each county twice a year. The basket price is pulled from The World Bank's PPP conversion factor, and includes the cost of living. Country exchange rates are updated in real-time and are sourced from OpenExchangeRates.org
If you've noticed a change in the number of points needed to redeem for rewards, that's because the PPP coefficient for your country has been updated to ensure that the buying power of points is roughly equivalent for all users at your company (regardless of geographic location).
Questions? Send us a note to [email protected]; we'd be happy to help!
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