Last PPP coefficients update: October 2024. Please note, PPP coefficients are updated biannually.
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. 🌎
PPP does not apply to custom awards.
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 Adjustment On: Cost of rewards will be scaled according to the cost of living in different countries, as determined by Purchasing Power Parity (PPP).
For example, while 10 points = $1 USD for employees in the USA, 10 points may have a different value for employees in other countries, in order to equalize purchasing power between countries.
PPP Adjustment Off: Cost of rewards will not be scaled according to the cost of living in different countries.
For example, 10 points = $1 USD for all employees, regardless of country.
Generally speaking, leaving the default setting (PPP Adjustment off) is the best solution for the vast majority of customers, unless at least one and usually both of the following are true:
There are big disparities in cost of living of different countries where you have employees, and you want to equalize the purchasing power of Bonusly points for all employees.
Your reward & recognition budgets are proportionate to the cost of living of different countries where you have employees, so reward spend via Bonusly spend must be similarly scaled.
For example, while there are some differences (at the time of this writing) in the cost of living between US, Canada, and UK, those differences are quite small. We would not recommend enabling PPP Adjustments in the case of having employees in countries with such similar costs of living.
In a separate example, there are very large differences in cost of living between USA, Philippines, and India. In this case, you may want to consider enabling PPP Adjustments, particularly if your Recognition & Rewards budget is similarly scaled according to the costs of living of these different countries.
Questions? Send us a note to [email protected]; we'd be happy to help!
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