Media type · Contract terms for the payment currency and conversion method.
Currency clause
Contract wording that decides which currency is paid and how conversion is handled.
Key facts
| What it is | Contract terms for the payment currency and conversion method. |
|---|---|
| Who sets or charges it | The employer drafts the clause; the destination may restrict payment currency. |
| Check before accepting | Payment currency, reference rate, review date, conversion fees and any band. |
What a clause can and cannot fix
A clause can name the payment currency and a reference rate, or provide for periodic review when the rate moves outside a band. It cannot remove the underlying exposure unless the employer accepts it in full. A clause that fixes a rate for a long period may simply shift the risk to the employer, who may price that into the offer.
Check the practical details: which rate source, which date, which fees and whether the salary is converted before or after tax. A salary converted after local tax can produce a different home-currency amount from one converted before tax.
Frequently asked questions
Is a currency clause standard?
No. Many contracts simply state the local currency. Cross-border roles and remote arrangements are more likely to include one.
Does the clause cover bonuses?
Only if it says so. Bonus, allowances and equity may follow different currency rules from base salary.