Hong Kong has rejoined the world’s top five locations with the highest expatriate pay and benefits packages. However, the total value had decreased slightly compared to a year earlier, according to a report by research firm ECA International.
The strength of the Hong Kong dollar countered the decrease in salary and benefits packages for expatriates, helping the city rise three places to fifth rank.
Expatriate pay and benefits packages in Hong Kong amounted to $278,020 last year, a 2% decline from the 2021 level. Cash salary and benefits costs dropped by $2,400 and $1,600, respectively.
ECA International, which conducts its annual MyExpatriate Market Pay Survey for expatriates around the world, based its findings on three main factors — cash salary, benefits and tax.
Despite an increase in overall pay and benefits packages for expatriate workers in Hong Kong in 2021, a decrease in cash salary has resulted in a reduction in the overall value of packages for 2022.
Lee Quane, Regional Director of ECA International said, “Despite an increase in overall pay and benefits packages for expatriate workers in Hong Kong in 2021, a decrease in cash salary has resulted in a reduction in the overall value of packages for 2022.”
“Additionally, the relatively strong performance of the Hong Kong dollar has led to a three-position advance in the city’s global ranking, while other regions have experienced declines in the value of pay and benefits packages due to currency depreciation,” Quane added.
In most surveyed Asian regions, cash salaries for expatriate employees decreased, resulting in a reduction in the overall package values calculated in US dollars in more than half of the places, including Japan, South Korea, the Chinese mainland, and Taiwan.
The Chinese mainland’s ranking remained unchanged, placing third in the Asia-Pacific region and fourth globally for expatriate employee pay and benefits, behind Japan and India. However, expatriate workers stationed in the Chinese mainland experienced a 5% drop in cash salaries paid in US dollars in 2022 compared to the previous year.
Japan remained second globally in expatriate employee pay and benefits, with a total pay and benefits package value calculated in the Japanese yen increasing by 5%. However, due to the yen’s weak performance, overall pay and benefits packages for expatriates in Japan dropped by 12% in terms of US dollars year-on-year to $370,200.
The survey also found that the cost of employing an expatriate in Singapore increased by 4% to about US$258,800 last year. Higher rental costs have driven a 9% increase in benefits expenses, making the city-state the place with the largest increase in benefits costs in the Asia-Pacific region.
