Japan is most expensive place for expat employees

Photo: Moyan_Brenn

In today's global economy, businesses are increasingly expanding overseas, relocating offices and opening new branches. As employees become increasingly mobile as a result, though, companies can face unexpected costs, depending on which country their employees are moving.

When considering the cost of an expatriate package, companies need to factor in three main elements: the cash salary, benefits – such as accommodation, international schools, utilities or cars – and tax.

To assist companies relocating staff, ECA conducts an annual survey of all of these expenses. This year's report reveals that Japan is home to Asia's highest expatriate packages. On average, a package for an expatriate middle manager there is worth US$375,000.
 
Mainland China remains 4th highest in the region having overtaken Hong Kong last year. A total package for an expatriate middle manager in China is worth over US$276,000.

Singapore has the seventh highest expatriate pay packages in the region, down from last year’s sixth despite the cost of a package having risen over 12 months. The value of a typical total expatriate package for Middle Managers in Singapore is US$259,000.
 
"The cost of providing certain benefits such as housing and education is the most expensive element of the pay package when relocating staff to Singapore. Remove these and Singapore falls from 7th to 14th in the regional ranking thanks, too, to low tax rates," says Lee Quane, Regional director – Asia, ECA International.
 
Expatriate packages in Singapore are still lower than in Hong Kong, ranked 5th. However, with the cost of the package there having dropped slightly while increasing in Singapore, the gap between the two continues to narrow.
 
Malaysia has the second lowest expatriate packages in the list - one spot below Thailand.