A new survey examining expat employment packages in Asia has revealed that Hong Kong actually has rather low salaries, but makes up in other ways.
ECA International has discovered that Hong Kong actually has some of the lowest expat wages in Asia, however the general benefits of the employment package boosts it into second place, behind only that of Japan. These benefits include accommodation costs, education, and transport, all of which are notoriously expensive in Hong Kong.
Lee Quane, ECA's Asia director, said: “A constant issue for companies operating globally is the need to strike a balance between cost effective assignments and attracting the right talent. The high cost of employing expatriates in Japan may partly explain why fewer companies assign staff to Tokyo versus Hong Kong and Shanghai. In Hong Kong, the limited availability of accommodation for expatriates and international school places is putting pressure on companies who cover these costs. However, these benefits can have a big impact on the attractiveness of the package for the assignee, particularly in a competitive market.”
However, another benefit of working as an expat in Hong Kong is the low tax rate, one of the lowest in the world. Hong Kong income tax begins at just two percent, and there is no capital gains, VAT or sales tax.
Learn more about becoming an expat in Hong Kong by reading our detailed City Guide.