When it comes to the highest expatriate packages, Hong Kong re-entered the top five global locations in 2022 — up three places to the fifth most expensive expat pay and benefits — despite a 2% drop compared to 2021, said ECA International recently.
The total value of a typical expat package now amounts to US$278020 (HK$2181627) with the cost of salary and benefits dropping by US$2400 and US$1600 respectively, ECA noted.
“After experiencing a rise in total pay and benefits package costs in 2021, Hong Kong was on a downward trend again in 2022 due to lower salary costs.” said Lee Quane, Regional Director – Asia at ECA International. “The cost of benefits in Hong Kong remained unchanged in 2022, unlike many other countries which saw significant increases, so the fall in salaries caused the overall package value to drop.”
However, Hong Kong was helped by the strength of the Hong Kong dollar, causing it to rise three places in the rankings as other countries saw the value of the package drop as their currencies weakened, he observed.
Asia highlights
- Contrary to last year, expat salaries in most locations in the region have decreased this year, resulting in a drop in the total cost of expatriate packages that include benefits for more than half of the locations when measured in USD terms.
- Japan, Korea, China, and Taiwan are among the countries experiencing this decline.
- Unlike these locations, expatriate packages in Singapore increased in 2022, rising by 4% to US$258762.
- This pushed Singapore up six places to 16th in the global rankings and was primarily due to a 9% increase in the cost of benefits driven by higher rental costs, the highest in the region.
- In Japan, pay and benefits packages for expats continued to rank as the second most expensive in the world, with a 5% increase in local currency terms.
- However, due to the weak Japanese yen, when measured in USD terms, the cost of salary, benefits and tax all experienced a double-digit percentage drop. As a result, the overall package is 12% cheaper than last year, costing US$370183.
- As was the case last year, Malaysia has the lowest pay and benefits package in the region. The total package cost has decreased by 4% to USD 164 696, with salary costs dropping 6%.
Global Highlights
- The UK is still the most expensive location to send expatriates, with the average expat pay and benefits package amounting to US$441608 in 2022, which is around the same cost than last year.
- Staff benefits increased 4% to US$167594 and are the most expensive in the world, with salary only making up around 18% of the total package.
- The strength of the US dollar has pushed the US up seven places in the rankings and into the global top 10. Despite a slight fall in salaries, the total package cost has risen by 6% to US$272770.
"The strong dollar caused the average expatriate salary in the US to fall as many expats in the country do not receive all of their salary in US dollars,” Quane said. “However, higher housing costs contributed to a 10% increase in the cost of benefits, meaning companies will have found it more expensive to relocate staff to the US in 2022."
