The total value of a typical expatriate salary and benefit packages in Singapore increased by 4% to US$258,762 ($343,316) in 2022, pushing the city-state up six places to 16th in the rankings of the costliest places to employ expatriates globally.
According to the annual MyExpatriate Market Pay Survey conducted by software provider ECA International, the cost of benefits in Singapore rose by 9% in 2022 in US dollar terms, driven by higher rental costs.
“Only the fact that salaries fell by US$4,000 prevented Singapore from moving up the rankings further,” says ECA International regional director Asia Lee Quane.
The survey, which analyses pay levels for expatriates around the world including benefits, allowances, salary calculation methods and tax treatment is conducted to assist companies with benchmarking their packages against the market.
In contrast to last year, expatriate salaries in most locations in the Asian region have fallen this year, resulting in a drop in the total cost of pay and benefits in more than half of the locations when measured in US dollar terms.
Locations experiencing this decline include Japan, Korea, China and Taiwan. Hong Kong is up three places to become the world’s fifth most expensive expatriate pay and benefits package in 2022, despite a 2% decrease compared to 2021.
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The total value of a typical expatriate package in Hong Kong is now US$278,020, with salary and benefits costs falling by US$2,400 and US$1,600 respectively.
As was the case last year, Malaysia has the lowest salary and benefits package in the region. Total package costs fell by 4% to US$164,696, with salary costs down 6%.
China retained its position as the location with the third-highest expatriate packages in the region after Japan and India and ranked fourth globally. However, expatriate salaries in China fell by 5% in US dollar terms in 2022.
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“The Renminbi strengthened against most major currencies compared to 2021, and as many expatriates are paid some or all of their salary in other currencies, this caused the average expat salary in Renminbi to fall,” says Quane.
In Japan, the salary and benefits packages for expats remained the second most expensive in the world, with a 5% increase in local currency terms. However, due to the weak Japanese yen, the cost of salary, benefits and taxes all fell by a double-digit percentages drop when measured in US dollar terms. As a result, the total package is 12% cheaper than last year, costing US$370,183.
Globally, the UK remains the most expensive location to send expatriates, with the average expatriate salary and benefits package amounting to US$441,608 in 2022. Employee benefits increased 4% to US$167,594 and are the most expensive in the world, with salary accounting for less than a fifth of the total package.
