Show them the money

HRM 19 Nov 2012

Japan is home to Asia’s highest expatriate packages. According to ECA’s latest MyExpatriate Market Pay Survey, the average total package for an expatriate middle manager in Japan is US$374,000.

Cities in Japan have some of the world’s highest costs of living, and expatriate salaries there are high because employers need to ensure that an assignee’s purchasing power is maintained in order to attract the right talent.

“The big challenge faced by many companies operating globally is the need to strike a balance between attracting the right talent, while remaining as cost effective as possible,” said Lee Quane, ECA’s Regional Director in Asia.

“A total package usually comprises of three elements: cash salary, benefits and tax. A net-to-net comparison of basic salaries provides an overview of the cash sums received in different markets. However, it isn’t until the benefits element of the package is taken into account that both HR and the assignee get a fuller picture of how competitive or attractive the package is.”

ECA’s survey also shows that the cash salary components of total packages, both in Hong Kong and mainland China are among the lowest in the region. However, unlike Hong Kong, the benefits component in mainland China is also relatively low, even in China’s more costly tier-one cities.

Leaving benefits out of the equation, cash salaries for assignees in India increased by 18% – the highest rate of increase in Asia. This was partly the result of the Indian Rupee weakening considerably against the US dollar and other major currencies. India was followed by Vietnam and Indonesia on the list of fastest rising wages for expatriates.



Leave your comment
Start a new discussion

HRM Asia forum is the place for positive industry interaction and welcomes your professional and informed opinion.

Post a Comment
HRM Asia welcomes your contribution. Your IP address is recorded in the event of a complaint.
Name *
Email *
(required, but will not display)
Comment *
Please enter in the numbers in the box left.
You are about to submit your comment. Is it:
  • Professional
  • In your own name or pseudonym, not impersonating someone else
  • Free from rude language
  • Free from advertising
  • If you prefer not to post but are still keen to get your viewpoint across, you can always e-mail the editor.
  • 23 Apr | Mission Aviation Fellowship International | Not Specified
    23 Apr | Elliott Scott HR Recruitment Pte Ltd | Singapore
    23 Apr | Kelly Services | Singapore
    MasterCard – International mobility and training for HiPo talent
    Appandairajan Krishnakumar, Senior Business Partner - HR, MasterCard, shares how his organisation effectively selects its high potential talent, sends them off on international assignments and trains them.
    Organisational leadership in the 21st century
    Spearheading corporate democracy @ Facebook
    Tailor-make your talent strategy: Top tips from Carlsberg
    Performance Leadership Pte Ltd | info@performance.sg
    Increase productivity and getting funding from Health Promotion Board, through a series of General Health and Mental Wellness programmes.
    Organisational Development Concepts | enquiries@odctraining.com.sg
    The Service Excellence Competency Frame (SVCF) is a competency-based training and assessment framework that equips service professionals with the rele ...
    Performance Leadership Pte Ltd | info@performance.sg
    Lunch, Learn and Bond with your teams, all within 1 hour! Choose from a variety of light-hearted, interesting or thought-provoking topics that appeal ...