A new report shows that Japan has overtaken the UK as the most expensive place to send employees to work overseas.
The average package of expats in Japan costs employers $ 405,685, more than any other international mall, according to a “MyExpatriate Market Pay” survey by data firm ECA International.
The studio, which takes into account salaries in cash, benefits and taxes, indicates a slight increase in the total cost of mid-tier arrival packages in Japan. This is the case even as other parts of the world have seen housing prices and benefits plummet as a result of the pandemic.
The UK went from number one to number two, among the most expensive places to send employees overseas in 2020. The other countries that ranked in top of the list of total costs are India, China and Hong Kong. While the top ten included France, the United States, Switzerland, Argentina and Taiwan.
“Rising costs in Japan is mainly due to currency fluctuations, with the Japanese yen remaining stable against the US dollar over the past year, ”said Lee Kuen, ECA International’s regional director.
“There was also some inflation in other areas of the compensation and benefits package, “he added, according to CNBC.” For example, unlike many other locations in Asia, housing costs rose moderately in Tokyo in 2020 compared to 2019. It contributed to this achievement in higher benefits costs, and therefore higher overall costs. “
index for companies
The studio annual aims to help companies looking to relocate employees by comparing their package with the market. In addition to salaries in cash, many employers compensate expatriate employees with benefits such as housing, tuition, and transportation.
This year, the overall cost of hiring expats has declined on a large scale, as the pandemic and subsequent travel restrictions reduce the demand – and therefore the costs – for housing and other benefits.
In many places, expat earnings have also seen a decline, in drop from 2019 levels, and Hong Kong was one of the few regions that saw an increase in expatriate salaries.
“The cost of hiring expats in Hong Kong was lower in 2020 than in previous years, but this was indicative of a much broader global trend,” Quinn said.
He continued: “While expatriate salaries in Hong Kong have increased by less than 1%, employers have been in able to take advantage of lower housing costs and reduce the amount of financial support provided for housing compared to the previous year “.
However, questThere have been some noteworthy outliers, with Taiwan, Canada and Morocco adding to the top 20 in 2020 as the total cost of parcels in arrival rose.
“The cost of hiring mid-level expats in Taiwan increased by $ 10,733 last year,” Quinn said, noting that the island’s robust response to the pandemic has pushed house prices up. As a result, Taiwan has overtaken countries like South Korea and Australia. in our ranking, and is now 10th Most expensive site for hiring expatriate employees.
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