Expat packages

I am in discussions with a company wanting an office in Hong Kong. What are the best resorces to determine how to structure the package for me and what things I need to negotiate?

Unless you are a banker the grand old days of the deluxe expat packages are long gone.


The basics are:


- good salary!


- "guaranteed" bonus - ie, a bonus with the expectation that you will receive at least 100% of this amount for on-target performance. Historically many HK employees got (and still get) an extra months' salary as their annual bonus, so 12% should be your starting point. Try to have it paid in two six-monthly installments.


- phone bills paid. Reasonably standard, especially if you are travelling for work alot and thus incurring roaming charges. HK local charges are very cheap so this isn't a major giveaway for them.


- a *good health care scheme. Health care is a statutory requirement but the schemes vary Blue Cross is the basic that most people get, but if you have a dependent - or are planning for a child - look into the schemes carefully as the reimbursement varies alot)


- superannuation (called MPF, mutual provident fund, here). Again a statutory requirement but you can get employer contributions of anywhere between 8-13%, depending on the employer's generosity. Check on how quickly this matures; ie, often if you resign in les than 4 or 5 years only a % of employer contributions will be released to you - the rest gets return to them. You might not be able to negotiate much here.


- rental tax relief. It's very common and simple for an employer to structure your salary so that your residential lease falls within your package. This means that instead of paying up to 15% income tax on your rent, you will pay nothing or close to it. Easy for them to do and a big break for you. Don't make it a major negotiating point, just insist on it at the right time. It's not "fancy" structuring, rather a very common practice here.


- annual leave: you should get 4 weeks, unless you are with a US company which may try to stiff you for 3. An Aussie company will accept 4; a European company might go up to 6. HK is claustrophic, push hard for your expectation, whatever it is.


Other things you might be able to get:


- car space if this is possible for you (you would need to be sufficiently senior - director/VP or professional)


Old expat things you could try to get but very unlikely to get unless you're in the right industry:


- home leave (and old English civil service tradition). Paid business class flight to your country of origin, once or twice per year. In practice you might be able to comr to arrangement with yor employer if your company/job is sufficiently global.


- health club fees. Why not? Lots of banks/accounting firms/law firms do this for their staff on a corporate card. Expect about HK$500-800 per month.


- "Club" fees - yacht clubs, the American Clubs, etc. Again, top execs may get this but you probably won't. We're talking ridiculous entry fees like US$100,000 for some of these places.


- childrens school fees. If you have them. Again, an aspect of the old expat packages but no longer very common.


- rent paid. This can happen but would probably involve salary sacrifice. You are probably better getting a high salary, getting here, getting the feel of the place and working out how you want to live and how much it would cost you. Some single expats here live quite happily paying HK$5K per month; most probably pay around $10-15 I would guess; professionals and other well paid people (say $HKD100K per month +) may pay $20-30K per month rent. All walks of life up here, possibly despite appearances.


I may have left some stuff out ... others may correct or add. You are probably coming at quite a good time for negotiating. Salaries have been fairly low and static for the past 2-3 years, thee's some pressure for them to start going up again, you could try to play on this. Feel free to email any more questions; I'll help if I can.


Best of luck!

ps - about the car space. this depends on whether you want a car and wan to pay the usual HK$2-3K per month car space fees in YOUR OWN residential flats - that is if your flat has car spaces.


most people don;t have a car in HK. You don't need one, though people with cars will unerringly say "the whole of HK opens up if you have one". Whatever, but taxis are ubiquitous and cheap.

GB, I was about to say the same thing. What a-mann got or suggested is quite impossible to achieve to most of the expats in Hong Kong.

a-mann summed it up alright in my opinion... he did say you "can ask"...

perhaps some "didn't ask... and hence... didn't get"

I know my original contract was half of what I finally managed to get, with extra home leave, double the housing.

push hard.. it doesn't hurt.


but yeah, you need to give more info, otherwise it's a pointless post!


and yes, hk is a great city!