Remuneration package in HK: Is this reasonable?

[ZunZhine]

I have previously posted the below queries under the LINING IN HK forum, but gets no feedback, probably due to posting made to wrong forum, so here I am trying again at the WORKING IN HK forum and hope someone can provide me with some advise pls. Thanks

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Hi there everyone,

First of all- let me say a word of thanks to whoever who can advise me on the matter below. I recently got interested in a job which requires relocation to HK. I am in my late 20s. The job is Financial related and I have approximately 5 years experience in the field.

Things are still in discussion stage, but I would like to gather more info prior the the discussion on the remuneration package is being carried out. I do not wish to under sell and neither do I want to blow off the opportunity by asking for too much.

The pay range given by the company is HKD30k to 33k, currently nothing is mentioned on the relocation expenses. But rental seems to be out of the questions. Below is what I have in mind to request from the company:
a) to pay for all refundable deposits (utilities, rental, etc)
b) subsidy of rental and provision of rental for the first 2 months by the company
c) a travel package for one (or two?) of my family member to visit me (once a year)
d) shipping of goods to HK (bare necessities in excess of the weight allowed by airlines)
e) travelling allowances in HK
f) mobile/ call allowances in HK

What do you all think of the above? would it be too much? or is it reasonable? what else should I also consider? And by the way how reasonable is the salary range offered above?

I am also thinking about highlighting other areas like bonus, medical benefits, leave entitlement and yearly increment. what would the benchmark be? pls advise.

And do company in HK also pay taxes for their expatriates? or such arrangement is only available for upper ranking expatriates? like senior managers and above?

Appreciate feedback. Thank you

[Mat]

I am in my late 20s. The job is Financial related

Define Financial related...it is quite large..can be trader, accountant, Back office, IT Cap Market....and this defines a lot your salary...

The pay range given by the company is HKD30k to 33k

It seems decent (assuming your not in IB Front)

a) to pay for all refundable deposits (utilities, rental, etc)
b) subsidy of rental and provision of rental for the first 2 months by the company
c) a travel package for one (or two?) of my family member to visit me (once a year)
d) shipping of goods to HK (bare necessities in excess of the weight allowed by airlines)
e) travelling allowances in HK
f) mobile/ call allowances in HK

YES
YES
You can try
YES
Not really necessary but you can try as well
Not really necessary but you can try as well

I am also thinking about highlighting other areas like bonus, medical benefits, leave entitlement and yearly increment. what would the benchmark be? pls advise.

You definitely should highlight those areas. Benchmark depends on your role in the financial area.

[hullexile]

a) to pay for all refundable deposits (utilities, rental, etc)
b) subsidy of rental and provision of rental for the first 2 months by the company
c) a travel package for one (or two?) of my family member to visit me (once a year)
d) shipping of goods to HK (bare necessities in excess of the weight allowed by airlines)
e) travelling allowances in HK
f) mobile/ call allowances in HK

Just for benchmarking I got:
a) yes
b) all rent (obviously it has to be reasonable)
c) two specifiied members of family two times a year each
d) shipping of goods (but not much, came to 500 pounds)
e) not necessary
f) all phone calls home to UK as long as I don't abuse it
plus medical cover
plus up to 4 flights home a year for non-work purposes (never used)

Compared to some expat packages its not great, though the days of expats getting their horses shipped over (real case) etc. are long gone I think. It just depends how strong your bargaining position is. Your salary really depends on your job so I can not comment on that, but if you had to pay rent out of that it does not seem excessive. Also depends what you are on now.

[ZunZhine]

Hi there Mat and Hullexile,

A great thanks to your feedback. Regarding the position it's Assistant Manager of Audit.

I am impressed with the allowances you're getting hullexile, I hope I get that too, or at least 60% of that, on another hand, I think it all drill down to my experience which will have a direct impact on the bargaining power.

It appear from preliminary, the Company indicated that they will not be liable for the rental, and thus, I think I will end up allocating the majority sum on rental This has become the main issue of consideration as the rent for a decent place is very costly in HK.

btw, hullexile, when you said 500 pounds, are you referring to 500 UK pound was incurred by the company for shipping your goods? or the company paid for the shipping of your goods weighing 500 pounds? And what mode of shipment were used?

What would a minimum expatriate relocation expenses be? In view that I would not be in a senior management position, perhaps I can get some info on this area to get myself prepared and not to short sell my entitlement. Or what is the least you have heard of so far?

Thanks again.

[hullexile]

Sorry I was not clear, it was 500 UK pounds. They never actually specified an amount and I know the person before me spent a lot more than that. The trouble is that it is very hard to get a picture of a typical expat package as they vary from nothing to people getting rental allowance of 100,000 per month plus everything else. It all depends on how much your company think you are worth and the type of business and job. So it is very hard for any of us to give you information.

[simpleman]

Hiya,

I've received more or less the same package as you do, lodging not included in the package. They are not providing my annual home trip (air tix) either.

Quick question: Would HKD 8,000 suffice for a one-room apartment (or only just a room) in Kennedy Town/Wan Chai for rental + utilities for a single occupation? My work area would be in Central.

Do keep us informed the outcome of your package as well, Bro!

Cheers.

[ZunZhine]

Hi all,

a great thanks for all the contribution. I have yet to get a finalise package on that- infact we haven't discuss on the details. So I am just surveying on what to say and what not. hehe

Btw, I was also looking for info on tax, it appeared that tax in HK is at a flat of approximately 15% after deducting all the allowable allowances. But I can't seems to find out if there is any differences in the rate of a HK citizen/ non-citizen? or do HK tax according to Tax Resident status too? if so, is there any difference between a non tax resident and tax resident?

Apart from the above, I was also told that some places in China (correct me if wrong) do impose witholding taxes when one trasfers their money/ income back to their country of origin, and a huge sum would be lost. Do HK do the same? And how do you guys transfer money back to home every month during pay check? Auto bank transfer?

HKD8,000, I think in other asian countrys one could get a whole double storey house with 4 rooms! hehehe, but I went and survey around the rental in HK, it's true about the chinese saying that in HK, every inch of ground is gold. Rental are sky high there and it's one of my main concern too- i guess for others as well. But I just recently heard of this cool place - Cyberport?? I was told it's a great place for expatriate, but I couldn;t find what are the range of rental there. Could anyone help pls?

Thanks once again Have a nice day everyone

[urbanoxide]

Btw, I was also looking for info on tax, it appeared that tax in HK is at a flat of approximately 15% after deducting all the allowable allowances.

It's not exactly a flat-rate tax system.
http://www.ird.gov.hk/eng/pdf/pam61e.pdf will explain everything.

But from the figures you provided earlier, it should come out to around 15% at the end.

Apart from the above, I was also told that some places in China (correct me if wrong) do impose witholding taxes when one trasfers their money/ income back to their country of origin, and a huge sum would be lost.

That's because the Renminbi is not fully convertible over the capital account, so they have capital controls in place to make sure people can't speculate on the currency. Restricting in/outflows is one of them. Same logic applies to how you can't exactly go to a money changer in mainland China and convert a bunch of USD into RMB, or vice versa. Even if you buy/sell RMB in HK, everything ultimately goes thru the Bank of China.

HK is one of the free-est places in the world, economically, so you won't have this problem at all. They'll wire your money wherever you want, no questions asked.

[freeier]

HK is one of the free-est places in the world, economically, so you won't have this problem at all. They'll wire your money wherever you want, no questions asked.

not true. try wiring money to nigeria, iran, iraq, etc.etc..
u'd get grilled for 1 hour 8-P

[pin]

Hi

I'm moving over to HK in a few months and this is what I got in terms of relocation:

- Employer pays for all visa and associated costs
- One month free in a serviced apartment
- One way economy ticket to HK
- Up to US$ 2,000 moving allowance (don't know if that includes ability to buy goods associated with move once I'm in HK).

I'm also in my late 20's, coming over as a junior lawyer in a law firm. I didn't even think about asking for payment of all refundable deposits, but may ask for that now.

Re the travel package, did ask for that, but got a no.

Travelling allowances in HK? You mean in terms of season ticket for public transport? As I understand it HK public transport is so so much more cheaper than in the UK.

Call allowances? Again as I understand it its so damn cheap to call back to the UK.

Re moving allowance, I may ask for a bit more, esp as the Dollar has nosedived against the Sterling recently

One thing, your salary, for 5 years experience, is that a bit low? Sorry, I don't know what the going rate for someone of your experience and your field is though.