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Salary Negotiations

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  1. #11

    Join Date
    Jun 2004
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    HK
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    14,624
    Quote Originally Posted by Ezzel:
    Guys, thanks for the feedback thus far. Sounds like expat packages are plausible but a niche dependant on organisation and position.

    As a walkaway position. Do you think for a high end middle manager it would be unreasonable to ask for

    - relocation costs and one way flight
    - 1 months accommodation
    - comprehensive medical insurance
    - 80K per month + incentive 12.5% bonus
    - 10% MPF
    - once off share allocation

    Trying to get to a comfort level where I have a understanding of where the market is at for a role that can't be filled by a local. Or is that too high?
    1/ Resonable
    2/ Resonable
    3/ Resonable
    4/ Resonable (salary - seems on the low side in my industry) - a bonus is a bonus so all depends...
    5/ This depends (unlike what some wrote on here). IF your employer provide you an ORSO plan, you can indeed get 10% (and you contribute 5%)
    6/ Depends

    As for expat package.

    In the following industrys/management level: IBanking/Equity Funds etc etc /Legal/CEO and Executive Management Level (or head of large teams) they are still common (but less generous than they used to be on average - still some very good packages out there no doubt).

    In other industries they tend to be less common these days.

    Hope it helps.

  2. #12

    Join Date
    Oct 2005
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    14,414

    Then look at the upper ranges of the salary band and ask for serviced apartment for one month. flight home.


  3. #13

    Join Date
    May 2008
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    3,699

    There is definitely a move away from pure expat packages, into what is called local plus packages. Salaries are more aligned based on contribution/responsibility and then to entice people to move there is usually a relocation package, some temporary housing converting to a rental reimbursement element after a month and sometimes a cash allowance for holiday flights but nothing like a business trip back home every year. Home leave and education are well on the way to being a thing of the past in many industries.

    The maximum mandatory MPF contribution is set at $1,250 a month from both employee and employer.

    Last edited by Fiona in HKG; 04-03-2014 at 11:58 AM. Reason: MPF info

  4. #14

    Can we please remain civil on here. Any more name calling etc will be hearing from me.


  5. #15

    Join Date
    Mar 2013
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    2,454

    If you are not an hk permanent resident and you have a private pension you (and your employer) do not need to pay mpf. You simply sign an exemption form.

    Even if you don't have a private pension your employer is not obliged to pay any mpf contributions until you've been with the company for 12 months.

    The schemes are pretty rubbish so you would be better paying into a private pension.

    TheBrit, kimwy66 and Fiona in HKG like this.

  6. #16

    Join Date
    Mar 2013
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    Original Post Deleted
    No ceiling- the mandatory contribution is $1250 from both parties but you can pay more in if you want. However, for tax calculation purposes hkIR will only allow you to deduct $14,000 per year from your salary.


    This site is quite useful

    http://www.mpfa.org.hk/eng/mpf_syste...ions/index.jsp
    Last edited by usehername; 04-03-2014 at 12:33 PM.

  7. #17

    Join Date
    Mar 2012
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    4,821

    Remember that you need to be comparing net income. Salaries tax here is much lower than in Australia (and there's no tax on investment income).


  8. #18

    Join Date
    Aug 2006
    Posts
    7,519
    Quote Originally Posted by usehername:
    No ceiling- the mandatory contribution is $1250 from both parties but you can pay more in if you want. However, for tax calculation purposes hkIR will only allow you to deduct $14,000 per year from your salary.


    This site is quite useful

    http://www.mpfa.org.hk/eng/mpf_syste...ions/index.jsp
    and the fees charge by the MPF management companies mean that it is not such an attractive investment.

  9. #19

    Join Date
    Dec 2013
    Location
    Hong Kong
    Posts
    12,323
    Quote Originally Posted by Ezzel:
    Guys, thanks for the feedback thus far. Sounds like expat packages are plausible but a niche dependant on organisation and position.

    As a walkaway position. Do you think for a high end middle manager it would be unreasonable to ask for

    - relocation costs and one way flight
    - 1 months accommodation
    - comprehensive medical insurance
    - 80K per month + incentive 12.5% bonus
    - 10% MPF
    - once off share allocation

    Trying to get to a comfort level where I have a understanding of where the market is at for a role that can't be filled by a local. Or is that too high?
    I would call that eminently achievable. In fact, might try to push the salary higher. If you have kids, ask about debenture for schooling. And also ask to split your salary into a housing allowance (even if you get no extra) as there are small tax benefit to doing so.

  10. #20

    Join Date
    Mar 2014
    Location
    Sydney
    Posts
    12

    Thanks everyone. Apart from a little banter everyone has shared some valuable feedback. Sounds like there are a number of ways I can make this work.

    Here is another link that I found that was useful regarding pension. I'm told that our company offers 8% by default but there are obviously alternatives.

    http://www.mpfa.org.hk/eng/orso/overview/index.jsp