Salary Advice

[Asheru]

Hi,

I am going to move to HK in November with my girlfriend. She will seek for a job but I am not sure she will find one quickly. So we will have to live on my salary. I will be paid 552,000 HKD a year (46 000 HKD per month) + 15% (target)/ 25% (excellent) on performance.

Will I live a good life or will it be a little short for two?

I am planning to put 18K in an accommodation rent? Do you think it's too high?

If thinks run goods, how big are the salary raise? (3%, 5%, 10%?)

Thanks for your answer, I am a bit worried.

[wtbhotia]

it all depends on your life style, you could earn 100K a month and if you went out every night, ate at only 5 star restaurants etc, it still wouldn't be enough.

46K I reckon is good enough as you plan on 18K accommodation + utilities should come to just above 20K (internet/broadband tv + electricity + home phone + water), which still leaves you with 26K.

Salary raise depends on which industry your in, performance etc, its no use asking about it as you will get different answers and no one can be really sure. my 2 cents.

don't worry, 1 in 6 people live in poverty in HK. local uni grads (fresh meat) be lucky to get 10K starting jobs. Your 46K is considered a lot in local standards.

[kryzlowski]

I second what wtbhotia just said

Unless you have especially high living standards 46k per month is fine for two people. Add 15% or 25% and it's even better!

Some things here will cost more than the UK, and others will be cheaper. It really depends what you are into, and what kind of lifestyle you will have as to whether you have a cheaper or more expensive life than in the UK. I personally have a lifestyle here that tends to be cheaper than in the UK, but not by being any more frugal than I was in London, in fact I think I do more here but spend less.

[cookie09]

where are you from and what is your job and lifestyle? hard to judge without this basic info

[ray98]

Don't forget the tax, for you it's around HK$5.3k/mth. However, as you are not here yet, you can ask your employer to state a % or amount of your package as a rental reimbursement with conditions you must provide a copy of the rental agreement and rental receipts for eligibility for this refund. This can save you quite a lot in tax. If you are thinking a budget of HK$18k, this may be too much, so the agreement on the refund should may be no higher than 30% of your package, roughly HK$13.8k. You could try for more, but you run the risk of being challenged by the tax authorities here.

If you had housing at HK$13.8k, then your taxable for the year is HK$552k- (HK$13.8k x 12 = HK$165k) + 10% (HK$552k-HK$165k) = HK$387k) i.e. total assessable of HK$426k, so the tax break is like HK$126k @ 17% = HK$21k. i.e. you can save over HK$21k/year if your package is structured with the housing benefit.

Good luck!

[Mat]

I would try to budget less in rent.

After all this is money you can easly save.

A max of 15K would seem better.

46K/month is fine but the lower you can keep you rent the more you can save/enjoy (depending on your lifestyle)

[Asheru]

I am from Paris. I like to reasonably go out. I prefer to put 3000HKd per month in a good accomodation with facilities (gym & swimming pool) than to make 3 good restaurant per month and to live in a shoebox.

I would like also to travel a bit in asia during week end if i have the time.

I will start my work at the beggining of November so i presume that i will not have to pay tax during the period april 2010-march 2011. However i will have to pay my income tax in France for the year I worked here.

In my contract it is said: "you will be entitled to join our rental reimbursement scheme. In case the scheme the scheme is discontinued by Company or The Governement, no additionnal compensation will be paid to you as a result of your participation in the scheme" . What does it mean?

It's the process that ray98 describe?

Doesn't Ray98 have forgotten to include the 108,000 HKD allowance in his assessment ?

[Claire ex-ax]

I prefer to put 3000HKd per month in a good accomodation with facilities (gym & swimming pool)

Did you leave out a zero, i.e. 30,000 HKD ?

[carang]

perhaps he meant an "extra" $3,000/month in accomodations, rather than in restaurants. on this point, i agree especially if that extra $3000 gets you what you REALLY feel comfortable with and consider a "requirement" (ie. a gym/pool/garden)

[Norma2009]

Spend the cash and enjoy the experience - by the sounds of your package you are a professional so payrise and bonuses later can be your savings.