Hi Geo Expat,
I'm given an offer to work in Hong Kong. As this is my first time shifting to a new city for work, I'm new to the aspects pertaining to rental allowance in the contract. As such, I would like a quick clarification on what is stated in my employment letter.
I'm given HK$40,000 / month for my base salary. In the contract, it's written that I am eligible to participate in the Rental Reimbursement Scheme (RRS), under which I may be entitled to claim monthly reimbursement of rental payments up to HK$12,000.
The simple question is which of the following is correct:
1. I'm paid HK$40,000 / month and an additional HK$12,000 for rent. This can come in the form of me paying for the rent first and at the end of the month, the company pays me back that which I paid for rent.
2. The company pays HK$12,000 for my rent but then pays me the remaining HK$28,000 at the end of the month.
A further question would be how much of the HK$12,000 rental payments will be taxed as I know there are tax implications. But I probably should know which of 1 and 2 is correct. This is probably a common question concerning RRS but I'm new to relocating so I'm asking here.