Tell me about your relo package...

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  1. #31

    Join Date
    May 2006
    Posts
    15

    Chiming in here

    Just to add to the discussion...our company doesn't do traditional expat packages (they never have a lot of expats anyway), and since this year the housing allowance tax benefit for US citizens has been scaled way back, it may have had an impact on the structuring of our package. We're getting the following for a 3-5 year stint:

    - three year guarantee of base salary plus bonus (this is the big item we pushed for in lieu of housing, schooling, etc.) 2/3 of compensation comes from bonus vs. base salary.
    - relocation expenses including bus class travel to/from HKG, storage, moving, etc.
    - a US $25K+ 'drapery' allowance
    - multiple trips home for family (bus class) for three years
    - tax equalization/hypotax with company paid for preparation
    - US medical insurance and HKG medical insurance
    - we keep all other US based benefits (401K, profit sharing, etc. etc.)

    I think that's it.


  2. #32

    Join Date
    Jul 2006
    Posts
    130

    That's ineresting, are you saying they are giving you a three year guaranteed pay package but no housing allowance and no wage adjustments?

    I suppose these are baked in or that wouldn't necessarily be a good deal.


  3. #33

    Join Date
    Nov 2005
    Posts
    408
    Quote Originally Posted by HKFella:
    "Does everyone get full education benefits?"

    Is it a benefit for children to get schooled in Hong Kong where 40 kids per class are standard?

  4. #34
    inprov

    If it is a private school with 20 children per class and the tuition s covered, I believe it is.


  5. #35

    Join Date
    Oct 2006
    Posts
    1

    Hi there - a bit late to the conversation but thought would add my two cents worth.

    With three kids I think it is crucial to get commitment on education. OK local public schools don't cost much but the language difference means that it will be extremely difficult for the kids to adapt. (Quality is also debatable but let's leave that aside.) So the options are international schools (which cost a fortune, hefty debentures plu US$10-13k pa for one child and extras) or private local schools (not cheap either).

    Just as an indication my 3 year old goes to a private local kindergarten that teaches in both English and Cantonese, and the monthly fee is HK$3,995 (US$500+) before books and other miscellaneous fees. And this is only kindy...

    A HK$1m annual salary is not bad by HK standards, but with a family of 5 you may find that it doesn't goes a long way, particularly if you have to bear the cost of education and housing.

    Hope this helps! Best of luck!


  6. #36

    Join Date
    Oct 2006
    Location
    Park Island
    Posts
    120

    If I were in your husband's position, the first question I would ask myself would be "how much can I improve the company's bottom line?" Of course, that sort of leads to questions like how he wants to do it, how long would it take to execute the plan(s), etc etc etc... Actually I'm sure he's already thought it all through, and I'm sure his company has too... I don't think a smart boss would be willing to send his top rank lieutenant overseas, pay him a ton of money, and not have a plan.

    If he really believes that he can make a huge difference, and he has his boss convinced, then it's not a bad idea to ask for more... And by more I mean a fair amount. You can save a lot of money with a $1M HKD income if you tried real hard, chances are though, you guys won't really be able to do it. Sure, $10 wonton noodle is great, but can YOU eat that everyday?


  7. #37
    inprov

    His base salary is is actually a little more than 1.2 million HKD plus a bonus, plus a 50k housing allowance, plus educational expenses as well as trips home and incidentals. I should have better explained this. We still have student loans in the US to pay, as well as a teeny bit of debt that should be paid off quickly.

    Our current mortgage payment is $3000/month(like 23k HKD) and we pay this on just his base salary. We never save money because living with three kids is so expensive. My husband did not get a salary increase to come to HK, instead we have the housing, which is being provided by his company. We are selecting the apartment and they are leasing it for us and paying utilities as well, I believe. They are also paying tuition. This is worth about 100k USD(or 777k HKD) in addition to salary. We are hoping to save USD $3000 each month. Does this seem reasonable?

    It is funny, we would NEVER discuss our salaries here in the States. It seems so private and hush hush. Some of our friends our teachers and make very little and some make tons, so we just never discuss it. It is so silly, because it is just money, it does not define us.


  8. #38
    inprov

    We also are looking for a good acountant, because we know we are going to be hard hit with taxes next year! How can I find a good CPA that deals with international tax issues?


  9. #39

    Join Date
    Jan 2006
    Location
    Fo Tan
    Posts
    2,389
    Quote Originally Posted by inprov:
    We also are looking for a good acountant, because we know we are going to be hard hit with taxes next year! How can I find a good CPA that deals with international tax issues?
    Can't get the company to throw taxes into the package?

  10. #40

    Join Date
    Jan 2006
    Location
    Fo Tan
    Posts
    2,389
    Quote Originally Posted by inprov:
    His base salary is is actually a little more than 1.2 million HKD plus a bonus, plus a 50k housing allowance, plus educational expenses as well as trips home and incidentals. I should have better explained this. We still have student loans in the US to pay, as well as a teeny bit of debt that should be paid off quickly.
    One would think that US$157K, plus a bonus plus essentially free housing and education would be enough.

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