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Tokyo - HK transfer salary question

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  1. #1

    Tokyo - HK transfer salary question

    Hi,

    Wonder if anyone has recent experience of Tokyo - Hong Kong transfer, i'm struggling with the salary comparisons...

    Current role (back office) is with a top tier bank in tokyo, proposed hong kong role is a significant promotion running a much larger team down there. I have been asked or strongly suggested to move, but have little desire to leave tokyo.
    Gross to gross annual salary comparison works out to be about a 30% drop which seems excessive to extreme given the expanded role in hk.

    I was expecting about a 10% drop, so quite confused.. Granted tax is lower in HK, and day to day living cost significantly cheaper, but rent appears around 20% more than comparable tokyo units. I certainly wouldn't call HK a 'low cost' location...

    Any advice welcome!

    cheers


  2. #2

    Join Date
    Feb 2010
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    7,442

    it depends on the current market for your similar position in HK. Look for some of the major recruitment agencies to find out what the current salaries in the market.


  3. #3

    Join Date
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    HK is not cheaper. You should get a rise, not a drop. Tokyo is surprisingly cheap these days, everything from housing to food.

    Any tax advantages should benefit you, not your employer.

    I doubled my salary when moving from Tokyo to HK back in 2008. But I changed company (same line of work). I had a comfy job in Tokyo and no desire to leave, so I gave out a wildly high number and was shocked that they accepted it. So I packed up and moved to HK. I still miss Tokyo a lot. If I was you, I wouldnt move.

    Sent from my LT15i using GeoClicks Mobile


  4. #4

    thanks guys, yeah I think the bubble days image of tokyo being crazy expensive is pretty inaccurate these days.
    from the little research i've done offer seems broadly inline with local market rates, so absolutely zero in it for me other than career advancement, but at a pretty steep cost $$ wise...

    cheers


  5. #5

    Join Date
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    I did the same move last year and got a significant rise. HK is not a low-cost location by any means, even though direct tax is lower. Bear in mind the quality of life here is far far lower than Tokyo in pretty much every respect.

    If your employer wants to move you then they should pay up and make the fiancial case compelling to compensate for the lower standard of living... Especially since your role here is a promotion.


  6. #6

    I'm Australian. I spent 2 years in Japan. I now work in Hong Kong. Hong Kong is a lot of fun. But when I close my eyes at night I still dream of Tokyo. I would not take a paycut to go from Tokyo to Hong Kong unless you haven't managed to adapt to Tokyo. Tokyo is better in every possible respect. I'm sorry. It just is.


  7. #7

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    I wonder if anyone has moved to Hong Kong from Japan and actually prefers living in Hong Kong? Seems to be a clear consensus here that Tokyo > Hong Kong.


  8. #8

    Join Date
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    I know of one friend who has made the move Tokyo -> HK and actually prefers HK.

    She is in banking too. The reason is quite simple.

    In Tokyo she was working (expat package) but hubby was a stay at home man...after one year of him not being able to find a job in Tokyo (not an easy market to break in apparently) she asked to be transferred to HK (in local package, albeit a nice one).

    Within a few months (2), hubby got a job in HK too. Now both are happy here. They did like TKO but unless you are on a decent package their view is that HK is easier to get by.

    I have no opinion, since I like Tokyo but only go there for leisure or work and I have never lived there.


  9. #9

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    Yes, it is much easier to work in Hong Kong if you are on a dependant visa. But I truly miss Tokyo, was there for 14 years. My 6 year old still misses it and asks about it 2 years after we left, even though we spent 18 months in Singapore between there and here. I would go back tomorrow if we had the chance.


  10. #10

    Join Date
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    Quote Originally Posted by Mat:
    They did like TKO but unless you are on a decent package their view is that HK is easier to get by.
    I think the opposite is true - Hong Kong is much more attractive than Tokyo for decent packages because the tax is so much lower here; hence the financial advantage is compelling.

    If you are not on a decent package in Tokyo you are not paying a marginal tax rate of 50% and Hong Kong's tax advantage is negated.

    If you have a moderate package in Tokyo and a moderate package in Hong Kong then you might as well take the better quality of life & much cheaper accommodation in Tokyo....... but if you are giving away 50% of what you earn to the Japanese government then Hong Kong starts to be more attractive, financially.

    I do agree that Hong Kong is much easier for trailing spouses to find work, actually it's much easier to find work here full stop.

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