$200k annual salary, worthy of moving to HK?

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  1. #11
    Quote Originally Posted by squid:
    To be honest, less than 17k per month in Hong Kong is a horrible expat salary.

    Budget on $9000 per month for rent on the Kowloon side/NT. Budget on $3500 for groceries and transport combined. TV/internet/phone will take another $1000 or so. *You will need start-up funds when you arrive, 2.5 months of rental costs for security, realtor fees, etc.

    That leaves you with less than $4000 per month for entertainment, personal care, misc. expenses.

    If you're desperate to come, then go for it. Otherwise...

    Thanks for the rough figures. This is what I was looking for. 16k is pre tax. After tax and MPF will be much lower than that So unless I can find a place costs less than 6k there's no way for me to live....

  2. #12

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    Quote Originally Posted by serendipity99:
    I am not sure how the housing reimbursement scheme works. The HR told me I can get some tax money back because the company participates in this scheme. 1k is only my estimate... might be less or more than this in reality....
    It won't be quite that much - at income of $200K your tax bill for the year is only HK$5040 anyway!

    The tax treatment of housing allowance is odd. Assume you pay $5K/month on rent and your HR agrees that this can all be defined as Housing Allowance in your contract, then you would be taxed on $154K/year rather than $200K/year, which would be total tax for the year of $1220. So you would save $3820 (for the whole year).

    In addition you will need to pay MPF of 5% ($10K/year).
    Last edited by PDLM; 20-12-2009 at 01:56 AM.

  3. #13

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    Quote Originally Posted by serendipity99:
    16k is pre tax. After tax and MPF will be much lower than that
    Not really - as noted above. MPF is at most $10K/year, tax at most $5K.

    If you rented at $8K per month and it was all defined as Housing Allowance then you wouldn't pay any tax, only MPF. So you would still have almost $8K per month to live off, which should be doable.

    On reflection, MPF maybe lower than that - I'm not sure that it's charged on Housing Allowance, so if your package was 8K HA, 8.66K salary then you might only be paying $433/month in MPF.
    Last edited by PDLM; 20-12-2009 at 01:59 AM.

  4. #14

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    Quote Originally Posted by squid:
    TV/internet/phone will take another $1000 or so.
    It really doesn't need to be that much. Basic internet and the free TV channels is less than $200/month. If you avoid international SMS and make only a few IDD calls to low cost places (US, UK fixed, Aus fixed, etc) then your mobile phone + IDD bill shouldn't be more than $150/month. If your employer needs you to have a blackberry type thing then they will pay for it.

  5. #15

    Thanks PDLM, that was really helpful!

    About the housing reimbursement scheme, from what the HR said it sounds like I can redeem some tax money to pay for rents.. so I am not sure if that entitles me to have less taxible income...

    I wonder if it is possible to find a studio for less than 7k(utilities inclusive) in kowloon, within 30 mins commute to Central and neighbourhood safe enough for a single girl. The place can be tiny but the interior has to be relatively new or at least recently refurbished, and furnished. Too bad when it comes to accommodation, I am a bit picky... not on luxury but on "cleanliness" and can't appear "old"... otherwise it drives me crazy...

    For TV, how much more expensive is it to go cable and get a couple foreign channels? My company will likely provide me a blackberry, will they also cover the bill to some extend? For long distance call I am using Skype phone which is fairly affordable. I hope this service is available in HK too.

    Also, the company provides medical benefits but HR didn't explain in detail. To what extend will I get covered on medical expenses in case I need to see a doctor for minor ailments? I heard the public hospital system isn't very efficient (long waiting time) and private doctors and medicines are very expensive...

    Much thanks!

    Last edited by serendipity99; 20-12-2009 at 04:19 AM.

  6. #16

    If the money can get me an average living in HK (i.e. after paying off all the basic things, I don't have to be thrify when it comes to occational eating out and entertainment) I really want to come because it is a good opportunity and will open door to other future opportunities.


  7. #17

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    I think you should discuss with your HR what is exactly inluded in your deal. Like you said before, your company has transfered Manu foreigners to Hk so they should know all the details. Find out exactly what they are paying for.
    Posted via Mobile Device


  8. #18

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    Quote Originally Posted by Stu79:
    ....but the often live at home.
    Er, where else would they live?

  9. #19

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    it sounds like your 'housing allowance' is similar to mine, in that a percentage of your salary is earmarked as housing allowance for tax purposes...you entire salary is paid to you and MPF is calculated on the entire amount...at tax time, your proportion of housing allowance is claimed and reduces your taxable income...you won't actually get any money back, it's just a re-working of numbers in your favor

    at least that is my understanding, based solely on my situation


  10. #20

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    Quote Originally Posted by beachball:
    Er, where else would they live?
    Er, out on their own as most expats probably did before coming here?