Plus, the OP has told me their prospective employer via PM. It's a very large blue-chip MNC which should provide for some decent networking and career growth opportunities.
Plus, the OP has told me their prospective employer via PM. It's a very large blue-chip MNC which should provide for some decent networking and career growth opportunities.
Thanks everyone for all your answers, such a nice community! It's very helpful. Looking forward to moving to HK by August. See y'all soon. I'll be posting follow-up questions in this thread if I'll have any =) Thanks again!
And don't forget to budget for tax and provisional tax...
Indeed mate, we have a 2 bedroom in discovery bay for 15k. Theres lots of places around. I saw some one bedroom ones for 12.5k
There are ppl I know living off 29k a month.
Set aside 15% for taxes to be safe. That would be 27750 a month.
Now for HK - a third of your salary for rent would be 9250, still possible. Yes you can live in a shoebox but most are shoebox apartments anyways.
Attached is one recommended by some unis reputable with occasional complaints but it's a pigeon hole - http://www.yesinspace.com
others around 9 k mark or less ( I don't know their reputation) : http://www.idealsuite.com.hk/studio.php
https://www.m3community.com/eng/
http://studiostudiohk.squarespace.com (Causeway Bay) - leaking at times according to a friend
http://www.apartmentwe.com.hk/edb/index.asp (Causeway bay)
https://www.homeyhomey.com
You are left with 18500. Cut out alcohol and smokes ( if you got any of these vices) - you can save 10k and leave 8500 for general expenses plus utilities. If you are even more miserly, you can try to live within 4.5k a month and save an extra 4K. That means cooking your own meals sourced with products from the noisy markets , eating local or the cheap Indian eatery somewhere. Plus a little luxury once a fortnight.
oh ya First year you are exempt from MPF but second year - prepare for around 1.5 k hkd to be taken out per month
All in miser at full speed ahead : 14k -6.5 k - MPF = 6 k savings a month.
Following year factor rent increases -5k savings a month
Last edited by blackwings; 14-06-2017 at 11:36 PM.
Hi blackwings,
Can you elaborate further about the taxes, please? On how much should I allocate for tax per month? Or my prospective employer would automatically deduct it from my monthly salary? I am not really familiar with how Tax works in HK so I appreciate if you elaborate it further.
- I'll be finding some flat sharing rentals or places below 7K to save further
- I don't have any vices, I don't smoke and I don't drink - waste of money and I love my life.
- I am a very frugal person, so if I can cook, then much better and bring lunch to work, much much better.
- Kindly note that I have posted previously that I need to send at least 6.5K per month to my family overseas even if it would cost me having 0 zero savings.
Also in the areas of busy Kowloon and HK island with around 180 sqft or less, be prepared to shower over your toilet bowl.
Save 15% of your salary for taxes. First year looks very nice and comfy but when they sent you the tax bill, it will hit like a ton of bricks. Prepare to accumulate at least 68000 in a year for the taxman to hit. Anything left is a penny into your piggy bank.
Now if I break down for you:
Put aside 5500 HKD a month for taxes.
Then deduct 6500 for family.
Deduct 4000 for expenses (extremely frugal case) and 500 for utilities (you need air con in summer) .
First year you are exempt from MPF but second year you have to pay 1500 hkd a month. Bearing in mind that if you leave HK permanently, you can withdraw your MPF (only once in a lifetime if you are sure that you are never returning )
For rent , I would advise you to spend a little more on a studio than share - look at yesinspace - they have 6k a month pigeon holes. You are getting a pigeon hole anyway if you are sharing. You need to get to know local laws before you get scammed. And also make some local friends to understand why. Don't believe me? Go look at the forums on HK accommodation and see how many have issues ( e.g.landlord issues, Illegal sublets etc).
So so in total deduct the above
37000- 5500 (tax aside) -6500 (family) -4000 ( food expenses plus basic necessities and a little cafe once a fortnight ) -500 (utilities) -6000 (rent) = 14500 per month to save. First year
Second year - MPF in effect = 14500-1500 = 13000. Factor in the ridiculous rent increases (1000 *12 months) a year and you end up with 12k per month to save.
Your salary, if any consolation, is already well above the average for a working class HK nuclear family.
Last edited by blackwings; 15-06-2017 at 12:05 AM.
Yeah.. aside from flat sharing I am looking at studios too that are in my budget range 5-7K as long as they'll allow me to cook and there are at least electronic appliances.
- This might come off as a stupid question but why should I set aside 5500 monthly and not 1500 for monthly tax and 1K for MPH per month instead? Is it to prepare for the taxes that'll start on the second year? Kindly educate me on a layman's term the difference between MPF and Provisional taxes? (I've been doing my own research but it would be better to know from people like you who've been either there for quite a while or are local residents.
- Is 500 enough for utilities? (electric, water, wifi, mobile phone)?
- How about transportation? it's not added yet to the calculation, right?
- What about emergency medical expenses
- Is 4K is enough for a month's worth of groceries? (including lunch and dinners?) I don't eat breakfast.
- Additional question is - can you recommend the cheapest wet market that I can go to? or bargain shops where I can find household gems at a reasonably low price? As well as your recommended local places to eat at?
For tax , usually 12 - 15% of your salary , as Blackwings said, just assume the max 15%.
I suggest that you always try to negotiate, no matter what, it is very rare and almost never happen that employer will forget about you as soon as you start to negotiate.
It is your own fear and assumption.
If you negotiate, you will not look back to regret years later .....at least you try....for yourself.
note on the airfare and temp. accom. ...I have heard couple of cases of relocation ....usually these should be provided....but if I were you..I will focus on getting higher salary rather than these....you should negotiate with them on this basis....be confident that they want you.....
in the end, if negotiation will end up you losing the job, they will let you know and you can always say ""ok i will take it"".
Trust me, especially the agent, he only earns money when you accept the job!!