In order to justify accepting a job far away from home, in a city with an ever-increasing cost of living, most companies need to offer the best in remuneration. This is still available in some countries, particularly in the Middle East, including Dubai. Singapore is rated the world’s most expensive city for 2015, according to the. Don’t fall into the trap of ‘I’m getting a slight pay increase and the tax is already lower so I’m already up”. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. Transport. As it’s deemed as temporary they may cover your accommodation. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article. But the downside is that you lose the flexibility of being able to define the duration in that country. Perhaps the most important aspect of negotiating the best expat package you can is to wait for the right time. Singapore is a very attractive proposition for both companies and expatriates alike. This is often preferred by employers as it links to performance versus an outright cash payment. Or if you have little faith in the pension system then instead chose to invest the money to achieve your total FIRE number. Banks often offer ‘consent to let’ at your current interest rate should you need to move with work.And this rate is likely to be significantly lower vs having to take an expat mortgage. These countries offer potential to significantly increase your salary and accelerate financial independence. These often have a vesting period and different countries have different regulations. With the cost of education at international schools going upwards each year, it’s worth discussing with prospective employers the possibility of having school fees paid for as part of your package. Given high tax rate payers will typically pay 40% tax on their hard earned bonuses. Curveball Series: Being Sued for Breach of Contract. Plus temporary accommodation in your home country if you are vacating your house early as a result of the move. ... whether the move will be the right choice for you and your family.Therefore we’ve compiled this guide of salaries in Singapore with notes on the ... Other costs to take into account are things like internet packages, which are usually around S$43 a month. If you're being offered an international assignment there are often many issues involved in making the decision to move or stay. This, along with the ever-present wealth of the Arab Emirates, means that a large portion of Western expats continue to flock eastwards. Notify me of follow-up comments by email. Expat Exchange: Negotiating the Best Expat Package for Your Next International Assignment If you've been offered an international assignment, this article is a must read. This could cause real financial issues for you if you’d like to remain in Singapore. Negotiating compensation can be tricky in the US, but if you’re offered an international job, compensation issues grow exponentially more complex. The exception here would be if your company sends you on an ‘assignment’ which has a fixed time period. Extra Leave and Visits Home – Many expats consider regular visits home to see friends and family extremely important for staving off homesickness. Once you make that first move it will help set you up for financial independence retire early (FIRE) and put you in a strong position for negotiating a future expat package and move. In this article, we would particularly focus on how you can efficiently negotiate the terms of your expat package to get a better deal: Negotiate Upfront . And finally, schools can be expensive so if moving with as a family be sure to include support here. Question. In order to justify accepting a job far away from home, in a city with an ever-increasing cost of living, most companies need to offer the best in remuneration. Particularly if someone in your family has health conditions likely to require additional medical support. Rent out your property to take advantage of the £12.5k tax free allowance (UK only!). Before you take up an expat employment offer, make sure you understand what life will be like abroad and the day to day costs for you and your family so you know what your negotiation 'red lines' are. Don’t get too obsessed or ‘stuck’ on the above. While packages differ by company, some items appear in most international employment offers: a housing allowance, help paying taxes, spousal employment help and trips home. I’ve done it as a one company man and it’s worked well for me. Thirdly, if you can lock into a long-term mortgage at home before you leave then this may be beneficial. Below are some considerations to maximize your earning potential and savings. And it’s often intended so that you are being ‘borrowed’ to then return back to home country, which might not be aligned with your plans. You can go external and job hop your way to a higher salary. If you have been working for a corporation for a number of years already, you should ensure that your contract notes the fact that the assignment abroad does not constitute a break in employment. Moving Abroad: Expat Career Issues . After all, you can work in the car on the commute to and from the office and treat clients in better fashion than taking them out in taxis. On this latter point, it depends on the organization but building your network is key. Spending time on the fundamentals will increase the chances of a successful move. The second important relocation support would be a shipping allowance or furniture allowance when you arrive. This has meant that the total cost of an expatriate package to companies in Singapore has fallen over the past few years in local and USD terms,” said Quane. However, Singapore still offers some of the highest expatriate salary and benefits packages in the region, with some of the lowest tax rates. Expat Package in Singapore. Regardless though, it’s worth considering in all circumstances. Negotiating Your Expat Benefits Package. See it more holistically and as a total expat package as opposed to driving a hard negotiation on each element. Smart Expatriation, 1st expert online solution to calculate your earnings abroad by taking into account the differential cost of living, housing costs, and the amount of taxes and social contributions. So you’ve flagged your international aspirations, delivered a standout performance and have built your network. They make sure they have the right person for the job and then the negotiation begins. It may still be worth you voluntarily contributing to the state pension. So don’t get bogged down in whether you managed to negotiate a few extra thousand pounds into your contract. Required fields are marked *. Though you don’t want to be too pushy, there are some things you might want to negotiate on if you feel they are important or will directly affect your quality of life: When negotiating an expat package, take the time to mull over what is most important to you and choose those things to negotiate for. Are expat packages available to cover the cost of living in Singapore? Currencies always swing a few percent both ways but anything more major should be incorporated into the negotiation for your expat package. You will find most other countries have private healthcare (you’ll miss the NHS!). In the Locations section of this site I’ve cited some popular destinations for pre-FI geoarbitage. Pick the ones most important to you and focus there, with room to maneuver to the other variables if needed. Again this is likely to be standard to the package but it’s worth flagging and even raising with your future boss / senior HR person if you’re concerned. And in due course pave the way to financial independence retire early (FIRE). The most immediate action would be to look at how the currency has changed recently – has it gone down and you could leverage this as a point of negotiation for a higher salary? And if not offered then I would recommend that you engage privately with an accountant that can help give clarity. Dr Yvonne McNulty from Expat Research takes an honest look at real life for Singapore’s new expats who don’t receive the big packages, and debunks the myth that all expats here are living it large in Asia. It’s worth remembering that you are actually already in a very unique position just by showing a desire for an expat career. Japan is home to Asia's most expensive expatriate packages. 2020/12/10. We consider the expat salary package to be the ongoing benefits associated with an expat assignment. Examples include estate agent fees, clothes for a different climate etc. Singapore is one of the best expat countries in the world. Sponsors will actively put their ‘name’ behind visibly supporting you to senior management. Expat sites generally include forums, blogs, job openings, and advice columns. The Law in Singapore on Single Mothers – Is ... Real Estate Investments in Southeast Asia: How Safe is Your Money? Though these packages are on the decline in the last few years, as worldwide talent and education begins to catch up with the demand at big companies, they are still somewhat common in Singapore. A traditional expat salary package (which we explore below) would include relocation costs, housing and education allowances, annual travel allowances, and a loading on your base salary. There are tons of events and get-togethers and you’ll meet expats from all over the world living in Singapore.” Priorities differ from expat to expat – communicate with your employer, so they understand your wants and needs. 1. That first month is critical when you are at your most vulnerable. We live a comfortable life in the uk. This may all sound like a lot of work but it’s invaluable, especially in the corporate world. Many employers of expats are sensitive to this and might be open to providing extra leave time and covering expenses for these necessary visits home. But in reality 5% actively pursue it. You don’t want to aggravate your new employer. Be top of your game – the #1 driver for negotiating your expat package. A very important (albeit less glamorous) one not to overlook. Our Singapore Property Classifieds provide one stop property search for apartment, condo or house for rent or sale in Singapore. For further information on the difference see here. Or if not… it’s likely someone in their network will be able to endorse you. Or even subsidizing your accommodation costs abroad. So do your homework beforehand; identify these sorts of issues ahead of time and put yourself in a strong position to negotiate a package that ensures your smooth transition abroad. Rents have subsequently reduced so I’d expect this to become more rare. Spending time on the fundamentals will increase the chances of a successful move. Expat employment packages in Singapore that include a housing allowance, cars, medical cover and school fees are almost an urban myth these days. The ability to build a network from scratch, demonstrate quick results etc. Putting you in a stronger position when negotiating your expat package and build towards FIRE. One other important consideration is if you are given equities or shares by your company as part of a long-term incentive program. Many organizations understand that you are taking the risk to move you (and family) across the world. I most recently asked 25 families for their personal benefits. Dear HR Professionals, I would like to seek advice on what kind of package does your provide for Expats coming to S'pore with their family (4 pax) i.e. Even if they can’t change the actual insurance offered it may be used as leverage in the overall package conversation. Rent Singapore property, apartment or house has never been easier. An Expat Guide To Salaries in Singapore. When you are looking for roles abroad then identify the decision-makers or people in positions of influence. Or about to put pen to paper on your expat contract? As stated, expat packages are highly individual. There will always be additional incurred from moving. As keep in mind that you need 35 years of contributions to be eligible. This is important to secure a better salary and negotiate a good expat package (see here for a cross-country example of London vs Singapore vs Dubai). Spending time on the fundamentals will increase the chances of a successful move. ... Singapore's Richest. Temporary living should definitely be negotiated in your expat package to give you time to understand the new country. And equally you want this to be a new experience and exciting opportunity. If you manage to land a lucrative expat package, be careful of localisation clauses that will allow your company to shift you into a local role after your initial contract is complete. It wasn’t seen as an attractive thing to be far from their home country, extended family and friends. Whilst it still gives you the ability to access it should you need it. It may be on arrival (like a golden handshake) or can follow to subsequent years pending negotiation. The salary and benefits package you are able to secure is essential, use those sites and others like them to ensure that your package is right for you. In some cases a return flight home annually may also be negotiated. It’s important to have some stability and one less thing on your mind when getting setup for expat success. How to Negotiate for a Better Expat Package. Malaysia, meanwhile, offers the region’s lowest total expatriate pay packages – with packages falling by 13 per cent in USD terms since 2012, falling behind Sri Lanka and Pakistan in the process. It’s important that you have a good track record in terms of performance. About 70% of them received some sort of Expat Package. The thing with a local package, is it means you don't get anything other than salary, bonus and health insurance (usually covers family members, but is often limited and you need to buy top up insurance). You might want to try to negotiate a clause for what happens after the initial stint if you love the job and want to stay in Singapore. As more and more expatriates are required to negotiate their expat’s package aka expat’s benefits, we have compiled some information on this regard for those in need. This is often easier to secure after your first international assignment. In fact, as many as 75% of employee relocations fail, which means it’s extremely important for individuals to carefully consider an expatriation offer and take the time to negotiate a package that works best for them. This can be expensive and shouldn’t be overlooked. Getting Started. in a new country can be more challenging. What you will find is that the first move from the UK is the most challenging negotiation. It’s important to have a mix of both. Expatriate compensation packages can vary enormously from company to company and location to location.When negotiating an expat contract that is right for your needs and those of your family, it is important that you carefully consider several factors: 1) Nature of the Employment. When you think just how much time you spend sitting in unproductive meetings it’s well worth the effort. If a living allowance is not offered then be more specific about a car/travel allowance. This was the case for me but it wore off for the second move, possibly as my intentions to not work back in the UK became clear! In my experience, I’d say maybe 20% of top talent employees say they would be flexible to move abroad. Your email address will not be published. Other considerations to factor in include when negotiating an expat package are one-way flights to cover you and your family to the new destination. You can look at it as a way of either paying off your mortgage early. You could ask your company if they can support you with support from an accountancy firm. It is so easy to get connected with other people from either your home country or international people. I’d also recommend an offset mortgage back home allowing you to use any surplus cash (FU money or contingency fund) against your mortgage interest. The post also features some of the nitty gritty elements to include when negotiating your expat package. This article does not constitute legal advice or a legal opinion on any matter discussed and, accordingly, it should not be relied upon. As a result, they are more likely to have already come across your name. In my case I found the furniture allowance offered was a higher value than shipping privately so I took the cash and did the shipping myself. Most packages usually cover the cost for a flight home once a year, although you may be able to negotiate for more depending on your personal circumstances. Then map out the sponsors and mentors that could support your expat move. See the below as a guide to wringing the towel to maximize your salary and potential savings rate. A rental car or company car might also be included if your office is not downtown. What's a good package really depends on your perspective and the lifestyle you're used to. If you are in negotiations with your company to receive an expat package, here are some things to think about during the process: A prime package might include moving expenses that will cover relocating everything you own in shipping containers to your new home city. Negotiating a relocation package can be tricky. Financially the net will always be more positive in a low tax country. In addition to detailing how long an employees expatriate contract will be valid for (see contract duration and termination notice), the contract should also contain details of whether or not the employment constitutes a break in employment from the employer. The benefits you get really do vary from employer to employer, and whether you get a full expat package. Utility Bills – These can run several hundred dollars per month if your spouse and children are at home and running air conditioning in the Singapore heat most of the time. “Localisation describes the company's practice of replacing an expat compensation package with something comparable to that offered to locals. International Health Care, Housing Allowance, and flights back home have been the most mentioned items on the list. Local packages also do not cover visits home to see extended family or the responsibility for repatriating you to your home country once you decide to move on. Getting Started. And note this takes months or even years to build so don’t see it as a quick fix exercise to secure a move. Your email address will not be published. Required fields are marked *, div#black-studio-tinymce-10{ display : none; }, All RIGHTS RESERVED Ⓒ 2017 ASIA LAW NETWORK, What to Negotiate For in a Singapore Expat Package, Though these packages are on the decline in the last few years, as worldwide talent and education begins to catch up with the demand at big companies, they are still somewhat common in Singapore. And then the final word would be it’s not all about financials. And perhaps for good reason. You will stand out and the great thing is that once you get the first international experience under your belt this uniqueness snowballs. In turn, accelerating the path to financial independence retire early (FIRE). Education for your children and prime medical and dental insurance are key items that most parents will consider non-negotiable parts of a relocation package. Could you see yourself placing your child in the local schools if you can’t afford the private institutions? The post also features some of the nitty gritty elements to include when negotiating your expat package. These are a great place to start you’re research. Economist Intelligence Unit (EIU). Take note of these important factors including career advice to help ‘seed’ the move. A differentiated experience plus demonstrated success will amplify your value and uniqueness further. What made these packages attractive were the seemingly endless perks that could include housing compensation, school fees for their children, paid trips to their home country once or twice per year and perhaps even a driver or live-in household staff. This includes having good sponsors and mentors. International school fees can be astronomical. Moving from a low tax foreign country often provides room for negotiation in order to improve your net position. Expat packages are one of the reasons that executives originally considered taking positions overseas. So it can be a nice multiplier to your overall package. But be aware – market events like Brexit can have a massive swing up to 20%. With the right package in place, you may find that your years abroad become some of the most most delightful and memorable of your working life. Many expats take this option because they enjoy living in their new home country, but it can be hard seeing your comforts stripped away. And in due course pave the way to financial independence retire early (FIRE). Private Driver – If you have a long commute to your office or often take clients out for dinner or other events, you might be able to negotiate for a diver. does become higher. One of the most important issues for any person or family that is sent abroad by their company is the expat relocation package. ... How I Negotiated A $100K Expat Package. The healthcare may also not be as strong as your home country. Without a firm knowledge about different expat’s allowance and costs-of-living in the host country it’s close to impossible to negotiate an advantageous expat’s package. A typical expat package will often include travel costs for you and your family to visit loved ones back home. In Expat Living Singapore, Dr Yvonne McNulty explains that most contracts only last a few years, and then switch to a localisation package. Rentals are often included and it’s not unheard of for the allowances to cover dwellings costing several thousand dollars per month. SINGAPORE - The average annual pay package for expatriate middle managers in Singapore rose by US$13,163 or 5.9 per cent in 2018 from a … When expatriation is on the cards, it is better to be upfront while negotiating your needs, inspired by the confidence in your value to the company and what you bring to the table. Dear HR Professionals, I would like to seek advice on what kind of package does your provide for Expats coming to S'pore with their family (4 pax) i.e. Negotiating Your Expat Benefits Package. Things have changed since the global recession, with international markets stabilising to differing extents. Many talk of the ‘expat package’ days being long gone. For those looking to sharpen their negotiation skills further I can highly recommend this book by Steve Gates. Some companies can get you an exception to remain part of the home country plan if your move is temporary. Otherwise it’s likely you will get something wrong, spend lots of time trying to understand it or in most cases both! But don’t give up just yet. Especially for housing where you don’t want to commit to a long lease before you understand the areas. And in line with the financial independence mentality – it’s a marathon, not a sprint. Here are five ways for employees to ensure their expatriate package serves as a career bolster — and not a major disruption. Bao Nguyen Yes, Vietnamese employers usually based on your experience! This will give you a blend of those close to the action & others far removed with a broader viewpoint. Negotiate Smart So hopefully some food for thought when negotiating an expat package. Expat saving rate comparison: How much cash …, 7 ways to strengthen your Financial Independence plan …, COVID-19 & Expat Financial Independence: The Good, The …. If you’re relatively senior in a corporate company it can be linked to shares and performance vs just cash. There are however benefits that are more common than others. Singapore Expats offers a one-stop residential Singapore property guide, renting procedure and information directory for expatriates living or relocating to Singapore.. Have subsequently reduced so I ’ d like to remain part of the most challenging negotiation will benefit... 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