Singapore expat packages shrunk by US$12,450 over a year

Employers paid lower salaries and expat benefits cost less.

The average cost of employing an expat in Singapore has shrunk by over US$12,450 (4%) compared to the year before, ECA International revealed.

According to its survey, the value of a typical annual compensation and benefits package for an expat middle manager in Singapore now is US$223,095, down from US235,545 in 2016. The expat package is composed of three main elements: the cash salary, benefits – such as accommodation, international schools, utilities or cars – and tax.

“Singapore saw one of the most dramatic falls in expat costs in Asia, with the average pay package falling US$12,450. This is due to lower salaries being provided as well as a fall in the costs of various benefits,” said Lee Quane, regional director – Asia for ECA International. “However, Singapore remains one of the 20 most expensive countries in terms of the cost of employing expat staff, despite having very low personal tax rates.”

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In Asia, Japan has the most expensive expat package at US$356,224, followed by US$293,097 in India.

Compared to Singapore, Malaysia saw an even bigger drop of US$17,188 to the average expat pay package, keeping them rooted to the bottom of the 40-country list.

Elsewhere in Asia, expat pay packages in Hong Kong rose in 2017, after previously hitting a five-year low in 2016. The value of a typical expat pay package in Hong Kong is now US$268,514.

In contrast, the average pay package of expats in China has dropped by around US$6,000, to US$276,387, as the gap continues to narrow between expats in Hong Kong and those on the mainland.