If you're being offered an international assignment there are often many issues involved in making the decision to move or stay. As a result, they are more likely to have already come across your name. What you will find is that the first move from the UK is the most challenging negotiation. 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. Putting you in a stronger position when negotiating your expat package and build towards FIRE. 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. Rents have subsequently reduced so I’d expect this to become more rare. For instance shares or options can be taxed at the point of grant, vesting or exercise. 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. In the negotiation, choose your battles. Expat sites generally include forums, blogs, job openings, and advice columns. 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. Perhaps the most important aspect of negotiating the best expat package you can is to wait for the right time. Be top of your game – the #1 driver for negotiating your expat package. Ltd. accepts or assumes responsibility, or has any liability, to any person in respect of this article. 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. We consider the expat salary package to be the ongoing benefits associated with an expat assignment. does become higher. You have a better chance of landing a lucrative expat package if you are being transferred abroad by your current job. This will help you navigate the tax intricacies and regulations in your new country (as well as the country you are leaving). For further information on the difference see here. So hopefully some food for thought when negotiating an expat package. As a result they may offer to fund one month’s accommodation to help you settle. But don’t give up just yet. 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. 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 . I most recently asked 25 families for their personal benefits. Consequently you may need more tests or want additional second opinions that can get costly. If you're being offered an international assignment there are often many issues involved in making the decision to move or stay. I’ve had a great experience in one country with insurance being very comprehensive and never needing to worry. Or if not… it’s likely someone in their network will be able to endorse you. Our Singapore Property Classifieds provide one stop property search for apartment, condo or house for rent or sale in Singapore. International Health Care, Housing Allowance, and flights back home have been the most mentioned items on the list. Expat Package in Singapore. Asia, in particular, has enjoyed a robust recovery and continues to attract expats from all over. 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. Of course there are other more important factors but hopefully this gives you a steer. The post also features some of the nitty gritty elements to include when negotiating your expat package. When you are looking for roles abroad then identify the decision-makers or people in positions of influence. And if not offered then I would recommend that you engage privately with an accountant that can help give clarity. The above can be complex and taking tax advice is recommended. Equally important are mentors – less visible to others but give a neutral source of advice and perspective. Moving Abroad: Expat Career Issues . Are expat packages available to cover the cost of living in Singapore? A typical expat package will often include travel costs for you and your family to visit loved ones back home. A differentiated experience plus demonstrated success will amplify your value and uniqueness further. That first month is critical when you are at your most vulnerable. Examples include estate agent fees, clothes for a different climate etc. There is a lot of flexibility to an expat package and the HR may be able to work out a mix that fits both parties. 1. This is still available in some countries, particularly in the Middle East, including Dubai. Some companies can get you an exception to remain part of the home country plan if your move is temporary. There’s an important differentiation between the two. In the Locations section of this site I’ve cited some popular destinations for pre-FI geoarbitage. Expat saving rate comparison: How much cash …, 7 ways to strengthen your Financial Independence plan …, COVID-19 & Expat Financial Independence: The Good, The …. These are a great place to start you’re research. One other important consideration is if you are given equities or shares by your company as part of a long-term incentive program. 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 … And note this takes months or even years to build so don’t see it as a quick fix exercise to secure a move. Whilst it still gives you the ability to access it should you need it. Then map out the sponsors and mentors that could support your expat move. Your email address will not be published. You will stand out and the great thing is that once you get the first international experience under your belt this uniqueness snowballs. 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”. A very important (albeit less glamorous) one not to overlook. 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. 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. Particularly if it’s pegged to another currency so that you’re aware of the factors at play. Even if they can’t change the actual insurance offered it may be used as leverage in the overall package conversation. Perhaps the most important aspect of negotiating the best expat package you can is to wait for the right time. Sponsors will actively put their ‘name’ behind visibly supporting you to senior management. Negotiating Your Expat Benefits Package. Moving from a low tax foreign country often provides room for negotiation in order to improve your net position. Many talk of the ‘expat package’ days being long gone. Achim Heuser provides practical advice about negotiating your expat salary, benefits, housing allowance, tax … Transport. You can go external and job hop your way to a higher salary. Notify me of follow-up comments by email. 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. We live a comfortable life in the uk. It’s important that you have a good track record in terms of performance. Economist Intelligence Unit (EIU). This may all sound like a lot of work but it’s invaluable, especially in the corporate world. The total cost of expatriate pay packages in Singapore for Middle Managers has fallen to a five-year low in USD terms. And then the final word would be it’s not all about financials. Rent out your property to take advantage of the £12.5k tax free allowance (UK only!). Will you be able to afford to relocate yourself, your family and all of your worldly good after your stint in Singapore? The exception here would be if your company sends you on an ‘assignment’ which has a fixed time period. Spending time on the fundamentals will increase the chances of a successful move. Otherwise it’s likely you will get something wrong, spend lots of time trying to understand it or in most cases both! 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. Family Medical Insurance, 1 Home flight for 4 pax per year, Accommodations, Handphone bills, Utility bills, Children school fees, others, etc. Here are five ways for employees to ensure their expatriate package serves as a career bolster — and not a major disruption. If you’re relatively senior in a corporate company it can be linked to shares and performance vs just cash. You can look at it as a way of either paying off your mortgage early. International school fees can be astronomical. It may be on arrival (like a golden handshake) or can follow to subsequent years pending negotiation. In some cases a return flight home annually may also be negotiated. 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. 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. Negotiate Smart But it’s important to be proactive here and engage some support early on ensure a tax efficient life as an expat. 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. It’s important to have a mix of both. The second important relocation support would be a shipping allowance or furniture allowance when you arrive. 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? 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. If a living allowance is not offered then be more specific about a car/travel allowance. 2020/12/10. Sites like XE will give you up to a 10 year historical view on how the exchange rate has evolved for context. This will give you a blend of those close to the action & others far removed with a broader viewpoint. And finally, schools can be expensive so if moving with as a family be sure to include support here. This is often easier to secure after your first international assignment. It wasn’t seen as an attractive thing to be far from their home country, extended family and friends. allowances that aim to cover the costs of relocation and make the process smoother Given high tax rate payers will typically pay 40% tax on their hard earned bonuses. I’ve done two moves with Santa Fe and can’t fault them so far. And equally you want this to be a new experience and exciting opportunity. As keep in mind that you need 35 years of contributions to be eligible. This, along with the ever-present wealth of the Arab Emirates, means that a large portion of Western expats continue to flock eastwards. One of the most important issues for any person or family that is sent abroad by their company is the expat relocation package. Don’t get too obsessed or ‘stuck’ on the above. Currencies always swing a few percent both ways but anything more major should be incorporated into the negotiation for your expat package. Or even subsidizing your accommodation costs abroad. 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. As it’s deemed as temporary they may cover your accommodation. Rent Singapore property, apartment or house has never been easier. If you have decided to relocate abroad, negotiating a good expat package is an important part of the process. Family Medical Insurance, 1 Home flight for 4 pax per year, Accommodations, Handphone bills, Utility bills, Children school fees, others, etc. This is due to rents being high and traditionally payment required in one annual cheque. Could you see yourself placing your child in the local schools if you can’t afford the private institutions? 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. “Localisation describes the company's practice of replacing an expat compensation package with something comparable to that offered to locals. 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. But the downside is that you lose the flexibility of being able to define the duration in that country. It may still be worth you voluntarily contributing to the state pension. There are however benefits that are more common than others. Plus temporary accommodation in your home country if you are vacating your house early as a result of the move. Spending time on the fundamentals will increase the chances of a successful move. This could cause real financial issues for you if you’d like to remain in Singapore. We consider the expat salary package to be the ongoing benefits associated with an expat assignment. 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. Typically, a car and driver are benefits reserved for expat packages, however in this instance it is an essential benefit to go about your daily life, rather than a simple nice to have. You will find most other countries have private healthcare (you’ll miss the NHS!). ... Singapore's Richest. 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. In some roles you will get the living allowance in the foreign country + UK income from your property. 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. Many organizations understand that you are taking the risk to move you (and family) across the world. It should not be regarded as a comprehensive statement of the law and practice in this area. Japan is home to Asia's most expensive expatriate packages. If you have received a firm job offer it’s important to take certain things into consideration about how you negotiate the terms of your contract. But bear in mind it can be more risky. Rentals are often included and it’s not unheard of for the allowances to cover dwellings costing several thousand dollars per month. I’m not recommending that you foresee how the currency markets are likely to change! 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. This will ensure that you remain eligible for any benefits or r… 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). Very important to negotiate this as part of your expat package as it will probably be a much higher net benefit in a low tax country. See the below as a guide to wringing the towel to maximize your salary and potential savings rate. Singapore Expats offers a one-stop residential Singapore property guide, renting procedure and information directory for expatriates living or relocating to Singapore.. For example, in Dubai you probably make an additional two thirds of the value versus the UK. Thinking of making a move? The benefits you get really do vary from employer to employer, and whether you get a full expat package. Getting Started. But in reality 5% actively pursue it. Particularly if someone in your family has health conditions likely to require additional medical support. It is so easy to get connected with other people from either your home country or international people. Pick the ones most important to you and focus there, with room to maneuver to the other variables if needed. The Law in Singapore on Single Mothers – Is ... Real Estate Investments in Southeast Asia: How Safe is Your Money? 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. They make sure they have the right person for the job and then the negotiation begins. Expat Package in Singapore. There are tons of events and get-togethers and you’ll meet expats from all over the world living in Singapore.” 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. I’ve done it as a one company man and it’s worked well for me. Singapore is a very attractive proposition for both companies and expatriates alike. 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. Question. As you know less people that can vouch for you the risk (alongside the reward!) See it more holistically and as a total expat package as opposed to driving a hard negotiation on each element. Borrowing from a moneylender – what you need to kn... Curveball Series: Sudden Death of Key Man, A Guide To Becoming A Singaporean Citizen. Extra Leave and Visits Home – Many expats consider regular visits home to see friends and family extremely important for staving off homesickness. So don’t get bogged down in whether you managed to negotiate a few extra thousand pounds into your contract. Temporary living should definitely be negotiated in your expat package to give you time to understand the new country. Bao Nguyen Yes, Vietnamese employers usually based on your experience! 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. However, Singapore still offers some of the highest expatriate salary and benefits packages in the region, with some of the lowest tax rates. You could ask your company if they can support you with support from an accountancy firm. Expat packages are one of the reasons that executives originally considered taking positions overseas. Things have changed since the global recession, with international markets stabilising to differing extents. And in due course pave the way to financial independence retire early (FIRE). Expat salary packages are designed to cover the expenses of staff who move their families abroad, as well as providing compensation for the associated hardship. Some employers will negotiate with you on the bills. It’s important to be aware of broader political and economical influences that could impact your salary over time. If you require any advice or information, please speak to practicing lawyer in your jurisdiction. That includes acing performance reviews, being on your company’s talent list & working on high visibility projects. Your email address will not be published. These often have a vesting period and different countries have different regulations. How to Negotiate for a Better Expat Package. 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. It’s also less of an area for negotiation in an expat package as usually this will be a company defined policy for all employees. This is similar to the UK but often more lucrative given the lower tax rate. 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. You don’t want to aggravate your new employer. When considering an expat package offer, one thing to keep in mind is this: you want to ensure that the compensation will allow you to have the same, or better, quality of life than you would at home. 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. 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