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Which is the most expensive country to send overseas workers?

Posted on September 8, 2021

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As per the recent survey, Japan is the most expensive place to send overseas employees to work. It has overtaken the U.K., which used to be on top in the previous times.

The average package in Japan for immigrants ranges from $405,685, which is more than any other international business hub, as per “MyExpatriate Market Pay” survey by data company ECA International.

The U.K. has dropped from the top spot to the second most expensive location to send overseas employees in 2020. The other countries that ranked high on the overall cost list were India, China, and Hong Kong.

The top 5 most expensive places to employ expats

Country	Salary (USD)	Benefits (USD)	Tax (USD)
Japan	86371	143354	175960
United Kingdom	73130	155166	176109
India	79629	72236	166731
China	79249	105109	101446
Hong Kong	88392	156884	34124

Countries like France, the United States, Switzerland, Argentina and Taiwan were ranked under top 10 in the list.

ECA International’s regional director, Lee Quane, said the uptick in Japan was due primarily to currency fluctuations, with the Japanese yen remaining steady relative to the U.S. dollar last year. “There was also some inflation in other areas of the compensation and benefits package,” he added. “For example, unlike many other locations in Asia, housing costs rose moderately in Tokyo in 2020 versus 2019. This contributed to higher benefits costs, and consequently, led to higher overall costs.”

The annual study aims to assist the organizations looking to relocate staff by standardizing their packages besides the market. Employers who provide cash salaries compensate expat workers with benefits like:

Accommodation
School fees and
Transportation

While in 2021, the overall cost of employing expat workers has dropped down because of the pandemic and related travel restrictions. All these factors lowered demand, and therefore they are availing costs of accommodation and other benefits.

“The cost of employing an expatriate in Hong Kong was lower in 2020 than in previous years, but this was indicative of a much larger global trend. While salaries for expatriates in Hong Kong rose by less than 1%, employers were able to benefit from lower accommodation costs, and reduce the amount of financial support provided for housing compared to previous year,” said Quane.

Countries like Taiwan, Canada, and Morocco were listed in the top 20 in 2020, as the overall packages of the expat packages rose because of a pandemic.

“The cost of employing a mid-level expatriate in Taiwan increased by $10,733 last year,” said Quane, noting the island’s strong response to the pandemic boosted house prices. “Consequently, Taiwan has leapfrogged nations such as South Korea and Australia in our rankings, and is now the tenth most expensive location to employ expatriate staff.”

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