Feeds

Ex-pat IT pros have oversized packages

Japan and India pay more, but your wage may go further in developing nations

The essential guide to IT transformation

Ex-pat IT bosses working in Asia receive a gross pay package of more than $230,000 (£144,566) a year on average, but those fancying relocation may be better off financially if they head to less well-known parts of the region, according to new research from ECA International.

The consultancy, which helps firms manage international assignees, has released its latest MyExpatriate Market Pay Survey, revealing that Japan is home to Asia’s largest ex-pat packages with an average of $374,000 (£235,000).

Second came India with an average just shy of $300,000 (£188,569) followed by Korea and Hong Kong who both hit around the regional average.

However, headline pay rates can be deceiving, as ex-pat compensation packages typically combine take-home pay, benefits and sometimes extra adjustments for tax, according to ECA’s regional director for Asia, Lee Quane.

In Hong Kong, for example, a healthy package of around $230,000 may actually be eaten up by international school fees, accommodation and other costs to the point where the amount given to an employee in benefits outweighs their take-home pay.

Similarly, Japanese cities have some of the highest costs of living anywhere in the world.

Ex-pat IT professionals might instead find better financial incentives are offered to them in developing markets, Quane told The Reg.

“To a certain extent it’s about whether packages include allowances designed to incentivise you to go to a location. Hong Kong and Singapore don’t because they don’t feel they need to incentivise you,” he said.

“But places like India, Korea, Vietnam and Thailand include some kind of hardship allowance – a pure financial incentive which makes sure that person is better off.”

India, for example, has seen salary hikes of around 18 per cent over the past year, closely followed by Indonesia and Vietnam, ECA said.

Salaries aside, those locations may also offer more opportunities because local companies cannot rely on a well-trained local IT workforce to fill those senior roles, said Quane.

In any case, the fat cat packages of old are on their way out, with “home based” deals – where the individual is compensated so they are earning the same amount where they end up as they would have at home – generally rare these days.

More commonly ex-pats will be paid according to local market rates, with the potential of those added incentives in ‘developing’ locations.

“Just because you have a really high pay package in Japan doesn’t mean you’re better off,” Quane argued.

“It’s what you can buy with your salary that matters. You might not be much better off than someone in Cambodia.” ®

5 things you didn’t know about cloud backup

More from The Register

next story
Microsoft changes cert test providers, hints at fun new exams
If you really love taking tests with Prometric, do 'em before Christmas
Symantec security chap signs for CSIRO's ICT In Schools
Vulture South is closing in on our goal of 20 new recruits to help teachers and kids
A-level results: Before you smile at that jump-for-joy snap...
Uni-ditching teens are COMING FOR YOUR JOBS
How to promote CSIRO's ICT in Schools in your community
Vulture South is closing in on its target to find volunteers to help teach tech in schools
Everyone's an IoT expert but now there's a certificate to prove it
Cisco creates Certification of Things for industrial sensor-footlers
Facebook wants Linux networking as good as FreeBSD
Help The Social NetworkTM make the kernel better
LinkedIn settles missed overtime pay case: Will pay $6m to staffers
US Dept of Labor: It violated Fair Labor Standards Act
NICTA man explains why he volunteers for CSIRO's ICT in Schools
'I feel fantastic after the sessions - It's the best part of my job' says volunteer
The Register is HIRING technology hacks for the WORLD
Live on Earth? Want to be a Vulture? Enquire within
prev story

Whitepapers

Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Endpoint data privacy in the cloud is easier than you think
Innovations in encryption and storage resolve issues of data privacy and key requirements for companies to look for in a solution.
Why cloud backup?
Combining the latest advancements in disk-based backup with secure, integrated, cloud technologies offer organizations fast and assured recovery of their critical enterprise data.
Consolidation: The Foundation for IT Business Transformation
In this whitepaper learn how effective consolidation of IT and business resources can enable multiple, meaningful business benefits.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?