2008 Foreign Sourced Employees Compensation & Benefits Survey - Asia Pacific

Transcription

1 2008 Foreign Sourced Employees Compensation & Benefits Survey - Asia Pacific Table of Contents Executive Summary... 1 About this survey 3 Section 1: International Assignees (IA)... 7 Section 2: Third Country Nationals (TCN) Section 3: Locally Sourced Foreign Nationals (FN) Section 4: Localization and Localized Employees (LE) Glossary of Terms 69 Featured Items Most of these items are discussed more in detail within each of the four sections mentioned above: Base and Variable Pay Cash Allowances Taxation Housing Relocation Children s Education Transport/ Company Car Annual Leave (with Home Leave) Medical, Insurance and Retirement

2 About This Survey 11% 5% 35% American Asian European Nationality of Participants American and European companies dominate the participant list with some Asian and Australian also included. 32% Australian 16% Head Count Most companies have at least 1,000 people employed in the Asia 45% 40% 35% 30% 25% 20% 15% 10% 5% 0% 13% 10% 39% 13% 26% less than ,000 1,001-5,000 5,001-10,000 More than 10,000 Employee Distribution 2008/09 Employee Mobility Survey Report Asia Pacific 6

3 Figure 4 Cost of Living Allowance Policy Details % of Companies Providing COLA Policy Components Snr COLA Structure Applied only to portion of income that is considered spendable in host country A flat rate allowance For COLA applied only to a portion of income that is considered spendable in host country, what is the basis of computation? Base Salary Marital Status Family Size For COLA structured as a flat rate allowance, what is the basis of computation? Base Salary Marital Status Family Size According to the employee's home country COLA Payments commences Upon arrival in host country Upon moving into permanent accomodation Frequency of COLA Payments Monthly Weekly Review of COLA Policy Monthly Quarterly Semi-annually At the same time of reviewing base pay Review of COLA Policy for changes in Forex rates Monthly Quarterly Semi-annually Annually Maximum % change before adjustment is made Negative COLA Offset against other allowances Deduction made in payroll Only, if COLA index goes below X Source of COLA Index Use an outside provider Calculated in-house Gross up COLA for Tax Liability Cap as % of base salary to which COLA is applied - Fixed Amount - % of Annual Base 2008 FSE Survey IA Section 9

4 Hardship/ Location/ Quality of Living Allowance Figure 5 on the right details how companies structure their policies around Hardship Allowance. Similar to COLA, Hardship Allowance was also tracked as a % of Annual Base Salary relative to the respective Home and Host Location combinations featured in the Executive Summary. Figure 6 below details the available market data generated from the participants with respect to Hardship Allowance. Figure 5 Hardship/ Location/ Quality of Living Allowance Policy Details Provision of Hardship Allowance Gross up Hardship Allowance for Tax Liability Frequency of Review Every year 2 to 3 years % of Companies Providing Snr Over 3 years Figure 6 Hardship/ Location/ Quality of Living Allowance as % of Annual Base Salary Home country Developed Economies - Asia Developed Economies - Western Developing Economies - Asia Host country China Tier 1 cities China Other cities India Tier 1 cities India Other cities Other Developing Other Developing economies Tier 1 economies Tier 2 Middle East * Values above are taken from at least three (3) or more companies providing data for that specific location cluster. Figure 6A Hardship/Location Allowance By City City % of Companies Providing City % of Companies Providing Abu Dhabi Kolkata Bandar Seri Begawan Bangalore Bangkok Beijing China: second tier cities Colombo Dhaka Dubai Hanoi Ho Chi Minh City Hong Kong Jakarta Kuala Lumpur Melbourne Metro-Manila Mumbai New Delhi Seoul Shanghai Singapore Source: Expatriate Remuneration Surveys 2007 ECA International Ltd. Percentages above do not include companies who pay the hardship/location allowance and the foreign service premium together as a combined allowance. Sydney Taipei Tokyo 10 watsonwyatt.com

5 Foreign Service Premium/ Assignment Allowance Figure 7 on the right details the available information for FSP allowance policy while Figure 8 below displays available market data for FSP as % of base salary. Figure 7 Foreign Service Premium/ Assignment Allowance Policy Details Provision of Foreign Service Premium FSP Method of Payment Periodic One Time Payment FSP Quantum Structure As a flat percentage of base salary As a graded percentage of base salary As a variable percentage, depending on the location As a flat rate cash allowance % of Companies Providing Snr Figure 8 Foreign Service Premium/ Assignment Allowance as % of Annual Base Salary Host country Other developing Other developing Home country China Tier 1 cities China Other citiesindia Tier 1 cities India other cities Middle East economies Tier 1 economies Tier 2 Developed Economies - Asia Developed Economies - Western Developing Economies - Asia Figure 8A Foreign Service Premium By City * Values above are taken from at least three (3) or more companies providing data for that specific location cluster. City % of Companies Providing City % of Companies Providing Abu Dhabi Bandar Seri Begawan Bangalore Bangkok Beijing China: second tier cities Colombo Dhaka Dubai Hanoi Ho Chi Minh City Hong Kong Jakarta Kolkata Kuala Lumpur Melbourne Metro-Manila Mumbai New Delhi Seoul Shanghai Singapore Sydney Taipei Tokyo Source: Expatriate Remuneration Surveys 2007 ECA International Ltd. Percentages above do not include companies who pay the hardship/location allowance and the foreign service premium together as a combined allowance. 2008/09 Employee Mobility Survey Report Asia Pacific IA Section 11

6 Figure 13 Average Cost of Company Provided Housing City Bangalore Bangkok Beijing Dubai Ho Chi Minh City Hong Kong Jakarta Kuala Lumpur Manila Melbourne Mumbai Other Chinese cities Seoul Shanghai Singapore Sydney Taipei Tokyo Average Cost of Company Provided Housing (US$ Per Annum) Employee Level Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Snr Single/ Married w/o Children Married w/ 2 Chilren * Several cities/ locations are not included in the above table due to insufficient data. 2008/09 Employee Mobility Survey Report Asia Pacific IA Section 15