TAIPEI: The nation dropped a place to 12th in the latest ranking of expatriate pay packages in the Asia-Pacific region, a survey by consulting firm ECA International showed.
In contrast, China rose to fourth, overtaking Hong Kong, the survey released on Thursday found.
The cost of expatriate salary packages in Taiwan is among the lowest in the region, with an average total expatriate pay package for middle managers of about US$234,000 per year, the survey found.
“Expatriate packages are lower in Taiwan than in some of the region’s other, more developed economies, thanks largely to accommodation and international schooling being cheaper,” ECA International Asian regional director Lee Quane said.
“The cost to companies of providing the benefits element of the package is almost half as high in Taiwan as in Hong Kong, for example,” Quane said.
“This is a plus in terms of attracting businesses looking to set up in the region,” Quane added.
In comparison, Japan is home to Asia’s highest expatriate packages, with an average for an expatriate middle manager of US$375,000.
Although the total package for an expatriate middle manager in China is more than US$276,000 on average, not all Chinese cities require such high packages, he said.
“The cost of benefits provision in tier-two locations is still much lower than in tier-one cities and if those cities alone were to be taken into account, China would appear toward the bottom of the regional rankings above only Malaysia and Pakistan — and two spots lower than Taiwan,” he said.
When considering the cost of an expatriate package, companies factor in three main elements: salary, benefits — such as accommodation, international school tuition fees, utilities and cars — and tax, ECA International said.
More than 320 companies took part in the latest survey, covering 167 countries more than over 10,000 international assignees, ECA said.
