Linda Ho’s Blog

(Chicago) by Linda Ho

Updated post: June 26, 2009

From Chinadaily.com, “Expats in Asia Best Paid: Poll“,

Want the good life despite the dire economy? Head east, according to a survey showing some of the world’s highest-paid expatriates live in Asia and the Middle East.

A third of all expats in Russia – the highest proportion in the world – earn more than $250,000 a year, followed closely by expats in Japan and Qatar, according to the 2009 Expat Explorer survey, commissioned by HSBC Bank International, the offshore financial services arm of HSBC Holdings.Between a third and a quarter of foreigners working in Hong Kong, the United Arab Emirates, Thailand and India earned annual wages of more than $200,000, while countries such as Malaysia, China and India, were ranked among the cheapest for accommodation.

“Asia is home to the highest paid expats in the world, with one in four expats earning more than $200,000 per year,” said the survey.

Russia was ranked the number one country overall for expats in terms of wealth. The rest of the top nine were all in Asia and the Middle East.

But the global economic crisis has taken a heavy toll on expats in Britain and the United States, where close to a quarter are considering returning home, compared to just 15 percent overall, due to the high cost of living, lack of savings and lower wages.

Original post: August 5, 2008

After living in Suzhou for over two years, one of the frequent questions people ask me is: “How much can I make working in China?” The following information may give you some insights to your present career, both at your home country and your host country.

Expat Salaries in China

According to the Hewitt’s Expatriate (2007-12-05 Shanghai), China Hire and Returnee Compensation and Benefits Study 2007 conducted by Hewitt Associates, a global human resources services company (NYSE: HEW), the study revealed that

55% of participating organizations plan to increase the number of expatriates they employ in 2008, up from 53% last year.

The study also showed that Western expatriates are no longer the largest expatriate group in China, representing only 21.4 % of all expatriates this year, compared with 24.8% and 30.7% in 2006 and in 2005. Instead companies are increasingly recruiting China-hired foreigners and PRC returnees. The former represents 41.3% of all expatriates today.

According to Suzhou News, Shortage of Talent Pushes up Salaries in China (July 19, 2008),

Employers on the Chinese mainland are facing the highest salary inflation in Asia due to the country’s rising demand for professionals, according to a human resources report released in Shanghai Thursday. Hudson Recruitment, a Nasdaq-listed headhunting firm, asked more than 2,600 multinational organizations on the Chinese mainland, Hong Kong, Japan and Singapore about their hiring intentions over the next three months.� Of the 708 respondents from the mainland, only 8 percent of employers said they could negotiate lower salaries for new managerial hires, the lowest proportion in Asia. In Singapore, about 10 percent said they were able to negotiate. The figure was 11 percent in Japan and 13 percent in Hong Kong.� read more (link may not work)

Local Salaries in China

Here is a salary survey for Chinese new graduates in Suzhou for 2007 (Suzhou News , English edition, July 21, 2008). (rmb per month)

Salary Survey Reports by PayScale.com:

• Beijing
• Quangzhou
• Nanjing
• Shanghai
• Shenzhen
• Suzhou

Teacher Salaries in China

Example: Teacher Salary at International School in Shanghai

Obviously, there is a huge gap between an expat salary and a local salary. The reason is simple: “Supply and Demand” If the expat’s skill inventory is in demand in China, he will be offered an attractive, competitive expat package more than what he would have made in his home country.

International Salaries

• PayScale.com (free PayScale Salary Report – find out what you are worth in the domestic and international markets)
• International Salary Calculator (Tools from SalaryExpert.com)
• International Cost of Living Calculator (Tools from SalaryExpert.com)

China Work Visa (Z)
More on China Work Visa (Z)

U.S. Employees in America

• Want to find out what everybody is making in your company? (U.S. only) Visit salary.com
• Employers boost 401(k)s to meet workers’ demand (CNN Money, August 11, 2008)

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