In 2020, companies in Singapore forked out lesser to hire expatriate middle managers, with overall reduction in pay packages which include drop in benefits and salaries.
However, cash salaries for expatriates in Singapore remain the fifth highest globally, based on a survey published by data and knowledge provider ECA International on Wednesday (25 August).
It was reported that the average pay packages for a mid-level expatriate here in 2020 was US$225,171 (S$305,400), or about US$7,300 lower than in 2019.
This made Singapore to be the 17th most expensive location in the world for companies to send expatriates to.
However, according to data by the Ministry of Manpower (MOM), the median gross monthly income for full-time employed residents who work as Managers & Administrators in 2020 was only about S$10,000.
The average gross monthly income of full-time professionals in that year was about S$7,000.
Commenting on the leaner expatriate packages in Singapore, ECA’s regional director for Asia, Lee Quane, said that the decline is similar in other countries like Hong Kong and Thailand.
This was partly due to “lower costs of accommodation and other benefits” commonly given to white-collar expatriates, he said. But they are still earning about S$1,000 less in cash salary than their peers in 2019.
“Combined with its ranking as the location with the best quality of living globally (according to ECA’s location ratings), these trends serve to increase Singapore’s attractiveness to expatriates looking to move to the region,” said Mr Quane.
He added that Singapore will also become attractive to companies who want to set up a regional hub here, given the cheaper cost of hiring expats.
In Hong Kong, the value of expatriate packages dipped by over US$5,000 in 2020 to about US$280,000, despite a slight average salary increase of US$265.
“While salaries for expatriates in Hong Kong rose by less than 1 per cent, employers were able to benefit from lower accommodation costs and reduce the… financial support for housing compared with the previous year,” he said.
As for other countries in the region, the survey also revealed that there was a significant reduction in the cost of benefits for expatriates in Malaysia, with a drop close to US$2,000 on average. This was due to lower rents amid a lack of demand for expat accommodation because of COVID-19 pandemic and travel restrictions.
In Thailand, the media value of a pay and benefits package for foreign employees fell by close to US18, 000.
ECA’s MyExpatriate Market Pay survey includes information on benefits, allowances, salary calculation methods and tax treatments. It appraised over 300 companies across 160 countries in the later months of 2020.
Separately, human resource advisory firm PeopleWorldwide Consulting’s managing director, David Leong, pointed out that although basic salary would usually remain at about the same level, but he has seen housing allowance and support for children’s education be scrapped off in the past year.
“Overall pay packages for current expats see little contraction since they are subject to the Ministry of Manpower’s qualifications and if the package is reduced, it may affect their renewal chances,” he said.
He added that there has also been an increase in expatriates moving back to their home countries during the pandemic, and some of them face different terms of employment is they continued working here due to firms tightening their budget.
