Singapore expats take home higher pay than HK expats

According to the Expatriate Market Pay survey issued by ECA International, Singapore expats are enjoying a higher take-home salary compared to their Hong Kong counterparts. The survey has ranked the salary of Singapore expats 5th in Asia while the net salary of Hong Kong expats 10th in Asia.

 

Analysis by GuideMeSingapore.com shows that there are two reasons for this. As discussed in one of our blogs on Singapore’s cost of living, higher salary in Singapore can be accounted for by the appreciation of the Singapore dollar and the depreciation of the HK dollar, which is pegged to the US dollar. Currently, the Singapore dollar has appreciated by 10% against the US dollar.

 

In addition, income taxation in Hong Kong, albeit one of the lowest in the world, is higher than Singapore’s. While non-residents in Singapore are taxed a flat 15%, Hong Kong has a progressive income tax system which ultimately is higher than Singapore’s. For example, if an expat were to earn above HK$120,001 (approximately S$19,376) he or she is expected to pay an income tax rate of 17%. If he or she were to relocate to Singapore, a 2% lower income tax applies with the same net salary.

To read the full article, please visit: http://www.guidemesingapore.com/blog-post/singapore-relocation/spore-expats-take-home-higher-pay-than-hk-expats