Thai expats see incomes soar

[snoop1130]

Thai expats see incomes soar

By The Nation

 

 

The pay and benefits packages of expatriates in Thailand saw a major increase, with the overall package of an average overseas worker increasing by US$27,917 year on year, according to a new survey.

 

Lee Quane of ECA International said the MyExpatriate Market Pay report reflected Thai economic growth

.

He said: “The Thai economy has continued to see an upward trend in recent years, with a steady and sustained increase in overseas business – and consequently, expatriate workers – to the nation." 

 

“In the strengthened demand for expatriate-standard accommodation has, in turn, resulted in higher wages and benefits as increasing numbers of higher-skilled employees move to Thailand.” 

 

Elsewhere in Asia, expatriate pay packages in Singapore rose by US$13,163 in 2018 to US$236,258, including an average cash salary of US$90,170. 

 

When considering the cost of an expatriate package, companies need to factor in three main elements: the cash salary, benefits – such as accommodation, international schools, utilities or cars – and tax. 

 

To assist companies relocating staff with benchmarking their packages against the market, ECA conducts its annual MyExpatriate Market Pay Survey of pay levels for expatriates, including benefits, allowances, salary calculation methods and tax treatment.

 

“Expatriate pay packages in Singapore increased across the board in 2018, with salaries increasing by nearly US$5,000 and benefits going up by US$6,400 on average,” said Quane. “However, with minimal increases in personal tax and extremely low tax-related costs as compared to most of the other locations in our rankings, Singapore sits at the 19th position globally. This is good news for companies with employees currently living in Singapore, as the relatively high cash salary and benefits and low taxes result in less expense for employers when relocating staff to the country.” 

 

Hong Kong’s expatriate pay packages continued to grow in 2018, with the average package costing companies US$276,417, including an average salary of US$86,984. The overall expatriate pay package in Hong Kong has risen by US$7,902 since last year, with increases to salaries and benefits making up the vast majority of the rise. 

 

Quane said: “After a slight drop in the average expatriate salary in 2017, the overall pay package in Hong Kong increased significantly in 2018. Salaries rose slightly by an average of just over US$1,500 while benefits, including additional expenses on top of the basic salary such as school fees or transportation costs, increased by over US$6,000. The benefits offered as part of an expat’s pay package have always been high in Hong Kong as the small nation continues to be attractive to companies and expatriates alike. Such high costs in expatriate-level accommodation, education in international schools and other expenses result in Hong Kong being significantly more expensive than most other locations.”

 

Meanwhile, Japan is no longer the most expensive location in the world to send expatriates, after being overtaken in the rankings by the United Kingdom.

 

“Despite an increase of over US$30,000 to the average expatriate pay package from 2017, Japan has dropped back into second place in our rankings after overtaking the UK in 2017. Although sending a mid-level overseas employee to Japan would now amount to US$386,451, the cost is still US$35,347 behind the total cost of sending an expatriate to the UK. 

 

"Although the overall cost of the pay package for an expatriate in Japan increased by an average of 8.5 per cent in 2018, Japan would most likely have remained at the top of the rankings if not for the significant rise in accommodation costs in the UK last year,” added Quane.

 

The pay and benefits package of an expatriate living and working in China saw a significant rebound last year, after falling in 2017. The average package is now valued at US$310,204 – an increase of over US$33,000. This pushes China up one place in the rankings to the third position.

 

Quane said: “Expatriates in China have seen a big jump after a bad year in 2017, which saw the value of the average package drop in all areas. The Chinese yuan experienced a better year in 2018 due to a stronger economy and currency, and has resulted in a considerable improvement in the pay package for overseas workers in China.”

 

Source: http://www.nationmultimedia.com/detail/breakingnews/30369903

 

-- © Copyright The Nation 2019-05-23

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[Pravda]

Oh dear....this is gonna hit some nerve.

 

 

[faraday]

Right, I'll be pming Crossy for loan.

 

[DrTuner]

So nobody wants to come here unless there's a hefty premium given.

[impulse]

I suspect it's not a matter of expat incomes soaring. 

 

It's more a function of lower tier expat jobs disappearing in Thailand.  Those left are generally the ones at the top, making more money.

 

[kkerry]

So, this is who still buys good wine in Thailand... ????

[bomber]

i think the Brits will disagree ????

[mecool]

So the average expat salary increased by about 11-12% in USD terms year over year.

 

I wonder how many percentage the USD devalued against the THB over the same period.

 

Any guesses ?

[HeyHeyHey]

Wait, an average mid level expat manager is raking 7.6 million THB a year in Thailand?

 

Where is the application form? I may reconsider working again.

[DrTuner]

15 minutes ago, HeyHeyHey said:

Wait, an average mid level expat manager is raking 7.6 million THB a year in Thailand?

 

Where is the application form? I may reconsider working again.

These are the "packaged" expats that come for a few years max from other countries to execute some job that can't be locally sourced. Multinationals mostly, you need to be in one and up the corporate ladder before you can dream of being sent out with full package.

[impulse]

4 minutes ago, DrTuner said:

20 minutes ago, HeyHeyHey said:

Wait, an average mid level expat manager is raking 7.6 million THB a year in Thailand?

 

Where is the application form? I may reconsider working again.

These are the "packaged" expats that come for a few years max from other countries to execute some job that can't be locally sourced. Multinationals mostly, you need to be in one and up the corporate ladder before you can dream of being sent out with full package.

 

And keep in mind that "package" is about 1/3-1/2 salary, with the rest being the other costs of sending someone abroad, like taxes, housing, insurance(s), driver with car (because a lot of expats aren't even allowed to drive), kid's int'l school, semi-annual family trips home, etc.

 

It's still lucrative, but nearly not as much as the top line number sounds.

 

[Traubert]

46 minutes ago, impulse said:

 

And keep in mind that "package" is about 1/3-1/2 salary, with the rest being the other costs of sending someone abroad, like taxes, housing, insurance(s), driver with car (because a lot of expats aren't even allowed to drive), kid's int'l school, semi-annual family trips home, etc.

 

It's still lucrative, but nearly not as much as the top line number sounds.

 

But those are all paid for so it's true value. And it's nowhere near your fractions ( the modern world uses percentages, by the way). The true percentage of salary, cash money, in the bank is more like 80%. The other 20% goes to pension AVC's to avoid any taxation.

 

However much you don't want to believe it.

 

 

[impulse]

20 minutes ago, Traubert said:

But those are all paid for so it's true value. And it's nowhere near your fractions ( the modern world uses percentages, by the way). The true percentage of salary, cash money, in the bank is more like 80%. The other 20% goes to pension AVC's to avoid any taxation.

 

However much you don't want to believe it.

 

Did you even look at the graphs?  Or read the text?

 

Hong Kong’s expatriate pay packages continued to grow in 2018, with the average package costing companies US$276,417, including an average salary of US$86,984.

 

What's $87K out of a total $276K?   I get 31%...  Just about 1/3.  

 

Oh, and I asked my consulting engineer if it's okay to use fractions in today's modern world, and he said that most people understand fractions just fine.  I'm that consulting engineer, BTW- for the past 30 years.

 

Edited May 23, 2019 by impulse

[spidermike007]

I just do not buy these numbers. An increase of 11% in salary? Who is seeing those kinds of increases? Certainly not with American companies where the increases are closer to 2-3% annually. In the US wages have barely kept up with inflation. 

[elgenon]

Wow! I've got to start working.

[WeekendRaider]

this is why we need to "always be in".   invested.   especially in local currencies if a good chunk of our pensions are dollar based.  

even in a recession, already quite likely in Japan right now.   Thailand, Philippines. 

not just places to spend money anymore at all.  since 1997, and still true whether it's a good risk or not. 

Edited May 24, 2019 by WeekendRaider

[LazySlipper]

Damn... I must be in the wrong trade.

 

Teacher salaries averaging 30,000-50,000bht a month...

[Deerculler]

What planet is he from?

[toenail]

The article doesn’t mention the high tax base the expats have to pay (depending on income bracket) with nothing in return. 

[impulse]

1 hour ago, spidermike007 said:

I just do not buy these numbers. An increase of 11% in salary? Who is seeing those kinds of increases? Certainly not with American companies where the increases are closer to 2-3% annually. In the US wages have barely kept up with inflation. 

 

The salaries aren't going up by 11%.  They're cutting back on the number of expat assignments.  The expat jobs that they're cutting are on the lower end of the scale. 

 

In Thailand, the government is pushing toward more local hires and fewer foreigners.  (At least that's what they were doing in my sector- oil and gas).  They're making it harder to send lower salaried expat employees, but they still need the high skill levels.  Those jobs pay more.

 

That skews the averages.

 

[Peterw42]

5 minutes ago, toenail said:

The article doesn’t mention the high tax base the expats have to pay (depending on income bracket) with nothing in return. 

The highest rate is 35% and that kicks in at $150,000 US. Not that high compared to other countries.

 

There are also tax rates to do with companies setting up a head/regional office and expat employees pay a flat 15% tax rate.

 

[barnsleyman]

Hi everyone,I came to live in Pattaya 11 years & 3 Months ago, It's interesting where they get their facts from.

I am English,and I live on my Retirement State Pension & an Industrial Pension & my State pension was "Frozen" at the rate when I received it 6 years ago, but I do receive a small pay rise in my Industrial pension.

When I came here to live, the Exchange rate was 65 Baht for 1 English Pound,  now today it's 40.4 Baht to 1 English Pound.

A drop of about 36% in my Income 

[Emdog]

Maybe someone can  explain to me why tax is in the same bar as salary and benefits. Seems to my simple mind that tax would be taken from salary and benefits, so bar should be lower, not higher. "Hey honey, they increased my taxes this year, so when you add my salary and benefit, we're raking it in"

[CanterbrigianBangkoker]

I'm calling bullshit on this article. Wages have not kept up with inflation anywhere in the West and the foreign exchnage rate between GBP/USD/EUR/AUD/CAD/NZD and the THB has weakened year on year over the last decade. I'm also not aware of an in-built 'cost of living' increase in salaries in Thailand, for most company employees anyway, I've never received one nor anyone I know.

 

I'd bet these numbers represent the upper 10% of salaried positions - for these figures to be the 'average'.

 

Edited May 24, 2019 by CanterbrigianBangkoker

[DLock]

30 minutes ago, impulse said:

 

The salaries aren't going up by 11%.  They're cutting back on the number of expat assignments.  The expat jobs that they're cutting are on the lower end of the scale. 

 

In Thailand, the government is pushing toward more local hires and fewer foreigners.  (At least that's what they were doing in my sector- oil and gas).  They're making it harder to send lower salaried expat employees, but they still need the high skill levels.  Those jobs pay more.

 

That skews the averages.

 

I agree with impulse.

 

Thai's have been slowly getting educated overseas and coming back with a good education, good English skills and a Western perspective. They climb the ladder into the lower/mid roles that would normally have been expat roles, lessening the need for expats at lower levels.

 

Now the only true full expat packages are at the top level, and this graph reflects the average. It's entirely believable...but they are fewer and fewer jobs at this level.

[BritManToo]

22 minutes ago, barnsleyman said:

& my State pension was "Frozen" at the rate when I received it 6 years ago,

Off topic, why'd you tell anyone where you were going, none of their business.

[Thingamabob]

Very dodgy numbers. Take home pay after tax and non-deductable expenses is what really counts. (From a 30 year expat working for a multi-national).

[mok199]

The spin starts here..

[BigC]

Now expats have to decalar salary of 50k per month  even of they  dont earn it and pay tax on it.

 

Then  employ  Thai  staff even if they  dont need to and l

Pay their  social security 

 

So if check via looking  at tax records  then it seems as if  expats ate making money but for real they  are making less 

 

Unless  they are talking  about  thai expats

 

That  can work overseas with  the baht being  weak and come  back  with  more  baht

[justin case]

did thai immigration get this fake report from some elite and then thought, let's milk those rich farangs a bit more with useless SCAM insurance (the 40k outpatient scandal)