The Expat Package
What is it ?
In this postmodern era of cost cutting and bottom line watching, the expat package is becoming increasingly rare. Policies of localization are being instituted as the norm with “use it or lose it packages” a thing of the past. If, however, you are one of the lucky few being offered a full expat package, it should cover your major expenses and probably include the following:
The allowance will cover the cost of moving your household to your destination city. You are well advised to assess what type of accommodation you will be moving into, as the entire contents of your five bedroom house may not fit into your 2000 square foot apartment in Hong Kong.
Your initial reconnaissance trip as well as the cost of bringing your family over will be covered. You may even find that children’s airfares back and forth to boarding school may be covered.
Allowances for housing will vary depending upon your package. Some companies now favour the approach of paying a higher salary, from which, you will be expected to pay your own monthly rental. This allows you to choose what proportion of your income you would like to put towards your rent.
These may be borne in full by your company.
You may be assigned a company car and driver. Costs of your own car may be part of your package.
The major proportion of school fees will be borne by the company. Schools in Hong Kong sometimes require you to purchase a debenture which your compnay may cover for you. If your children are at boarding school abroad, your package may include their fees, as well as travel back and forth.
Medical and Dental Insurance
Company policies will cover all or almost all costs for you, your spouse and children.
A once yearly vacation back to your home country will be paid for by the company. Some companies allow you to take cash in lieu of the vacation.
The expense of shipping your belongings home will be borne by the company.
Last Updated: 5 March, 2004