Relocation Pay Package?
 

Made it to second round interview with a manufacturing company.

They have not asked my current salary nor what I'm expecting.

I did not expect to pass and now I do not know what to expect if the issue of salary is brought up.

It would be quite easy for me to give an expected salary cos I know roughly how much I'm worth here. But the position is for a job permanently stationed in Dongguan (Guangdong, China).

I've only ever been on business trips that were at most 1.5 months long and I was compensating quite well. What kinda package will be the norm if I were to be relocated to Dongguan?

1. company to pay "social benefits" (Chinese tax) automatically? (as in, I do not need to worry about the sum nor the admin)
2. company to pay Chinese individual income tax automatically?
3. other relocation benefits? Typically what does this entail?
4. basic salary should be higher than a position not requiring relocation?

Please help.

Man... I would love if i got a job in Dongguan. KTV every friday and saturday night!

As you've shared this is a permanent position, it may very well be a "local" package (ie. paid in RMB, like a local) or at best a "local plus" (ie. paid in RMB like a local PLUS a housing allowance). Doesn't sound like an expat package - which could include more.

As such, whether you get tax equalization etc would depend very much on your negotiation with the company, what the company is used to paying for similar positions etc. Are expats a norm or rarity in the company etc. as this would set precedence for other roles in the company.

Thanks for the info.

The hiring manager called me from Dongguan for interview in which I tried to ask about housing which he said would be provided by the company. As for the pay package he said to discuss with HR.

Unfortunately, I do not know anyone in else in the company. What is the norm for "local plus" packages for Singaporean junior management staff to be relocated to China?

Anybody else has any advice/comments?

I understand I will have to consider the value of CPF contributions too since I intend to come back to Singapore (referenced from: Overseas Singaporean - Going Abroad)

Take the total package of your current salary in SGD and add 50% on top converted to RMB. This kind of hap hazard recruitment is definitely not expat and confirm local hire, which is a wild wild west market.

Anything <50% will all get eaten up by tax, relocation costs, home trip costs, forex fluctuation and additional spendings. Also make sure they house you in an upmarket condo, do not leave it to them vaguely like "company provided". Otherwise they will dump you in some crap neighbourhood sure die jilat jialat.

tax
 

Thanks for the comment.

So as not to lose out, I have done some research on the tax in China. It is somewhat more complex and not consistent throughout the country.

These 2 pages sum the calculation side of it quite nicely:
Individual Income Tax in China - JLJ
Employing Local Personnel in China - JLJ

Anyways, if the base pay is 50,000 RMB, the net take home works out to around 30,755 RMB after paying tax in China. I have yet to find out if Singapore has any bilateral agreement with China on "Social Benefit" exemption so I have taken the worst case situation of having to pay China tax.

This 30,755 RMB works out to S$6,276 based on rough exchange rate of 4.9 RMB to S$1 (should use smaller figure to be more conservative thou).

This S$6,276 is WITHOUT any CPF contribution. Meaning both the employer and employee contribution are given in net cash take-home pay.

This is equivalent to income from local employment with gross salary of $5,410 using 20% employee and 16% employee contribution rate.

So effectively, 50,000 RMB (S$10,204) base pay in China is equivalent to only S$5,410 base salary locally. In other words, the China local hire pay is inflated by 47%!

Also, you have no chance of seeing your "social benefit" contributions if you quit China within 15 years.

Food for thought for others who may also be considering a job offer in China. Just thought I would share since information is hard to piece together. Please correct me if any of the above assumptions etc are wrong.

Never take up a local pay package in China. You will not be able to survive there on a Singaporean life style. The cost of living especially in Tier 2 cities like Dongguan is actually as high as Singapore if you want to maintain certain living standards and spend on areas where the local affluent do..

Base on what I hear of a few PME friends who work in China for extensive period, either go in there as an expat or make sure the offer is at least CNY 1.2 million in total. Otherwise be prepare to downgrade living standards.

Thanks for chiming in.

I understand Dongguan isn't much cheaper than Singapore.

What does expat pay for a Singaporean mid level PME in China look like?

I'm trying to ask around on OSU but haven't yet figured out how to post on that (somewhat dead) forum.

Is this a small shop or a global name in the manufacturing industry? I can't speak for small shops but with global names they already have benchmarks set for local vs expat packages. If this were a true expat package, you would be paid in SGD, enjoy tax equalization, and various allowances (that depend on the company's internal policies). Again, this is a permanent position in Dongguan so it is unlikely to be a full expat package. It would likely be a local or local plus package, which means you get paid in RMB based on the company's compensation benchmarks for the role u are applying for. Allowances may or may not apply.

A typical MNC expat package to a smaller city like Dongguan will usually entail a 15-20% increment on the SGD basic package tax equalised and includes additional benefits like:

1) Cost of Living Allowance - 10-15% of basic salary
2) Car Allowance / Company Car / Chauffer
3) Hardship Allowance - 20-25% salary
4) International Medical Coverage so that all hospitalization in top private hospitals and outpatient clinic is free for you and family
5) 2 return trip tickets on business class every year for you and family
6) Tax consultation advisory
7) Company settles all local taxes
8) Housing or allowance in an upscale condominium for the whole family
9) Once off relocation bonus to set up your new home of about 1-2 months basic salary
10) Children's education school fee, school bus and miscellaneous CCAs reimbursable for overseas international schools
11) Country club membership
12) Cultural training
13) Air/ freight shipment of household items with insurance coverage
14) Continued CPF contributions in Singapore

Thanks.

I have a better idea what to expect now.

You better find out what exactly are they hiring you as. I seriously doubt they will offer anything more than 30% of what a local is earning in Donguan unless you are in the senior leadership team.

Yep. I will find out today. The worst that can happen is that they lowball me and I just move on to find another possible new employer.

But its strange that any company would want to do that especially when they know my current salary? How many people would willingly and knowingly take a pay cut and leave everything at home for a similar job in a place with somewhat lower general standards?

Found out its a pared down "expat package" minus the country club, school fees stuff, and one-off bonus. Have 3 return trips instead.

80% of salary in sgd and 20% in yuan. Is this common? Thought it makes some sense thou. CPF contributions, tax exemption etc.

By the way, its not with MNC.

How much is the pay increase?

are you from China?

dude read properly, dun b lazy

oops… thanks. :p

Average Singaporean grade from local uni and served 2yrs 4months in NS and quite badly disadvantaged...

Pay increase will have to wait till they offer. I didn't even put a expected salary when I filled up the form. Don't think they should have a problem with offering an okay package.

Anyways, I have some complications with my current company that I'm more worried about...... Realised its quite hard to get out of a rut after making a few bad choices at work in a row.

Depends on how much you are earning.