Probably, but not as much as you might pay in Hong Kong or Tokyo as an expat!
If you are moving talent to Asia, you've likely realized what the recent Mercer Cost of Living survey revealed that Asian cities are some of the most expensive in the world. Six of the top 10 most expensive expatriate destination cities are now located in Asia.
Hong Kong topped the list, but not so much because of a drastic increase in cost, but rather due to Luanda’s drop in the ranking due to the weakening of its local currency.
The rankings are impacted by a variety of factors like instability of housing markets, level of inflation and fluctuation in the costs of goods and services as it relates to supporting international assignees. A cost of living allowance, also known as a goods and services differential, is an adjustment of pay to cover the cost of inflation/deflation impacting expenses such as rent, food, gas and clothing while the expatriates are on assignment in the host location. The main purpose of these allowances is to maintain the same level of purchasing power for the employee while they are on assignment.
Chinese cities rose in the rankings due to several factors like monetary regulation, a booming economy and China's local currency the renminbi, or RMB going international. For more insights, check out the Mercer video summary. With China’s economy rising, we will likely see more China cities joining the list.
Mercer has released its 24th annual Cost of Living survey, which showed that Singapore has moved up one place from last year, as the fourth most expensive city for expatriate assignments, followed closely with other Asian cities such as Seoul (5th), Shanghai (7th), and Beijing (9th). “Across the board, currency fluctuations and inflation for goods and services drive up the cost of living in Asian cities. While Singapore has climbed up one notch in the cost of living rankings from the last year, this is balanced off with high salaries and a stable economy,”said Mercer’s global mobility practice leader. “While a mobile workforce allows organizations to achieve greater efficiency, utilize top talent, and be cost effective with international projects, volatile markets and slowing economic growth in many parts of the world require them to carefully assess expatriate remuneration packages.”