Advice on Expat Package

Tags : property, business, travel, technology, nightlife, events, food, food, expat_services

Shanghai Expat Forum Index » City Living Forums » Relocation and Moving

Author

Message

newby

Newbie

Joined: June 18, 2006
Posts: 5

Status: Offline

Posted: June 18, 2006 - 02:07 PM
Post subject: Advice on Expat Package

We have been asked to come up with an expat package proposal. I have found this forum to be very helpful. Would someone please comment on the following items of the package and whether they are "market" these days in Shanghai. A bit about the company. It is an American mid-size multinational with annual revenue of about $600 mil. I will assume the managerial role in establishing a new/small Shanghai office. This is our "wish list" and we realize we will probably not get everything we ask for, but it's the start of our negotiating position.

1. Housing allowance - US$5,000 per month
2. Education allowance - US$20,000 per child (4 and 2)
3. Transportation allowance - US$1,500 per month
4. Trip home - $3,000 per person for 4 = $12,000 per year
5. Medical/dental allowance - no idea (HELP!)
6. Tax equalization
7. Furniture/appliance allowance - no idea (what's reasonable?)

We assume it's a given that the company will pay for shipping expenses (lower than what they would have been without item 7 because we assume we will not be moving our personal furniture and applicance) and our travel expenses to Shanghai.

THANKS MUCH!

YariGuy

LoopKicker

Joined: July 13, 2004
Posts: 877
Location: Puxi
Status: Offline

Posted: June 18, 2006 - 04:06 PM

Medical / Dental -- there are international insurance companies (like Aetna). I would just get them to buy you insurance (maybe also continue the insurance at home too so coverage doesn't lapse and you get stuck with some "pre-existing condition" clause when you return).

slackrz

Lurker

Joined: Aug 16, 2004
Posts: 31
Location: Xu Hui
Status: Offline

Posted: June 18, 2006 - 04:49 PM

American Chamber of Commerce (AmCham) Shanghai recently advertized a session on "Hewitt's 2006 Expatriate & Returnee Compensation and Benefits Study". This may be the request for info for the 2006 study but perhaps you can get the 2005 results.

For medical dental, we kept our US insurance and submit an International Claims form which is reimbursed to our US account. We additionally are covered by our company's plan that covers international business travelers. It recommends hospitals, follows emergency treatment, etc.

Furniture and appliances are often included in the rental amount. Also ask for Phillipino satellite and internet/wifi to be included as well.

Consider requesting language courses, gym membership (if not at your compound), R&R trip, cost of living allowance, certain utilities... When you say "Tax Equalization" I assume you mean they'll not only pay US taxes on your "extras" but also your Chinese taxes.

newby

Newbie

Joined: June 18, 2006
Posts: 5

Status: Offline

Posted: June 20, 2006 - 03:04 PM

By tax equalization I meant that at the end of the day my take-home would be at least the amount that I would have received had I remained in the U.S. Frankly I have not thought of U.S. taxes on the extras, but certainly inclusive of Chinese taxes which I understand are quite steep and kick in after a year or two of working in China full time. I understand marginal rate can be as high as 45% and expats earning U.S. equivalent salary are almost certain to reach the top bracket.

Thanks much for the AmCham info and insu. So you don't have a separate plan that covers specifically medical/dental care in China? Is there a time limit on keeping your U.S. policy? By that I mean once you have left the U.S. for an extended period of time for an overseas assignment, your insurance company still considers you as insurable? As for your company's plan on intl bus travelers, that also provides regular coverage irrespective of the fact that you are now living for an extended period of time overseas? (I never thought those options are available and will be checking into that.)