Saudi Arabia pays highest salaries for expats in world, UK ranks as most expensive
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In a recent survey conducted by ECA International, Saudi Arabia has emerged as the ultimate destination for expatriates seeking generous compensation. The study, titled MyExpatriate Market Pay Survey, revealed that middle managers in Saudi Arabia enjoy an average annual salary of a staggering 83,763 pounds (Rs 88.64 lakh), making it the highest in the world.
Despite a marginal 3% decrease compared to the previous year, the Middle Eastern country continues to outshine other nations in terms of expat earnings.
The Middle East, in general, has proven to be a lucrative region for expatriate professionals due to the attractive salary packages offered as an incentive to encourage relocation.
Oliver Browne, the Remuneration and Policy Surveys Manager at ECA International, stated that while the Middle East may not rank at the top in overall expatriate rankings, the region's salaries are undeniably generous.
Saudi Arabia, in particular, stands out due to its favourable combination of higher salaries and lower personal tax, making the overall package costs more attractive for expats.
On the other side of the spectrum, the United Kingdom has been labelled the most expensive location globally to send employees. The average package for expatriates in the UK, including salary, tax, and benefits like accommodation, international schooling, and utilities, amounted to a staggering $441,608 (Rs 3.62 crore).
However, intriguingly, salary alone contributed to a mere 18% of the total package cost, with the bulk of the expense attributed to taxes and benefits.
The MyExpatriate Market Pay Survey also highlighted a widening pay gap between the UK and Japan. While Japan secured the second spot in the global rankings, the UK's costly tax and benefits system made it less attractive to expatriate professionals in comparison.
Surprisingly, despite a slight drop in real terms, Hong Kong rose three places in the rankings, securing its position as the fifth-most expensive location to send expatriate workers. Meanwhile, Singapore claimed the 16th spot, offering a more affordable expat experience compared to other top contenders.
The survey's global rankings saw Japan, India, and China occupying the second, third, and fourth spots, respectively, indicating that the Asia-Pacific region is a highly sought-after destination for expatriates.
