The International Schools Review Forum

Dear All,

Have just received this offer for Hong Kong and was wondering if a family of three, dependant not working with a young child, is do-able. Of course the question of air quality and quality of life for a young family up for discussion. Thanks again for your thoughts and opinions.

Salary.
Annual gross base salary of HK$ 514,890 paid to you in twelve (12) equal monthly instalments
of HK$ 42,907 each. This is subject to normal statutory deductions for salary under Hong
Kong law. You are responsible for paying your salaries tax.

Gratuity Bonus
You will be entitled to 20% of annual gross base salary as gratuity bonus upon completion of the
2-year contract. If the contract is terminated by either . prior to the contract end date, no
gratuity bonus will be payable.

Relocation Allowance
The school will pay for your shipment of personal belongings up to a maximum of HK$ 15,000
on a one-off basis. This will be paid against invoices upon your arrival.

Housing Allowance
One month’s temporary accommodation will be provided by the school whilst you look for a
permanent residence in Hong Kong. The school will provide you with a housing allowance up to a maximum of HK$ 18,000 per month which is subject to local tax. You will be responsible for signing your own tenancy agreement
as well as paying for the initial deposit and monthly utilities of your permanent residence in Hong Kong.

Mandatory Provident Fund
Unless exempted (or to the extent you are exempted), you will be statutorily obliged to join the
Hong Kong SAR Mandatory Provident Fund Scheme (MPF) upon completion of 60 calendar days
of service, details of which will be provided to you separately.

Airfare
At the beginning and end of your employment contract, you and your eligible dependents
(subject to double benefits rule) will be entitled to a single economy trip air ticket between your
home destination and Hong Kong. Such air ticket should be booked by the school. In the middle of your contract, you and your eligible dependents (subject to double benefits rule) will be entitled to one return economy class air ticket from Hong Kong to your home destination up to a maximum of HK$ 13,000 for adult.

Child School Place
The school will waive 80% of tuition fees for your child up to a maximum of 2 children at the School provided that there are places available.

Medical Insurance
You and your eligible dependents (subject to double benefits rule) will be provided with
worldwide medical insurance, under the group healthcare scheme, except for the US and
Canada.

Well the comp is about average. Your tax rate will be 17% (plus the retirement program). The housing allowance is on the lite side, it will get you something livable by western standards but on the small side (if you want 2LDK in the CDB, you will have to go into your own coin, youll likely have to go into your own coin for utilities).
The issues are the tuition places, I would counter with 100% of tuition places for your one child, unless you dont envision yourself needing them (your child is too young, and your intention is to rotate out before you need the place/waiver) and a shopping as opposed to shipping allowance.
You could try for a slightly higher salary, but its right around what market is, what your really getting under sold is the housing benefit. You have to absorb all the renting and contracting costs and its enough to pay for a 1LDK in the CBD leaving you with all the utilities (which isnt huge), but after tax your housing benefit is about HKD$15K/mth, and you would need about double that for a nice western 2LDK in the CBD, assuming what you would get back in a return when you vacate the apartment/flat in deposits/securities. Your salary after tax is about HKD$35,613/mth, and you need to put in about HKD$10K/mth for a 2LDK in the CBD of your own coin which is about a third of your discretionary salary, but I dont see them improving the housing benefit. You would basically have to counter by asking for a 25% increase in gross salary to get that HKD$10K/mth, and thats a pretty big ask. Its a well to do offer for a single or by extrapolation a teaching couple.