Ireland is now one of the top 20 most expensive locations to send expatriate workers, according to a new global survey.
ECA’s annual MyExpatriate Market Pay report surveys the cost of benefits, salaries and tax treatments in countries around the world in order to assist companies with benchmarking their expatriate packages when relocating staff. Benefits include the allowance to cover essential costs such as accommodation, international school fees, utilities or cars.
The UK has overtaken Japan as the most expensive location to send expatriates, with the average expat pay package rising by £44,688 to £311,240, according to the survey.
Oliver Browne, Remuneration Manager at ECA International, said the tight Dublin rental market had contributed significantly to the costs.
“Similar to the trend we saw in the UK, benefits costs have increased notably due to the rise in accommodation and rental fees,” he said.
“Expats in Ireland are more expensive for companies despite average net salaries for expatriates actually dropping by two per cent (€965) since last year. This was more than offset by an average rise of 14 per cent (€8820) in the cost of benefit provisions that companies had to provide their overseas staff,” Browne explained.
ECA’s recent rental accommodation report revealed that rent in Dublin entered the top five most expensive in Europe for the first time, averaging €3406 per month for a mid-range, three-bedroom apartment.
As expensive as it is, Ireland (18th) is less costly than Australia (9th).
Middle Eastern nations Saudi Arabia and UAE continue to offer the best salaries for expats, with the nations now offering an average of £71125 and £69280 to mid-level expats respectively.
Browne explained: “The Middle East has always offered extremely high salaries to overseas workers, and 2018 was no different. However, the benefits offered in these nations are not among the most costly for an employer, and the average value of benefits offered actually dropped in both locations last year, while the lack of any personal tax means that the overall package works out to be a lot lower when benefits and tax are both taken into account.”