tim97

Hi all,

I just received an offer for a engineering position in hong kong on local conditions. The company will sponsor my work visa for the first year, after that renew the visa every 2 years.

My question is does the companies in hong kong have a hire and fire culture like it is in USA/Australia? Say after one year I get the boot? Or they are willing to extend the visa to the 2nd and 3rd years? How easy it is to renew the working visa? I will be working on local government projects. I understand there is no more 13 month chinese new year bonus, no annual flights back home, no repatriation benefits. What is the experience of other expats?

tim97

Any comments?

tim97

I am sure people have some recent experience

hong_konger

Welcome. Please don't expect many or immediate responses because this is quite a sleepy forum (HK/China).

The "good old days" of salary, housing allowance, 13th month salary, car, driver, maid, medical, airfares etc. have long gone in many industries including engineering / construction, except in very senior positions. However, it does still exist in many of the senior financial sector positions.

So it is quite normal for foreigners to be on "local conditions" which essentially means a salary and that's it. What you have to ensure is that the salary is sufficient to cover your cost of living.

Housing is very expensive and will be your biggest expenditure. If you are single then you don't have to worry about schooling, but if you have kids at school it can be very difficult as there is a serious lack of school places and its expensive.

I wouldn't say there was a US type hire / fire culture here. It takes time to find suitable employees from overseas and apply / secure a work permit and once a work permit has been secured it is much simpler to renew it than apply for a new permit for someone else. So as long as you are not completely incompetent you are unlikely to be replaced by someone else.

Shirtback

Yes: in the situation you describe, I'd assume the company is offering you a 1 year contract, which may or may not be renewed.

S

tim97

Thanks for reply. What do you mean by very senior people in the engineering/construction industry? Are you talking about director level people?
Has the wages increased with inflation? From what I heard, it hasn't. Ie a principal engineer getting 60-65k hkd per month is still getting the same salary. I heard rentals have dropped a little around 5 to 10 percent. Is that true?

hong_konger

Yes I'm talking Director / Chief Executive levels although it does vary from company to company. Where Expat packages are offered to lower grades of staff it tends not to make a huge difference as when you add up the various components it may come pretty close your all-in lump sum salary.

If you are correct that rentals have dropped 10% and salaries have not changed then clearly wages have kept up with inflation, seeing as rent is your biggest expenditure !!

However, as I see it, although wages may not have risen much over the past year or two they are still on the high side. Rentals reached a peak about a year or two ago also and may have dropped a little in some areas but not everywhere.

If your job is Government related and your salary is fixed within a published Government salary scale then then clearly you have no room to negotiate above the top end of the scale, but if you are working in the private sector then its a free market and you can negotiate whatever you can get.

tim97

Thanks for your reply. What do you mean wages are on a high side? It is low by western standards plus relative higher housing costs in hong kong?

hong_konger

Well if that is the case for the position you have been offered then I guess you will be turning it down ?

tim97

Not sure. The western world is in a depressed state at the moment

hong_konger

If you are single then you could live quite well. You could find a decent 1 bed apartment for around 15-18k. You don't need a car unless you work in a remote location, or decide to live in a remote location. The public transport system here is one of the best in the world.

As a single guy you will enjoy a very good social life.

From my experience, you will either hate it and leave within 2 years or love it and live here for 20yrs.

tim97

There's 2 of us, me and my wife. Is a salary of around 60k hkd per month going to lead to an above average lifestyle in 2014? I have read from the forums it is sufficient, but won't be a expat lifestyle. We have to live local.

ex reg

I found this thread a bit confusing with some replies perhaps missing words etc

But it may help if you, tim97, were to give some additional info.

Such as:
Private company or ...
Place of work
Salary is HK$60k pm with no extras, not even airfares or medical???
Will your wife be working

As it stands I wouldn't say 60k will give above average lifestyle if you are comparing yourself to other expats.

tim97

Relocation with airfares and one month accommodation and furniture package provided.
Medical provided for family.
Private company
Government projects

I heard engineering is not a big payer in HK.
Only finance pays big money.
Wife work is optional

hong_konger

Its do-able on 60k but you wont have a whole lot left over at the end on the month.
If you can get your wife to work p/t that will be ideal.
You can live well and cheaply.
If you are thinking of having kids get their names down at kindergartens and schools now (kidding).