By Canadian HR Reporter |
Asian and European cities — particularly Hong Kong (2), Zurich (3), Singapore (4), and Geneva (5) — top the list of most expensive cities for expatriates, according to Mercer’s 2015 Cost of Living Survey.
By Canadian HR Reporter |
Asian and European cities — particularly Hong Kong (2), Zurich (3), Singapore (4), and Geneva (5) — top the list of most expensive cities for expatriates, according to Mercer’s 2015 Cost of Living Survey.
The costliest city for the third consecutive year is Luanda (1), the capital of Angola. Despite being recognized as a relatively inexpensive city, the cost of imported goods and safe living conditions in this country are available at a steep price, said Mercer.
Other cities appearing in the top 10 for expatriates are Shanghai (6), Beijing (7) and Seoul (8) in Asia; Bern (9); and N’Djamena (10). The world’s least expensive cities for expatriates are Bishkek (207), Windhoek (206) and Karachi (205).
The survey is designed to help multinational companies and governments determine compensation allowances for expatriate employees. New York is used as the base city, and all cities are compared against it. Currency movements are measured against the U.S. dollar.
The survey includes 207 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.
Currency fluctuations — driven by economic and political unrest — are contributing to the cost of expatriate packages for those on the front line of globalization of their organizations.
“As the global economy has become increasingly interconnected, close to 75 per cent of multinational organizations are expecting long-term expatriate assignments to remain stable or increase over the next two years to address business needs,” said Ilya Bonic, senior partner and president of Mercer’s talent business. “Sending employees abroad is necessary to compete in markets and for critical talent, and employers need a reliable and accurate reflection of the cost to their bottom line.”