Recent falls in the value of the pound have made it cheaper for US firms to send expatriates to the UK, according to new figures from ECA International. The cost of a typical expatriate package for a middle manager in the UK is now £262,000 a year. Locations in mainland Europe have also fallen in the ranking of expatriate costs due to the Euro’s decline against the US dollar.
Conversely, the cost of an expatriate package in the USA has increased by 2% since ECA conducted its last survey two years ago, with benefit provision being the most expensive element of the package. Countries in some parts of the world, including Asia, still attract additional allowances, as employers seek to compensate expatriates for particular environmental factors, for example, dangerous levels of air pollution.
Steven Kilfedder, production manager at ECA International, said:
‘The total cost of expatriate packages in the UK, in US dollars, has fallen by 11% in the past couple of years. This is mainly due to a weakened pound against the US dollar making the UK comparatively cheaper.’
However, the UK still has some of the highest personal tax rates in the world and the second highest cost for typical expatriate benefits.