The Blog for Culture Vultures

Satiate your inner Culture Vulture with regular news and posts about cultural awareness, doing business abroad, working in a multicultural environment, HR diversity and global mobility.

UAE is top world expat destination

The United Arab Emirates is the world’s top destination for expatriates in terms of personal taxation, according to a new study.

Mercer’s ‘Worldwide Individual Tax Comparator Report’, a global survey of expatriate hotspots, looks at tax and benefits systems across 32 countries, focusing on personal tax structures, average salaries and marital status. Data from the survey is used by multinationals to structure pay packages for their expatriate and local market employees.

For single managers, the UAE has the most attractive tax environment according to the percentage of net income available, the survey finds. The country earns its no. 1 ranking by not assessing income tax, with social security contributions amounting to just 5% of a local employee’s gross salary.

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HR costs soaring in Dubai

Dubai has attracted many international companies and employees over recent years, as it bids to become a global economic superpower.

Managing the UAE's HR Environment, a report by Mercer HR Consulting, showed that average salaries for expatriate staff rose by 6% last year. Daily allowances rose by more than 20%, and multinationals now pay an average of about £240 a day for executive expats on short-term assignments in Dubai - one of the seven states that make up the United Arab Emirates (UAE).

These soaring costs are leading companies to be more creative with their HR practices, according to Markus Wiesner, head of Mercer's UAE operations.

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Localisation of expats problematic

Localisation of expatriates is problematic for employers, says ORC Worldwide's 2007 Survey on International Localisation Policies & Practices for Expatriates.

According to the report, 48 percent of the participants have seen an increase in the use of localisation over the past two years, yet the practice remains tricky.

Obstacles faced by employers when localising – that is, phasing out or removing expatriate assignment terms and conditions – include retirement plans, consistency in developing local pay packages, management preference for individual negotiations, establishing an acceptable local salary in low-salary countries, and employee requests for continuance of coverage for international schools and health care.

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The Expat Checklist

Research and Markets has announced the addition of “The Expat Checklist” to their offering.

The Expat Checklist is a practical and simple guide to items that should be considered in an expatriate agreement, including hints on developing a successful expatriate agreement.

"Kudos to the Expat Checklist! This checklist was really the only thing I found on the web that discussed all the upfront issues and gotcha's to watch out for in negotiating my expat contract. This definitely helped me to think of a few things I would've forgotten until it was too late. It was very helpful!" - Expatriate in Geneva

The Expat Checklist is based upon the experience of the author - a sales and marketing executive with an International MBA. It includes input from other expatriates, and most importantly benefits from the mistakes the author and others made during various expatriate agreement negotiations. The author's own expatriate experience was ultimately successful, despite an acquisition by a competitor and resulting lay-offs during the assignment. His expatriate agreement was the key to that successful experience.

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France allows family members to work during an expatriate assignment

France is the latest country to allow family members of skilled international staff to work during an assignment. The changes, which apply to intra-group transfers and a new category for `competences and talents', were part of the 2006 Immigration and Integration Law, implemented in May 2007.

The change is applauded by Permits Foundation, which promotes open work permits for the spouses and partners of international staff worldwide.

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Expatriate Life in Mexico

 

 

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How to Manage your International Staff

After an eight year steady decline, international job assignments are on the rise. According to the 11th Annual Global Relocation Trends Survey, conducted by GMAC Global Relocation Services, 47 percent of companies questioned for this year's survey reported an increase in the size of their current expatriate population, compared to 31 percent in 2004. Fifty-four percent of companies anticipate additional growth in the coming year.

Thanks to the increased ease of communication, business divisions and product manufacture now easily span several countries, said John Pfeiffer, managing director of AIRINC Europe. "People are naturally going to have to move around in different countries and the need for people to be [globally] exposed is high," Pfeiffer said.

Read more: Expatica 
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