Housing Allowance in Hong Kong
Hey all, this is more for the Asia-based guys - I'm starting FT at a BB in HK soon, and I was surprised to hear that the bank I will be working for has removed housing allowance from the comp package this year. (for context I am an American citizen from NYC, grew up most of my life in HK) and wanted to know if removing reloc + housing is the case for most banks in HK.
Any additional thoughts and discussion welcomed
Based on the most helpful WSO content, housing allowances in Hong Kong have been a common part of compensation packages for banks in the past. However, there are indications that some banks have started removing these benefits. For example, one thread mentions that banks in Hong Kong often provide a housing stipend, but this is not universal and may vary by firm and year.
Additionally, while housing stipends can offset the high cost of living in Hong Kong, the removal of such benefits could be part of broader cost-cutting measures. If you're a U.S. taxpayer, you might still benefit from the 2555 deduction for foreign earned income, but you'll need to account for global taxes after paying Hong Kong taxes.
If your bank has removed the housing allowance, it might be worth negotiating other aspects of your compensation or exploring whether this is a trend across other firms in the region.
Sources: Do banks pay for your housing?, The future of Hong Kong high finance
Housing hasn't been a thing for years now. Relocation on the other hand should still be possible
got it, many thanks for this information. for relocation, would you happen to know if it is usually provided as a lump sum or added as a bonus to the monthly? wasnt initially bifurcating between housing and relocation but was more lumping them together as something that might be granted to expats
sorry if this sounds confusing, i am very confused!
Relocation is basically a sign on bonus
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