2023-04-28-ECA-2023年全球生活成本报告_40页_6mb

ECA Global Perspectives: Cost of Living - Report explaining how ECA calculates cost of living indices for 500 locations, providing data for salary packages for international assignments. All indices are standard home-based unless stated, using September 2022 data and exchange rates.

Purpose: To allow multinational companies to calculate appropriate salary packages for employees on international assignments so their standard of living is maintained, providing reassurance before relocation.

Calculation:

• 1. Price Collection: Uses multiple methods: online research, field researchers (400,000+ prices/y), expatriates (feedback and local price data). Covers 170+ goods/services, weighted based on typical household expenditure (e.g., food ~23%, housing ~22%, motoring ~10-14%). Weights updated every six months.
• 2. Calculation: Compares prices of the basket in home and host locations. Price ratio (host price / home price) * 100 gives item index. Group weights (from household surveys) are used to average item indices to produce the final cost of living index (e.g., Tokyo=125 means 25% more expensive than home).
• 3. Index Types: ECA publishes Standard Home-Based (references specific home country spending), Cost-Effective Home-Based (references average international spending), Cost-Effective International (references average spending within a region). The standard type is most widely used.

Application:

• Home-Based Approach: Maintains the 'home spendable' portion of salary (post-tax & savings) to buy goods/services in host currency, adjusting with a positive Cost-of-Living Allowance (COLA). Avoids exchange rate adjustment impact on local purchasing power.
• Net-to-Net Approach: Pay the host salary gross amount as locally paid. Compare gross home salary (converted to host currency) minus local tax/social security with the local gross salary to determine a NEGATIVE net home spendable differential (positive COLA). Only valid if personal housing is actually provided.

Choosing an Index Type:

• Choose based on assignment length, location, and mobility characteristics.
• Standard Home-Based: Best suited early in assignment or significant differences/disparity (e.g., short-term, UK-EU moves), or assignees unfamiliar with the host location.
• Cost-Effective Home-Based: Used for longer assignments or fine-tuning pay; controls employer cost.
• Cost-Effective International: Used where local currency items are readily available and more expensive than locally paid salary (common in oil-rich countries).

Consideration of components:

• Parts of the salary can be tied to index spendable or other spendable categories. Some companies exclude certain groups (e.g., clothing due to local availability) or apply index adjustment universally without breakdown.
• Negative indices ( COLA < 100) may be applied but are less common, potentially complicating morale if locally lower costs mean lower conditions.

Spendable Income Definition: Portion of post-tax & savings salary not used for home currency housing payments. It represents local purchase power, calculated by adjusting the home spendable with the cost of living index before local taxes/social security. Sensitive topic if the adjusted spendable falls.

Understanding Index Changes:

• Index movement depends on PRICE and EXCHANGE RATE changes. Both factors impact the amount needed from home currency to buy identical goods/services.
• ECA measures price changes for an 'international lifestyle' (different items/shops than local official inflation), which often yields different results.

ECA Data and Services: Offers a subscription to updateable cost of living data and standard calculators, flexible options (three index types, adjustable groups, custom exchange rates), software (Enterprise), consultancy, training, and market data reports.