BIZ-MERCER-COST OF LIVING

first_img‘Mumbai more expensive for expats than Melbourne, Frankfurt’Mumbai, Jun 26 (PTI) Cost of living for expatriates inMumbai is the highest in the country, and more expensive thanits global peers like Melbourne and Frankfurt, said a survey.The financial capital of the country is ranked at the55th spot in terms of cost of living globally, higher thancities like Melbourne (58), Frankfurt (68), Buenos Aires (76),Stockholm (89) and Atlanta (95), according the 2018 cost ofliving survey by global consulting firm Mercer.Other Indian cities featuring in the survey includeDelhi (103), Chennai (144), Bengaluru (170), with Kolkata(182) being the least expensive Indian city.”While cities such as Melbourne and Buenos Aires havefallen in their rankings, Mumbai’s jump in ranking is alsoattributable to continued surge in prices of food, alcohol anddomestic supplies,” the survey noted.Hong Kong is ranked as the world’s costliest city tolive in for expatriates.Inflation, among the highest in Indian citiessurveyed, remained at 5.57 per cent for the surveyed set ofexpatriate goods, during the survey period.This is especially true for prices of expatriate fooditems such as, butter, meat and poultry as well premium farmproduce which have increased significantly, along with pricesof alcohol, according to the report.Costs of sporting, leisure related activities havealso played a role to rising prices, followed in part bytransportation costs, which includes taxi fares and cost ofregistration and road taxes, it noted.The survey is designed to help multinational companiesand governments determine compensation strategies for theirexpatriate employees.advertisementAccording to Mercer’s International Policies andPractices Report on India, 93 per cent of companies docompensate through a cost of living allowance for theirexpatriate assignee.”This increase in prices of goods in our cities,viewed along with currency exchange rate, has a direct impacton the Indian assignee compensation when using a balance sheetapproach, making overseas assignment costs sometimes greaterand sometimes smaller,” said Padma Ramanathan, India practiceleader, global mobility, Mercer.In this scenario, companies are reconsidering howfrequently expatriate salaries are reviewed, she said, addingin balancing assignee cost with assignee satisfaction, somecompanies prefer to let the assignee retain the benefit ofwindfall if applicable.This year’s rankings in the survey, which uses NewYork City as the base city for all comparisons, includes 209cities across five continents and measures the comparativecost of more than 200 items in each location. PTI DSK SSSS SS SSlast_img

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