This document proposes a total reward package of AUD $145,816 for an expatriate employee transferring from Vietnam to Melbourne, Australia to work as a Mechanical and Electrical Engineering Manager. The package includes a base salary of AUD $62,500 based on the employee's qualifications and experience. An inducement of AUD $49,278 is proposed to account for the employee's qualifications, the length of the assignment, and tax equalization considerations. Allowances of AUD $28,902 are suggested to cover increased costs of living, travel expenses, and education for the employee's child. Benefits worth AUD $5,436, such as health insurance, communications, and gym membership, are recommended to ensure a comparable

1. W E L C O M E !
Thank you for coming today!
1
INTERNATIONAL REWARD MANAGEMENT

2. WELCOME!
Nguyen Truong Giang
Nguyen Minh Trang
Nguyen Dang Manh
Vu Huyen My

3. I NTRODUCTI ON

4. C O N T E N T
4
1
Who we are, the case we will talk about and
our approach to international reward
management.
INTRODUCTION
3
Hardship premiums, incentives and justification
for the numbers.
INDUCEMENT
3
COLA, other allowances and justification.
ALLOWANCES
4
Added benefits for our employee.
BENEFITS
5
Summing up and references
CONCLUSION AND REFERENCE
Base salary and justification for the proposed
base salary.
SALARY2

5. 5
Mechanical and Electrical Engineering Manager
Qualification: Bachelor of Engineering
Experience: 10 years.
S A L A R Y

6. Construction management in construction
projects
MANAGEMENT
Daily supervise and manage contractors and
consultants .
SUPERVISION
Design projects to meet safety, schedule,
budget and high end
DESIGNING

7. 7
A D E C C O V I E T N A M
S A L A R Y G U I D E
2 0 1 4
Typical salary for an individual’s job based on location,
experience, education, certifications and other considerations
A U D $ 6 2 , 4 0 5
A U D $ 6 2 , 5 0 0
SALARY IN VIETNAM
PROPOSED SALARY IN
MELBOURNE
TOTAL BASE
SALARY
A U D $ 6 2 , 5 0 0

8. I N D U C E M E N T
8
QUALIFICATION
TAX
LENGTH
Qualification required
Required level of qualification
Tax consequences
Tax differences in the two countries
Length of assignment
How long is the assignment
.

9. THE QUALIFICATION
Master degree and 5-10 years of experience: AUD $47,532
(Vietnam Government Resolution No.30A2008/NQ.CP)

10. THE LENGTH OF ASSI GNMENT
2-5 years: AUD $1746 (Vietnam Government Resolution No.30A2008/NQ.CP)

11. TAX CONSEQUENCES
Australia tax: AUD $3,572 + 32.5c for each $1 over $37,000 = AUD $11,860
Vietnam tax for the employee: 35% of basic salary + AUD $1113 = AUD $35,040
Australia has lower taxation rates
(Hall 2015 - Blue Steps, KPMG 2015, Australian Tax Office 2015)

12. 12
T O T A L
I N D U C E M E N T
Tax, qualification and the length of assignment =
AUD $49,278
A U D $ 4 7 , 5 3 2
A U D $ 1 7 4 6
Qualification
Length of assignment
Tax equalization
Australia has lower rates so the company will not reimburse
N o n e

13. 13
A L L O W A N C E S
Allowances for the other costs the employee has to bear moving to Melbourne.

14. 14
1
2
3
4
CONSUMPTION LEVEL VIETNAM
Family of three needs VND6,864,000. (GSO
Vietnam 2014)
EXCHANGE RATES ADJUSTED
AUD $5196/year (xe.com 2015)
CONSUMER PRICE ADJUSTED
AUD $9600/ year Melbourne is 84.53% more
expensive in terms of consumer price (Numbeo)
ALLOWANCES NEEDED
AUD $4404/ year: Cost of living allowances
for the employee
4 S T E P S
Remaining the same standards of living for the family
when they move to Melbourne. Accommodation not
included.

15. A C C O M M O D A T I O N A L L O W A N C E S
15
Assuming the employee has a house in Hanoi and has to
leave his house for the assignment in Me
Hanoi
Apartment of 3 bedrooms outside of city centre in Melbourne:
AUD $24,467.04/ year
Melbourne

16. 16
V I E T N A M
A I R L I N E S 2 0 1 5
The ticket price may vary from the reference period.
A U D $ 2 , 8 1 8
AIR TICKET
2 WAY AIR TICKET
HANOI - MELBOURNE
HANOI - MELBOURNE - HANOI
TOTAL AIR TICKET
ALLOWANCES
For the whole family
A U D $ 8 , 4 5 4
A U D $ 1 , 4 0 9

17. 17
School attendance is compulsory for kids from 5-17 Choices include: state-run schools, private schools, faith-
based schools, or specialized education (Montessori )
However, the child can only enrolled once a parent has proof
of residence
Expected tuition fee: AUD $31,429.93 /year
P R I V A T E S C H O O L F O R K I D

18. 18
B e n e f i t s
Mak ing s ur e expatr iates have the s ame or even better living c onditions over s eas

19. 19
Private Health Insurance
Temporary visa holders can’t access public healthcare
system (InterNations)
How to access
Minimum level: Overseas Visitors Health Cover program
Benefits
Prescription medicines, in-hospital medical treatment,
emergency ambulance transport and more (Allianz Global
Assistance)
Total insurance costs
AUD $2,863/ year for family of three.
H e a l t h i n s u r a n c e
Private Health Insurance for Melbourne Residents (because temporary visa
holders can’t access public healthcare system) (InterNations)

20. 20
Average annual cost
AUD $533.59/ year
C o m m u n i c a t i o n
Mobile phone packages for the employees
Price varies by network and
services

21. 21
Gym membership for one person
AUD $85/ month/ person
Gym membership for the family
AU$170/ 2 people/month
Total costs of benefits
AU$2,040/ 2 people/ per year
(ExpatBriefing 2015)
P h y s i c a l B e n e f i t s
Cost of membership to a local golf club, yacht club, gym, etc

22. C O N C L U S I O N
22
BASE SALARY
$62,500
M&E manager
Bachelor of Engineering
10 years of experience
Supervise, manage and
design
INDUCEMENT
$49,278
Vietnamese law reference
Qualifications considered
Length of assignment
Tax equalization
ALLOWANCES
$28,902
Cost of living allowances
Travelling costs
Education for kid
BENEFITS
$5,436
Health insurance
Communication
Physical benefits

23. 23
T O T A L R E W A R D P A C K A G E
AUD $145,816

24. R e f e r e n c e s
24

25. T H A N K Y O U !
A N Y Q U E S T I O N S ?
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