Mercer has released its latest 26th annual Cost of Living Survey which is one of the world’s most comprehensive and is designed to help multinational companies and governments determine compensation strategies for their expatriate employees.
The survey includes over 400 cities throughout the world; this year’s ranking includes 209 cities across five continents and measures the comparative cost of more than 200 items in each location, including housing, transportation, food, clothing, household goods, and entertainment.
According to the survey, Dublin is in 46th place and remains the most expensive city for expatriates in the Eurozone. Hong Kong tops the list of most expensive cities for expatriates, followed by Ashgabat, Turkmenistan in second position.
Tokyo and Zurich remain in third and fourth positions, respectively, whereas Singapore is in fifth, down two places from last year. New York City ranked sixth, moving up from ninth place.
Despite an appetite to grow and scale globally while navigating the uncharted waters of a health and economic crisis, reductions in staff and salaries as well as changes to benefit programs have challenged overseas expansion strategies.
The survey finds that specific factors such as currency fluctuations, cost inflation for goods and services, and instability of accommodation prices, are essential to determining the cost of expatriate packages for employees on international assignments.
Commening on the survey, Senior Career Consultant at Mercer Ireland, Noel O’Connor said, "As with recent years, one of the major factors influencing Dublin’s ranking is the cost of rental accommodation. Rental accommodation is often the biggest cost for companies when placing an employee on assignment. Dublin remains an attractive location for expatriates when they elect to go on assignment."
He added, "As Brexit progresses, organisations with EU headquarters in the UK may need to look for alternative EU locations, and Dublin is likely to be on the shortlist of preferred options."