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Mercer's Quality of Living Rankings cover 230 prevalent destinations for globally mobile talent and are based on our Quality of Living Survey, which assesses quality of living conditions in over 440 locations to help multinational companies and other employers fairly compensate employees when placing them on international assignments.

Living conditions are analyzed according to 39 factors, grouped in 10 categories:

    Political and social environment (political stability, crime, law enforcement, etc.).
    Economic environment (currency exchange regulations, banking services).
    Socio-cultural environment (media availability and censorship, limitations on personal freedom).
    Medical and health considerations (medical supplies and services, infectious diseases, sewage, waste disposal, air pollution, etc.).
    Schools and education (standards and availability of international schools).
    Public services and transportation (electricity, water, public transportation, traffic congestion, etc.).
    Recreation (restaurants, theatres, cinemas, sports and leisure, etc.).
    Consumer goods (availability of food/daily consumption items, cars, etc.).
    Housing (rental housing, household appliances, furniture, maintenance services).
    Natural environment (climate, record of natural disasters).

The scores attributed to each factor, which are weighted to reflect their importance to expatriates, permit objective city-to-city comparisons. The result is a quality of living index that compares relative differences between any two locations evaluated. For the indices to be used effectively, Mercer has created a grid that enables users to link the resulting index to a quality of living or hardship allowance amount by recommending a percentage value in relation to the index.