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Calculation New Base Salary ????

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maybemover
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Calculation New Base Salary ????

Postby maybemover » Tue, 22 Sep 2009 2:23 pm

Hi you all,

I would like to know how companies calculate the base salary from the existing salary in a foreign country.

Existing Gros Salary (in Home country)
- Tax
= Net 1
- Retirement pension (by law / Germany)government
- health insurance (by Law/Germany)government
- Job security fee (by law /germany /Job less insurance)
= Net 2


Which Net do they take for calculating the new salary? (f.e. in Singapore)

a)

Net 1
* COLA
* exchange rate
* assumed tax
= new gros salary

or b)

Net 2
*Cola
*exchange rate
*assumed tax
= new gros salary


We have to pay health insurance and pension scheme out of the new gros salary.

Thanks in advance for your help

Maybemover

Nath21
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Postby Nath21 » Tue, 22 Sep 2009 4:50 pm

The short answer is they will calculate any and each very differently dependent on what country you are in and what company it is. Most likely your real driver is whether your getting a good deal or not and only you can awnser that.

maybemover
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Postby maybemover » Tue, 22 Sep 2009 9:18 pm

Thanks for the info, but this does not help me at all.

The COLA, exchange rate and approx. tax I already know.

I just want to know which net they take. net 1 or net 2.

thanks for your help

maybemover

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Strong Eagle
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Postby Strong Eagle » Tue, 22 Sep 2009 9:35 pm

maybemover wrote:Thanks for the info, but this does not help me at all.

The COLA, exchange rate and approx. tax I already know.

I just want to know which net they take. net 1 or net 2.

thanks for your help

maybemover


Huh? Your computations look the same to me.

Net 1
* COLA
* exchange rate
* assumed tax
= new gros salary

or b)

Net 2
*Cola
*exchange rate
*assumed tax
= new gros salary

maybemover
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Postby maybemover » Tue, 22 Sep 2009 9:53 pm

:wink:
in the a or b calculation yes,

but net 1 or net 2 are different :lol:

Existing Gros Salary (in Home country)
- Tax
= Net 1
- Retirement pension (by law / Germany)government
- health insurance (by Law/Germany)government
- Job security fee (by law /germany /Job less insurance)
= Net 2

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Strong Eagle
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Postby Strong Eagle » Tue, 22 Sep 2009 10:22 pm

I must say that this looks like an academic exercise and you are approaching the problem from the tail end.

If you are being transferred to Singapore by your company you can bet that HR already has a formula in place, and your job, to get a better salary, is not to argue formulas, but to view the costs differentials of housing, schools, transportation, food, entertainment and travel and decide if they are giving you a fair shake. Sorry... if someone came to me about the formula... well... hahaha.

If you are coming here to a new position then... I offer a salary... you decide if you can live on it. What I offer is based on what I think I can earn from you and all the formulas in the world don't make much difference because my formula is that I cannot place you at a loss or zero margin.

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jpatokal
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Postby jpatokal » Tue, 22 Sep 2009 10:30 pm

Strong Eagle wrote:I must say that this looks like an academic exercise and you are approaching the problem from the tail end.

If you are being transferred to Singapore by your company you can bet that HR already has a formula in place, and your job, to get a better salary, is not to argue formulas, but to view the costs differentials of housing, schools, transportation, food, entertainment and travel and decide if they are giving you a fair shake. Sorry... if someone came to me about the formula... well... hahaha.

Actually, maybemover does have a bit of a point here -- small companies do not have ready-made formulas in place. If you're among the company's first few expats to move to Singapore, it can useful to do the math so you can demonstrate that "look, you can pay me 1.5X dollars in Singapore and it will still cost you less than my current 1X salary back home" and/or "you need to pay me 1.5X dollars because I'm losing 0.5X worth of benefits by moving to Singapore".

But this applies only to corporate fixed costs like insurance, pension, welfare, etc. "Cost of living allowance" is a fuzzy factor that's entirely up to you, and neither does the company care how much tax you have to pay out of your income.
Vaguely heretical thoughts on travel technology at Gyrovague

maybemover
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Postby maybemover » Wed, 23 Sep 2009 3:14 am

Thanks for your answers

The thing is that I am not trying to get a better salary, I just want to keep the standard I have here in my home country.

The HR is totaly lost with calculating the new salary.

After their calculation I have a loss of about 1000 SGD per month for my retirement, health insurance, .....

Even if I am not in my home country I want to pay into my retirement and the health insurance i also need in a foreign country.

At the moment I have a gros salary and from this I pay into my retirement scheme, health insurance .....


In their calculation, they took my already reduced gros salary and said this is my net salary and then i should pay out of that the retirement and health insurance and so on....

So I think they made a mistake and I am looking how other companies calculate that.

Thanks for your further help


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