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Contract on local terms or Expat package?

Discuss about getting a well paid job or career advancement. Ask about salaries, expat packages, CPF & taxes for expatriate.

sanna
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Contract on local terms or Expat package?

Postby sanna » Sun, 28 Mar 2010 7:44 pm

Hi, I'm currently being offered a teaching position and it seems they will only offer me a contract on 'local terms'. I am not PR, so I don't pay or benefit from CPF. What other draw backs are there to a local term contract? What benefits can I try to negotiate on top of my salary?

FaeLLe
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Postby FaeLLe » Sun, 28 Mar 2010 8:30 pm

With the market situation in the region doesnt seem like any firms in Singapore are offering expat packages.

I recently landed a offer with a consulting Big 4 in singapore and the offer was very much on par with hiring standards.
Dont think we stand much.

If your official responsibilities demand use of a phone and internet usage you can ask for those to be covered.

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Asdracles
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Postby Asdracles » Sun, 28 Mar 2010 8:46 pm

Are you already in SG? How much the company needs you?

Of course it's very different when a company ASKS you to move to SG (you can probably get lot some nice compensations in exchange) or if you look for a job here.

In other words, can you prove that company will get more from you than from a local for that work? If so, you can try to negotiate some extra, but in this economic situation, it won't be easy

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sundaymorningstaple
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Re: Contract on local terms or Expat package?

Postby sundaymorningstaple » Sun, 28 Mar 2010 9:15 pm

sanna wrote:Hi, I'm currently being offered a teaching position and it seems they will only offer me a contract on 'local terms'. I am not PR, so I don't pay or benefit from CPF. What other draw backs are there to a local term contract? What benefits can I try to negotiate on top of my salary?


If you are only being offered a "local" contract, there isn't much you can negotiate. It's gonna be a take it or leave it type of affair probably. As most employers know, it's a rough market for employment seekers (foreign ones) and if they want to get their foot in the door in Singapore, the employer is going to take advantage of it while they can. The difference is not how badly they want you but how badly you want to work here and the pain threshold you are willing to endure in order to do so. There are lots of people looking for jobs here as you can see, even on this board.

The biggest drawback to a local contract is that there is no housing built in. This shouldn't be a biggie but when you consider the locals have the ability to live with their parents or buy HDB flats that use their CPF to pay for it. But at the same time, that same income that is deducted from their salaries goes into the CPF account. That you are receiving in cash. Hopefully the company is giving you an uplift equal to 14.5% of your basic salary to supplant what they pay towards a local's CPF (their contribution) up to a maximum of $652.50/month based on a cap of of $4500/month salary (the total cpf is 34.5% of the basic salary with the employee contributing 20% from their salary (on the first $4500/mo).

So, as an example, take a salary of $3000/mo. The local will take home $2400 and will have $1035/month contributed to the CPF board. Roughly 70% of that can be used by them to service an HDB mortgage.

So to equalize yourself with a local in the same position the employer should offer you an amount of $3435/mo. This would take in the employers contribution to cpf on the locals salary (it is the total salary expense to the employer.

At the least, they should offer some sort of medical group policy as well.

sms


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