Advice on package

[Johnny Drama]

Hi All,

i've been lurking on here for the last six months and have finally plucked up the courage to post.

My spouse and i are arriving in Singapore in 9 weeks. I've been offered a role in mid/senior mgt in my companys HQ for 18-24 months.

the package i've agreed to is S$140k plus 10k to cover relocation (flights, serviced apt etc)

My spouse will be giving up a senior role in PR to come over and having been in touch with recruiters is confident of getting a role though it may take time.

Panic set in when i thought she may have trouble or a long wait before getting a role. Is 140k enough for a couple to live on with no kids to worry about. Half the reason to moving over is to travel asia - dont want to be unable to do so if money will be tight.

thanks.

[Girl_Next_Door]

$10K for relocation seems really little. I was offered $40K relocation to move from SG to NY, and I turned that down because after tax, it is alot lesser than what it sound. You need to consider the following:
- 2 Flights (for you and spouse, its definitely not enough if you are flying biz class)
- 1 month Serviced Apartment (This will be around $4-5K, at minimum)
- Shipping of your furniture (if any) or buying new furnitures if you don't plan to ship existing
- Deposit for the rental of new place (Between 1-2 months)
Don't under-estimate the initial set-up cost. It is always much better to over-budget, then under-budget. Whatever is over-budgeted, you can always treat yourself to a nice vacation later. Miscellenous stuff pops up when you least expected and you do not want to be in a situation whereby you have to get into debts, for what is supposed to be a rewarding experience.

If $140K is all you are depending on (assuming your spouse is not working), it will depends on your lifestyle.
Things to consider:
-Rental: $2.5K (at minimum for a HDB or tiny 1 bedroom far away from town) to up to $4-5K for a decent 2-3 bedroom apartment nearer to town. Expects to pay more if you are looking for a fully furnished place.
- You can forget about getting a car, btw. But public transportations is cheap. If you stay in a convenient location (i.e. near a train station, you should be fine, assuming your office is not in the middle of nowhere).
- Groceries: This is generally more expensive if you shop in supermarket in Singapore (One of my hobbies is to go to supermarkets when I travel, and check out the prices). However, if you stay in a local area and shop in local markets, it will be fine. However, if your taste buds is leaning towards American/European taste, you might find trouble finding what you like to eat in local markets.
- Meals: Local food can be cheap but you might not be used to it (if you have American/European taste). There are good sandwiches and soups around town area, but they are generally more pricey.
- Miscellenous expenses: Stuff like phone bills, internet bills, electricity bills will add up. Depending on how much you uses, the type of packages you take on, and how often you uses air-con at home, etc, these can range from $300 to $1000 (in total).
- Income Tax: While Singapore tax rates are low, it will still take a couple of thousand away from your entire package. You might still want to take that into consideration. The good thing is, you can pay your tax over 12 month installments.
- Your existing commitments: Whether it is an existing mortgage loan or insurance that you are currently having, they are not going to be gone after you relocate.
- Traveling: While you are in Asia, you might want to travel around the region. Depending on your travel style, things can be cheap but can also get very expensive, very quickly.

Have a few thoughts about these things.

[joe2013]

Pay Package from large IT Firm - Advice Requested


I have been offered a position with a large IT company in their Singapore office. I have 17 years of experience in the IT industry working across the APAC region a consultant for Fortune 100 organisations.

As I am not very familiar with the local industry compensation dynamics, I am trying to understand the salary range for someone with my backfground so as to negotiate a fair compensation package for myself. It has been difficult to find information as not many companies are hiring IT consultants at a senior level. Any assistance would be appreciated.


Salary per Annum: SGD 230K/Annum (25% of this amount is a performance based Bonus)
Title: Enterprise IT Architect
Industry: Information Technology
Reloaction Allowance: Air Tickets for Self, Spouse and Child along with transportation of personal goods
Terms: No Expat Package, no housing allowance, no Child Education fee etc
annual leaves: 20 Days


Questions:

1) Reading through the forum, I realise the compensation may seem on the higher side. However, I must humbly ask if this is a decent package relative to Singapore's IT Consulting industry?
2) What happens to the CPF contribution that an employer makes for a citizen/PR? Will I be paid an equivalent amount to a EP holder such as myself or there is no such provision?
3) I was informed the income tax in this salary bracket would be around 15% or so. Is that a correct statement?

[ecureilx]

Salary per Annum: SGD 230K/Annum (25% of this amount is a performance based Bonus)

Which means, your base pay is ~ 172,000

Terms: No Expat Package, no housing allowance, no Child Education fee etc
annual leaves: 20 Days

20 Day annual leave is good, as per MOM, companies can get away with 7 days. Though most companies give 14 day as start

Check the Medical Leave / hospitalisation allowance.

Education: do some search on Indian International Schools - per month fee - it can vary from 900 S$ to 1,200 S$ or more ..

Apartment - again, you can do some search I ...

1) Reading through the forum, I realise the compensation may seem on the higher side. However, I must humbly ask if this is a decent package relative to Singapore's IT Consulting industry?

Salary is very subjective ..

2) What happens to the CPF contribution that an employer makes for a citizen/PR? Will I be paid an equivalent amount to a EP holder such as myself or there is no such provision?

by law, if you are a foreigner, Employer cannot contribute CPF. Some companies add the employer contribution to your pay, a lot don't, and see it as a saving of 14.5 % per foreign employee

And you cannot contribute CPF voluntarily ..

Note that if you get PR, your CPF contribution of 20% will be deducted from your pay.

now, some employees manage to negotiate with the employer, that, when they get PR, their base pay goes up to compensate for the 20% employee's contribution .. it is on a case-by-case basis.

3) I was informed the income tax in this salary bracket would be around 15% or so. Is that a correct statement?

Visit www.iras.gov.sg and you can use the tax calculator to figure that out ..

[joe2013]

Thanks, ecureilx!