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PR can be a financial liability

Relocating, travelling or planning to make Singapore home? Discuss the criterias, passes or visa that is required.
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PNGMK
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PR can be a financial liability

Postby PNGMK » Tue, 08 Oct 2013 7:11 pm

To counter the thousands of 'I want PR and I should have it!' posts I thought I'd post a quick story from a Filipina friend.

She's been here for almost 7 years and is a world class economist. She's always resisted applying for PR and the reason is simple. She went to change jobs last month and from a $10,000 pm salary (all in) jumped into the full expat bracket with more than 10,000 pma and housing, schooling for her two flips and the rest. In her view, accepting PR can be a serious cap on your potential future salary.

If you're good at your job and in demand taking PR can be a serious mistake. If you're not good at your job, just skating by and petrifiied at having to go home then maybe it's for you.

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Postby Wd40 » Tue, 08 Oct 2013 9:38 pm

I know an Indian PHD professor teaching at Ngee Ann Poly has shunned PR for the last 8 yrs only because his employment terms will change to local terms and he will lose benefits like subsidized quarters, gratuity etc.

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Postby AngMoG » Tue, 08 Oct 2013 9:52 pm

It depends on how you look at it. If you're good, but not in the above 10K category, taking PR may be an option if the goal is to stay here, and to be able to change jobs easily - especially in the current climate.

Personally though, I have only tried applying once and was rejected (bad timing), and since then have not tried again. Partially because I went for PEP, and partially because seeing 20% of your salary go away is quite painful. And well, partially because if I had a son, I would not want him to do military service (if I stay here).

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Postby x9200 » Tue, 08 Oct 2013 10:04 pm

PR and losing employment benefits it's a very common story, myself included. I waited 7y. Not the only factor but a significant one.

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Postby ecureilx » Wed, 09 Oct 2013 10:05 am

and as I wrote long ago, not being on PR terms made my life miserable working for SMEs .. yes, depends where you work and what your pay grade is .. ;)





PNGMK: Filipinos don't like to be called FLIPs .. I maybe wrong though ,..

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Postby PrimroseHill » Thu, 10 Oct 2013 11:12 am

What's with the losing of 20%?
PR admittedly isn't for everyone. It is all dependent on each person's circumstances.
NS - I can understand that if I had a son.
CPF? May not be a bad idea, considering the UK's state pension is GBP140 weekly and retirement age keeps going up.
How about the job security?
Buying a home with stamp duty for 5% and not 7%?

Its not like Mark's return policy.

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Postby x9200 » Thu, 10 Oct 2013 11:27 am

PrimroseHill wrote:What's with the losing of 20%?

For example, many contracts have clauses that if one becomes a PR (s)he would lose the housing allowance.

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Postby Addadude » Thu, 10 Oct 2013 12:28 pm

ecureilx wrote:and as I wrote long ago, not being on PR terms made my life miserable working for SMEs .. yes, depends where you work and what your pay grade is .. ;)


THIS.

As long as you are on an EP you are at the not so tender mercies of your employer. If they decide that they no longer want you around, any long term plans you might have made for your life in Singapore pretty much go up in smoke.
"Both politicians and nappies need to be changed regularly, and for the same reasons."

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Postby Girl_Next_Door » Fri, 11 Oct 2013 8:44 am

Personally, I feel that expat packages are rare and few nowadays. Unless you are one of the big C's (CEO, CFO, CCO, etc), it is unlikely for you to get an all-in expat package.

In fact, a lot of banks are moving out of the expat packages and prefer to pay an all-in salary package. And once you are within a bank, its all down to what level you are at. In fact, I have seen locals getting higher pay than foreigners who are at the same corporate rankings, simply because the local have job hopped several times and have the salary adjusted several times, while the foreigners had stayed in the same job/position since moving to Singapore.

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Postby bro75 » Fri, 11 Oct 2013 10:04 am

For a mid level employee, the main advantage of being a PR is the right to work in Singapore for any employer and the right to stay in Singapore indefinitely (with conditions). This will give the person a lot of leverage in dealing with employers.

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Postby PNGMK » Fri, 11 Oct 2013 10:16 am

bro75 wrote:For a mid level employee, the main advantage of being a PR is the right to work in Singapore for any employer and the right to stay in Singapore indefinitely (with conditions). This will give the person a lot of leverage in dealing with employers.
...and it gives the employer a lot of leverage in negotiating the deal down....

wah - you PR hey? you can buy resale flat - no need for housing allowanc!

oh yah - you PR - can send kids to local school why not?

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Postby ecureilx » Fri, 11 Oct 2013 10:29 am

PNGMK wrote: ...and it gives the employer a lot of leverage in negotiating the deal down....

wah - you PR hey? you can buy resale flat - no need for housing allowanc!

oh yah - you PR - can send kids to local school why not?


and I had a prospective employer who told me "ah, Pr can do other work also no ? and part time .. to supplement income ... "

yah right .. I didn't want to ask him if he wanted my 100% or 50% towards his company .. ;) ;) it would have been a colourful conversation in that case ..

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Postby bro75 » Fri, 11 Oct 2013 10:39 am

For those at my level, there is almost no housing/school allowance, so this does not bother us. Yes there are pros and cons. For me, the pros trump the cons.

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Postby Beeroclock » Thu, 31 Oct 2013 9:50 pm

Agree bro75 the freedom to stay and change employer is an important consideration.

Also agree that full blown expat deals are rare nowadays and anyhow can be a trap where people get very entangled / dependent and sense of entitlement owed by company. Not sure long term expat package is a healthy thing, although can be very lucrative


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