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Suggestions regarding accepting offer letter

Last activity 25 May 2013 by HRGuru

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rjpathan19

Hi,

I am Software Developer from India and I have been selected in one of the company in Saudi Arabia. The details are as follows:
1) Monthly gross salary of 4500 SR
2) 2 year Contract period
3) Facilities: Housing,Transportation,Medical Insurance.
4) Service money as per Saudi Labor Office Law

Please suggest me whether I should accept the offer letter or not?
(I am keen on knowing how much would i be able to make saving)

Thanks.

chaitu4u

Dear its your decision...but what is GROSS SALARY? You must know the basic salary...

Alliecat

chaitu4u wrote:

Dear its your decision...but what is GROSS SALARY? You must know the basic salary...


Gross means before taxes.  Net means after taxes. But since there are no taxes here, should be the same amount (unless his employer is planning to take money out for some other purpose?).

HRGuru

You will not save much with this salary even with other facilities provided. Try to negotiate more since 4500 is too low of a salary to come to KSA now.

rjpathan19

Hi, Thanks for the reply.
Can you suggest in what all things I will need to spend apart from things provided by the employer i.e. Housing,Transportation,Medical Insurance.
Also if you know then please tell me what does "Service money as per Saudi Labor Office Law" means in Saudi Arabia.

TheLegendLeads

Housing will mean 2 basic salaries per year as housing allowance; or they'll provide the accomodation. Would be better if you had provided the breakdown of your gross package.

Service money:
If you quit before completion of 2 yrs, you don't get eligible for any service money.

If you serve for say 6 yrs, the calculation will go like below:

- For first 5 yrs, 0.5x Gross Salary for each year
- For the sixth year (and any furthers): 1.0x Gross Salary for each year

As Allie said above Net and Gross are same in KSA.

ghanshyampdave

rjpathan19 wrote:

Hi, Thanks for the reply.
Can you suggest in what all things I will need to spend apart from things provided by the employer i.e. Housing,Transportation,Medical Insurance...


The salary is not the best for your profession. Housing and transportation are not very expensive in KSA, in general.
You'll spend from your pocket on Food, Telephone, Internet, etc. depending upon your needs & interests.
Companies also provide Annual paid leave of 30 days every year; with return tickets for you and your family.

Further, you can decide based on your current salary and savings per month in India. You should negotiate for salary that is about 3 to 4 times of your Gross Salary in India.

HRGuru

You need to remember that with that kind of salary you need to pay rent, food, mobile / call expenses, travel, shopping, some saving etc etc. After all expenses you wont have anything much to save. You might be able to live off in the current salary with no savings. And if not for saving money why are you coming to KSA - for the desert life ?

rjpathan19

Thanking all for reply.

Straight question will be like I am getting 4500 SR (65000 INR),
I just want to save at least 40000 INR per month.
Please tell me if it is possible and how is hard.
Also, what are the average monthly expense on food in Riyadh.
If someone gives average monthly cost needed for other things (for a common man)excluding Housing and transportation, it will be a great help.

By the way I am going to work for (if I am)Afras Group in Riyadh.

HRGuru

rjpathan19 wrote:

Thanking all for reply.

Straight question will be like I am getting 4500 SR (65000 INR),
I just want to save at least 40000 INR per month.
Please tell me if it is possible and how is hard.
Also, what are the average monthly expense on food in Riyadh.
If someone gives average monthly cost needed for other things (for a common man)excluding Housing and transportation, it will be a great help.

By the way I am going to work for (if I am)Afras Group in Riyadh.


You cant expect to save 40000 INR with that salary. A min of SR.2500-3000 will be needed to stay including your accommodation, food and other expenses.

rjpathan19

Thanks HRGuru for reply.

I think I should go negotiating with employer. Hope they will negotiate with 7000 SR so that I can make a considerable saving.

HRGuru

rjpathan19 wrote:

Thanks HRGuru for reply.

I think I should go negotiating with employer. Hope they will negotiate with 7000 SR so that I can make a considerable saving.


Yes, a min of that amount is needed these days to live in KSA.

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