Sufficient salary

You can find what are local salary levels from this Guide.

Salary Levels in Klang Valley

Minimum should be RM10-12 k per month based on current earnings.

Thanks for reply,
I have been offered 12000 RM/pm, Is this much amount sufficient with decent life style. We are 3 in family & I am planning for my kids education. How much I would be able to save & can anyone suggest the major expense amount with approximation.
regards

Suggest you look at school fees, unless your prepared to go with public education system. And do some research at least on rent and schooling, if your serious about relocation. If you want private education you need double what you have been offered, keeping it real.

The public (government) school system is not available to foreigners.

School fees range from about RM1500 per month to RM5000 per month for junior level, depending on the quality of the school or its location (or whether is just conning its consumers, i.e. its just a status symbol). The costs get higher the older the pupils get.

I expect you will go BUDGET class all the way and choose small and old accommodation and lowest possible costs for schools etc. That is very typical.

If so you will probably be able to save about RM3k per month. But again, it depends on lots of factors, such as whether you need to run a car, if you eat meat and want fresh dairy products, or if you want to have some entertainment and travel.

Hi after tax with school fees you will struggle to have a decent living standard. You will save nothing.

A very bad package if they don't offer school fees and medical. A poor salary if single for that role anyway for an expat.

If you saving money in current role stay there!

Dear Experts
Apologies if I am intruding in this thread.
I am new to this forum and not sure how to post a new thread.

I currently am negotiating with a firm to move from Hong Kong to Malaysia (KL)

I work for an investment bank as a project manager in IT and the single breadwinner.

We are a family of 2 adults and one child aged 6. We also have two large dogs (Labradors)
While we are not having a luxury lifestyle, we do enjoy a reasonable lifestyle (movies, eating out in regular restaurants)

We would also like to school our child in an international school (mid end level)

We don't have dependants but wish to save for the future.

What kind of salary should we look for to allow above type of expenses and save about 5k RM a month?
If one assumes I earn 100k HKD (approx 12k USD) per month (no additional benefits at all) currently, would it be silly to expect 50k RM?

Hi - Welcome to Expat.com.

There are regularly IT jobs and salary levels discussed on the forum, as it is a very common type of job that foreigners undertake here.

I think you will find the salaries for your type of position are more likely to be RM12-15k per month in the banking sector. But its also OK to try and raise the bar "if you don't ask, you don't get".

Hi
Thanks for the quick reply.
Are you saying a project manager in an investment bank only makes 15k a month? That's scary.

Take a look at this salary guide

Kelly Salary Guide 2014-15

Salaries are better than some surrounding countries so there are plenty of takers.

The IT Centres are based in the suburbs where housing costs are lower. Not expat status areas.

Hi Gravitas
Thank you for sharing that survey!!
Am confused here.
You mention the salaries are better than surrounding countries. I am currently in Hong Kong and draw 100k salary (no benefits at all)
As per the survey I should get 18k RM at maximum. That translates to 36k HKD.

Even if cost of living is far lower than Hong Kong, does it not affect savings?

There are some COL sites - numbeo is one

COL HK v. KL

The foreign workforce in IT tends to come from Pakistan and India and salaries can be 60-100% higher in Malaysia. There are also educators involved among the brain drains.

Some expats tend to pay more to maintain their on entry standard of living i.e. living in expat areas in nice condos. Other professionals just live as cheaply as possible to save.

15 years ago it was 25-30k RM a month.

However HK is expensive so you have to allow for that. I would say 35k minimum to make it worth a move (plus all costs of education paid for) but if akll in it should be 50k. If you don't get that let some other sucker take a silly salary!

Malaysia is an investment banking backwater though. HK better place to be or Singapore.

Don't get confused with "factory level" jobs in IT we get now a lot discussed. If you earn less than 12k RM in IT you are not a professional worker (12k being the level for a Talent pass! - should be work permit min IMHO) you are a wage slave.

Those surveys are rubbish for professional workers. Real salaries are a lot higher in Malaysia. In investment banking in Malaysia most professionals wouldn't get out of bed for 15k a month. What happens though is for locals lots of the earnings are not "salary"   but "benefits in kind"

BTW I am an ex investment banker and worked in KL. 50k is rock bottom IMHO and I wouldn't get out of bed for less in a senior role. Even back then so now after massive property inflation......

Thanks guys.
12-15k sounded unbelievable.

Yes I understand KL is not at ground zero as compared to HK. However, the exposure this job will get me is the main motivator that is making me think.

What is the usual practice regarding education costs provided by the bank?

The history lesson is quite misleading. But will leave it at that......... The issue with salaries is demonstrating that the salary paid actually results in an addition to the bottom line. IT jobs just don't usually have that attribute as they are back-office systems and not related to investment or sales. Teachers (like Nemo) earn money for their respective schools, so they have an intrinsic worth, based on a number of things. Even internationally recruited teachers would only be earning on average RM20-25k at the best schools (RM12-15k at second tier schools. So that might put IT project manager roles in perspective.

Education costs paid by employer can be either invoice settled by employer direct with school (the actual costs involved  would be agreed up front) or a lump sum to be spent as the recipient wishes.

The general idea with hiring foreigners these days is to get something for less and not to have to pay top local salaries. I have seen project manager salaries at RM25k but not in the IT sphere.

Please bear in mind the income tax structure to understand how much of the additional salary you would actually receive.

0-5,000                0%                                                 
5,000-10,000      1% RM50
10,001-20,000    1%  +RM100
20,001-35,000    5%  +RM750
35,001-50,000   10%  +RM1,500
50,001-70,000   16% +RM3,200
70,001-100,000   21% +RM6,300
100,001-250,000  24% +RM36,000
250,001-400,000  24.5% +RM36,750
Exceeding 400 000  25%  (+?)

The schooling allowance would also be taxable.

Beware of sabotage.

Beware of the word IT job.

Someone senior in investment banking in IT can earn 1-2 million USD per year (I did once in hedge funds)

The many IT staff that come to Malaysia are doing technical jobs. Like comparing a heart surgeon with a junior trainee nurse. One earns 180k RM per month one earns 1k RM per month. Both are medical professionals lol

I know which one I would prefer to be

Hello Everyone,

Finally my offer for a company has been settled to 4500USD per month. Initially I will go alone for first six month & will be living on shared basis, using the transportation facility by own, mainly cooking the food & not living so luxurious, please reply how much I would be able to save per month.
Looking for urgent reply.
thanks & regards

P2303 - you can never bring dependents to Malaysia on that salary.

Thanks for your reply, but If I prefer to go alone, then how much would I be able to save there after all the expenses.
One more thing medical insurance will be the part of company policy & no deductions from the salary.
I will prefer transportation system rather than car & will share accommodation with other person.
Waiting for your response.

Monthly budget would be something like accommodation RM1k, utilities/phone RM150, transport RM250, food RM750. Tax as per scale above (i.e. work out annual tax from the scale given and then divide by 12), entertainment RM500. Check on the current value of the RM if sending money home as it has decreased lately.

I believe this can give you an idea:
Your minimum equivalent gross salary (india vs malyaisia) if you wish to maintain the same purchasing power and standard of living should be at least 126.967 MYR gross (which is quite similar to your offer). This include housing cost and differential in cost of living, but private medical insurance and school fees should be considered on top of that.

Thanks for your responses.
I am unable to understand your calculations, but as far as medical insurance is concerned, company is going bear my medical insurance. My wife's & daughters insurance is going to be on my pocket.
My daughters School & insurance will be after 6 -8 months, so initially i will prefer to save as much as possible.
Please elaborate in calculating the tax part of my salary.
As I have read through the blogs, initially 26% flat tax for first 6 months & then 1% & RM 100 per month, if correct then please mention.
Looking for valuable comments.

Your idea about tax is not correct. Higher salary more tax at a higher percentage.

1. Total your annual RM salary
2. Take a look at the tax levels shown below (these are based on annual not monthly salary)
3. For each level you pay the amount of tax shown on the right
4. Add those figures together
5. Divide by 12 for monthly deduction from salary.

0-5,000                0%                                                 
5,000-10,000      1% RM50
10,001-20,000    1%  +RM100
20,001-35,000    5%  +RM750
35,001-50,000   10%  +RM1,500
50,001-70,000   16% +RM3,200
70,001-100,000   21% +RM6,300
100,001-250,000  24% +RM36,000
250,001-400,000  24.5% +RM36,750
Exceeding 400 000  25%  (+?)

The exchange rate is an unknown quantity but lets say its USD 1 = RM 3. So salary is RM162,000 per annum. So you add RM100 - 750 - 1500 - 3200 - 6300 - 62,000 x 24%) then divide by 12 for monthly deduction.

This is an idea of cost of insurance based on age - different companies charge different premiums

http://www.tokiomarine.com/my/en/person … rtner.html

Education = anything fro RM1500 per month to RM5,000 depends on school and age of child.

Dear Smart  expatriation, I don't understand the meaning, please clarify in detail if possible.
Awaiting for your response.
Moreover, as per my calculation, my target for saving is around 8000MYR for first 8 months then it would be ok.
Please correct me if I am wrong.

Why don't you guys meet for a cuppa?
Just count me out this time.