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Things to consider as an ¾ÅÉ«ÊÓÆµ in Riyadh in 2024.

Wakka007

Hello,


i have been approached for a position in Saudi Arabia (Riyadh) to help set up a specific framework for a public institution in the next 5 years. I would move with my wife and baby (we’re both in our early 30’s). i’m at a very late stage in the process where i’m being asked HR documents so i will probably have to take a decision soon.


I understood that the total compensation would range from 380k$ to 400k$/year based on my personal « situation ».


To fully assess the opportunity i have tried to realistic break down all cost to have a good estimate of my monthly saving capacity taking into consideration our current lifestyle but i still have some areas of concerns, but first let me share my estimate based on my research:


In SAR

Renting: 18000 (compound 2 bedroom appartment - we would prefer a house but priced are crazy in compounds)

School: 8000 (top school)

Housemaid: 3500

Driver: 3500

Car: 2500 (average car / 60 months)

Food: 2500

Entertainment: 4000 (restaurants,  activities)

Misc: 4000 (clothes, anything not accounted for)

Flight cost: 4000 (mensualised assuming 2x Business flights per year to our home country)


base salary 128k - 50k = 78k saving capacity.


My other concerns are linked to the following technicall questions i’m asking myself:


1) is it common practice to ask for the salary to be paid partially in a foreign currency (i.e $, £, € ?) and directly on your foreign bank account? im asking because i have several mortgages which need to be paid on a monthly basis, and i would prefer to avoid currency risk and payment transfer delay and fees, if not what are the options? i have a Revolut account, so could i ask to be paid in SAR on it and swap it and then send it to my home account?


2) Work contract:


a)  i understood from one of the interviews that the common practice for ¾ÅÉ«ÊÓÆµs in this institution was to roll over with 1/2 year contracts, i find it quite short given the time commitment requested (5-7 years), i will therefore probably try to negociate at least a 3 years contract for stability and proof of commitment, but what is your experience on that?


b) (I understand  that this might differ across institutions)  did you hire a lawyer to review the provisions of the work contract? And potentially a tax advisor?


c) did you include provisions that would hedge you against any national fiscal policy changes?  (i.e. taxes on salaries)


d)I also had the question regarding the housing and school allowance fees, i understood that there was some volatility in prices (i.e some compound prices increased over 20% in the last couple of years) so wouldn’t better to ask for an allowance based on the contract rather than a fixed amount which might not be in line with the housing market after a few years? and ultimately having an impact on the saving rate. Should the flights tickets also be based on real costs rather than fixed contribution?


e) number of paid holidays, i would expect at least 30 days, is this in line with expats packages? im currently at 38 in my home country but i’m also trying to look for a resonable middle ground taking all things into consideration.


f) medical insurance: i currentlly have a fully fledged insurance plan, i understood that it is mandatory to have one, but how can i ensure i’m provided with a top coverage? is there any specific insurance coverage plan that is well known?


g) i understand that the ¾ÅÉ«ÊÓÆµ packages does not include any kind of pension scheme contribution/provision? is this correct?


h)  relocation fees: i understand i will also have to include an estimate, i honestly have no idea, but if we were to move things. there are a lot of things. We are currently living in a 4 bedroom house, i looked a bit on the internet and the ranges go from 10k$ to 30k$ or even more, any experience on that?


3) Is nurser/compound placement challenging? in my home country it can take even a year for a nursery spot, i also read that compound spots are in shortage, what kind of solution are there?


4) is it common practice to request assistance on the most obvious above items prior to arrival?


i'm obviously trying to frontload all my key points and figure out what is acceptable and what is not for tye negociations, as there might be some very different corporate practices so thank you for helping me clearing out some of the above elements.


Also i’m aware that this seems a rather competitive package and that i might sound picky on many items, but my wife and i are having a very competitive package in our home country and we are therefore not willing to move and lose all our benefits without a due diligence.


if you made it this far i salute you and thank you again for your help!

See also

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XTang

First, of all, it is a good salary and you will save.  However, your saving estimate might be a bit high but still.


1) No.  Salaries are in paid in SAR only and in Saudi bank accounts.  There is WPS (Wage protection system) so the organizations have to comply with it.   In the past, there were exceptions but now, with all the regulation, less likelihood

2)

a) This is standard.  Nowadays, most people get a 1 year renewable contract. This is through the electronic system i.e. QIWA where it is renewed every year based on mutual consent.  I have been in Saudi since 2017 full time, at more than your salary, in top management and I have never had more than a 2 years contract.  Only 1 year since QIWA came out

b) No need for lawyer.  The electronic contract in QIWA is standard and as per Saudi labor law.  You cannot change it.  Also you need to understand, if they want you gone, you are gone.  This is not Europe where dismissals take forever and you get big payouts.  At most, after fighting in labor court, you will get the balance amount of the 1 year contract - no punitive damages.  In most cases, they don't fire and just don't renew your contract - so you get end of service and ticket back home.  That's it.  This is in line with labor law

c)  No employer will accept this.  This is not standard

d) Depends on your employer's policies.  In most cases, the allowances are calculated on the basis of "basic salary" i.e. percentage.  So if your salary goes up, allowances also increase

e) 30 calendar days is pretty standard.  Translates to 22 working days

f) You can't ensure anything.  Policies will be provided as per your employer's plan.  Senior people get VIP or VVIP plans which are quite good

g) Correct

h) The range varies but again speak to your employer.  As most will give you a lump sum for relocation which could be up to a maximum of 1-2 months salary

3) Compounds places are challenging.  No solution except to keep looking or be on wait lists

4) You can always ask.  But outside of multinationals, the answers you get will be lacking in many aspects :)


From your questions, it is clear that you don't fully know the cultural nuances and the way things go here.  I suggest to do some research on that.  This is a society that is based on respect, personal touch, ego massage etc etc...........it is not a straight forward professional work environment that would exist in the western world.  I have been in the region for more than a decade between Saudi, Bahrain and the UAE..........and I have seen a lot of people from the west struggle and / or fail when they land here..........just because they don't get the culture.  I am referring to Saudi as locals are in the majority here..........UAE is easier as expats are the overwhelming majority and cultural aspects are less of an issue.

Wakka007

@XTang


thanks for the very detailed and clear feedback, it is highly appreciated.


Indeed i wanted to clarify for myself all the questions that i had, now i know more or less the do's and don't and understand that i should focus on the overall package rather than the nitigrity of details.


Regardibg the number of holidays i meant to say 30 working days, but i suspect that this is not a blocking point compared to the others.


You also mention that i may have underestimated the costs? any particular thing?


Thanks again!

XTang

Many things depending on lifestyle.


*For example, if you eat out regularly and like good restaurants.  You might spend more. 

*Groceries for a family of 3 plus maid plus driver can be a lot more than 2500 as a lot of stuff is imported (Especially fresh produce).  For example, in Bahrain, for a similar family size (cheaper location) and not penny pinching, I spend around 10k SAR a month.

*Good quality clothes would be more expensive than Europe.

*If you sponsor maid and driver on your visa (the legal way), the costs will be pretty high.

*Schooling can be higher depending on number of kids and ages.  I have two kids who are older so obviously higher school fees and lots of fees for extra curricular activities.  Around 12K or so a month.


I maintain two residences, one for family in Bahrain and a compound apartment for me in Saudi.  Also we take at least two vacations a year.......business class etc.......and I save around 50K a month on average.  I am higher than you in salary but let's say that roughly, accounting for my higher spending (two residences but Bahrain being cheaper) habits, you should reaslitically be targeting around the same in savings.

Xinho

Hi both,


My family moved out here in early March, my spouse is in the ballpark of a similar salary to that quoted by Wakka007.


Driving here seems dangerous and the local drivers seem impulsive - where has your experience/research suggested a driver could be hired? We would have space for the driver to stay as we have decided to move to a compound villa due to work-provided apartment (even though it is nice) feeling a bit hotel-like.


On the same lines, where could a live-in maid be hired, preferably filipino? Our interactions with filipino people have been fantastic.

smaxss

@XTang

Hi,


I'm considering a job offer at KSA for a director-level position in IT with 70K SAR/month. My wife and children will remain in Europe, while I plan to live alone in Bahrain.


Looking at the posts above, I'm unsure if this salary is sufficient. Given the typical expenditure in KSA and Bahrain, how much would I expect to save?

XTang

Look it all depends on your lifestyle as I pointed out in my post.  And I suggest to read the posts carefully as most expenses listed there will not apply to you as a single guy in KSA e.g. you can't hire a maid as a single guy, no schooling etc etc.

Xinho

@XTang


Hi,


My family moved out here, from UK, in early March, similar salary to that quoted by Wakka007.



Driving here seems dangerous and the local drivers seem impulsive - where has your experience/research suggested a driver could be hired? We would have space for the driver to stay as we have decided to move to a compound villa due to work-provided apartment (even though it is nice) feeling a bit hotel-like.


On the same lines, where could a live-in maid be hired, preferably filipino? Our interactions with filipino people have been fantastic.


Your posts have been very helpful and I would appreciate any advice.

XTang

You can hire both a driver and live-in maid.  However, the search for a reliable person may take time.  You can either go via the agencies route and bring a maid into the country through them - costly or look locally for someone whose employer is willing to transfer them.   There are expatriate groups with ads on them e.g. expatriates.com.

Xinho

@XTang


I have discovered the app Raha, which promises Indonesian housemaid on 24 month contract without iqamah. That seems long especially since job contracts are a year. Prices are ok but with a 16000 +Riyal downpayment


I have also seen Baytoo-nanny - a website with housemaid profiles. Is this what you meant by agencies? What would be the typical fees involved?


Also, whichever route we take (whether agency or transfer) are there any potential pitfalls or problems we should watch out for?


TIA for sharing your knowledge and experience.



Kind Regards


Xinho

XTang

You are sourcing a house cleaning service (the first app) and not a live in maid.  Even if they give you one and she is not on your Iqama, be aware that is is illegal.


Pitfall is the cost and shady agencies that tell you not to put the housemaid on your Iqama.