5 years exp. CRM Consultant, Job offer in KL for 7700RM/Month

Budget:
Rent         RM 1800-2500 (you dont say where you will be working)
Food, etc. RM   700 (anything you need from a supermarket or market)
Utilities     RM   175
Eat Out    RM   300 (work on the basis of RM20 per meal/beverage per head)
Mobile      RM  100
Internet    RM  150 (linked to TV e.g. Astro or Hypp TV add RM70)
Transport RM  200 (buses/trains are RM2 for short journey and taxis are RM15-25)

Tax
Tax steps on annual salary are:
                                2015
0-5,000                    0%                                                     
5,001-10,000           1%
10,001-20,000         1%
20,001-35,000         5%
35,001-50,000       10%
50,001-70,000       16%
70,001-100,000     21%
100,001-250,000   24%
250,001-400,000   24.5%
Over 400 000        25%
NOTE: Non-resident individuals (not resident for 182 days in any calendar year) are subject to income tax at a fixed rate of 25%.

Thank you @gravitas for the detailed breakup. helped a lot in my calculations. Just one query regarding taxation - for first 182 days, the taxation would be 25% of 7700*12? or 25% of 7700*6?

Could you also let me know if the pay is at par with market rates? I did some research on the web and found it to be somewhere around the average salary. Just want to know from experts here so that it would help me decide better. In the offer letter, they have only mentioned about "basic salary" and taxation. Wont there be any other components like additional allowances, over time allowance etc? Also, what are the mandatory deductions? If there are any such deductions, they would be deducted from the said base salary? Have lot of commitments back here and don't want to end up in a messed up financial situation

Thanks,
Untunedguitar

The non-tax resident 25% will be based on your annual salary. If you overpay on income tax but remain resident for over 182 days you can claim the overpayment back in April 2016.

This is a guide to salaries

Kelly's Salary Guide 2014

Your offer letter will state the full terms of employment. So you need to ask the employer those questions. Deductions might include EPF, but as a foreign employee they dont need to offer that to you. Not sure from what you write if you will have a deduction for your health insurance. They have to offer but can backcharge the employee. Overtime depends on how long the working day will be - it could be 12 hours - depends on the Ts & Cs. No other deductions are mandatory in Malaysia.

Bear in mind that some companies also backcharge for immigration services, it not for the employee, often for the spouse.

Do remember that all the benefits you receive are going to be subject to income tax. If you arrive in 2014 you will automatically pay 26% (current rate, which goes down to 25% in 2015) and there will be no refund as you cant possibly be in Malaysia for 182 days in 2014, so will be classified as non tax resident.

@gravitas - the guide is amazing. Clarified all my concerns regarding pay range. Seems I am getting a very fair offer as per the guide. I rechecked the offer and there is no mention about back charging employee for immigration services but however, there is one clause which says that if I resign during contract period then I have to pay back the immigration charges.

Regarding other allowances, there are no mentions about them but the HR said (both in writing and over phone) that all additional allowances are present and they would be given as per client's policies, whenever applicable.

if I accept the offer, I would be landing there just at the end of 2014

Is there any other factor that I need to evaluate before accepting the offer? Any suggestions please? To me, after looking at all the answers, it seems like a good offer to consider.



Thanks,
Untunedguitar

The only concern might be the lack of pension (EPF savings) but unfortunately you are probably powerless to influence that, although it can be a good way to make additional savings and the annual rates are about 6% which far outshadow the current bank interest rate. However, it would also (if they applied it according to local standards) result in at least another 11% of your salary being deducted each month.

Paying 25% tax on the benefits i.e. flight, initial accommodation, relocation package, immigration processing, etc. is tough because it does reduce the monetary value of all these perks and reduces your overall salary for December significantly (if you will be on the payroll then). A better solution would be to start work on 1 January 2014 (i.e. new tax assessment year), so that you avoid such a high tax rate of these items and can claim back overtax on them as well in April 2016.

It seems the average salary at the moment for Indian IT workers is about RM8k per month. This does not permit a lavish lifestyle but if you think your career prospects are better in Malaysia, and your wife can potentially also find work, then I guess it may be a reason to accept the position.

According to Carlyle1979 (Indian Expat-Blog member) I think he says it is possible to save around RM-3,500 per month. He usually contributes to these discussions. If you look back over the Blog or search on his handle, you may find his comments. They are mainly under the Cost of Living section. I think his contributions are good.

Beware of these guides. They are low on purpose and serve employers needs to get cheap labour. Often they are a joke and based on local salaries. Not expat.

Your salary is too low for someone with 5 years experience overall. With a wife too low. After tax with a wife you will struggle to save. Obviously if she works ok but it will take time to get a job for her. Might be lucky and get less than one month but  might take 6 months.

On a one year contract tax is especially bad depending on when you start. Start at the wrong time and tax is massive (and unreclaimable in part).

There is a trend for lower pay in itc in Malaysia but it is expensive to live here. Better in usa or many places now. I always say 10k min for any experienced expats with a wife or 6k if single and under 24 and less than 2 years experience (or internship). Most earn at least this in expat industries. Indian teachers get 8k if experienced for example but often are second earners with the husband getting more than 10k in another job like itc. For a second salary 8k is ok. Main one I would say no.

When it comes to salaries the only relevance is a comparison of what is available in one country as opposed to another.

This makes some job opportunities unattractive to some nationalities because of their home salary structures. Other nationalities find salaries very attractive in Malaysia.

This is why there cannot be a hard and fast rule about what level is attractive to accept an offer. Its all relative and also related to the expected standard of living and normative lifestyle, which very often has a cultural basis.

Hi Nemodot. I am still in negotiations with the employer to increase the package (which he did once from 7300 to 7700). I did evaluate offers in India but they all seem to be in the range of   8 to 9 lacs INR and the final effect it would have in my pay when compared to my existing salary will be  like 15-20k more only. I am still deciding. And my spouse is also searching for  job in KL. If things work out then we will come there. Plan is to jump to some other country post 1 year.

Before you decide to ask for more, just check out the tax bands, as it can affect the take home salary. Once tax resident there is a RM9k tax free allowance. When you take that off, it can affect the bands.

Gravitas - most indian ITC workers I know get 10k+ a month and they think that is low. Only people I know earning less than that are either under 24 or are outside IT or other major expat areas except teaching - teachers from outside west get lower salaries. Indians 7-8k and Iranians well as low as 2k at likes of Fairview etc.

As for OP well if your wife gets same salary then of course you will save money. Issue I have is the one year contract - you get wacked with tax and if your wife gets two years? With your salary offer you are looking at a cheapskate employer. They will.prob over work you as well. So be warned!

The offer says contract period will not be terminated automatically as there is a high probability of extension with same client/other clients. I am not looking at a very high % of savings. Just enough money to sustain us in Malaysia with a decent lifestyle and take care of commitments of around 60-70k INR at home. Will that be a herculean task with this offer?

I was looking at taxation from this perspective also - even if I were to come to Malaysia through my current employer (without switching jobs), it is going to be the same and it could end up in double taxation as well right?. Moreover, I did an unofficial check here and my present employer is also offering somewhere around the same package for Onsite deputation. For deputation to all other countries in the west, they are making sure that they pay us only the minimun wage but yeah, their exchange rates are on the higher side.

This is all the more confusing now as in India itself, we are leading a good lifestyle with own car, FDs etc. I've dropped in my queries to my new employer and he's yet to call me back to discuss..

Thanks

Just be aware that you can't leave Malaysia for more than 14 days during the first six months for social reasons or the 182 day period has to start over. As Nemo says there have been some nasty surprises for some badly informed people.

Sure gravitas. I am very clear on the vacation part. Will ensure to be in Malaysia for full 182 days if I come. And regarding surprises, I had discussed with my employer twice in the last couple of days and he said there will not be such over work except for the usual IT maintenance activities that happens over random weekends and I would be paid additional allowances for those days. I will speak to him again on this and get things in writing before proceeding.