Penang with a 7000 RM job

Any takers on this?

Hi Ags,

A little more patience please

Meanwhile, i suggest you to have a look to this two topics concerning salaries and cost of living in Kuala Lampur :

- https://www.expat.com/forum/viewtopic.php?id=249285
- https://www.expat.com/forum/viewtopic.php?id=339832

Thank you,

Priscilla 

Hi,
I dint get you actually. Are you saying 7k is a good pay for Penang? or its not?
How much do you think i can save on it monthly?
thanks,
Ags

It's always difficult to predict potential savings, as it depends on factors such as whether you will rent a car, pay more than your allowance for accommodation, etc. Work on the worst case scenario which is to take 26% off the total remuneration for income tax. You should always have one month's salary in a bank account, to cover unexpected expenses. If you are not going to be able to join the EPF (Employees Provident Fund) i.e. pension fund - you also need to save a set amount each month towards the day you can no longer work. Other optional expenses are holidays and leisure travel, eating out, a wife who is a shopaholic :-) and other so far unknown criteria. If you consider the average wage in Malaysia is about RM3.5k for a graduate with several years work experience, then your package looks OK. Precise savings will depend on choices you and your wife make. Don't forget you will need a lump sum to rent accommodation. The deposit is 2 1/2 months rent, plus you need to pay the first month in advance at the same time. The 1/2 month is to cover potential non-payment of utility bills. Work on the basis that you hopefully will get your deposits back when you leave. Be careful how long you commit yourself to rent the property, as even if you leave before the agreed period expires, you are liable to pay the full amount of the commitment you agreed to in the rental agreement.  There are always hidden costs when relocating, such as buying appliances, furniture, suitable clothing, etc.

Thanks Gravitas for your insight. Alwys impresses me
I am yet to finalize things, so wanted to find out if this sal is good enuf to start with. The thing is that I am thinking of negotiating a little with my comp. So I need to know if the sal they hv given is above avg or below avg as per the stndard for IT employees with yrs of experience. If its below the standard then I will talk to them. Else I will pursue this option.
Yes, it alwys depends on the lifestyle i agree. I m not expecting to save a lot in the 1st yr, but eventually I hv to plan othr things like cars etc which I already hv in India so my concern is that is the trade off of indian luxury worth for this job?

Thanks,
Ags

Have a look at these salary levels:

http://fci.mmu.edu.my/files/my_salary_g … 2-2013.pdf

Personally, I don't think companies offer below market level salaries, as they have bands and norms within the organisation to which they adhere in all hirings.  It would only cause discontent to find out a salary was too low compared to other employees doing the same work and having similar experience.

Remember though that there is a misrepresentation in Malaysia that local Indians are somehow doing all the lowly paid jobs and many are poor or struggling for a living.  You will have to contend with a certain degree of generalisation if you live here.

I think you will enjoy the atmosphere on Penang Island, but I am concerned about your wife's career opportunities.

Luxury is relative. You can buy a European built car here for the price of a condominium unit - or you can buy one built in Malaysia by an international car manufacturer for a third of the price.

It all goes back to choice.

Thanks a ton really appreciate your time.

Cn you lso tell me about the taxes on my salary for the 1st 182 days and then onwards? how much will be my take home from the salary?

Ask your company, or work it out. Include the housing allowance to make up a total salary package. It is 26% only if you arrive after July 2014 (less than 182 days left of the tax year) - so probably not relevant?  Normal tax resident rate is about 20% so use that figure.

Hi,
My comp is not able to gv me exact details.
I will be there by May this year.
So they told 1st 182 days is 26% flat.

I am fine with that, since its as per rule.
But beyond that-182 days, i.e once i become a tax resident, hw much will be my taxes? any govt tax slab is there?

It's about 20% when tax resident. If you are tax resident and file a tax claim in March 2015, you can receive a refund for the overpayment for the first 182 days because you were tax resident for the entire time in Malaysia. This is a tax adjustment and only applies if you do not leave the country for more than 15 days in the first 182 days. If you leave for 15 days or longer, then the tax days are counted from zero, when you return again to Malaysia.  So no long holidays or returns home otherwise it ruins your tax situation!

http://www.hasil.gov.my/index.php?lgv=2

You should check this link and save it so you have all information and can see what write offs against tax are possible.

Thanks Gravitas.. appreciate your help.
Btw, i got an updated employee outlook for 2014 from the same Kelly survey. just for your reference:
http://www.kellyservices.com.my/uploade … 0ebook.pdf

Finally they fixed their URL - thanks I have noted this for future reference.

For rentals, you can try surfing ibilik.com or iproperty.com so as not to overshoot the rm1500 budget. Also what kind of transport will you be using for daily commute to work?

A car is a must if you are going to work at one of the MNC in Bayan Lepas, hopefully you can hitch a ride if you happen to have colleagues staying nearby.

I hope you have also talk to the company about health insurance, otherwise you may need to pay yourself. PM me if you need more info on this.

Hi,

I guess EPF is not a mandatory thing for Expats right?
Also any advise on good Telephone operators for SIM card purchase in Penang?

Thanks,
Ags