2012-11-05

My expenses in KSA (7 / 7) - Offer evaluation

When evaluating an offer you need to take care about the following points:

Abbreviation Description
S Basic salary, most of offer attributes depends on this.
A Accommodation, usually it is in number of months of the basic salary, most of companies offer 3 basic salary, sometimes paid monthly, sometimes paid every 6 months.
B Bonus, usually it is in number or portion of the basic salary, depends on company, job nature, and in some cases there is a minimum bonus specified in offer.
T Transportation, it is different from company to another, and job nature, and in some cases on ob grade.
- Non interest loans, some companies offer in some situations, like first coming to KSA, buying a car, considered a great added advantage but very hard to be added in monthly computation as you will pay again the money, you won't gain it.
- Medical Insurance, as mentioned before never accept an offer without medical insurance covering you & your family.
R Annual raise, usually percentage of basic salary, paid annually or every two years, and sometimes based on negotiations.

Advices:
1- Don't accept lump sum monthly salary, as any bonus or incentive is factor of this figure, and a common trick to minimize basic salary as possible.
2- You MUST know what will be your degree & its benefits, and the higher degree and what is the difference.
3- Make sure everything is written not verbal, this is the second most tricky thing, you will find people working on same position in same company with different benefits because someone thought he will get them by default while this was not the case.
4- Try to have accommodation paid every 6 months to match your payment for your flat.
5- Ask for initial free accommodation in hotel or furnished flats for at least 14 days to 1 months.

To unify the monthly offer across if you are receiving multiple, use this formula to compute unified monthly salary = ((12 * S) + A + B + T) / 12

Example:
If you have offer with basic salary as 10000 SAR, 3 months accommodation, 1 month guaranteed bonus, no transportation = ((12 * 10000) + (3 * 10000) + (1 * 10000) + 0) / 12 = 13333 SAR / month

From previous posts in this blog, you can compute your monthly saving after computing your expenses and subtracting from above monthly salary.

Most readers want quick ranges of expenses rather than reading all posts, below table provide this information based on moderate lifestyle from my point of view, good flat already furnished, and moderate international schools distributed over 12 months of the year:


Family Monthly expenses in SAR
Single 5000 - 8000
Newly married without children 7000 - 11000
Married with 2 children before school 9000 - 15000
Married with 2 children in school 11000 - 18000
Married with 3 children in school 16000 - 22000



I prefer that everyone read previous posts as there are opportunities for saving, like singles can live in shared flats saving too much, cook your own food instead of delivery, ... etc

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