International pay difference?

[FireMedic]

Let's say there is a global company that hires you to get a stronger foothold in Thailand. The people who do the same job you do internationally is varies from 90-120,000US$ a year. Is it common for director to offer you less money because you live in Thailand? I can see them using the "but your living in Thailand, the cost of living is different" line. I guess I'm just wondering if anyone else has taken a pay cut because they live here?

[asiaexpat]

From my experience over some 40 years of expat jobs with multinationals, Local hires do not normally receive the same benefit package as those sent from home countries. Local hires usually are offered less salary, housing, transportation, schooling, etc. since it is expected that they are already settled and will stay once work is complete. An overseas assignment is still considered a hardship by many multinational companies therefore they compensate those that take the assignments. If you already live in the target country, there is no hardship to compensate. You are also competing with locals.

[Briggsy]

It's a market. If you are in a managerial or technical position, expat 's package > local hire's package (foreigner) > local's package.

If you think you are worth more, negotiate or go elsewhere.

Your question implies there is a just solution and that you are a victim of injustice. Readjust your thinking. It is a market. You get what you can get, supply and demand.

[FireMedic]

It's a market. If you are in a managerial or technical position, expat 's package > local hire's package (foreigner) > local's package.

If you think you are worth more, negotiate or go elsewhere.

Your question implies there is a just solution and that you are a victim of injustice. Readjust your thinking. It is a market. You get what you can get, supply and demand.

The good news is I'm the only one in the region of SE Asia that can do what I do. I planned on retirement here and never gave it much thought to working again. I hardly consider myself a victim of injustice. I wanted to know if anyone else had been in the same position. Thank you for your input.

[rwdrwdrwd]

It's a market. If you are in a managerial or technical position, expat 's package > local hire's package (foreigner) > local's package.

If you think you are worth more, negotiate or go elsewhere.

Your question implies there is a just solution and that you are a victim of injustice. Readjust your thinking. It is a market. You get what you can get, supply and demand.

The good news is I'm the only one in the region of SE Asia that can do what I do. I planned on retirement here and never gave it much thought to working again. I hardly consider myself a victim of injustice. I wanted to know if anyone else had been in the same position. Thank you for your input.

If that is the case then you should certainly not accept a lower salary - If anything I'd say it should be higher since the lack of candidates pushes the market rate higher.

In the past when I have worked for western clients (for me this has been remote work, not onsite at a location in Thailand), I have never reduced the rate due to my location - I have been asked 'how much do you need to get by' and quoted market rate, justifying it by lifestyle choices (fast internet, western restaurants, international schools, pension contributions, a western standard living environment etc) - always got the US/UK rate.

Edited March 4, 2014 by rwdrwdrwd

[Soutpeel]

Let's say there is a global company that hires you to get a stronger foothold in Thailand. The people who do the same job you do internationally is varies from 90-120,000US$ a year. Is it common for director to offer you less money because you live in Thailand? I can see them using the "but your living in Thailand, the cost of living is different" line. I guess I'm just wondering if anyone else has taken a pay cut because they live here?

If 90 to 120k is the going rate, this is the salary band you should be looking for, but to answer your question, the answer is No, if the company I came to Thailand had used that logic I would have politely declined the job

Is it common for companies to try and low ball someone of course

[fstarbkk]

It's a market. If you are in a managerial or technical position, expat 's package > local hire's package (foreigner) > local's package.

If you think you are worth more, negotiate or go elsewhere.

Your question implies there is a just solution and that you are a victim of injustice. Readjust your thinking. It is a market. You get what you can get, supply and demand.

The good news is I'm the only one in the region of SE Asia that can do what I do. I planned on retirement here and never gave it much thought to working again. I hardly consider myself a victim of injustice. I wanted to know if anyone else had been in the same position. Thank you for your input.

Seems like you are in a decent negotiating position. The fact that you're qualified and are already established here, lowers the risk for your employer, compared to binging someone in from elsewhere at great expense (relocation, housing etc.), who may, or may not work out and/or hate it in the local setting.

My approach would be to figure out the total cost to the employer with the established base salary (say, 100k) + half the relocation, settlement cost and other bennies for an import, over the contract period. This would be my target landing zone. I would take the base off the table, but offer to negotiate on the package, because you're a nice guy

This should seem like a win/win with somewhat lower costs and significantly lower risk for the employer.

[kurtmartens]

Are these the "same people" doing the same job in the same company? Or people just in the same field? It might be this company just has a crap expat benefits package.

[fletchsmile]

1) For full expat package positions it's more normal to come to Thailand, and have various add-ons to your salary back home. So salary + accommodation + cost of living adjustment (COLA) + daily allowance + travel + international health etc, are all possibilities. That's the package I originally came to Thailand on, as someone with skills in my field that locals didn't have. I was single at the same, but if married, would have been asking school fees as well and perhaps a driver instead of the travel allowance. This is generally if the company is seeking you. These days full expat packages are becoming less common, as Thais have acquired good skills in many industries.

2) If you're already in Thailand, and you're the one looking for a position, combined with the the lower level of full expat terms, you might end up with "half pat" terms. i.e comparable to back home plus a couple of add-ons to help with say accommodation. These are still senior management positions, so comparable to local can be a good package.

3) Then there's locally hired foreign nationals (LHFN), where people accept local packages, i.e same as a Thai would get. These are generally for people who are in Thailand/choosing to be in Thailand rather employer seeking them. This then depends on your industry, experience etc. Usually it will be lower than the same job in the UK. Also it could be the company really want you but aren't prepared to take someone who is out of line with local packages on an expat salary. This could be because they can't afford it or because they don't want to alter the dynamics in a company of department because of a single individual - they could afford it, but it would just cause issues and be seen as "unfair" by many within the salary bands.

I came in more on the first one. I've also taken 2) and 3) and been quite happy. I wanted to stay in Thailand, my employers wanted me to move again as an expat, so I was prepared to take local terms and remain here, but lose the "hardship allowances".

At the moment I choose to work and am enjoying it. I get about what an average person in London would get in my industry. That said if I was back in London in my industry I'd be above average But then again if I went back to my home town, I'd earn less than I earn now in BKK. So it's already relative

I gave up a full expat package in Vietnam last year to take a complete local package here in Thailand. I don't regret it for a minute. Yes I pay school fees and no accommodation and pay tax, but on the other hand I enjoy the job more and have a better life, plus more time with the family, and a better social life. We already own a condo, car etc anyway. They were actually looking for a local person, and had a preference for a local, so I was quite proud to be referred by Thais and be told I was same as Thais.

Bottom line: there are no fixed rules. There are a few guidelines: supply and demand/ market etc. But it also comes down to you as a person and what's important to you.

Cheers

Fletch