HSBC Expat

Sign in to join the discussion or ask one of our experts another question.

Sign in with Facebook
| Sign in

Base salary benchmark Saudi Arabia


slackjaw's picture
By slackjaw - Posted on
06 February 2012
Been trying to find this for some time. I am currently making 150k euro (excluding bonus) + car in Austria. Based on some job adverts (similar role, Jeddah based) i suspect i should aim roughly at 200k euro base (which would then be tax free). Is there some kind of formula which would say: local salary x 1.x = reasonably competitive KSA salary? I heard somewhere that typically people make 3x more in KSA than at home... this would roughly mean 1.5x correction factor then (assuming taxes roughly at 50%) 150k... = 80k net... x3 = 240k... 240/150 is a little over 1.5 then Any hints/links/advice here? Don't want to get the bottom of the barrel but want to ensure I'm getting a compeitive package in return for sticking it out in the desert.. thanks
GlobalNomad's picture
Offline
Last seen: 18 weeks 5 days ago
Joined: 12/12/2011

Hi Slackjaw-

Unfortunately there's no easy equation that you can use to calculate an ideal salary working in Saudi Arabia, but what you can do is evaluate your current salary, take into consideration a hardship factor (as you say - the transaction cost of 'sticking it out in the desert'), and then calculate a budget with the aim of arriving at a figure that would be enough of an incentive to pull you out of your old job. After all, moving to Jeddah is not a relocation people make to enhance their cultural outlook or reach a new level of spritituality, it's almost entirely a financial decision. Thus, it must ABSOLUTELY be worth your while to take the plunge. Jeddah is not Dubai or Abu Dhabi even. 

I cannot stress how important it is to try your best to anticipate and calculate you cost of living in the KSA beforehand, especially as most expat packages come with certain perks that may change the value of your base salary. 

For starters, read our "Accommodation in Jeddah" page to get an idea about what will likely be your largest expense - housing.

Your rating: None Average: 5 (1 vote)
DavidWright's picture
Offline
Last seen: 4 weeks 2 days ago
Joined: 08/05/2011

Living in:
Jeddah, Saudi Arabia

From:
the United Kingdom

David's Website
Hi

Sorry for late reply - work gets in the way from time to time.

I would say no formula but base salary would be similar to that in Europe, may be 20-30% more, but it is tax free so if you want to compare add 40% or so!

The key difference with a position on the level you are looking at is added benefits, you would expect housing, transport, medical, holiday flights, hardship allowance, school fees, annual bonus and maybe a few other things on top, all paid by the company.  This increases the package substantially.
Your rating: None Average: 5 (1 vote)
slackjaw's picture
Offline
Last seen: 13 weeks 3 days ago
Joined: 02/06/2012

Thanks a lot - this is actually very helpful.

Followup question - is it OK to assume that 100% of gross salary = net salary?

Or are there various pension contributions, social charges, etc also deducted?

Would it be necessary to request tax filing support (employer hiring a Deloitte to do this) or is this silly because tax = 0?

Your rating: None
DavidWright's picture
Offline
Last seen: 4 weeks 2 days ago
Joined: 08/05/2011

Living in:
Jeddah, Saudi Arabia

From:
the United Kingdom

David's Website
Hi Gross = Net in Saudi They have imdemnity here which may be deducted or added on the top - but you get it back. Because there is no pension they keep money on one side which you get when you leave. If you consider people who work here 20+ years this is like a lump sum pension before repatriation. It is a big thing for factory workers etc. As I say it could be on top or deducted depending on the company. One other thing I should mention is that your home country tax rules may require you to pay tax at home depending on your Nationality. If this is not the case then no advice is needed locally. Pensions are another matter - as an expat you will need to set your own pension up - it will probably need to be off shore because home country pension schemes tend to be linked to being resident and paying taxes, but a quick search on Google will throw up a load of well know companies that provide this service - this is an area where advice might be needed. David
Your rating: None
Anonymous
Anonymous's picture

hi there i am a female and have been offered a job as a hair stylist and the contract is for two years. The offer is really good but i have never been to saudi arabia (al khobar) what if i did not like it. What are my exiting rights? is it up until your probation period???
Thankyou

Your rating: None

Post new comment

By submitting this form, you accept the Mollom privacy policy.

Read more posts about Saudi Arabia

Become our local expat expert for your area in Saudi Arabia!

Expat Arrivals is looking for contributors to make this the ultimate guide for international expats.

If you are an established expat who could make time to write useful information for expats in your city in Saudi Arabia and answering forum questions from new and prospective expats, please contact us.

As our local expert you can have your profile showing on each page you publish, and will have an option to promote your website or blog.

Got a question about your new country?

Search Expat Arrivals

X
You may login with either your assigned username or your e-mail address.
The password field is case sensitive.
, after login or registration your account will be connected.
Login with your Facebook account (Recommended)
Loading