ISS Singapore

[Climberman]

ISS Singapore lists their salary as 70,000+ with 6-8% taxes. 1700 housing allowance (single), and moving allowance about 1000, all USD.

Yet they list savings potential for a single as 7000.

70,000 after 8% tax is 64,400. Divided by 12 gets you 5366 per month plus the 1700 housing allowance = 7066.

Now I know Singapore is expensive, but how could a single person not save at least 2000 - 3000 per month?

Thanks once more for any replies.

[wrldtrvlr123]

Those types of situation always do make me wonder. I have no personal knowledge but I would say off the bat it's likely that a decent place is going to cost a fair bit more than your housing allowance. The bigger/better schools off more like 3K+ for housing for a single teacher so I would imagine that is a more realistic number. I also always thought tax in SG was more like 15% but maybe the school covers something (or doesn't pay something :S).

In any case, more questions than answers but I would love to hear insights from someone with ACTUAL, RECENT experience teaching/living in SG.

[National]

To get an actual idea on taxes in Singapore, you can use this tax calculator from the government: http://www.iras.gov.sg/irashome/taxcalculators.aspx. Expat teachers are tax residents. Housing allowance provided by the school is taxed, so include that in your calculation. As others have said, S$1700 is not enough to get a decent apartment. Most places run closer to S$3000. I think the savings potential is higher than S$7000 for the year, but I don't think you'd hit the S$3000/month mark. Of course, with all things, it does depend on how you live...

FYI - the "better" schools in Singapore pay roughly S$7000/month, include a thirteenth month bonus (it's a Singaporean thing) and provide housing allowances in the $2500-3000/range.

[PsyGuy]

SG requires residency of 183 days in your year of assessment before you are resident. Non Resident tax is 15% of gross, once resident your tax rate will be about 7%.

Housing and cost of living is extremely expensive in SG, a 1LDK that isnt a house or room share will start at about $2500SD/month start adding amenities or upscale locations and the price goes up very quickly. Most ITs int heir own dwelling are paying $3000SD/month and about $1000Sd per each additional bedroom. SG is a knowledge economy and almost all goods and products are imported. There isnt mush to do in SG that is free of cheap. You can blow a months salary on Orchard Road in a few hours easily. A couple nights on Mohammad Sultan can quickly eat through your discretionary income. $5000SD/month is the minimum you need to live a modest western lifestyle.

[National]

Just to clarify for everyone, you will get tax residency when you arrive -- even for your first year. If you look at the IRAS site, you'll see that tax residency is 183 days BUT it can be "at least 183 days for a continuous period over two years" and you will be considered a "resident for both years". This is taken directly from the IRAS website. As a teacher, you'll reach that within your first teaching contract, and so will be counted as a tax resident for your initial and subsequent years. So, the link I posted earlier will work to figure out your tax residency and you don't need to use the non-resident tax rate.

[Climberman]

Thanks for all the replies.

But look again at my calculations. Even if I spend another 1300/month to get a 3000 apartment, I still will have about 5700 per month. Living like the usual non-elite expat, why wouldn't I be able to save 2000 or more a month?

Even as a tourist to Singapore I remember the local food/groceries were reasonable.

Where am I wrong?

[Rob]

Having just left Singapore a little more than a year ago after being there for 25+ years, I can only offer my input based on that.

Apartment rentals the last year have gone down significantly, about 10-15% at least. I had a nice cozy 2 bedroom apartment (700 sq feet for about S$2500/month. It's now closer to S$2000/month. For rentals, you would be going at a good time.

I have visited ISS a few times, and it is located rather far from the downtown area, so you would need to get an apartment there. It's a relatively quiet area. I think you's depend on taxis quite a bit though. If you don't spend a lot on travel back to your home country and remain in Singapore and the surrounding area, you will certainly save more than S$7000/year. I'd go to a website forum called "Singapore Expats Forum", and quite a few expats share their monthly expenses, so you can get a better idea there. Bottom line, you should be able to save at least S$1000/month and still enjoy yourself and live comfortably.

Rob

[migratingbird]

I'm in SIngapore now. I'm on a higher salary than you've been offered, but have a spouse and child dependants, so my outgoings are higher in that area. http://www.propertyguru.com.sg/ will give you the best idea of what you will be paying for rent - have a nosey around different areas and see what you will get for your money. Other expenses to consider - unless you have quite a big chunk stockpiled somewhere, initial costs when moving in to an apartment are high. 2 months rent deposit, 1 months rent in advance, and very likely 1 month rent to the agent. Our school loaned us the deposit money, so that's another bit of salary gone. Also check health insurance. Packages offered by schools aren't always the best and you may want to pay to top up. Also, consider the lifestyle you want. We don't go out much, and take 2 hols around Asia each year, staying in cheap places. If you're happy with that, then yes, you can save money. If you want to really enjoy the nightlife etc, then your money will be eaten up in no time. Yes, groceries are not that expensive if you're happy with local produce (fruit and veg are cheap, as is fish, meat is reasonable, cheese is very expensive, as are other imported goods). In all honesty, it's alcohol that kills our budget each month :)

[PsyGuy]

@Climberman

According to your own math 70,000 annualized after 8% tax is $5366, subtract $1300 for a $3000 housing budget and you have $4000, not $5700.
Utilities will run you $200 assuming your conservative with the A/C ($250 if you like it cold) another $50 for internet. $100 for metro/MRT, and $100 for mobile w/basic data. Thats $450-$500 add another $50 for some cabs in a month and estimate its $500.
What do you eat? Are you going to have toast and juice at home, pack a rice bowl from home for lunch and eat noodles at home for dinner? I figure $20/day for food, thats $600 and your at $1100. What about HHGs laundry, and H&B (TP, PT, toothpaste, shampoo, conditioner, soap, etc) figure $100 for that and your at $1200. This brings us to $2800. What about your wardrobe, going to wear the same clothes all year year after year? Furniture, electronics (flat screen, etc), all costs money.

Are you going to be a hobbit? Are you only going to see the inside of your classroom and your apartment? Going to join a Gym, that will cost $150. A movie will cost you $20, going to go to the beach at Sentosa will cost you a couple bucks. There is VERY little to do in Singapore that is free or cheap, outside of people watching at NUS. Singaporeans work hard and play hard, its a competitive culture, and people spend what they make on having fun and living. Going to have a Tiger at your favorite watering hole, going to hit some evening social spots on Muhammad Sultan, or go shopping on Orchard? Are you going to have a SG flossy, kawaii princess, who is going to be about the "5 C's" (cash, credit cards, car, condo, clothes)? There goes all your money down a hole.

If your going to be a hermit go to the ME where you will make more and it will cost you less, most people dont save much in SG because the country/city is justa big shopping mall with some recreational activities, its hard to go through your day, year after year as a monk.

[Climberman]

Psyguy,

Since they did not state otherwise, I assumed the 1700 housing allowance was in addition to the base salary, so I added that to the 5366.

Do you know that ISS includes the housing allowance in their salary statement - but does not say so?

[whynot]

Good clear post migratingbird, I concur.

As has been stated many times throughout this whole forum, it depends on your lifestyle and spending. Putting it simply: if you like to drink a lot, don't come here.

An example: after work today my wife and I went to a local hawker centre and had a great slap-up meal of the fantastic local dishes, and a couple of beers. Expenses very reasonable, about the same salary/expenses ratio as most (admittedly not all) of the countries I've lived in.

I also brew my own beer. I call it 'lah'.

[PsyGuy]

@Climberman

I was just using your numbers, If housing will actually cost you $3000 and your housing allowance is $1700 (which isnt included in your salary) than that means $1300 needs to come out of that salary of $5366, leaving you $4066, or about $4K.