NIST, BKK
NIST, BKK
I've just been checking out their updated salary and benefit scale for SY2016/17 and it seems that the usually high rates of pay are no longer the case. From their SA file, it seems that their benefits are now subject to 20-25% tax and some of the additional benefits are removed also. I wonder if anyone on the ground can give some more insight into happenings at NIST.
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overseaslifer
- Posts: 18
- Joined: Wed Oct 07, 2015 11:55 pm
Re: NIST, BKK
I noticed that as well and found it quite surprising considering NIST's reputation.
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buffalofan
- Posts: 350
- Joined: Wed Jan 06, 2010 11:08 pm
Re: NIST, BKK
Were NIST salaries previously tax-exempt? 25% tax is about right for a decent salary in Thailand.
Which benefits have been removed?
Which benefits have been removed?
Response
The tax was previously payed by the IS on behalf of the IT.
IE is a reflection of DE, and lags a few years behind domestic markets. ISs can lower compensation packages and still maintain strong candidate pools.
IE is a reflection of DE, and lags a few years behind domestic markets. ISs can lower compensation packages and still maintain strong candidate pools.
Re: NIST, BKK
This lower salary/benefit trend started a few years with lower tier schools and is now catching up to even the best schools.
With so many people aware of IE now and so many young kids willing to work for peanuts so they can say they are living the expat lifestyle, schools can safely offer declining packages and easily meet their quota of teachers.
When you realize that most schools don't really care about hiring the best teachers and that all schools are essentially for profit - either by design or because of the present economy - everything becomes easy to understand. There will come a point when the cost of living in many overseas schools will rise to the point where there will no longer be any substantial financial benefit to teaching overseas.
Work longer hours and receive fewer benefits that then get taxed. What a bargain!
With so many people aware of IE now and so many young kids willing to work for peanuts so they can say they are living the expat lifestyle, schools can safely offer declining packages and easily meet their quota of teachers.
When you realize that most schools don't really care about hiring the best teachers and that all schools are essentially for profit - either by design or because of the present economy - everything becomes easy to understand. There will come a point when the cost of living in many overseas schools will rise to the point where there will no longer be any substantial financial benefit to teaching overseas.
Work longer hours and receive fewer benefits that then get taxed. What a bargain!
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shadowjack
- Posts: 2140
- Joined: Sat Oct 06, 2012 9:49 am
Re: NIST, BKK
Actually, Senator, I believe this is being driven by global economics. The nature of the beast and of Western expats is a bit different than it was 10 years ago. The economy has changed and with it, some things have to give. The flip side is that as admins change, they want to make their mark, and what better way than by saving money? NIST has a great reputation and now it will offer less salary because of that reputation (because a lot of ITs will apply to NIST because of its location and perceived academics).
Re: NIST, BKK
I would be interested in knowing if this is an isolated case or whether people are noticing a gradual erosion of benefits/salary in other schools. Of course some changes are out of control of the school, the devaluation of the RMB is having a noticeable impact on us, but if schools are making cost cutting decisions on purpose then that might change the game for us.
Re: NIST, BKK
@ Shadowjack:
Didn't you read the part of my post where I mentioned schools are becoming for profit due to the present ECONOMY? Since I was discussing international schools, it is obvious that I was referring to the global economy.
Didn't you read the part of my post where I mentioned schools are becoming for profit due to the present ECONOMY? Since I was discussing international schools, it is obvious that I was referring to the global economy.
Discussion
Its a global trend in IE. Strong ISs can offer less, and there is an increase of lower tier ISs being able to offer better compensation packages to staff ISs. The most common erosion of benefits are in taxes and insurance benefits (cheaper policies focused more on catastrophic events and repatriation, and away from lifetime care) followed by housing benefits (allowances getting smaller or not growing with the increase costs in the market), and lastly less frequent air travel.
Re: NIST, BKK
There appears to be some misunderstanding in the OP and in one of the comments regarding the payment of taxes being new. The taxation of earned income at NIST, paid by teachers, has always been standard practice. Additionally, the base salary scale has continued to increase each year. Confirming the tax rate for the salary range, a comment on International School Community in October 2013 (https://www.internationalschoolcommunit ... nal_School) states that the tax rate is "about 22%". This is echoed by a later comment in May 2014 that indicates that salaries are "taxed at approximately 20-25%".
Furthermore, this is also tends to be the norm at all other international schools in Thailand, including those with a similar reputation. For example, a comment in March 2012 (https://www.internationalschoolcommunit ... ol_Bangkok) indicates that another top school has a tax rate "between 15-20%". Comments about another school in 2012 and 2013 (https://www.internationalschoolcommunit ... ol_Bangkok) state either 10-15% or 30%. A comment in 2012 (https://www.internationalschoolcommunit ... ol_Bangkok) about a third school lists a rate of 30%. The rate at each school seems to vary depending on accounting practices, the salary range and whether particular types of benefits are taxed, but the general range stays constant.
Beyond taxation, NIST's benefits have not changed significantly and have only increased in recent years. This misunderstanding may have been because of the information packet that was prepared for the Search Associates fair. Rather than list all benefits, an infographic was used to highlight three areas: medical insurance, savings potential and housing. As in the past, the school still offers a generous housing allowance, a pension scheme, personal professional development fund, completion bonus, settling-in allowance, airfare, shipping allowance, full health coverage, responsibility allowances and other miscellaneous benefits.
Anyone who is interested in working at NIST, and is curious about the benefits and work environment, is encouraged to connect with current and past employees online via LinkedIn, where well over 100 are active: https://www.linkedin.com/vsearch/p?f_CC ... nectedness. Several of them have been at the school for many years and can confirm the changes in salaries and benefits over time, as well as provide insight into the school's culture.
Furthermore, this is also tends to be the norm at all other international schools in Thailand, including those with a similar reputation. For example, a comment in March 2012 (https://www.internationalschoolcommunit ... ol_Bangkok) indicates that another top school has a tax rate "between 15-20%". Comments about another school in 2012 and 2013 (https://www.internationalschoolcommunit ... ol_Bangkok) state either 10-15% or 30%. A comment in 2012 (https://www.internationalschoolcommunit ... ol_Bangkok) about a third school lists a rate of 30%. The rate at each school seems to vary depending on accounting practices, the salary range and whether particular types of benefits are taxed, but the general range stays constant.
Beyond taxation, NIST's benefits have not changed significantly and have only increased in recent years. This misunderstanding may have been because of the information packet that was prepared for the Search Associates fair. Rather than list all benefits, an infographic was used to highlight three areas: medical insurance, savings potential and housing. As in the past, the school still offers a generous housing allowance, a pension scheme, personal professional development fund, completion bonus, settling-in allowance, airfare, shipping allowance, full health coverage, responsibility allowances and other miscellaneous benefits.
Anyone who is interested in working at NIST, and is curious about the benefits and work environment, is encouraged to connect with current and past employees online via LinkedIn, where well over 100 are active: https://www.linkedin.com/vsearch/p?f_CC ... nectedness. Several of them have been at the school for many years and can confirm the changes in salaries and benefits over time, as well as provide insight into the school's culture.
Re: NIST, BKK
I agree that taxation is a significant factor, but the point was that this is not a new policy at NIST, contrary to the impression that it was just introduced. As far back as I've found records, taxes have been borne by the employees (including teachers), not by the school. Perhaps it may have been different early in NIST's history, but we would need someone who worked there at that time to confirm it. Additionally, I don't know of any school in Thailand that has or has had this policy.
I've lived here in Bangkok seven years, so I also agree that the cost of living has gone up, but not significantly. Prices for housing and food have been relatively stable throughout that time, and I don't pay any more than I used to when I first arrived (excluding by choice if I happen to want more expensive options). Transportation costs seem to have gone up the most, but since they're still cheap compared to most other major cities, this hasn't affected our standard of living at all.
To my knowledge, most of the teachers here live close to the school, between Phrom Phong and Nana BTS stations, and tend to pay between THB 30,000 to 60,000 per month (which is in line with the housing allowance). I live further away but found a nice detached home for THB 24,000 per month. It's a bit more of a commute (about 35 minutes), but I prefer the area.
I've lived here in Bangkok seven years, so I also agree that the cost of living has gone up, but not significantly. Prices for housing and food have been relatively stable throughout that time, and I don't pay any more than I used to when I first arrived (excluding by choice if I happen to want more expensive options). Transportation costs seem to have gone up the most, but since they're still cheap compared to most other major cities, this hasn't affected our standard of living at all.
To my knowledge, most of the teachers here live close to the school, between Phrom Phong and Nana BTS stations, and tend to pay between THB 30,000 to 60,000 per month (which is in line with the housing allowance). I live further away but found a nice detached home for THB 24,000 per month. It's a bit more of a commute (about 35 minutes), but I prefer the area.
Reply
@JDK
At the end of 2015 the CPI (Consumer Price Index) in BKK was 52.06, in 2010 it was 36.56, this is a 30% decrease in purchasing power, nearly a third of lost value which over a 5 year period is an average of 6% or twice that of the general cost of inflation (~3%).
Many ISs in Thailand quote (quoted) their contract salaries as "net" (inclusive after taxes), you can find such an exemplar at Patana:
""The school will offer an annual net salary paid in 12 equal monthly instalments [sic]"". ^1
^1 https://www.patana.ac.th/recruitment_be ... expatriate
At the end of 2015 the CPI (Consumer Price Index) in BKK was 52.06, in 2010 it was 36.56, this is a 30% decrease in purchasing power, nearly a third of lost value which over a 5 year period is an average of 6% or twice that of the general cost of inflation (~3%).
Many ISs in Thailand quote (quoted) their contract salaries as "net" (inclusive after taxes), you can find such an exemplar at Patana:
""The school will offer an annual net salary paid in 12 equal monthly instalments [sic]"". ^1
^1 https://www.patana.ac.th/recruitment_be ... expatriate
Re: NIST, BKK
You're entirely correct that the cost of living has risen, as I already stated. Again, however, for those of us working at NIST, ISB and Patana (as well as those at many of the other decent schools), the increase has simply not significantly impacted our standard of living, as prices are still low when comparing Bangkok to cities in Europe, the United States and some other regions of Asia: http://www.numbeo.com/cost-of-living/ci ... ty=Bangkok.
To give an idea of just how affordable it can be, my wife and I will frequently have dinner at a local cafe - two courses and drinks - with a total bill of USD $8.00. Yet we could easily spend three or four times that every night if we wanted to. In addition to our rent, we're also paying for two master's degrees, our car, holidays and other miscellaneous expenses, but we're still able to save a great deal. There are obviously other cities that also have excellent savings potential, but Bangkok can certainly be high on the list depending on where you work and your lifestyle.
After just calling a colleague at Bangkok Patana, I can confirm that you are right: the contractual annual salaries they quote for teachers from abroad are the net amounts. However, that individual also indicated that their net amounts are comparable to our net amounts. I would also point out that this is the only case in my seven years in Thailand in which I've come across a school that does this. I will ask around just to be sure, but I'd be surprised if I hear differently from those I know who are working at other schools.
Do you know of regions where this is still the norm, or has it largely died off? In (mid-2000s) Korea I also didn't see it, but I have very little IT experience outside of Asia.
To give an idea of just how affordable it can be, my wife and I will frequently have dinner at a local cafe - two courses and drinks - with a total bill of USD $8.00. Yet we could easily spend three or four times that every night if we wanted to. In addition to our rent, we're also paying for two master's degrees, our car, holidays and other miscellaneous expenses, but we're still able to save a great deal. There are obviously other cities that also have excellent savings potential, but Bangkok can certainly be high on the list depending on where you work and your lifestyle.
After just calling a colleague at Bangkok Patana, I can confirm that you are right: the contractual annual salaries they quote for teachers from abroad are the net amounts. However, that individual also indicated that their net amounts are comparable to our net amounts. I would also point out that this is the only case in my seven years in Thailand in which I've come across a school that does this. I will ask around just to be sure, but I'd be surprised if I hear differently from those I know who are working at other schools.
Do you know of regions where this is still the norm, or has it largely died off? In (mid-2000s) Korea I also didn't see it, but I have very little IT experience outside of Asia.
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Vernacular
- Posts: 33
- Joined: Fri Mar 15, 2013 11:49 am
Re: NIST, BKK
I worked at NIST in 1994. I was paying tax on my salary then.