Yearly pay stated in different currency than monthly salary?
Yearly pay stated in different currency than monthly salary?
I'm looking at a contract which states the yearly salary in Canadian Dollars. However, the contract says "The salary will be paid in monthly installments in Korean Won." When I asked the school to either change the yearly salary to Korean Won, or pay me in CAD, they said "We have pay scale for teachers and I can not change it." Is this a red flag?
Re: Yearly pay stated in different currency than monthly sal
Not necessarily. Plenty of schools pay in local currency, often by law. Having your contractual salary in CAD ensures that your pay is against a stable currency, unlikely to fluctuate.
The amount of Won you get monthly will likely go up or down a bit each month, but the amount you can send home should remain pretty stable.
Contrast that with a contract in the local currency. If the currency goes down (eg Malaysia), teachers have trouble making their mortgage payments back home. Sometimes it works the other way, and teachers can send home more money each month.
There are benefits and drawbacks to each method. In your case, the benefit is guaranteed stability.
The amount of Won you get monthly will likely go up or down a bit each month, but the amount you can send home should remain pretty stable.
Contrast that with a contract in the local currency. If the currency goes down (eg Malaysia), teachers have trouble making their mortgage payments back home. Sometimes it works the other way, and teachers can send home more money each month.
There are benefits and drawbacks to each method. In your case, the benefit is guaranteed stability.
Re: Yearly pay stated in different currency than monthly sal
Thank you. I guess for me, the Korean Won is more "stable" because I'm a permanent resident of Korea.
Re: Yearly pay stated in different currency than monthly sal
We all take chances, and currency fluctuations are one of them.
Schools generally are pretty firm in their ways about paying salaries. It can be hard for them to change, if it's based on the currency in which they receive tuition payments. Plus, if they start changing, they'll never see an end to it, as every time the currency moves this way or that way, some subset of teachers will request a change.
Schools generally are pretty firm in their ways about paying salaries. It can be hard for them to change, if it's based on the currency in which they receive tuition payments. Plus, if they start changing, they'll never see an end to it, as every time the currency moves this way or that way, some subset of teachers will request a change.
Response
No, this is pretty common, and is actually an indicator of some quality for the IS. They are citing your salary in a stable currency that isnt going to fluctuate much, so that at the end of the year you will have gotten paid very close to what the sum of coin you negotiated. Many ISs are required to pay salaries in local coin, whatever it is.
The problem is going to be how does the IS arrive at the conversion point. Do they use a system of arbitrary choosing a particular date on the calendar, or is it made at one or two points throughout the year, or some other system such as an average of last years conversion values, etc.
You have an unusual case, but I concur with @Sid, and many ISs would not accommodate such a request as it complicates the entire payroll system. However, if you want you can approach your recruiter and leadership, as the person you talked to may not have understood your request, and ask them if they write your contract in SK Won. You should understand though that such a request is likely to not be in your best interests as the IS will likely use a conversion rate that is low in writing a contract for the year in the local currency.
The problem is going to be how does the IS arrive at the conversion point. Do they use a system of arbitrary choosing a particular date on the calendar, or is it made at one or two points throughout the year, or some other system such as an average of last years conversion values, etc.
You have an unusual case, but I concur with @Sid, and many ISs would not accommodate such a request as it complicates the entire payroll system. However, if you want you can approach your recruiter and leadership, as the person you talked to may not have understood your request, and ask them if they write your contract in SK Won. You should understand though that such a request is likely to not be in your best interests as the IS will likely use a conversion rate that is low in writing a contract for the year in the local currency.