Schools that pay in local and foreign currency

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Spawnboy99
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Joined: Sat Jun 21, 2014 9:14 pm

Schools that pay in local and foreign currency

Post by Spawnboy99 »

Just asking, for those people that get paid in both the local currency and a foreign currency.

Schools are giving you the option if you would like your foreign currency paid in (Yen, USD, Pounds) etc and not of your home country (passport). Even some are paying this in Cash each month. When teachers are presented with this option, what do you choose? Do you stick with just getting in USD.
Heliotrope
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Joined: Sun May 13, 2018 1:48 am

Re: Schools that pay in local and foreign currency

Post by Heliotrope »

I was once at an IS that paid in both the local currency and in ISDs.
I got a portion of my monthly salary paid in the local currency, around the amount that I would spend in a month, and the rest would be transferred to my international bank account in USD.
I did check if the would use the actual exchange rate I would get at the bank (there wasn't a black market for currency exchange with a better rate).
Heliotrope
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Re: Schools that pay in local and foreign currency

Post by Heliotrope »

I meant USDs, not ISDs.
buffalofan
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Re: Schools that pay in local and foreign currency

Post by buffalofan »

What currency is listed in your contract? If you choose to get paid in a different currency than in your contract, it is highly likely you are going to get a screwed a bit (or a lot) on the conversion. The exception to this is if your contract is in USD, but you elect to get paid a % in local currency to your local bank account - that is quite normal.
PsyGuy
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Joined: Wed Oct 12, 2011 9:51 am
Location: Northern Europe

Response

Post by PsyGuy »

It depends on the currency situation such as stability of the local currency and the costs your IS is passing on to you and what currency you need and use the most. With Brexit happening soon I would lean away from GBP or Euros. ISs usually set a convenience conversion rate only once or twice a year and then add a 1% to it, but they may get a better preferred rate. Youd have to check and do the math. You are generally losing coin with each conversion you make. The other cost to consider is transfer fees such a wire fees to move coin out of country, having an IS that does this as part of your salary dispersment saves you some coin and convenience.

Its common in an IE contract or as policy to be paid a portion of your salary in a stable currency such as USD/CAD/GBP/AUD/EUR.
mamava
Posts: 306
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Re: Response

Post by mamava »

PsyGuy wrote:

> Its common in an IE contract or as policy to be paid a portion of your
> salary in a stable currency such as USD/CAD/GBP/AUD/EUR.

It's good to check that carefully. In every country I've taught in, we've been paid in local currency, but for the previous 2 schools, the currency valuation was very stable the whole time we were there. Now we're in Brazil, and ouch. Legally, schools are required to pay in local currency. It killed us the first year, and now again. Our bonuses are announced as USD so we get the equivalent in local currency at the time it gets paid out and if you can keep your $$ in country, you're actually pretty ok. For anyone who pays regular bills in their home country, it hurts.
PsyGuy
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Post by PsyGuy »

I should have clarified, that in regions with stable currencies to begin with, contracts are typically paid in the local currency.
expatscot
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Re: Schools that pay in local and foreign currency

Post by expatscot »

My contract states my salary in the currency of my location, but I choose to have mine sent to my home account in the Eurozone. Mainly, this is because this is where my main expenditure is on mortgages etc rather than in the UK, but I could choose to have it sent there (and have done in the past.)

When I was in Egypt, we were paid 75% in Sterling and 25% in LE. That was fine because we could live quite comfortably on the LE alone, and were more than quids in when the LE had a massive devaluation in 201 (from 10LE-£1 to 21LE - £1).
theearly90s
Posts: 2
Joined: Tue Dec 01, 2020 3:51 pm

Re: Response

Post by theearly90s »

mamava wrote:
>
> It's good to check that carefully. In every country I've taught in, we've been paid
> in local currency, but for the previous 2 schools, the currency valuation was very
> stable the whole time we were there. Now we're in Brazil, and ouch. Legally, schools
> are required to pay in local currency. It killed us the first year, and now again.
> Our bonuses are announced as USD so we get the equivalent in local currency at the
> time it gets paid out and if you can keep your $$ in country, you're actually pretty
> ok. For anyone who pays regular bills in their home country, it hurts.

I'm currently trying to work in Brazil. Is your monthly salary paid at the exchange rate at that time or when you signed your contract? Or is it a fixed amount of reais? I lived in Brazil before but worked in an English school and was literally paid with an envelope of cash back when the exchange rate was 2:1 USD...times have changed.
fine dude
Posts: 590
Joined: Tue Dec 18, 2012 7:12 pm
Location: SE Asia

Re: Schools that pay in local and foreign currency

Post by fine dude »

The top tier British school in Bangkok used to pay 50% of the monthly salary in pounds. Not sure if that is still the case.
sid
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Joined: Sat Dec 02, 2006 11:44 am

Re: Schools that pay in local and foreign currency

Post by sid »

I’ve had all the variations- all in home currency, all in local currency, mixed home and local, all in a third (major) currency, even based in home currency but paid 100% in local based on the day’s exchange rate.
At the end of the day, it’s all risky. You’ll win some, lose some. Getting paid in home currency can seem stable if your bills & mortgage & retirement savings are all in that currency, but you could still be losing out if the local currency is taking useful turns. Just because it’s familiar doesn’t mean it’s necessarily the best deal.
Roll the dice, take your chances.
PsyGuy
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Joined: Wed Oct 12, 2011 9:51 am
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Post by PsyGuy »

Concur with @Sid
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