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Post by andyzou on Sept 13, 2015 3:58:18 GMT
The Aramco website says expat either get a company-funded retirementplan, a company-matched saving plan (401k for US expat) plus insurance, OR a 17%-19% annual cash payment. It sounds like you either get the 9% 401k match OR a 17-19% cash payment. However the information given by the recruiter was more like AND. Which one is true?
Also my understanding is that your choice of option (if it is OR) will not affect the insurance provided by Aramco, right?
Thanks.
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Post by bogiefrommuskogee on Sept 13, 2015 13:41:17 GMT
OR is correct. AND is not correct. Insurance is calculated on base salary.
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FPEPRO
Advanced Member
Posts: 58
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Post by FPEPRO on Sept 17, 2015 15:54:16 GMT
I found this topic interesting. I just went through the US hiring process, and they did not ever once mention this cash option. I was offered the pension, plus 401K, plus annual bonus, travel allotment, and a full benefit package. But no mention of cash options was ever made.
I will note, I would have never taken it even if they did offer it.
-CT
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Post by bogiefrommuskogee on Sept 17, 2015 20:33:36 GMT
401K is only for US payroll. Cash option is to try to accommodate other payrolls that do not qualify for the 401K with something commensurate. The idea is the employee takes the cash and puts it in a savings plan of choice. It usually buys a new car instead. But that is the employee's choice. The company just tries to make a fair balance so that non-US payroll is not discriminated against in terms of the retirement package.
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Post by andyzou on Sept 18, 2015 18:17:51 GMT
The cash option is twice of 401k match. Is it fair?
FPEPRO, congrats on your offer! Would you mind shet some light on the bonus , 401k and other benefits not mentioned in your post, suh as is there an offered min bonus percentage, is the 401k based on your base or over base salary, any other allowance, etc? Thx!
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FPEPRO
Advanced Member
Posts: 58
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Post by FPEPRO on Sept 26, 2015 4:46:27 GMT
I think when you consider the avee returns on investment for the Vanguard 401K, then it is about the same in the long run. A smart investor could probably do better with the cash payment though if they were a very active investor outside a 401K.
No, I do not believe so. All bonuses are always at the will of the company to pay out. There is no guaranteed minimum. There is a maximum that is included as part of your particular offer, but no minimum. That being said, Saudi Aramco does have a decent history of paying out every year.
401K is based on your over-base salary. They will match 9% of your monthly income. You may contribute up to 50% in a single month, but they will still only match up to 9%. This will continue until the legal cap is reached for the year (currently $18,000 for pre-tax contributions by self, and $53,000 in total contributions by self and employer, both pre- and after-tax)
Now, I am not 100% sure if the annual bonus or travel allowance are included for 401K purposes at Saudi Aramco. My feeling would be No, based on similar situations I've had while employed in the US. Allowances, Bonuses, and Reimbursements have never been included at my other jobs before for the purposes of 401K contributions.
Hope that helps some. If you have more questions just PM me. I'll do my best to answer, or find someone that knows.
-CT
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Post by andyzou on Feb 17, 2022 4:38:59 GMT
After seven years, and quite accidentally, I am now hired by Aramco as an expat. Reading back on my question posted in 2015, I can say what CT said was correct ( not sure if CT is still there:)). The only thing that might be different is that I was told the SAIP in my offer is the avee or expected amount per year, not the min., not the max either. Not sure if that is true though.
A really late Thank You to CT. I did not come back to this forum after I posted my question/comment back then due to the job being canceled as a result of the oil price slump.
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