|
|
Post by THE_NEW on Mar 12, 2012 16:11:54 GMT
Hi All,
I hope you are all well.
I have received today the following doc:
"Supplementary Understanding to Attachment A Amended Exchange Rate Protection"
Could you please share any experience, do I have to sign this and do I have to open a Saudi Bank Account.
Please advise,
Thanks and Kind Regards,
The New
|
|
Uman
Senior Member
Posts: 161
|
Post by Uman on Mar 12, 2012 22:26:53 GMT
If hired on Australian or New Zealand Passport and under the Pound payroll then YES...I think we have no choice....salary in Saudi Riyal and paid into local bank account. If you start this month(fly date) then your rate should be approx.....5.97319 Riyal to 1 GBP This rate is locked in at 10% lower. eg... 5.97319 times 10% = 5.375871 This is the locked in rate......if exchange rates go lower in any given month...then the locked in amount will be good/better. If the exchange rates rise (which I doubt) we get the higher of the 2 rates. Understand? This site is pretty good for calculating rates. www.oanda.com/currency/converter/Start date rate is taken at the first of the month that you begin as an employee....ie..fly out date. |
|
|
|
Post by THE_NEW on Mar 16, 2012 12:32:17 GMT
Hi Uman,
Thanks for your answer and help!
I hold an Australian Passport and I am recruited from Qatar.
The medical and part of the BI was in Australia. I am just waiting for the visa.
Good Luck,
The New
|
|
|
|
Post by teebee on Mar 17, 2012 7:44:49 GMT
I am on an Australian passport and joined Aramco in 2009. I chose NOT to accept the Salary Protection Payment plan.
I can elect each month as to how I wish to be paid, ie. Sterling or Riyals.
If I wish, I can have 100% of my pay paid into my Offshore Bank account (sterling), or any percentage split between my Offshore and Saudi bank account.
|
|
|
|
Post by THE_NEW on Mar 17, 2012 16:07:08 GMT
Thanks Teebee.
My question was do I have a choice. Because the recruiter is asking me to sign that form .
Once again, thanks for your help.
Regards,
The New
|
|
Uman
Senior Member
Posts: 161
|
Post by Uman on Mar 17, 2012 23:33:51 GMT
Hi teebee, I think all new hires from Aus& NZ have to follow this new system. They say it is to protect the employee against currency fluctuations. I assume it has come about due the the large swings in currency exchange over the last 5 years....
Hmmm just realised this....
In March 2007 the Riyal to the GBP was 7.33?? and GPB to AUD was 2.43
In March 2008 the Riyal to the GBP was 7.5564 and GBP to AUD was 2.16
In March 2009 the Riyal to the GBP was 5.2116 (quite low)and GBP to AUD was 2.16
In March 2012 the Riyal to the GBP was 5.9152 (approx) and GBP to AUD was 1.47.
Looks like the big money days at Aramco have come to an end.......
IF the Brittish Peso falls further and AUD stays strong then it wont be so attractive to work out of home country.
I think salary increases are in order.
|
|
|
|
Post by rafferty on Sept 13, 2013 14:49:39 GMT
My understanding of paraph 7 of Attachment A of the employment agreement is that all non-UK sterling employees will be paid in riyals into a Saudi account at a protected rate. That is, the exchange rate at the time of hire, or the current exchange rate, if that is higher.
Firstly, I didn't know we (aussies) had a choice. given that it's a win win situation, why would you fight it? secondly, my contract (as of july 2013), says that "all non-uk sterling employees will benefit from an amendment to paraph 7 of Attachment A of the employment agreement"
It states "the protected rate will be equal to 90% of the exchange rate of GBP to your home currency taken on the first day of your month of hire. The current exchange rate, or the protected rate - whatever is higher, will be used to convert your base salary and benefits supplement, which will be paid in riyals into a Saudi account".
So if I was offered GBP100k and it was AUD150k at the time, I get still get paid AUD150k - or higher - should the aussie dollar tank. So if GBP100k is later worth AUD190k, then my pay is that, in riyals. So I can't lose. Unless I plan to stay in Saudi I guess. Am I right?
|
|
Maursh
Senior Member
Posts: 169
|
Post by Maursh on Sept 17, 2013 23:21:07 GMT
No, Rafferty, unfortunately you are not right.
The pegged exchange rate benefits Aramco and not you. Regardless of what the foreign exchange rates are doing, they have capped the amount of SAR they will pay you. So if GBP goes up, they will stop increasing your monthly salary after a 10% increase - however you will be able to buy fewer GBP back with your SAR.
For example (numbers are always helpful):
You have a salary of GBP1000/mth at pegged rate of 5 = SAR 5000/mth
GBP/SAR rises to 6.0
BUT rate is capped at 10% higher or 5.5 so you receive SAR 5,500/mth now
You take your SAR5500 along to the bank to buy back the GBP and you can only buy 5500/6 = GBP 917
I appreciate that as an Australian you wouldn't be interested in buying back the sterling, but the point is made. You could speak to a bank about hedging your own exposure - there are various financial instruments which can do this depending on your circumstances
|
|
