How NOT to save money when working as an international school teacher #7: Earn a Salary in a Currency Which is Losing Value

We all hear about the big possibility of saving money while working at international schools, but the reality is that many of us don’t save much of any money.  So, why aren’t these international school teachers saving money?

How NOT to save money when working as an international school teacher #7 – Earn a Salary in a Currency Which is Losing Value

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Five years ago many international school teachers (those earning their salaries in their host country’s currency) were doing quite well with their monthly paychecks.  But because of the rising value of the USD in the last year, these teachers’ salaries are in despair.

Month after month, teachers earning in a currency that is losing its strength (when compared to USD for example) have been seeing their once really nice monthly paycheck go south.  Each time these teachers have to transfer some of their money earned back to their home country (maybe 3-4 times a year for some teachers), the actual amount received gets lower and lower; even though it was the same amount transferred each time.  These international school teachers need to figure out another way to pay off their mortgage, student loans, etc. and fast!  The other choice is to make it your last year at your current school and plan to find a job at another international school in a different country; earning in a different currency.

But some of us are doing alright in this recent “rise of the USD.” There are a number of international school teachers that pay their staff in USD.  A number of countries have a local currency that is just not stable enough for foreign hires, and the school prefers to just pay their staff in a currency that is more stable and secure.  Additionally, many currencies are tied to the USD. For example, Hong Kong Dollars are connected to the USD. Click here for a list of currencies around the world and which specific currency they are tied to.

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So, for international school teachers working in Hong Kong, making HKD, they are still on the right track to achieve their savings goal this year.

There are also some international school teachers earning multiple currencies, at one school.  The British School Caracas and Seoul International School do just that (as well as a number of other international schools around the world).  Part of your salary is paid in your home country currency and automatically transferred/deposited into your home country bank account, while the other part of your monthly salary is directly deposited into your host country bank account. Teachers in this situation seem to have all their based covered then. Unless, of course, both your home currency and host-country currency plummet!

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We do have a comment topic on our website related to the theme of how international school teachers get paid at their school (and in what currency).  It is in the benefits section of the comments and information tab on the school profile pages. It is called: Average monthly salary after taxes and in what currency (explain taxation situation). How often do you get paid throughout the year?

“It is important to note that you are getting paid 100% in local currency. Because the USD is gaining strength and continuing to do so, the salaries here are getting considerably less attractive (meaning you are not making USD 100K a year anymore as the previous comment states). Some teachers have a part in their contract that helps to alleviate some of this difference in exchange rate, but others don’t. The ones that do are getting like 25% of their salary paid at a better exchange rate. It is kind of random, but the board thinks that American teachers here might be spending around 25% of their salary in the USA or in USD. Of course, this is creating a bit of controversy.” – Graded School Sao Paulo (Sao Paulo, Brazil)39 Comments

“The previous comment is off on the current tax rates. It is now up to 23%, and slated to rise further in the coming year. Japan is no longer a place to work and make enough to save significant amounts. This is especially true for couples and doubly so if you have children. It’s a shame as raising children here leaves wonderful impressions on them, and it is amazingly safe.” – Seisen International School (Tokyo, Japan)51 Comments

“10 years of teaching with a masters plus 30 units will get you about 55,000 USD. No tax. Upon departure, the Korean government pays you about 4,000 dollars for each year of occupancy for US citizens, it is some tax exemption agreement between countries. There is also an 8.5% bonus for each year of teaching that accrues interest and is relinquished upon departure.” – Seoul Foreign School (Seoul, South Korea)73 Comments

“We get paid every month, around the middle of the month. June and July pay are both given before the end of the school year. We can choose how much of our pay we would like to receive locally and how much we would like to have transferred to our home country. We get paid in dollars, and are guaranteed salaries after taxes. For 2015-16 the maximum salary is $54,111 (Masters with 24 years experience, an extra $1500 for PhD), minimum is $35,390 (Bachelors 1 year experience). In addition to this is a 13% pension. There is also a possible longevity bonus and re-signing bonus.” – International School of Tanganyika (Dar es salaam, Tanzania)141 Comments

Comparing the Schools and Comments: Working in Kuala Lumpur

Around the world, there are cities that have more than one international school. Many times there is an American school, a British School, and an international school that uses an international curriculum.

Some cities, though, have MANY international schools!  When that is the case, how do the comments about each school compare to each other?

This blog series looks at comparing some of these comments, all coming from international schools in the same city.

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Kuala Lumpur

Currently, we have 17 schools listed in Kuala Lumpur on International School Community.

Schools with the most submitted comments:
Newlands International School (51 comments)
Garden International School (21 comments)
International School of Kuala Lumpur (99 comments)
Mont’Kiara International School (27 comments)
Sunway International School (15 comments)
Taylor’s College (16 comments)
Alice Smith School (8 comments)

High Expectations for Teachers?

“The school’s workload is average. We certainly hear of neighboring (similar caliber) schools who expect a lot more out of their teaching staff. In addition to a normal teaching day, teachers also are expected to lead 2 after school activities (running 10 weeks long each) per year. Coaching satisfies this requirement. This is standard for international schools in Malaysia, as the government requires schools to offer ASAs. Some teachers work until 3:30 (official end of day), and others are consistently there until 5 or later. However, this is a matter of choice and personal work ethic, most often not because of additional duties required by the school.” – Mont’Kiara International School

“I dont think the workload is particularly heavy although the school has high expectations. A 100% teaching load comes with two non contact hours per day, slightly less in lower grades. In ES some of these blocks are taken up by co-planning and team meetings. After school meetings are twice monthly, relatively low compared to other schools” – International School of Kuala Lumpur

“Teachers usually take on one extra-curricular.” – Taylor’s College

“Teachers are trusted but a great commitment is expected. One after school club/week/term.” – Newlands International School

Language Background of the Students

“The students are mainly from the expatriate community of Kuala Lumpur and come from over 50 different countries. Malaysian students are only allowed to attend international schools if they have obtained approval from the Malaysia’s Ministry of Education. The GIS roll currently comprises approximately 40% Malaysian students, the second largest nationality group is British.” – Garden International School

“The Principal reminds the pupils every day to speak in English but some lapse back into Chinese.” – Newlands International School

“Chinese dialects, Bahasa Malaysian, some international sts.” – Taylor’s College

“The school requires students entering after kinder have been previously educated in English. I would say about 75% of the students are fluent in English, and the rest are in the ELL program. Students almost all speak English, even if they have friends who speak their native languages. I am not sure of the exact number, but I would guess about half of the students are native English speakers.” – Mont’Kiara International School

Housing Allowance

“The school provides an accommodation allowance of RM2,500 per month for single teachers, RM2,700 per month for married teacher with no children whose spouse is not working, RM2,500 per month each for married teachers, both of whom are employed by the school and RM3,000 per month for married teachers with children whose spouse is not working in the school.” – Garden International School

“For married housing you get around 987 USD a month; For single housing you get around 846 USD a month; For each dependent child you get 109 USD extra a month. No utilities allowance is given.” – Mont’Kiara International School

“The housing allowance is paid with the salary and is taxable. After tax for a single it amounts to appx 750 USD, for a couple, or with dependents it is more, up to about 1300 USD. Depending on area and size, it is possible to find accommodation in this bracket, though many people treat it as salary and just rent the place they really want for a bit more.” – International School of Kuala Lumpur

Salary Information

“As of next year, teachers will be paid in Malaysian RM. This is actually a positive change and will raise salaries that have gone down with the weak dollar. Taxes are between 12 and 20%, and teachers also contribute about 10% to EPF (retirement plan).” – Mont’Kiara International School

“Pay is good, with a great retirement (EPF) program that can go up to 42% of salary (including both employer and employee amounts). Teachers are paid 10 times (August through June) but in June they also get their July salary.” – International School of Kuala Lumpur

“Salaries are automatically paid into each teacher’s bank account at the end of every month, (usually on the 28th day of the month).” – Garden International School

“Beaconhouse have a real problem getting work-permits so much so that none of the eight foreigners at Newlands have made year two of their contracts. Some have been told to get out on returning from a Visa run. None have been able to stay to year two which means they have to pay a large fine to BH for breaking contract.” – Newlands International School

(These are just 4 of the 65 different comments topics that on each school profile page on our website.)

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The Journey to School: Western International School of Shanghai

The journey to work is indeed an important one.  The journey though is not so clear for international school teachers when they are looking for jobs at schools in cities/countries to which they have never been.  So let’s share what we know!

One of our members, who worked at the Western International School of Shanghai (China), described his way to work there as follows:

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Shanghai, the East’s equivalent of New York. The city runs 24/7, nightlife is rampant, traffic induces headaches, and glamour seems to be always in the spotlight. That is usually the thrill behind the city’s most vibrant areas such as the French Concession and the Bund. All of which is exciting to your common expat. That of course is if you are an expat living around these areas.

Most international schools in Shanghai exist around the peripheral suburbs of the city and for many new teachers entering the school they are given an interesting choice. One can either live near the school in bang-for-your-buck valued houses usually in areas with relatively limited entertainment or live in the downtown where the action is. As you probably can insinuate on your own, it is usually the young single people who trade-off for the longer commute and smaller apartments in order to have a larger selection of nearby restaurants, bars, and social gatherings.

I on the other hand belong to the group that lives in compounds near the school I work at, Western International School of Shanghai. Now this area is not as boring as I may have indicated as it has become a bit of a development zone for the never-ending expansion of Shanghai. Part of the reason being that the area we are in, Qingpu, is the location of several of the well-known international schools in Shanghai, and developers are aiming at them as their audience. In the last 2 years I have seen a great Italian restaurant open up down the street, a whole new nightlife commercial area has come about by Jinfeng Road, and a few imported grocery stores have popped up. We might not have the adrenaline of downtown, but at least we are being well fed!

From my home the school is less than a 10-minute bus ride (or in my case a 10-minute e-bike ride) away. Having two school-aged children, this location is a solid choice for housing, given its lower monthly rent (compared to apartments downtown), spacious and safe environment where kids can play with their friends without constant supervision, and most importantly the ability to wake up later on schoolday mornings. A perk that I don’t take for granted and often poke fun at one of my young colleagues in the math department about.

My school day usually starts off with a 5am wake-up, which at times means a quick morning bike ride to get the blood flowing and other times it gives the opportunity to check e-mails and get some quiet time before the start of another busy day.

At about 6:30, which is the same time most of my downtown colleagues start walking out of their apartments toward their bus pick-up points, I wake up the kiddos, throw them in the shower and take a shower myself. Cereal for the kids, bacon & eggs for daddy and walk outside at about 7:40. If weather permits we hop on the e-bike and off to school we go.

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On the way to school we pass by the well-known “corner store”, the one right outside the compound gates. After a quick right turn the scooter takes is into the already buzzing Ming Zhu road. On weekdays the traffic is usually busy, drivers tend to ignore most traffic rules, e-bikes go in all sorts of direction without much concern for red lights or other vehicles. It sometimes feels like a game of chicken while driving. Experience has taught me that it is best to adopt the local culture and go with the flow.

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Within the first kilometer we pass by a building that houses the strange combination of a dodgy KTV on its second floor with a wet market on its first floor. The road nearby this building gets extremely busy resulting in traffic jams almost daily, thanks to cars making illegal U-turns without signaling or other scooters pulling a left or right without looking in their rearview mirrors. Sometimes I question myself on whether it was the safest idea to get my own scooter. But at least the ride to work gets my blood pumping enough where I consider skipping my morning coffee.

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Beyond this madness, the road gets a bit less congested. Crossing the Huqingping highway can also be intimidating to many but the traffic light is mostly followed there. In this area there are several newly opened compounds with real estate agents already standing outside with their signs advertising apartments for rent or sale. I always find it curious just how desperate they are to sell leases. I wonder how many houses are actually occupied.

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Once we passed these compounds we see the friendly faces of the security guards greeting us at the main gate of the school. The entire journey from door to door takes less than 10 minutes for us living nearby the school, while others may spend as much as 50-60 minutes on the faculty bus coming to work day after day. Either way, we all end up at the school we love, doing the work we enjoy!

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This Journey to School article was submitted to us by guest author and International School Community member: Denes Tilistyak. Check our his HighFour competition website here.

What to know more about the many international schools in Shanghai?  Check out our blog article called – Comparing the Schools and Comments: Working in Shanghai, China.

So what is your journey to the international school you work at?  Earn six free months of premium membership to our website if you participate in this blog series – ‘The Journey to School’.  Email us here if you are interested.