snippets of info : salary package

Salary package... now this is a touchy subject. But it's seemingly the most asked question to me lately.

I won't be disclosing my salary here, since i find that unethical (and I'm also bound by a confidentiality contract).

I would just like to share the several salary packages I encountered while I was job-hunting here in SG. I hope this might help future jobhunters weigh their options.

Basically there are two types of employment:

1. Direct hire
Those hired directly by the company they are working for.

2. Contractual (a.k.a. via Agency)
Those hired by an employment agency and will be deployed to a client company.

Direct hires usually have a lower salary compared to contractual employees. This might sound puzzling for others, but there is actually a good reason behind it. Direct hires have company benefits while contractual employees on the other hand do not have any. Usual benefits include:
- 13th month pay
- health and life insurance
- annual bonus
- paid leaves

Contractual employees are hired by employment agencies and are then sent to client companies. They usually stay in that company for 1 or 2 years then move-on to other companies, unless their contracts are renewed by their current client company. The higher pay given to them is to compensate for their lack of company benefits.

Each type has it's pros's and con's, depending on each person's preferences. If you're the type who gets sick often in a year, #1 is the way to go. Medical expenses here are awfully high! If you're the type who likes to save a lot of money, and doesn't get sick regularly, go with option #2. If you value job security, go with option #1. If you like trying out new companies every year, go with #2.

If you're thinking of being a Permanent Resident here in SG, option #1 is better for you. Permanent Residents MUST contribute 33% of their monthly income to their CPF (forced savings). If you're a direct hire, 20 of the 33% will be shouldered by your company. If you're a contractual employee, you have to shoulder all of the 33% (ouch!)

I'm not so sure if there are "hybrid" versions out there, but these are the ones I have encountered.

I guess my advice would be to not just look at the money you'll be getting every month. Try to also assess what other benefits the company could give you that will best fit your lifestyle.