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Negotiating Salary for possible position in Amman

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stephenehpets
7/8/2009 17:23 EST

I'm negotiating salary and benefits for an established company in Amman for the position of global logistics and procurement manager. I have been offered as benefits 14 days vacation, 14 sick days, free health insurance, and the use of a mini van. He wants to know what salary I want. Any idea? Thanks.

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shobaki
7/9/2009 07:35 EST

- 14 days vacation,
you could ask for 21 days, or maybe 30( that by law 4 first 3 year , then 30 day )

- 14 sick days, is OK

- free health insurance, Class A, could u ask 4 ur family too

- paid salary yearly not only for 12 months .. u have to ask for 13 or 14 month .(by lobar law )

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henny2010
7/9/2009 09:40 EST

You will definitely want to ask for more vacation time, for one thing - you will certainly want to travel home, etc.

As for salary, did he give you any kind of range? What is considered a "good" salary for a Jordanian is really hard (if not impossible) for an expat to survive on.

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stephenehpets
7/9/2009 11:10 EST

Thanks, Shobaki. A couple clarifications needed:

Can you please explain further what the following means:

1. (that by law 4 first 3 year , then 30 day)

2. paid salary yearly not only for 12 months .. u have to ask for 13 or 14 month .(by lobar law )

Thanks!

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stephenehpets
7/9/2009 11:13 EST

Thanks for your post! No, he was very coy. He asked for my current salary (USD 65000 plus commissions, car allowance, etc) and he said it was very high for Jordan. Thanks for your help!

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henny2010
7/9/2009 12:32 EST

Hi again,

First, I believe what Shobaki is trying to say regarding vacation, and in keeping with Jordanian law:

14 days (including weekends) for the first 3 years

30 days (including weekends) after 3 years

***But I really think you should negotiate for more.

Further to that, where Shobaki says, "paid salary yearly not only for 12 months .. u have to ask for 13 or 14 month .(by lobar law )"

I believe what he is referring to is that a lot of companies pay an additional 1-2 months bonus on top of the regular salary. However, I manage a law firm in Amman and unfortunately I know that this is not a concrete part of the labor law. Just a nice perk that a lot of companies give.

Let's look at your salary: $65,000 equals about 46,000 JOD. That is an extremely high salary here. That would equal about 3,800 JOD per month.

I don't know the extent of your experience and background, but personally, based on your last salary, and in my own opinion, I would try for 2,500 JOD per month - plus the best benefits you can negotiate.

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henny2010
7/9/2009 12:33 EST

Hi again,

First, I believe what Shobaki is trying to say regarding vacation, and in keeping with Jordanian law:

14 days (including weekends) for the first 3 years

30 days (including weekends) after 3 years

***But I really think you should negotiate for more.

Further to that, where Shobaki says, "paid salary yearly not only for 12 months .. u have to ask for 13 or 14 month .(by lobar law )"

I believe what he is referring to is that a lot of companies pay an additional 1-2 months bonus on top of the regular salary. However, I manage a law firm in Amman and unfortunately I know that this is not a concrete part of the labor law. Just a nice perk that a lot of companies give.

Let's look at your salary: $65,000 equals about 46,000 JOD. That is an extremely high salary here. That would equal about 3,800 JOD per month.

I don't know the extent of your experience and background, but personally, based on your last salary, and in my own opinion, I would try for 2,500 JOD per month - plus the best benefits you can negotiate.

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stephenehpets
7/9/2009 12:52 EST

Thanks very much.

This follows the conversation I had. Basically he was saying that he would offer 14 days base vacation, but he realized I may want more to be able to visit family etc back in the States. So, what you're saying makes sense in that light.

Also, in our conversation he mentioned a bonus, but I think this was some sort of company or indivudual performance or profit based bonus. I guess I should ask him to clarify what sort of bonus he's talking about and if it is actually what you're mentioning here.

Ok, so about USD 42400. Thanks very much for this indication. I guess, then it depends on what my monthly living costs should be. I know this is a pretty common question and fairly nebulous according to living style, but if I had a minivan provided to me, what should my basic living cost be (in terms of rent, utilities, etc). Also, what kind of tax hit am I going to see come out of that JOD 2500?

Thanks so much for your time and help.

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henny2010
7/10/2009 08:40 EST

OK then - time to ask personal questions! :)

Mainly, are you planning to bring family along with you? If so, and if there will be children, how many?

With that, I can calculate your approximate tax liability as well as give you an idea of what to expect in regards to schools and housing.

Also, as a general question, when living here would you prefer to live on the more upscale side... or the middle class side?

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stephenehpets
7/10/2009 10:01 EST

Thanks so much for your reply.

Well, pretty simple. I will be single and no kids.

I will be looking to maximize savings, so the minimal lifestyle I can get away with and still be in a safe and clean living situation. So, not a lot of going out, travelling etc.

Again, I really appreciate your help!

Best Regards

Steve

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henny2010
7/10/2009 11:21 EST

Hi again,

OK, a rough estimate of income tax based on a salary of roughly 30,000 JOD per year, taking into consideration standard, personal and rental exemptions will end up being 3,000 - 3,500 per year.

I can give you a more accurate assessment when I'm back at the office on Sunday with the payroll records.

Regarding rent, you should be able to find a fully furnished apartment in a range of 300-500 per month. And by fully furnished, I mean every single last thing that you will need will be included.

In many, if not most cases, when you rent a fully furnished apartment your utilities will be paid as well. But in case you don't end up with an apartment that includes utilities, here's what you need to know:

Electricity won't run you too much just by yourself. With air conditioning, maybe 50 JD per month, probably even less if you conserve. If you get a clothes dryer (*not* a common thing here), probably more.

Heating during the winters is a big problem. All homes and apartments have a diesel-based heating system. Last winter, a tank of diesel ran about 600 JD. Living alone, this might last you a couple of months (and longer if you conserve). What a lot of people do to save money is use portable heaters. The most cost-efficient are the gas based heaters, which use a propane tank. There are also electric heaters.

Living in an apartment, you might be asked to pay a portion of the cost of water, which will be negligible.

A home telephone will be really cheap. As an example, last month, I talked to my family in the U.S. for over 2 hours and the bill was only 19 JD.

For a cell phone, I would strongly recommend getting a pay-as-you-go phone, rather than a contract. They are much more cost efficient than similar plans in the U.S., and it's very likely that you will find that you don't spend too much, too often to recharge.

Internet will depend on the provider and method you choose (DSL or WiFi), but a rough estimate would be about 30 JD per month for the best speed and a large amount of bandwidth.

There is free satellite (NileSat), but there are only a handful of channels in English. You might want to get the Showtime Satellite Service, which is on the expensive side - about 100 JD per month. But with that, you'll get Discovery, National Geographic, ESPN, movie channels, etc., all in English.

That's all I can think of right now. I'll post again early in the coming week with a more accurate tax assessment.

As you prepare to come, please feel free to ask for any help you need! You can also contact me off this board at yasos.mom@gmail.com

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henny2010
7/10/2009 12:15 EST

I need to correct the cost of the Showtime satellite service - it seems that the price has gone down since we last had it! For the Platinum (best) package, the cost is now 42.50 JD per month.

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