Job Discussion Forums

Big_H · Joined: 21 Dec 2013 Posts: 115

Evening everyone, I'm coming up on my 2nd year teaching EFL in a language center here. The manager offered me a raise in the following form:

- Lower net monthly salary (ex: 10'000RMB -> 9300 RMB)
- They'll provide me with free housing. To be more precise, He proposes that the school pays my landlord directly (ex: housing payment 2700RMB)
- Additional performance bonuses, better working conditions, yadda yadda..

His reasoning is that schools are not taxed on expenses for housing teachers so it will cost him less overall. So for example instead of 12'000, I'll be paid 9'300 net salary and 2'700 equivalent for housing. Are there any risks legal or otherwise that I should take into account here? The rest of the contract is fine, my only concern is those first two terms and whether they could affect me negatively in any way. Your opinion and experience'd be much appreciated

Big_H

kungfuman · Posted: Mon Jan 11, 2016 2:42 pm Post subject:

The risk is that you will let your boss have complete control over your apartment. If a dispute comes up between you and the boss one call to the apartment owner and you are locked out.

It's happened before.

kungfuman · Posted: Mon Jan 11, 2016 2:44 pm Post subject:

My school follows the law - if I pay the 5% tax on the housing allowance and bring them the receipt then my housing allowance is not taxed. My taxable salary is now reduced by 3500y a month.

Big_H · Joined: 21 Dec 2013 Posts: 115

Yeah but a dispute that big would just have me hop into another school, thanks for the feedback.

Shanghai Noon · Joined: 18 Aug 2013 Posts: 589 Location: Shanghai, China

It's not a risk if you make sure your name is on the contract with your landlord. Then you can't be locked out. Besides, if you have a relationship with the landlord going back a year then he/she will be more likely to take your side in a dispute, provided that you can keep paying your bills.

LarssonCrew · Joined: 06 Jun 2009 Posts: 1308

One other point about this is that if the school pays you avoid the large upfront costs.

Lets say you are working in a Tier 2 city. A nice apartment may be 2500, and you'll be happy with that.

Your school gives you 2500 so no problems right?

Except you turn up and you need to pay 2500 for 3 months, plus a months deposit, plus half a month agency fee, and suddenly you're owing around 12000 RMB, $2000.

But then you also need to pay the internet up front [you get a much better deal yearly than monthly] so that's another say 300 dollars. Plus you need to pay an amount for your cell phone, your gas needs a lump sum added as does electricity.

My point is that you're saving yourself possibly having to shell out $3000 or so, but the downside is your school knows where you live, can bother you, it may be a cheap cheap place [if they will give you 2500 RMB, don't expect the apartment will actually cost them that, they'll cut corners].