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Shanghai Money Questions...
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jenn.d.4



Joined: 30 Nov 2008
Posts: 11

PostPosted: Wed Aug 05, 2009 2:48 am    Post subject: Shanghai Money Questions... Reply with quote

Hello, I have a contract that I am reviewing right now for Shanghai. I am a first-time ESL teacher with a TESOL cert and Bachelor's Degree (non-education related). I will need about $200 to send home each month for student loans, and I need to have a few dollars saved up to set up a life in the U.S. again afterward. I'm willing to live modestly, and am not entirely opposed to roommates but will be traveling alone, so it's a matter of the right roommate falling into place. Here will be the money situation:

10,000 rmb salary before taxes
10,500 rmb salary after 2 month probation period
5,000 rmb travel expenses at the end of contract
1,000 rmb relocating expense for beginning moving costs
800 rmb reimbursement for physical
400 rmb for visa application

-36 hours per week (getting in writing office hours vs teaching, believe conversation was about 15-20 teaching hours if i remember correct)
-1week paid vacation and national holidays off

What do you think?? Survivable? Not survivable? Fair?


Last edited by jenn.d.4 on Wed Aug 05, 2009 3:53 am; edited 1 time in total
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kev7161



Joined: 06 Feb 2004
Posts: 5880
Location: Suzhou, China

PostPosted: Wed Aug 05, 2009 2:59 am    Post subject: Reply with quote

A decent school will pay for the conversion of your Z visa into a residence permit, a foreign expert's certificate, your health exam, 10,000 airfare reimbursement for a year's contract, and probably a couple other things I'm not remembering right now. I think standard is also 1100 rmb per semester for "travel allowance". Hopefully those reimbursements will come through in a timely manner. What about housing? A school should offer you housing, some or all utilities paid, and full furnishings. If not, then a generous (esp. for Shanghai) housing allowance: 2000 or more if you can get it. 36 hours for what you are describing seems like a lot, but then again, I am contracted for up to 35 work hours per week, but I also get all of what I mentioned above plus a higher after-tax salary. A one week paid vacation? I would hope your Chinese New Year/Spring Festival time off is not that. What about summer holiday? I'm guessing this is a language school and not a government institution or private school?
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Mikeylikesit114



Joined: 21 Dec 2007
Posts: 129

PostPosted: Wed Aug 05, 2009 3:04 am    Post subject: Reply with quote

200 dollars per week? or per month?

If it's per week, that will be eating up over half of your paycheck. Will you receive free accomodation from your employer? Is your salary net (post-tax)?

If the answer to both of these questions is no, you will be getting close to unsurvivable, or at least damned unpleasant.
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jenn.d.4



Joined: 30 Nov 2008
Posts: 11

PostPosted: Wed Aug 05, 2009 3:47 am    Post subject: Reply with quote

Clarifying

That should be per month $200 per month for student loan fee to send back to the United States

There would be 1 week paid vacation in addition to national holidays

The pay after 2 months would be 10,500 RMB which will then be taxed

The housing is not included, housing would come directly out of my paycheck
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CJD



Joined: 19 Jun 2009
Posts: 116

PostPosted: Wed Aug 05, 2009 4:55 am    Post subject: Reply with quote

Mikeylikesit114 wrote:

If the answer to both of these questions is no, you will be getting close to unsurvivable, or at least damned unpleasant.

Never been to Shanghai, but this sounds like the right answer, judging by the other 100 threads I've read just like this one.

10,000 per month, no housing, and 35 hours work a week... in Shanghai? Sounds pretty darn crappy to me if you're expecting to save money.
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happigur1



Joined: 25 Jul 2009
Posts: 228
Location: USA

PostPosted: Wed Aug 05, 2009 7:32 am    Post subject: Re: Shanghai Money Questions... Reply with quote

jenn.d.4 wrote:
Hello, I have a contract that I am reviewing right now for Shanghai. I am a first-time ESL teacher with a TESOL cert and Bachelor's Degree (non-education related). I will need about $200 to send home each month for student loans, and I need to have a few dollars saved up to set up a life in the U.S. again afterward. I'm willing to live modestly, and am not entirely opposed to roommates but will be traveling alone, so it's a matter of the right roommate falling into place. Here will be the money situation:

10,000 rmb salary before taxes
10,500 rmb salary after 2 month probation period
5,000 rmb travel expenses at the end of contract
1,000 rmb relocating expense for beginning moving costs
800 rmb reimbursement for physical
400 rmb for visa application

-36 hours per week (getting in writing office hours vs teaching, believe conversation was about 15-20 teaching hours if i remember correct)
-1week paid vacation and national holidays off

What do you think?? Survivable? Not survivable? Fair?


How will you be sending it home? Via Western Union or other ways? $200 is about 1,4000 RMB so that would leave you with 8,600 RMB. Tack on housing and utilities could average to 2,000 RMB on the low end and 3-4,000 on the higher end. That would leave you with about 5,000 RMB. Shanghai is a pretty expensive city. You COULD barely get by without having much fun (sticking to a Chinese diet, no going to bars, no traveling, etc.) and taking a lot of public transportation. It depends on the reason why you are going to China. Are you there to have fun or work? You are working quite a bit of hours for not too much pay. The travel cost is not very much at all; normally with one year contract, you should get about double that (for a round trip ticket).

Oh and if you are renting an apartment, keep in mind that you might have to pay a few months in advance. My landlord wanted a year in advance but I talked him down to 6 months. Would you have enough to cover the initial cost?

Finally, where did you find this job position? You should read some of the other posts to be wary of scams...
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nickpellatt



Joined: 08 Dec 2006
Posts: 1522

PostPosted: Wed Aug 05, 2009 8:42 am    Post subject: Reply with quote

That is pretty terrible, and doesnt seem to offer any redeeming feature. It is probably one of the worst job offers I have ever seen in China, and I would suggest avoiding it like the plague.

The hours are at the upper level of the type of hours any teaching in China has to work.

Shanghai is probably the most expensive place to live in China.

The contract doesnt offer any accomodation included.

The contract doesnt offer much in the way of holidays.

It works out at something like 65 rmb per hour, without accom, in Shanghai? Without long holidays? Accom would need to be included for this to be viable and fair IMO.

Yes, you may see posts where people insist that taking a job for 5000 rmb per month is too low, and so you think the salary looks good, BUT .... many of the jobs in China with 'low' wages are jobs with low working hours ... I would guess the average FT in China works about 15-18 hours a week...less than half of the hours of this contract.

Many people also enjoy holidays more generous than this contract. My last job had 10 weeks summer and 7 weeks winter hols...all paid.

Add to this the fact most jobs in China do include accom, removing the need to pay rent, deposits, and sometimes utilities, illustrates how this job offers little to make it worthy of consideration.
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Mister Al



Joined: 28 Jun 2004
Posts: 840
Location: In there

PostPosted: Wed Aug 05, 2009 9:41 am    Post subject: Reply with quote

I had a mate who was on a similar contract with less hours back in 2003.
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jenn.d.4



Joined: 30 Nov 2008
Posts: 11

PostPosted: Wed Aug 05, 2009 1:18 pm    Post subject: Reply with quote

thank you everyone, your feedback has been very helpful Smile
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Songbird



Joined: 09 Jan 2005
Posts: 630
Location: State of Chaos, Panic & Disorder...

PostPosted: Wed Aug 05, 2009 10:47 pm    Post subject: Reply with quote

This sounds very much like Pearson's offer to me. After 4 years in China and an (almost) completed MA, I told them where to stick it.
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waxwing



Joined: 29 Jun 2003
Posts: 719
Location: China

PostPosted: Thu Aug 06, 2009 1:58 am    Post subject: Reply with quote

There are some very extreme comments here, particularly this one:

Quote:
That would leave you with about 5,000 RMB. Shanghai is a pretty expensive city. You COULD barely get by without having much fun (sticking to a Chinese diet, no going to bars, no traveling, etc.) and taking a lot of public transportation.


I've been here 4 years in different cities, now in Shenzhen, arguably only a little cheaper than Shanghai (if at all) and I struggle to spend more than 5K per month on general expenses. Anyone who is not a chronic spendthrift should have no trouble sticking to 4K per month (admittedly it would have to be a "normal" month with no special expenditures, and as we all know, only some months are like that), and I'm including a moderate amount of entertainment.

For me the main issue in your case would be to find accommodation such that, including management fees, utilities, TV fees etc. etc. - you need to come in under about 3.5K.
Then it would be something like
10.5K
-0.7K tax (someone correct me, it sounds about right)
-3.5K apartment (including utilities)
-1.6K ($200 sent home + fees to be careful)
-4.0K (general living expenses, including one off items which bump up the average)

As you can see this leaves you with, to all intents and purposes, nothing to save for when you leave. This is a typical situation for foreign teachers in China. But what's most revealing is to tweak the figures - suppose we cut the living expenses average to 3K. Note that this would mean, most months you'd have to spend less than that to account for "one-offs". That reduction of 1000 will seriously affect the quality of life, at least it will make you think a lot more about money.
What does such a sacrifice get you? Over 10 months you'd save an additional 10,000 RMB - less than one and a half thousand dollars. Is it worth it for a year's efforts? I look at things in terms of opportunity cost - the time and effort spent scrimping and saving could be better put to use finding other avenues of income, whether it be another career or a new job, contacts in the expat community or a business opportunity.

PS. The comments about the hours are slightly off - this includes office hours (yes, I know, the work of Satan ... Rolling Eyes ), he was talking about 15-20 contact hours. "Worst job offers in China" hmm!
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jenn.d.4



Joined: 30 Nov 2008
Posts: 11

PostPosted: Thu Aug 06, 2009 4:25 am    Post subject: Reply with quote

Thank you again to everyone thus far! It's been really helpful to get everyone's input on Shanghai. Looking strictly at charts and pay scales online doesn't paint a picture near as well as first-hand accounts of what life would be like for real people making this wage. Any more input is always welcome Smile
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happigur1



Joined: 25 Jul 2009
Posts: 228
Location: USA

PostPosted: Thu Aug 06, 2009 9:02 pm    Post subject: ... Reply with quote

waxwing wrote:
There are some very extreme comments here, particularly this one:

Quote:
That would leave you with about 5,000 RMB. Shanghai is a pretty expensive city. You COULD barely get by without having much fun (sticking to a Chinese diet, no going to bars, no traveling, etc.) and taking a lot of public transportation.


I don't think I was being very extreme. I guess it depends on what you are doing in China. If it the first time in China, one must assume that traveling and sight-seeing is a must. If one wants to eat western food or buy western food, that would make it more expensive. I don't remember exact figures, but eating out at Pizza Hut can cost about 60 RMB on the low side. Making a spaghetti meal will cost 25 RMB (for sauce), 15 RMB (for noodles), 30 RMB (for ground beef). Starbucks coffee will be around 25-40 RMB. Going out to bars and night scenes will tack on another 100 RMB minimum which includes taxi ride (because there's not too many buses at 3AM) and drinks. After being in China for awhile, it is a bit easier to budget, etc. because you've seen a lot in China and been out and about and explored Shanghai/China.

If one were to really budget, or have been in China for over a year, then yes, it is a bit easier. But it would suck to go to China for the first time with a mindset that, "I'm on a budget". But this is just my opinion.
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waxwing



Joined: 29 Jun 2003
Posts: 719
Location: China

PostPosted: Thu Aug 06, 2009 11:30 pm    Post subject: Reply with quote

It doesn't take most people long to realize that Pizza Hut is a way-overpriced option in China. (It's also pretty appalling to my mind - way off track here but when is anybody going to tell them that a pizza has tomato paste Evil or Very Mad - if you want good pizza go to Papa John's. And bring your wallet ...)

And going out in Shanghai's expat nightlife is super expensive, easily comparable with London (maybe pricier), again it doesn't take long to realize it and that you'll have to find cheaper options.

That's my way of thinking, I still think what you wrote was extreme, but granted one can spend 10K+ a month on living expenses. I'm sure some expats do ...
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kev7161



Joined: 06 Feb 2004
Posts: 5880
Location: Suzhou, China

PostPosted: Fri Aug 07, 2009 1:44 am    Post subject: Reply with quote

There's more than just eating out. Even simply buying groceries can be challenging to keep at a low end of the scale. Just like back home, buying fresh fruits and vegetables are going to help a lot. But when I see avocados (for example), I am overjoyed. Blueberries too. Anything out of the "norm" that I've enjoyed as a matter of course before, gets me a little giddy and I have to buy it, regardless of cost. Simple day to day expenses can add up quickly. From meals out to shopping for food to taking taxis to buying medicine or even health supplements. Shopping for clothes or having them specially made. The list can be endless. It doesn't matter if you eat at Pizza Hut or Papa John's. That's not the gist of this thread. Just like back home, savvy spenders can find bargains most anywhere and can budget their money. There's nothing wrong with divvying up your money into a monthly expense list. If you only have 500 yuan for eating out, then you may have to be prudent on where you go or how often you go. If you force yourself to live on a budget, then you can be okay. However, it can still be a struggle.
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