Job Discussion Forums

aleskis · Joined: 02 Mar 2006 Posts: 11

Heard a rumor coming out of china that certain schools were putting clauses in the contract that only a certain percentage of the salary(70% as I heard it) could be converted into a foreign currency and sent out of the country.

Does anyone have experience with this or possibly heard something similar?

regards,
Adam

Anda · Joined: 16 Jan 2003 Posts: 2199 Location: Jiangsu Province

As far as I know that has always been so. The same thing happens in Korea.

Start doing a lot of side work and sending the money out and you will not last long. But earn heaps and spend heaps then you should have no problem.

Sinobear · Joined: 24 Aug 2004 Posts: 1269 Location: Purgatory

A little problem with the numbers here:

With an FEC (Foreign Experts Certificate), an FT can change up to 30% of their wages into USD if the school provides their stamp and the required figures filled-out in the FEC.

There's no restrictions on how much you send overseas (except limits on how much at one time - and I highly doubt an FT could ever meet or exceed that limit).

All of the minutae are in your FEC, in English, if you are in possession of that all-important document.

Cheers!

Lorean · Joined: 21 Dec 2006 Posts: 476 Location: Beijing

Has anyone ever used this clause?

kev7161 · Joined: 06 Feb 2004 Posts: 5880 Location: Suzhou, China

Sorry, with your FEC (and a clause can certainly be inserted in your contract to help verify), you can change up to 70% of your salary every month. China, of course, would like you to spend at least 30% in country. How much you send out is up to you. Although I DO send currency out via EMS, I don't let the China Post KNOW I'm sending cash. It's always a "business letter" or something. You can certainly save USD (or whatever) in a China bank. I don't know that it will earn interest or anything, but you can just withdraw it when you travel or when you finally leave the country. I probably wouldn't risk trying to carry out $100,000 or some other huge amount. By the way, I've never converted a full 70% - - the most is usually about half.

cj750nomad · Joined: 11 Oct 2008 Posts: 252 Location: Beijing and

When withdrawing foreign currency from a foreign currency account in china, there is a service charge that accompanies the withdrawal. the way to avoid this is to transfer it to a Chinese account first as the Chinese are charged no service charge for withdrawal of foreign currency. You may have to have a good reason, say like marriage, to justify the transfer. (This is according to my experiences at the BOC in Beijing, with a foreign currency account and funds which have been transferred in from my overseas employer ) this may be different with foreign funds banked in country. All ATMs in china do not convert charge card withdrawals from foreign cards to RMB.

mike w · Posted: Mon Oct 13, 2008 1:49 pm Post subject:

cj750nomad · Joined: 11 Oct 2008 Posts: 252 Location: Beijing and

I dont know if they have a branch of the Shanghai Pudong Development Bank in Beijing but I will check as I doubled checked this several times at BOC and was informed it was a Banking regulation., which of course means little. Others in the same situation have told me the same info. As to converting rmb, there is no charge, and the rate is higher than window transactions if the funds are electronically transferred into the acct.

therock · Joined: 31 Jul 2005 Posts: 1266 Location: China

It has always been like this, it depends on the bank and city you are dealing with. For example the first place I worked at, the local Bank of China allowed me to exchange my whole salary. Another thing to consider is that most foreign teachers earn around 5000RMB. I don't see the point of converting to foreign currency.

arioch36 · Joined: 21 Jan 2003 Posts: 3589

The FEC, and a copy of your contract, entitle you to exchange RMB to your home currency at the actual rate ... no charges. You also need a letter from your school saying how much money you make, a letter saying how much you can convert, and your tax receipts if making over 4,800. There used to be a law that said the foreigner could change up to 70%, that law is now gone, but if the letter the school gives you says 70%, that's how much you can convert.

Again, this is for purposes of direct exchange without paying any fees. etc. In the past at least, the way it worked is that there was one, and only one Bank of China in the city authorized for this. At the gate outside of this bank here in Zhengzhou, you can also get a very good exchange rate without walking into the bank.

I kow have four CHinese bank accounts (Seven years, schools insist I open an account in a specific bank, then I can not close the account). As long as I withdraw mony in the same province there is no charge. If I withdraw in another province, there is a fee, much larger when withdrawing dollars

mike w · Posted: Tue Oct 14, 2008 4:13 am Post subject:

cj750nomad · Joined: 11 Oct 2008 Posts: 252 Location: Beijing and

Mpho · Joined: 30 Aug 2004 Posts: 58

Yes, this was quite common in the past. The school would put a percentage in the contract and in your FEC booklet. You go to the bank and get US dollars.

However, my new FEC booklet has no place for a percentage in it, so now you can convert 100% into dollars if you like.

I often in the past converted 70% into dollars. That money is now in a Bank of China account and will go with me next year when I finally leave China.

You can carry up to $10,000 from China to the U.S. without having to declare it upon entry to the U.S., I believe.

Mpho