Salary Negotiations are Key to Your Financial Well-being
Your monthly budget, when you’re working in Singapore, depends on perspective. It is possible to live a satisfactory life in Singapore at a salary of SG$4000. You might be thinking if that is even possible. As I said it depends. It is about how much you want to save and what your daily expenses are. This means if you’re spending SG$3500 every month and saving SG$500. You’re still good to go, only if you’re not ambitious about your future and financial well-being. If you just want to continue at the same pace, and then retire with a meager retirement gratuity and a pension maybe, then there is no need for you to read this article. You’re doing just fine.
Many Singaporeans, be them youth or people with families, are living within a less than medium salary range. It is not that living with mid-range salary is hard but there is very less you can gain from a salary that is given to you for your work. All the compensation that you receive goes away in everyday expenses and sometimes there could be health issues which may have you spending your salary at once and then you’re broke until your next payday. Salaried people always think about saving but it’s not always possible. So you must get extra compensation for things that are necessary expenditures and can affect your budget and savings.
What are Salary Negotiations and why are They Important?
A global recruitment company called Hays did a survey of salaried youth that is looking for different jobs that have more benefits than their current jobs. 37% of people that had polled in the survey from Singapore were looking for a better job. The most important reason for the job search in Singapore is low or unsatisfactory compensations for work. Out of the 37% of people who have been looking for new jobs, 43% of people do it because they are unsatisfied with their pay-slip.
Salary is not just supposed to be an amount being paid to you in cash or in your bank account. There are a lot of things that are supposed to be taken care of from the amount you receive. Are you receiving any extra compensations for your everyday travel expenses or the fuel you use in your car or motorbike? If not, then maybe it’s time you negotiated your salary with your boss.
Salary negotiation is simple mathematics. Everyday expenses and overhead expenses that cannot be avoided are surely paid out of the salary you receive. For example, if you or someone in your family (if you have one) gets sick during the middle of the month, you’ll have to pay the clinical charges from your salary and your budget gets toppled. What is the benefit of being at a job when you cannot even spend your money on a weekend dinner outside? No one wants to work for a salary that only gives them the ability to pay utility bills, buy lunch, and travel to and from work every day while trying to save on that juice you’d love to have every morning before you begin working.
The expenses you incur every day on things like transport, and food or expenses on health and fitness can be saved by negotiating your salary and added benefits with your employer. The savings you do on your salary by deducting daily and overhead expenses open up new opportunities. Especially if you’re in your early twenties, you’d surely want to have more investments opportunities so you can secure your future and financial freedom.
How do I Negotiate My Salary?
If you’ve been working in the same firm for months now and you feel that what you’re working for is not worth it, you should probably open up things and confront your employer with salary negotiations. You must build a case around the matter and be clear on the reasons for the increase in your salary or at least for getting added benefits along with your present salary structure.
Before you go toe-to-toe with your employer, always remember that you’re not the only one working in the same industry as you. You should first evaluate the industry’s salary trends. Do research on other people working in other companies in the same position. Check what they are being paid and what other benefits they receive. This will help you further justify your reasons for an increase in your salary and adding benefits.
What should be negotiated in a Salary?
A common university student from Singapore’s universities with the first class in Honors gets about SG$4000 as a starting salary. After the CPF deductions, the take-home salary comes down to SG$3600 or lower. If you spend it in an orderly fashion, you might be able to save somewhere around 100 to 200 SGD which is not enough for someone to feel secure about their future. So, negotiate the added benefits that you want to receive from the company.
Life is uncertain, so it is important that you secure some money for any unexpected kicks from life. Many people are insuring there health by paying monthly premiums to their insurance company. If you’re not receiving an employee health insurance cover along with your salary, you should probably ask your employer to cover it. If your employer covers your insurance, you save money on the premiums you pay every month and healthcare won’t cost much in case of a serious illness.
The everyday traveling cost adds up in your monthly budget. It is much more expensive if you’re located far away from your workplace. You can conveniently ask your employer to add in a compensation for traveling in your benefits package. The time you spend in traveling also adds up as your office hours. You can demand a pay on the basis of time if not on expenditure. If you’re using your own vehicle to travel every day to the office you can ask for fuel compensations too. This will save you a lot on your monthly budget and you can have that tasty chicken dinner you wanted to have for the weekend.
If you are looking forward to continuing your education while you’re working, you’ll have to pay for tuition from your own pocket and universities are really expensive. Paying off tuition fees can make you broke every month, savings are not even an option. If you’re keen on completing your education, you can say it is beneficial to the employer in terms of getting a more qualified employee. Tuition reimbursements can be negotiated, if you’re opting for advanced studies.
The Basic Salary
Basic salary is sometimes not enough for a person to go forward with everyday expenses and also save on the monthly budget. Suppose if you’re getting a salary of SG$5000 and 10% of health and transport benefits you should be clear that the employer can offer you the same added benefits in your take-home salary. Do not go for it. Demand for an SG$ 5500 along with the 10% of added benefits. This will give you more resource in your savings and you can get a much better lifestyle from the salary you earn.
Everyone in the millennial era requires financial freedom. Working at a 9 to 5 job to secure a salary which is not worth your expectations and the work you provide, is not accepted by professionals. When you know you are being underpaid, go ahead and talk to your employer and tell them your worth. Your salary and benefits are also important for your work-life balance. So go get that hike in your salary and demand some more paid leaves and be financially healthy.
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