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Pointers on salaries returning NRIs should know
Report dated 14/10/2011 @ 10:12 PM
NRIs planning on returning to India because of the slump in the West and the job opportunities in India would do well to consider the definition of salaries.
Broadly, one could expect 40-70% of one's US salary as your salary in India. However here are a few pointers:
Salaries in India are quoted in terms of cost to company or CTC, which is the cost the company incurs to employ and keep you employed. This is an important factor because many components of your CTC may not translate into actual take-home pay every month.
A rule of thumb one can use is what you get in hand will be 70% of your CTC, which the company may beef-up, such as value of perks, interest subsidies in the case of banks, medical or life insurance, food subsidies, transport costs or subsidies, gratuity, and their provident fund contributions.
Tax deductions are withheld from one's income by the company, an amount that will depend on the components of your salary.
Annualised and variable components are applicable as well.
Employee Stock Option Plans that in effect apply only after working for the company for a certain period, plus the so-called strike price.
Lastly the 'relocation package' that some companies provide for just a few weeks, after which you are sometimes prey to rogue real estate agents recommended by the company.
These are caveats that exist in the corporate world that most returning NRIs are looking to, for the future welfare of their families.
NRIs can now file a court case in Kerala from Oman
Report dated 09/10/2011 @ 4:10 AM
A law firm in Oman has tied up with legal associates in the Supreme Court of India and courts in Kerala to help NRIs and Omanis handle legal issues in India.
According to Rajab Al Kathiri & Associates in Oman, if an NRI has to file a complaint in the Indian Supreme Court or any court in Kerala their associates in India will work for the clients in the Sultanate, making it unnecessary for the client to travel to India.
The alliance will help Omanis as well, in cases they may need to fight in India. In most such cases Omanis are being duped by some law firms in India and being charged exorbitant fees. This will no longer be the case.
Salary expectations for US NRIs going back home
Report dated 29/09/2011 @ 5:40 PM
So, with NRIs making the move back to India given the global financial mess, what can they expect in the way of salaries, is the question.
According to India's Head Hunters, NRIs' expectations are somewhat inflated. They are influenced by friend's whose tall stories about Indian salaries painted an optimistic, in fact rosy picture.
The experts remind returning NRIs that they will not make the rupee equivalent of their US salaries. The cost of living in India is lower than in the US which means lower labour costs in India, a factor that will determine a salary back home, as an Indian salary is related to local labour market wage rates with a potential premium for critical skill sets.
The days of expat wages are over as India is now an attractive market for global companies. That, and the fact that the availability of skilled labour in India is flourishing.
Head hunters advise that The Economist's Big Mac Index is a good guideline to use to calculate salaries. It is based on the PPP according to which exchange rates should adjust to equalise the price of a basket of goods and services around the world.
Returning NRIs are advised to banish the pipedreams of instant millionaire status and face the reality of the adjustments that will be necessary.
US to tax money sent to India by NRIs
Report dated 27/09/2011 @ 5:18 PM
The US is to institute a new law called Fatca (Foreign Account Tax Compliance Act) that is to be enforced from January 2013 that will tax NRI's bank deposits made in India.
By law a US citizen has to withhold 30% that is to be paid as tax, to the US. Consequently the US is likely to implement Fatca, that mandates full disclosure of bank accounts held by US taxpayers in foreign countries, including India. This also means that either the taxpayer or banks/institutions holding such deposits will have to disclose all the details to the Internal Revenue Service (IRS).
It is estimated that currently, around Rs.23,000 crores of NRI deposits are sitting in banks in Gujarat alone
NRIs demand a representative in Parliament
Report dated 19/09/2011 @ 5:51 PM
D L Kalhan, President of the Indian Overseas Congress in London stated that the Indian government must make a Constitutional provision that will allow NRIs with Indian passports to nominate their own representative in Parliament.
At a reception in London also attended by Virendra Sharma Labour MP, Chairmen of the IOC Manjit Lal, Councillor Sunil Chopra and Vice President of the IOC Satpal Parmar, Kalhan said the Indian Overseas Congress (IOC) was instrumental in getting voting rights for NRIs with Indian Passsports, but regretted that they were being ignored.
He reiterated the IOC's contributions to strengthen the Congress party in Punjab and Bihar and he is confident the party will return to power.