Salary and currency fluctuations

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  1. #1

    Join Date
    Aug 2010
    Posts
    14

    Salary and currency fluctuations

    Hi,
    Just a quick question that hopefully someone can share some advice on.
    Scenario - company offers proposed terms, I ask for some changes.
    A week or so later the company agrees to meet those new terms but in the meantime, with currrency fluctuations the salary is now worth about 7 to 8% less than it was 2 weeks ago. There was no discussions on pegging the salary to an exchnage rate.
    Anybody had a scenario like this before and whether they went back for more money or just sucked it up and hoped the currency rate goes back in their favour.
    (Obviously the agreed salary is applicable to the country you move to but we will still have financial commitments to our current location and would like to maximise money).
    Thanks. PJ


  2. #2

    Mate - that is your responsibility. No way is a company going to put an FX hedge on for you. Suck it up and hope.


  3. #3

    Join Date
    Aug 2010
    Posts
    14
    Quote Originally Posted by Tommyknocker:
    Mate - that is your responsibility. No way is a company going to put an FX hedge on for you. Suck it up and hope.
    Yeah I kind of thought that might be the answer! Thanks.

  4. #4

    Join Date
    Jun 2005
    Location
    Hong Kong
    Posts
    23,205

    If you are being sent on an overseas assignment on an internal transfer then if the salary is defined in the overseas currency then that's generally how it works, but if the salary is defined in the home currency that often you can choose to receive some proportion of the salary in the home currency and some in the foreign currency, converted at a rate which is fixed annually.

    Otherwise, as the previous poster says, it's part of the risk (or benefit) of an overseas assignment.