Embarking on an overseas teaching adventure is an exciting prospect. The opportunity to immerse oneself in a new culture, meet new people, and make a difference in the lives of students can be incredibly rewarding. However, it also comes with its own set of challenges, particularly when it comes to finances. This is especially true for those who choose to teach in Malaysia with an International Qualified Teacher Status (IQTS). In this blog post, we’ll delve into five key insights that can help you navigate the financial landscape of teaching abroad with an IQTS in Malaysia.
1. Understanding the Cost of Living in Malaysia
Before you pack your bags and hop on a plane, it’s crucial to understand the cost of living in Malaysia. This will help you budget effectively and avoid any unpleasant financial surprises. The cost of living in Malaysia is generally lower than in many Western countries. However, it can vary greatly depending on the city and your lifestyle.
Rent, for instance, can range from affordable to pricey, especially in major cities like Kuala Lumpur. On the other hand, local food and public transportation are quite affordable. It’s important to research and plan accordingly, taking into account all potential expenses such as rent, utilities, food, transportation, and leisure activities.
2. Salary Expectations for IQTS Teachers
As an IQTS teacher in Malaysia, your salary can vary depending on the school and your level of experience. Generally, international schools offer competitive salaries that can range from MYR 6,000 to MYR 12,000 per month. This is often enough to live comfortably and save some money, especially if you’re mindful of your spending.
However, it’s important to note that not all schools offer the same benefits. Some may provide housing allowances, health insurance, and flight reimbursements, while others may not. Therefore, when considering job offers, it’s essential to look at the entire package, not just the basic salary.
3. Tax Considerations
Understanding the tax system in Malaysia is another crucial aspect of managing your finances while teaching abroad. Malaysia operates on a territorial basis, which means you’re taxed on income earned within the country. The tax rates range from 0% to 30%, depending on your income bracket.
However, as a foreigner, you may be eligible for tax exemptions if you meet certain criteria. For instance, if you’re in Malaysia for less than 182 days in a calendar year, you’re considered a non-resident and are taxed at a flat rate of 30%. It’s advisable to consult with a tax professional to understand your tax obligations and potential savings.
4. Banking and Money Transfers
Setting up a bank account in Malaysia is relatively straightforward. Having a local bank account can make it easier to manage your finances, pay bills, and receive your salary. Most banks offer online banking services, which can be a convenient way to keep track of your spending and savings.
When it comes to sending money back home or receiving money from abroad, there are several options available. Traditional bank transfers, while reliable, can come with high fees and unfavourable exchange rates. Online money transfer services often offer lower fees and better exchange rates, making them a popular choice for many expats.
5. Planning for the Future
While it’s important to budget for your day-to-day expenses, it’s equally important to plan for the future. This includes saving for retirement, emergencies, and other long-term goals. Some schools may offer pension schemes, but it’s also a good idea to explore other savings and investment options.
Furthermore, it’s worth considering international health insurance, especially if you plan to travel or move to different countries. This can provide peace of mind and financial protection in case of unexpected health issues.
In conclusion, teaching abroad with an IQTS in Malaysia can be a financially rewarding experience if you plan carefully and make informed decisions. By understanding the cost of living, salary expectations, tax considerations, banking options, and future planning, you can ensure a smooth and successful teaching journey in Malaysia.
Advance Your International Teaching Career with iQTS
Ready to elevate your teaching career and financial prospects in Malaysia and beyond? The IQTS at UWE offers the International Qualified Teacher Status (iQTS) Programme, specifically designed to enhance your professional development. Overcome the barriers of strict qualification requirements, accelerate your career progression with a potential 30% salary boost, and connect with a global network of educators. Embrace the flexibility of online study to balance your work commitments while gaining a deep understanding of international curricula. Make Your Next Step towards a more rewarding international teaching experience with iQTS.