How much exactly should a PLACEMENT FEE be?
Hi.
I've been offered a job as Document Controller in Al Jaber Trading Contracting Co. in Doha, Qatar. Offered compensation is Basic Salary of QR2,100 PLUS QR900.
The agency, GLOBAL MEDICAL SYSTEMS is asking for a placement fee to the amount equivalent to my 1 month salary which they converted from QR3,000 to USD, multiplied by Php50.00. Computation is as follows:
*QR3,000 divided by USD3.65 = USD821.92 x Php50.00 = Php41,096
*PLUS tax USD55 x Php50 = P2,750
*PLUS Processing Fee Php2,600
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Grand Total of Php 46,446
My question is, is this LEGAL? I mean, the law says that placement fees should not exceed the equivalent of 1 month's salary right? But my Basic Salary is only QR2,100. Shouldn't they base it on my Basic Salary of QR2,100 only and NOT include my QR900 allowance?
Also, please advise on the Tax and Processing Fees?
Thank you very much and I hope you would help me on this matter.
God bless you all.
Hey Louie,
As told to you earlier, you will pay placement fee equivalent to your one month Salary, that is based on POEA law. You have to shoulder your medical Expenses too. Even there is no contract yet, you can be instructed to do your medical examination.
As per some Companies here, they bear the expenses of the placement fee aside from the fee they pay for hiring you as agreed with the Recruitment Agency. Others hold their employee, when hired for a 2-year contract or by not giving a release/ NOC after reasoning that they shouldered everything in hiring the employee.
But in your case, you will be the one to bear the placement fee and other fees needed for you to come here at Qatar.
Moreso, if you try a Business Visit Visa here and try your luck in finding jobs here, you will spend around P 60,000.00 to P 80,000.00 for Airfare, Visa, and other Cost.
Weigh everything and then decide.
hi everybody.
i emailed POEA and this is their reply:
Dear Sir,
Please be informed that Section 3, Rule V, Part I of the 2002 POEA Rules and Regulations Governing the Recruitment and Employment of Landbased Overseas Workers specifically provides to wit:
“Section 3. Fees/Cost Chargeable to the Workers. Except where the prevailing system in the country where the worker is to be deployed, either by law, policy or practice, do not allow the charging or collection of placement and recruitment fee, a landbased agency may charge and collect from its hired workers a placement fee, in an amount equivalent to one month salary exclusive of documentation costs.”
Guided by the foregoing, the rule is clear that licensed recruitment agencies are only authorized to collect from its hired workers, placement fee equivalent to one-month salary or its peso equivalent exclusive of documentation costs. No other charges in whatever form shall be allowed to be collected from the worker without prior approval by the POEA, regardless if it salary deduction or be paid before departure.
Furthermore, fees shall be collected from a hired worker only after he has obtained employment through the facilities of the recruitment agency and he must provide a copy of the contract.
For your information.
CAN YOU PLS. EXPLAIN THIS FURTHER TO ME? ALSO, ON TOP OF THAT, i'LL BE PAYING FOR MY MEDICAL EXAM. I MEAN, ISN'T THIS AGENCY ASKING TOO MUCH FROM ME:
i haven't signed any contract yet and they haven't shown me any and already they want me to take the medical exam and PAY for it already? What if the contract is bad and I decided not to accept? I'm sure I wouldn't get a refund for my medical. Aren't they supposed to show me the contract first?
thank you very much for your kindness.
Also - the agency is exchanging US Dollars to PH Pesos at a rate of 1 USD to 50 PHP?? Please give me their address so next time I need to exchange money I can use them!! The current rate is around 1 USD to 46 or 47 pesos. Looks like they are trying to get you every way they can!
The placement fee allowed by POEA rules and regulations originallly was P5,000.00 only, this amount will cover ur medical, NBI, and other administrative costs of the agency. This was later increased to P8,000.00 and this is the prevailing placement fee. On top of this, the agency is supposed to be paid by the principal an "Agency Fee" the amount of which depends on the "Agency Agreement" between the foreign principal and the local agent-representative. Because of illigal practices by Philippine Agencies, most foreign principals pay between US100 to 300dollars only.
Now, your question is how much your agecy should legally charge you with placement fee? the answer is P8,000.00 only. If your agency charges you more? then write the POEA and show proof that you are being charged more than the amount allowed by the rules.
If you have agreed to pay a month of your salary, the basis should have been the basic salary only.
But going by your disclosure and the prevailing rates here in Qatar, your salary as document controller is way below the standard. You should be receiving at least 2000US plus housing allowance plus other benefits.
First, are you saying that as a document controller you gonna get 3000 as a TOTAL package?? OMG…
Second, why do you have to pay to the agency anyway?? The COMPANY is paying to them. Did you sign any contract with the agency ?