News »Browse Articles »
Weak rupee helps IT employees working abroad
0
Weak rupee helps IT employees working abroad
8 Dec 2008:The rupee’s slide against the dollar is not a bad news for everyone in the IT sector. While IT companies are suffering substantial forex hedging
losses due to the depreciating rupee, their employees, who work abroad on short-term projects and earn in dollars, are finding the rupee’s fall to be beneficial.
The rupee has, so far, depreciated by more than 20% against the dollar since the beginning of the current fiscal. It has also weakened against other currencies, including the UAE dirham (21% depreciation) and Singapore dollar (12%). This has proved to be a windfall for IT professionals who work on overseas assignments and earn in these currencies.
This is because when these professionals return back to India after a span of 2-3 months, they can convert their foreign currency
savings at a more favourable currency rate. The rupee’s fall adds to their gains. In the past two months, the rupee has depreciated by as much as 14% against the dollar.
IT employees, who work abroad on short term assignments — usually not more than three months — get their monthly salary in rupees. Apart from this, they also get a reimbursement for daily expenses and daily allowance, both in the local currency of the country of deputation.
Source:
http://economictimes.indiatimes.com/Weak_rupee_helps_IT_employees_working_abroad
losses due to the depreciating rupee, their employees, who work abroad on short-term projects and earn in dollars, are finding the rupee’s fall to be beneficial.
The rupee has, so far, depreciated by more than 20% against the dollar since the beginning of the current fiscal. It has also weakened against other currencies, including the UAE dirham (21% depreciation) and Singapore dollar (12%). This has proved to be a windfall for IT professionals who work on overseas assignments and earn in these currencies.
This is because when these professionals return back to India after a span of 2-3 months, they can convert their foreign currency
savings at a more favourable currency rate. The rupee’s fall adds to their gains. In the past two months, the rupee has depreciated by as much as 14% against the dollar.
IT employees, who work abroad on short term assignments — usually not more than three months — get their monthly salary in rupees. Apart from this, they also get a reimbursement for daily expenses and daily allowance, both in the local currency of the country of deputation.
Source:
http://economictimes.indiatimes.com/Weak_rupee_helps_IT_employees_working_abroad
