Archive for ‘pay cut’

29/05/2020

Covid-19 plunges Indians’ study abroad dreams into turmoil

Representatives of 17 American educational institutions participate in a U.S. University Fair Organized by the United States-India Educational Foundation (USIEF)Image copyright GETTY IMAGES
Image caption International students are uncertain of the future in the wake of Covid-19

Two years ago, 29-year-old Raunaq Singh started working towards his dream of pursuing an MBA from one of the world’s top business schools.

In January 2020, he was waitlisted by UC Berkeley’s Haas School of Business in California, and was asked to send more information to bolster his case for admission.

“So, I quit my stable job of five years and started working with a mental wellness start-up as a consultant,” Mr Singh says.

“I’m on a major pay cut because the purpose of joining this company wasn’t to earn money, but to add value to my application.”

Fortunately, he was accepted at Berkeley, and was due to start his course in September.

But then the world changed as Covid-19 spread, plunging the immediate future into uncertainty.

Mr Singh is one of hundreds of thousands of Indian students who were planning to study abroad. But now they are not quite sure what will happen given international travel restrictions, new social distancing norms and the sheer uncertainty of what the next few months will bring.

After China, India sends more students abroad to study than any other country – more than one million Indians were pursuing higher education programs overseas as of July 2019, according to India’s foreign ministry.

Meehika BarukaImage copyright MEEHIKA BARUA
Image caption Ms Barua is one of the hundreds of thousands of Indians who wants to study abroad

Every year, in June and July, students flood visa centres and consulates to start the paperwork to travel and study abroad. But things look different this year.

“There’s a lot of stress and anxiety and tension at this time but not enough clarity,” says Meehika Barua, 23, who wants to study journalism in the UK.

“We don’t know when international travel restrictions will be lifted or whether we’d be able to get our visas in time. We may also have to take classes online.”

Some universities across the UK and the US are giving international students the option to defer their courses to the next semester or year, while others have mandated online classes until the situation improves.

The University of Cambridge recently announced that lectures will be online only until next year. Others, like Greenwich University, will have a mix of online and face-to-face approaches while its international students can defer to the next semester.

“It feels a little unfair, especially after spending a year-and-half to get admission in one of these schools,” Mr Singh says. “Now, a part of the experience is compromised.”

Like him, many others are disappointed at the prospect of virtual classes.

Cambridge UniversityImage copyright PA MEDIA
Image caption Cambridge University has announced that all lectures will be online

“The main reason we apply to these universities is to be able to get the experience of studying on campus or because we want to work in these countries. We want to absorb the culture there,” Ms Barua says.

Studying abroad is also expensive. Many US and UK universities charge international students a higher fee. And then there’s the additional cost of applications or standardised tests.

Virtual classes mean they don’t have to pay for a visa, air tickets or living expenses. But many students are hesitant about spending their savings or borrowing money to pay for attending college in their living room.

Even if, months later, the situation improves to some extent, and students could travel abroad and enrol on campus, they say that brings its own challenges.

For one, Mr Singh points out, there is the steep cost of healthcare, and questions over access to it, as countries like the US are experiencing a deluge of infections and deaths.

A student wears a protective face mask, graduation cap and graduation gown in Washington Square Park during the coronavirus pandemic on May 15, 2020Image copyright GETTY IMAGES
Image caption Students are also unsure of finding jobs overseas after graduation

And then there are the dimming job prospects. The pandemic has squeezed the global economy, so employers are less likely to hire, or sponsor visas for foreign workers.

“For international students, the roller coaster has been more intense because there is increased uncertainty about their ability to get jobs in the US after graduation, and for some, in their ability to get to the US at all,” says Taya Carothers, who works in Northwestern University’s international student office.

The idea of returning to India with an expensive degree and the looming unemployment is scaring students – especially since for many of them, the decision to study abroad is tied to a desire to find a well-paying job there.

“The risk we take when we leave our home country and move to another country – that risk has increased manifold,” Mr Singh adds.

The current crisis – and its economic impact – has affected the decision of nearly half the Indians who wanted to study abroad, according to a recent report by the QS, a global education network.

Experts say universities are in a tough spot too.

International students add as much as $45bn (£37bn) a year to the American economy. In the UK, universities receive almost £7bn in fees from overseas students. So their finances will take a hit if too many foreign students rethink going abroad.

And logistics will also pose a challenge – colleges have to enforce social distancing across campuses, including dormitories, and accommodate students from multiple time zones in virtual classes.

“Regardless of how good your technology is, you’re still going to face problems like internet issues,” says Sadiq Basha, who heads a study abroad consultancy.

He adds that there might be a knee-jerk reaction as a large number of international students consider deferring their admission to 2021. But he’s positive that “in the long term, the ambitions of Indian students are not going to go down.”

Mr Singh is still waiting to see how things will unfold in the next few months, but he’s almost certain he will enrol and start his first semester of the two-year program online.

“Since I’ve been preparing for over a year now, I think mentally I’m already there,” he says.

Source: The BBC

08/04/2020

Coronavirus: Carrie Lam takes pay cut, Hong Kong set for HK$138 billion in Covid-19 aid

  • Most of the relief fund earmarked to subsidise employees’ wages in affected industries
  • Lam and ministers slash their salaries following controversy over chief executive’s pay
Many businesses have been forced to close because of the coronavirus outbreak. Photo: Winson Wong
Many businesses have been forced to close because of the coronavirus outbreak. Photo: Winson Wong

More than 1 million Hong Kong workers will have part of their wages paid for by the government under a HK$137.5 billion package of measures to help businesses and residents struggling during the Covid-19 crisis, while the city’s leader and her ministers have vowed to take a pay cut, the Post has learned.

Revealing the massive relief fund on Wednesday, Chief Executive Carrie Lam Cheng Yuet-ngor said HK$80 billion would go towards the wage scheme, targeting coronavirus-hit industries over six months with individual payments capped at 50 per cent of salaries, up to HK$9,000 a month. The employers receiving the lifeline must pledge not to lay off workers, she added.

Hong Kong records 25 new cases, including two-month-old baby; tally at 960

8 Apr 2020

Lam said the package, together with other recent pledges of financial relief, would cost a total of HK$287.5 billion, causing the budget deficit to surge from HK$139.1 billion this financial year to HK$276.6 billion, which is equivalent to 9.5 per cent of gross domestic product.

The relief deal is equivalent in size to 4.6 per cent of the city’s GDP.

Meanwhile, Lam’s monthly salary will fall to HK$390,000 after rising to HK$434,000 last July.

Lam and her 16 ministers had voluntarily agreed to a 10 per cent pay reduction for a year, the chief executive told the press conference.

The HK$137.5 billion deal – which was given the green light by her Executive Council earlier in the day – aims to safeguard employment and ease the woes of businesses, with the number of confirmed Covid-19 cases in the city reaching 960 on Wednesday.

A source said: “The scheme is aimed at coping with the economic hardship brought by the pandemic in the next six months. More than 1 million employees from various sectors, on top of those directly affected by the government’s social-distancing measures, will benefit.”

Staff affected by the latest social-distancing rules – including businesses forced to close – will benefit from the wage scheme, along with employees in sectors such as tourism and construction, two other sources said.

Some businesses set to benefit would be those related to education, such as tutorial centres, school bus operators and  PE coaches contracted from outside, according to one.

In February, the government unveiled a HK$30 billion fund that included 24 initiatives to help struggling sectors.
‘Lost faith’: EU’s top scientist quits over Covid-19 response
8 Apr 2020

“The government is drawing reference from the British government’s recent practice of paying 80 per cent of salaries of employees in affected industries, although the percentage and cap are lower in Hong Kong,” one source said.

In an unprecedented step announced last month, the UK government said the state would pay grants covering up to 80 per cent of salaries if companies kept workers on the payroll rather than laying them off.

In Singapore, the government has offered to pay 75 per cent of workers’ April wages, capped at S$4,600 (HK$25,000) per person.

The Japanese government on Tuesday approved its largest-ever economic relief package, which includes grants of up to 2 million yen (US$18,350), for small and medium-sized businesses whose revenues had more than halved.

Hongkonger recalls weeks of lockdown in Wuhan, China, the first epicentre of the Covid-19 pandemic
With the Hong Kong government sitting on reserves of more than HK$1.1 trillion, the Professional Commons think tank said the authorities should spend HK$200 billion on businesses and workers, including handing HK$7,500 a month over six months to sacked staff and covering 80 per cent of salaries up to a monthly maximum of HK$25,000 for workers at struggling firms and the self-employed.
Source: SCMP
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