Expenses of Ofws

Future Generation Philippine International School
Bldg. No. 223-225, Al Baljourashi St., Suleimaniah District
Riyadh, Kingdom of Saudi Arabia

EXPENSES OF OFWs IN RIYADH
(A Research Proposal)

In Partial Fulfillment of the requirements in Research in Research Methodology

Agupitan, Kristofferzhen A.
Grade 9 – Descartes
Tr. Melanie C. Dubiao

Table of Contents I. Chapter I the Problem: Rationale and the Background of the study4
1.1 Background of the Study4
1.2 Statement of the Problem6
1.3 Null hypothesis6
1.4 Conceptual Framework6
1.5 Assumptions7
1.6 Significance of the Study7
1.7 Scope and Delimitation of the Study7
1.8 Definition of Terms7
II. Chapter II Review of Related Literature8
2.1 Review Literature8
2.1.1 Definition of OFWs8 2.1.2 Population of OFWs9 2.1.3 Definition of Family Expenses10 2.1.2 Different Types of Expenses12 2.2 Related Studies14 2.2.1 Previous Studies of Family Expenses or Budget 14

III. Chapter II Methodology16
3.1 Research Design16
3.2 Determination of Sample Size16
3.3 Sampling Design and Technique16
3.4 The Subjects17
3.5 The Research Instrument17
3.6 Data Gathering Procedure17
3.7 Data Processing Method18

I. Chapter I The Problem : Rationale and the Background of the Study 2.1 Background of the Study

Half of the Filipinos in the Philippines go abroad for many reasons especially for the ones who have families. Some Filipino citizens go abroad for money, better jobs and life. We would like to know who get the better salaries and jobs. Are those people who are professional or not. According to confirmed sources there are estimated 11 million Filipinos working around the globe with highest number of almost 2.8 million in US, around 1.5 million in Kingdom of Saudi Arabia and in hundreds of the other countries. These 11 million makes almost 11% of the total population and contribute around 10 billion dollars every year in Philippines economy which makes 15% of total GDP. In 2009, the amount of $17.348 billion was sent to the Philippines by Overseas Filipino Workers (OFW), highest among prior years in which Saudi OFW(s) contributed 1.4 billion dollars. There are many types of jobs in Saudi Arabia that OFWs can apply. But are the salaries of their jobs high or low, especially for the people that have professional jobs. How about the non professionals are their salaries high or not. OFWs send remittances for their families, how much do they usually spend on those? One of the issues a potential expatriate wanting to work in Saudi Arabia should know is the cost of living in the kingdom and the savings he would be making as an expatriate.Bread is usually quite cheap, though recently the cost of rice has increased by about 20%. Fuel is also very affordable and is currently around SR0.47 a liter. The only worrying thing is the cost of housing, which is going up exponentially. Due to the limited number of such compounds, the rents have gone up tremendously. Most of the companies which used to bear the housing of such expats have now changed their policy to paying house rent allowances instead, to offload their burden.
A typical double room apartment for a family, which used to cost SR12000 a year now costs anywhere between SR15000 to SR18000 a year. For those who get housing allowances from their companies, this will put a big hole in their pocket. There are several instances of people who had occupied senior positions in their own countries who had been total failures after coming to the kingdom. The reason is not far to seek. Human tendency is to resist change.

2.2 Statement of the Problem
This research proposal aims to know the expenses of the OFW’s in Riyadh, KSA. Specifically it aims to answer the following questions: * What are the expenses of OFW’s in Riyadh, KSA? * Which professional job in Riyadh has the higher salary than the non-professionals? * What are the reasons why OFW’s have hard time in saving for their savings?

2.3 Null Hypothesis The Expenses of OFW’s n Riyadh, KSA has no effect on this proposed study. The study could answer the questions, and it has no benefits to the OFWs. OFW’s doesn’t have hard time in saving for their savings.

2.4 Conceptual Framework
Output:
* Food * Housing * Fare * Others: Saving, etc. * Remittances * Expenses
Input:
* Salaries * Professions

2.5 Assumptions This study assumes that expenses of OFWs in Riyadh, Saudi Arabia
.
2.6 Significance of the Study
This study is important for the future OFWs who will work abroad. The results will be beneficial to the future OFWs and present OFWs.

2.7 Scope and Delimitation of the Study
The geographical location for this study is in Saudi Arabia and its respondents are the OFWs working in Saudi Arabia.

2.8 Definition of Terms 1. Abroad - beyond the boundaries of one's country. 2. Expenses - something expended to secure a benefit or bring about a result. 3. Remittances - transmittal of money (as to a distant place). 4. Budget - a plan for the coordination of resources and expenditures.

Chapter 2 Review of Related Literature
2.1 Review Literature 2.1.1 Definition of OFWs An Overseas Filipino is a person of Filipino origin who lives outside of the Philippines. This term applies to Filipinos who are both abroad indefinitely as citizens or permanent residents of a different country, and to those Filipino citizens abroad for a limited, definite period, such as on a work contract or a student. It can also include seamen and others who work outside the Philippines but are not residents, either permanent or temporary, of another country.
They are known by a variety of terms with slightly different and sometimes overlapping meanings. Overseas Filipino Workers or OFWs are Filipinos working abroad that are expected to return permanently either upon the expiration of a work contract or upon retirement. Balikbayans are Filipinos who have become citizens of another country and have returned to the Philippines for a temporary though extended visit. Global Filipino is a term of more recent vintage that less widely used.
Former Philippine President Gloria Macapagal-Arroyo applied the term Overseas Filipino Investor or OFI for Filipino expatriates who contribute to the economy through remittances, buying properties and creating businesses. As a result of this migration, many countries have substantial Filipino communities.

2.1.2 Population of OFW’s
Filipinos in Saudi Arabia are either migrants or descendants of the Philippines living in Saudi Arabia. Saudi Arabia is currently the largest hirer of Overseas Filipino Workers (OFWs), and has the largest Filipino population in the Middle East. Filipinos make up the fourth-largest group of foreigners in Saudi Arabia, and are the second-largest source of remittances to the Philippines.It is estimated that there are 1,800,000+ OFW’s living in Riyadh.
It is estimated that between 9.5 million to 12.5 million Filipinos work or reside abroad, about 11% of the total 2010 population of thePhilippines. More than a million Filipinos every year leave to work abroad through overseas employment agencies and other programs, including government-sponsored initiatives. A majorityof them are women applying as domestic helpers and personal service workers. Others emigrate and become permanent residents of other countries. Overseas Filipinos often work as doctors, physical therapists, nurses, accountants, IT professionals, engineers, architects, entertainers, technicians, teachers, military servicemen, seafarers, students, caregivers, domestic helpers, fast wood workers especially in the Middle East and maids.The exodus includes a number of skilled workers taking on skilled or unskilled work overseas, resulting in what has been referred to as a brain drain, particularly in the health and education sectors.

2.1.3 Definition of Family Expenses
A personal budget is a finance plan that allocates future personal income towards expenses, savings and debtrepayment. Past spending and personal debt are considered when creating a personal budget. There are several methods and tools available for creating, using and adjusting a personal budget. Household expenses refer to the cost of maintaining a home, such as paying the rent or themortgage, utility bills, and groceries for the people living in the house. Many individuals and families choose to create a budget to help maintain expenses for the house, and to view how much money enters and leaves the house every month. In addition, household expenses may also be used when determining tax filing status, if one is eligible to file as the head of household.
Filing as a head of household, rather than filing as single, will entitle one to a lower tax rateand a higher standard deduction. There are a number of requirements that must be met before one is able to file as head of household, including at least one other qualifying person in the house. One of the other significant requirements, however, is that one must pay more than half of all household expenses in order to qualify as head of household. The expenses include mortgage or rent, as well as property insurance, utilities, repairs to the home, and food consumed in the home, among others; there are worksheets available for free to help one determine what qualifies as household expenses.
A budget is a financial plan and a list of all planned expenses and revenues. It is a plan for saving, borrowing and spending.

A budget is an important concept in microeconomics, which uses a budget line to illustrate the trade-offs between two or more goods. In other terms, a budget is an organizational plan stated in monetary terms. In summary, the purpose of budgeting is to: Provide a forecast of revenues and expenditures, that is, construct a model of how our business might perform financially if certain strategies, events and plans are carried out. Enable the actual financial operation of the business to be measured against the forecast. Establish the cost constraint for a project, program, or operation. Budget helps to aid the planning of actual operations by forcing managers to consider how the conditions might change and what steps should be taken now and by encouraging managers to consider problems before they arise. It also helps co-ordinate the activities of the organization by compelling managers to examine relationships between their own operation and those of other departments.

2.1.4 Different types of Expenses
In accounting, there are only revenue nature and capital nature expenses. Revenue nature expenses records in profit and loss account while capital nature expenses are recorded in balance sheet. Revenue expenses are again subpart of direct expenses and indirect expenses. Direct expenses are the main type of expenses which are related to production and purchase of goods. These expenses are incurred during the purchase of goods and transfer to trading account. The examples of direct expenses:
Ø Wages
Ø Freight
Ø Carriage
Ø Carriage inward
Ø Octrai
Ø Royalty on production
Ø Factory expenses
Ø Factory depreciation
Ø Fuel , oil and power
Ø All other expenses related to purchase of goods
Indirect Expenses
Ø Office expenses
Ø Sales expenses
Ø Advertising
Ø Administrative expenses
Ø Bad debts
Ø Depreciation of office assets
Ø Interest on loan
Ø All other expenses relating to sale and marketing

2.2 Related Studies 2.2.1 Previous Studies of Family Expenses or Budget Since 1960, the U.S Department of Agriculture (USDA) has provided estimates of annual expenditures on children from birth through age 17. This technical report presents the 2011 estimates for husband-wife and single-parent families. Results are shown in tables 1-7 at the end of this report. Expenditures are provided by age of children, household income level, major budgetary component (housing, food, etc.), and region (for husband-wife families).
Data used to estimate expenditures on children are from the 2005-06 Consumer Expenditure Survey—Interview portion (CE). Administered by the U.S. Census Bureau, U.S. Department of Commerce, under contract with the Bureau of Labor Statistics (BLS), U.S. Department of Labor, and this survey is the most comprehensive source of information on household expenditures available at the national level. The sample consisted of 11,800 husband-wife households and 3,350 single-parent households and was weighted to reflect the U.S. population of interest by using BLS weighting methods. The CE collects overall household expenditure data for some budgetary components (housing, food, transportation, health care, and miscellaneous goods and services) and child-specific expenditure data for other components (clothing, child care, and education). Child-specific expenses were allocated directly to children. Food and health care expenses were allocated to children based on findings from Federal surveys on children’s budget shares. Family-related transportation expenses and miscellaneous expenses were allocated by using a per capita method. This method is preferable over a marginal cost method that measures child-rearing expenditures as the difference in expenses between equivalent couples with and without children. The average cost of an additional bedroom approach was used to estimate housing expenses on a child.
Although based on the 2005-06 CE, the expense estimates were updated to 2011 dollars by using the Consumer Price Index (CPI) for specific budgetary components: 2005 expenditure and income data were first converted to 2006 dollars to complete the analysis and then the results were updated to 2011 dollars.

Chapter 3 Methodology
3.1 Research Design This study will be using descriptive survey. So the respondents vary among themselves. The word survey signifies the gathering of data. A survery is useful in providing facts and focusing attention on the most important things to be reported.
3.2 Determination of Sample Size This study will be gathering respondents Filipinos in riyadh. This study will get 120 respondents.
3.3 Sampling Design and Technique This study will be using the snowballing sampling. It’s a non-probabilit sampling technique where existing study respondents recruit future respondents among their acquaintances. Thus the sample group appears to grow like a rolling snowball. As the sample builds up, enough data is gathered to be useful for research. This sampling technique is often used in hidden populations which aren difficult for researchers to access.

3.4 The Subjects The respondents that the study will be coming from the a Banan Clinic and a Governtment Office. There will be only 120 respondents, 60 respondents for each group
3.5 The Research Instrument The research instrument that the study will use is the questionnaire for gathering data to determine the expenses of the OFW’s. The questionnaire as designed by the researcher, will include questions that some come from the internet. The questionnaire will consist of 2 parts. Part I will aim to gather information of the worker; they can put their name if they want to, age and their occupation. Part II will deal how much money they use in their everyday living.
3.6 Data Gathering Procedure Having found the questionnaire valid and reliable. The researcher will administer the questionnaire. The questionnaire will be administered to 120 workers as respondents of the study.

3.7 Data Processing Method After the retrieval of the questionnaire, the researcher will tabulate and analyze the data. The data gathered will be organized. The researcher will make an assessment of the job-related problems met by OFW’s. The responses will be analyzed with the respondents considered as a whole and when classified, as to age and length of job years.