Expatriate Pay
Determining expatriate pay levels, and international salary levels in different countries, necessitates complex calculations that involve comparing the relative cost of living in both the host country and the expat’s home country.
Determining expatriate pay levels, and international salary levels in different countries, necessitates complex calculations that involve comparing the relative cost of living in both the host country and the expat’s home country.
What’s the challenge with Expat pay?
Expats are usually highly skilled, highly paid, experienced professionals who intend returning to their home country when an assignment has been completed. Their pay therefore needs to make it worth their while to stay and face the unfamiliarity and possible hardships of being in a foreign environment, away from their home country.
The challenge for an employer is to offer them a quality of lifestyle, safety and security that is similar to, or better than, that of their home country.
21st Century Expat’s online calculators can help you manage short and long term expat assignments quickly, easily, accurately and affordably, whilst taking all these complexities into account.
Value for money
21st Century Expat is charged in Rands and costs a fraction of the price of international suppliers.
Cost of Living Baskets
Each location has Cost of Living Index (COLI) and Hardship Index (quality of life) information for 13 different Cost of Living baskets.
The 13 different basket groups
The 13 different basket groups are as follows:
- Alcohol and Tobacco: for items such as beer, spirits, wine and cigarettes.
- Clothing: for items such as business, casual and children’s clothing and footwear.
- Communication: for items such as home telephone rental, internet subscription, mobile tariff and data costs.
- Education: for items such as creche / pre-school fees, primary school fees, high school fees and tertiary study fees.
- Furniture and Appliances: for items such as dining table and chairs, home entertainment, kitchen appliances, and sofa.
- Groceries: for items such as consumables, cleaning products, dairy, fresh fruit & vegetables, general food products, snacks, soft drinks.
- Healthcare: for items such as doctor visit, hospital stay, non-prescription medicine, and medical insurance.
- Household Accommodation: for items such as apartment purchase, mortgage rate, rental, and utilities.
- Miscellaneous: for items such as dry cleaning, linen, magazines, newspapers, office supplies, and postage stamps.
- Personal Care: for items such as cosmetics, hair care, and toiletries.
- Recreation and Culture: for items such as books, cinema, sport and theatre tickets.
- Restaurants, Meals Out and Hotels: for items such as hotel daily room rates, meals and beverages in restaurants, and take away food and beverages.
- Transport: for items such as fuel (petrol/gasoline), public transport, vehicle purchase and maintenance.
Global Locations
21st Century Expat supplies you all with all the combinations you need in 780 global locations.
the 780 Global Locations are:
Afghanistan, All Areas Afghanistan, Kabul Albania, All Areas Albania, Tirana Algeria, Algiers Algeria, All Areas Andorra, Andorra la Vella Angola, All Areas Angola, Luanda Anguilla, All Areas Antigua and Barbuda, All Areas Antigua and Barbuda, Saint John’s Argentina, All Areas Argentina, Buenos Aires Argentina, Cordoba Argentina, Rosario Armenia, All Areas Armenia, Yerevan Aruba, All Areas Australia, Adelaide Australia, All Areas Australia, Brisbane Australia, Canberra Australia, Melbourne Australia, Perth Australia, Sydney Austria, All Areas Austria, Vienna Azerbaijan, All Areas Azerbaijan, Baku Bahamas, All Areas Bahamas, Nassau Bahrain, All Areas Bahrain, Manama Bangladesh, All Areas Bangladesh, Dhaka Barbados, All Areas Barbados, Bridgetown Belarus, All Areas Belarus, Minsk Belgium, All Areas Belgium, Brussels Belize, All Areas Belize, Belmopan Benin, All Areas Benin, Cotonou Bermuda, All Areas Bermuda, Hamilton Bhutan, All Areas Bhutan, Thimphu Bolivia, All Areas Bolivia, La Paz Bosnia and Herzegovina, All Areas Bosnia and Herzegovina, Sarajevo Botswana, All Areas Botswana, Gaborone Brazil, All Areas Brazil, Belo Horizonte Brazil, Brasilia Brazil, Fortaleza Brazil, Rio de Janeiro Brazil, Salvador Brazil, Sao Paulo British Virgin Islands, All Areas Brunei, All Areas Brunei, Bandar Seri Begawan Bulgaria, All Areas Bulgaria, Sofia Burkina Faso, All Areas Burkina Faso, Ouagadougou Burundi, All Areas Burundi, Bujumbura Cambodia, All Areas Cambodia, Phnom Penh Cameroon, All Areas Cameroon, Douala Cameroon, Yaounde Canada, All Areas Canada, Calgary Canada, Edmonton Canada, Montreal Canada, Ottawa Canada, Toronto Canada, Vancouver Cape Verde, All Areas Cape Verde, Praia Cayman Islands, All Areas Cayman Islands, George Town Central African Republic, All Areas Central African Republic, Bangui Chad, All Areas Chad, N’Djamena Chile, All Areas Chile, Santiago China, All Areas China, Beijing China, Dalian China, Guangzhou China, Hong Kong China, Macao China, Shanghai China, Shenzhen China, Tianjin China, Wuhan Colombia, All Areas Colombia, Bogota Comoros, All Areas Comoros, Moroni Congo Democratic Rep, All Areas Congo Democratic Rep, Kinshasa Congo, All Areas Congo, Brazzaville Cook Islands, All Areas Cook Islands, Avarua Costa Rica, All Areas Costa Rica, San Jose Cote D’Ivoire, Abidjan Cote D’Ivoire, All Areas Croatia, All Areas Croatia, Zagreb Cuba, All Areas Cuba, Havana Cyprus, All Areas Cyprus, Nicosia Czech Republic, All Areas Czech Republic, Prague Denmark, All Areas Denmark, Copenhagen Djibouti, All Areas Djibouti, Djibouti Dominica, All Areas Dominica, Roseau Dominican Republic, All Areas Dominican Republic, Santo Domingo Ecuador, All Areas Ecuador, Quito Egypt, Alexandria Egypt, All Areas Egypt, Cairo Egypt, Gizeh El Salvador, All Areas El Salvador, San Salvador Equatorial Guinea, All Areas Equatorial Guinea, Malabo Eritrea, All Areas Eritrea, Asmara Estonia, All Areas Estonia, Tallinn Ethiopia, Addis Ababa Ethiopia, All Areas Falkland Islands, All Areas Falkland Islands, Stanley Fiji, All Areas Fiji, Suva Finland, All Areas Finland, Helsinki France, All Areas France, Bordeaux France, Lille France, Lyon France, Marseille France, Nantes France, Nice France, Paris France, Toulouse French Guiana, All Areas French Guiana, Cayenne French Polynesia, All Areas French Polynesia, Papeete Gabon, All Areas Gabon, Libreville Gambia, All Areas Gambia, Banjul Georgia Republic of, All Areas Georgia Republic of, Tbilisi Germany, All Areas Germany, Berlin Germany, Bonn Germany, Cologne Germany, Frankfurt Germany, Hamburg Germany, Munich Germany, Stuttgart Ghana, Accra Ghana, All Areas Gibraltar, Gibraltar Greece, All Areas Greece, Athens Greece, Thessaloniki Greenland, All Areas Greenland, Nuuk Grenada, All Areas Grenada, Saint George’s Guadeloupe, All Areas Guadeloupe, Basse-Terre Guam, All Areas Guam, Hagatna Guatemala, All Areas Guatemala, Guatemala City Guernsey, All Areas Guernsey, St Peter Port Guinea, All Areas Guinea, Conakry Guinea-Bissau, All Areas Guinea-Bissau, Bissau Guyana, All Areas Guyana, Georgetown Haiti, All Areas Haiti, Port-au-Prince Honduras, All Areas Honduras, Tegucigalpa Hungary, All Areas Hungary, Budapest Iceland, All Areas Iceland, Reykjavik India, Ahmedabad India, All Areas India, Bangalore India, Calcutta India, Chennai India, Hyderabad India, Jaipur India, Kanpur India, Lucknow India, Mumbai India, New Delhi India, Pune India, Surat Indonesia, All Areas Indonesia, Bali Indonesia, Bandung Indonesia, Jakarta Indonesia, Medan Indonesia, Surabaya Iran, All Areas Iran, Tehran Iraq, All Areas Iraq, Baghdad Ireland, All Areas Ireland, Dublin Isle of Man, All Areas Isle of Man, Douglas Israel, All Areas Israel, Jerusalem Italy, All Areas Italy, Genoa Italy, Milan Italy, Naples Italy, Palermo Italy, Rome Italy, Turin Jamaica, All Areas Jamaica, Kingston Japan, All Areas Japan, Fukuoka Japan, Kawasaki Japan, Kobe Japan, Kyoto Japan, Nagoya Japan, Osaka Japan, Sapporo Japan, Tokyo Japan, Yokohama Jersey, All Areas Jersey, Saint Helier Jordan, All Areas Jordan, Amman Kazakhstan, All Areas Kazakhstan, Almaty Kenya, All Areas Kenya, Mombasa Kenya, Nairobi Kiribati, All Areas Kiribati, South Tarawa Korea Democratic Republic of, All Areas Korea Democratic Republic of, Pyongyang Korea Republic of, All Areas Korea Republic of, Busan Korea Republic of, Daegu Korea Republic of, Incheon Korea Republic of, Seoul Kosovo, All Areas Kosovo, Pristina Kuwait, All Areas Kuwait, Kuwait City Kyrgyzstan, All Areas Kyrgyzstan, Bishkek Laos, All Areas Laos, Vientiane Latvia, All Areas Latvia, Riga Lebanon, All Areas Lebanon, Beirut Lesotho, All Areas Lesotho, Maseru Liberia, All Areas Liberia, Monrovia Libya, All Areas Libya, Benghazi Libya, Tripoli Liechtenstein, All Areas Liechtenstein, Vaduz Lithuania, All Areas Lithuania, Vilnius Luxembourg, All Areas Luxembourg, Luxembourg Macedonia, All Areas Macedonia, Skopje Madagascar, All Areas Madagascar, Antananarivo Malawi, All Areas Malawi, Lilongwe Malaysia, All Areas Malaysia, Johor Bahru Malaysia, Klang Malaysia, Kuala Lumpur Malaysia, Subang Jaya Maldives, All Areas Maldives, Male Mali, All Areas Mali, Bamako Malta, All Areas Malta, Valletta Marshall Islands, All Areas Marshall Islands, Majuro Martinique, All Areas Martinique, Fort-de-France Mauritania, All Areas Mauritania, Nouakchott Mauritius, All Areas Mauritius, Port Louis Mexico, All Areas Mexico, Guadalajara Mexico, Leon Mexico, Mexico City Mexico, Monterrey Mexico, Puebla Mexico, Tijuana Mexico, Toluca Micronesia, All Areas Micronesia, Palikir Moldova, All Areas Moldova, Chisinau Monaco, Monaco Mongolia, All Areas Mongolia, Ulaanbaatar Montenegro, All Areas Montenegro, Podgorica Montserrat, All Areas Morocco, All Areas Morocco, Casablanca Morocco, Fez Morocco, Marrakech Morocco, Rabat Mozambique, All Areas Mozambique, Maputo Myanmar, All Areas Myanmar, Yangon Namibia, All Areas Namibia, Windhoek Nauru, All Areas Nauru, Yaren Nepal, All Areas Nepal, Kathmandu Netherlands Antilles, All Areas Netherlands, All Areas Netherlands, Amsterdam Netherlands, Rotterdam New Caledonia, All Areas New Caledonia, Noumea New Zealand, All Areas New Zealand, Auckland New Zealand, Christchurch New Zealand, Wellington Nicaragua, All Areas Nicaragua, Managua Niger, All Areas Niger, Niamey Nigeria, Abuja Nigeria, All Areas Nigeria, Ibadan Nigeria, Kano Nigeria, Lagos Northern Mariana Islands, All Areas Northern Mariana Islands, Saipan Norway, All Areas Norway, Oslo Oman, All Areas Oman, Muscat Pakistan, All Areas Pakistan, Islamabad Pakistan, Karachi Pakistan, Lahore Palau, All Areas Palau, Melekeok Palestinian Territories, All Areas Palestinian Territories, West Bank Panama, All Areas Panama, Panama City Papua New Guinea, All Areas Papua New Guinea, Port Moresby Paraguay, All Areas Paraguay, Asuncion Peru, All Areas Peru, Lima Philippines, All Areas Philippines, Manila Poland, All Areas Poland, Krakow Poland, Lodz Poland, Warsaw Portugal, All Areas Portugal, Lisbon Puerto Rico, All Areas Puerto Rico, San Juan Qatar, All Areas Qatar, Doha Reunion, All Areas Romania, All Areas Romania, Bucharest Russia, All Areas Russia, Kaliningrad Russia, Kazan Russia, Moscow Russia, Nizhny Novgorod Russia, Novosibirsk Russia, Omsk Russia, Samara Russia, St. Petersburg Russia, Vladivostok Russia, Yekaterinburg Rwanda, All Areas Rwanda, Kigali Saint Helena, All Areas Saint Helena, Jamestown Saint Kitts and Nevis, All Areas Saint Kitts and Nevis, Basseterre Saint Lucia, All Areas Saint Lucia, Castries Saint Vincent and the Grenadines, All Areas Saint Vincent and the Grenadines, Kingstown Samoa, All Areas Samoa, Apia San Marino, San Marino Sao Tome and Principe, All Areas Sao Tome and Principe, Sao Tome Saudi Arabia, All Areas Saudi Arabia, Dammam Saudi Arabia, Jeddah Saudi Arabia, Mecca Saudi Arabia, Medinah Saudi Arabia, Riyadh Senegal, All Areas Senegal, Dakar Serbia, All Areas Serbia, Belgrade Seychelles, All Areas Seychelles, Victoria Sierra Leone, All Areas Sierra Leone, Freetown Singapore, Singapore Slovakia, All Areas Slovakia, Bratislava Slovenia, All Areas Slovenia, Ljubljana Solomon Islands, All Areas Solomon Islands, Honiara Somalia, All Areas Somalia, Mogadishu South Africa, All Areas South Africa, Bloemfontein South Africa, Cape Town South Africa, Durban South Africa, Johannesburg South Africa, Port Elizabeth South Africa, Pretoria South Sudan, All Areas Spain, All Areas Spain, Barcelona Spain, Madrid Spain, Valencia Sri Lanka, All Areas Sri Lanka, Colombo Sudan, All Areas Sudan, Khartoum Suriname, All Areas Suriname, Paramaribo Swaziland, All Areas Swaziland, Mbabane Sweden, All Areas Sweden, Stockholm Switzerland, All Areas Switzerland, Geneva Switzerland, Zurich Syria, All Areas Syria, Damascus Taiwan, All Areas Taiwan, Taipei Tajikistan, All Areas Tajikistan, Dushanbe Tanzania, All Areas Tanzania, Dar es Salaam Tanzania, Zanzibar Thailand, All Areas Thailand, Bangkok Timor-Leste, All Areas Timor-Leste, Dili Togo, All Areas Togo, Lome Tonga, All Areas Tonga, Nuku’Alofa Trinidad and Tobago, All Areas Trinidad and Tobago, Port-of-Spain Tunisia, All Areas Tunisia, Tunis Turkey, Adana Turkey, All Areas Turkey, Ankara Turkey, Bursa Turkey, Istanbul Turkey, Izmir Turkey, Konya Turkey, Mersin Turkmenistan, All Areas Turkmenistan, Ashgabat Turks and Caicos Islands, All Areas Tuvalu, All Areas Tuvalu, Funafuti Uganda, All Areas Uganda, Kampala Ukraine, All Areas Ukraine, Kiev United Arab Emirates, Abu Dhabi United Arab Emirates, All Areas United Arab Emirates, Dubai United Kingdom, Aberdeen United Kingdom, All Areas United Kingdom, Belfast United Kingdom, Birmingham United Kingdom, Bradford United Kingdom, Bristol United Kingdom, Cardiff United Kingdom, Coventry United Kingdom, Derby United Kingdom, Edinburgh United Kingdom, Glasgow United Kingdom, Guildford United Kingdom, Isle of Wight United Kingdom, Kingston upon Hull United Kingdom, Leeds United Kingdom, Leicester United Kingdom, Liverpool United Kingdom, London United Kingdom, Luton United Kingdom, Manchester United Kingdom, Milton Keynes United Kingdom, Newcastle upon Tyne United Kingdom, Northampton United Kingdom, Nottingham United Kingdom, Plymouth United Kingdom, Portsmouth United Kingdom, Preston United Kingdom, Reading United Kingdom, Sheffield United Kingdom, Southampton United Kingdom, Stoke-on-Trent United Kingdom, Wolverhampton Uruguay, All Areas Uruguay, Montevideo US Virgin Islands, All Areas USA, Akron OH USA, Alabama All Areas AL USA, Alaska All Areas AK USA, Albany NY USA, All Areas USA, Amarillo TX USA, Anchorage AK USA, Appleton WI USA, Arizona All Areas AZ USA, Arkansas All Areas AR USA, Arlington TX USA, Asheville NC USA, Atlanta GA USA, Augusta GA USA, Austin TX USA, Bakersfield CA USA, Baltimore MD USA, Baton Rouge LA USA, Bergen-Passaic NJ USA, Binghamton NY USA, Birmingham AL USA, Boise ID USA, Boston MA USA, Bradenton FL USA, Brazoria County TX USA, Brownsville TX USA, Buffalo NY USA, Burlington-Chittenden Co VT USA, California All Areas CA USA, Cape Coral-Fort Myers FL USA, Cedar Rapids IA USA, Charleston SC USA, Charleston WV USA, Charlotte NC USA, Chattanooga TN USA, Chicago IL USA, Cincinnati OH USA, Clarksville TN USA, Cleveland OH USA, Colorado All Other Areas CO USA, Colorado Springs CO USA, Columbia SC USA, Columbus OH USA, Connecticut All Areas CT USA, Corpus Christi TX USA, Dallas TX USA, Davenport-Moline-Rock Is IA-IL USA, Dayton OH USA, Delaware All Areas DE USA, Denver CO USA, Des Moines IA USA, Detroit MI USA, Durham NC USA, Dutchess County NY USA, El Paso TX USA, Erie PA USA, Eugene OR USA, Evansville IN USA, Fayetteville AR USA, Fayetteville NC USA, Florida All Areas FL USA, Fort Lauderdale FL USA, Fort Smith AR USA, Fort Wayne-Allen County IN USA, Fort Worth TX USA, Fresno CA USA, Gainesville FL USA, Georgia All Areas GA USA, Green Bay WI USA, Greenville SC USA, Hampton Roads-SE Virginia VA USA, Harlingen TX USA, Hartford CT USA, Hawaii All Areas HI USA, Honolulu HI USA, Houston TX USA, Huntsville AL USA, Idaho All Areas ID USA, Illinois All Areas IL USA, Indiana All Areas IN USA, Indianapolis IN USA, Iowa All Areas IA USA, Jackson MS USA, Jacksonville FL USA, Johnson City TN USA, Kalamazoo MI USA, Kansas All Areas KS USA, Kansas City MO USA, Kennewick-Richland-Pasco WA USA, Kentucky All Areas KY USA, Knoxville TN USA, Lancaster PA USA, Las Vegas NV USA, Lexington KY USA, Lincoln NE USA, Little Rock-North Little Rock AR USA, Los Angeles-Long Beach CA USA, Louisiana All Areas LA USA, Louisville KY USA, Lubbock TX USA, Maine All Areas ME USA, Manchester NH USA, Martinsburg-Berkeley County WV USA, Maryland All Areas MD USA, Massachusetts All Areas MA USA, McAllen TX USA, Memphis TN USA, Miami-Dade County FL USA, Michigan All Areas MI USA, Middlesex-Monmouth NJ USA, Midland TX USA, Milwaukee-Waukesha WI USA, Minneapolis MN USA, Minnesota All Areas MN USA, Mississippi All Areas MS USA, Missouri All Areas MO USA, Mobile AL USA, Montana All Areas MT USA, Montgomery AL USA, Murfreesboro-Smyrna TN USA, Myrtle Beach SC USA, Nashville-Franklin TN USA, Nassau County NY USA, Nebraska All Areas NE USA, Nevada All Areas NV USA, New Hampshire All Areas NH USA, New Haven CT USA, New Jersey All Areas NJ USA, New Mexico All Areas NM USA, New York (Brooklyn) NY USA, New York (Manhattan) NY USA, New York (Queens) NY USA, New York All Areas NY USA, New York NY USA, North Carolina All Areas NC USA, North Dakota All Areas ND USA, Oakland CA USA, Ohio All Areas OH USA, Oklahoma All Areas OK USA, Oklahoma City OK USA, Omaha NE USA, Orange County CA USA, Oregon All Areas OR USA, Orlando FL USA, Pennsylvania All Areas PA USA, Philadelphia PA USA, Phoenix AZ USA, Pittsburgh PA USA, Plano TX USA, Portland ME USA, Portland OR USA, Raleigh NC USA, Reno-Sparks NV USA, Rhode Island All Areas RI USA, Richmond VA USA, Riverside City CA USA, Roanoke VA USA, Rochester NY USA, Rockford IL USA, Sacramento CA USA, Salt Lake City UT USA, San Antonio TX USA, San Diego CA USA, San Francisco CA USA, San Jose CA USA, Sarasota FL USA, Savannah GA USA, Seattle WA USA, Shreveport-Bossier City LA USA, South Bend IN USA, South Carolina All Areas SC USA, South Dakota All Areas SD USA, Spokane WA USA, Springfield MO USA, St. Louis MO USA, St. Paul MN USA, Tampa FL USA, Tennessee All Areas TN USA, Texas All Areas TX USA, Tucson AZ USA, Tulsa OK USA, Utah All Areas UT USA, Vermont All Areas VT USA, Virginia All Areas VA USA, Washington All Areas WA USA, Washington-Arlington-Alexandria DC-VA USA, West Virginia All Areas WV USA, Wichita KS USA, Wilmington NC USA, Winston-Salem NC USA, WisconsinAll Areas WI USA, Wyoming All Areas WY USA, York County PA USA, Youngstown-Warren OH Uzbekistan, All Areas Uzbekistan, Tashkent Vanuatu, All Areas Vanuatu, Port Vila Vatican City, Vatican City Venezuela, All Areas Venezuela, Caracas Vietnam, All Areas Vietnam, Hanoi Vietnam, Ho Chi Minh City Yemen, All Areas Yemen, Sanaa Zambia, All Areas Zambia, Lusaka Zimbabwe, All Areas Zimbabwe, Harare
Data Sources
We use more than 50 types of raw data sources including local service providers in each location, international service providers, official governmental statistics and global agencies. Data is thoroughly quality assured, updated quarterly and manually checked by our analysts.
Some of our publicly available data sources:
- Albania Institute of Statistics
- Antigua and Barbuda Statistics
- Australian Bureau of Statistics
- Bangladesh Bureau of Statistics
- Barbados Statistical Service
- Bermuda Government, Department of Statistics
- Bhutan Reports and Statistics
- Bosnia and Herzegovina – Agency for Statistics
- Business and Data Statistics: USA.gov
- Central Statistics Organization Afghanistan
- CIA World Factbook
- Department of Statistics, Malaysia
- Department of Statistics of The Bahamas
- DevInfo
- El Instituto Nacional de Estadística
- FedStats
- International Civil Service Commission
- International Labour Organization
- IMF Data and Statistics
- International Energy Agency
- Kingdom of Bahrain Central Informatics Organisation
- National Institute of Statistics and Censuses (INDEC)
- National Statistical Committee of the Republic of Belarus
- National Statistics Service of the Republic of Armenia
- OANDA
- OECD Statistics
- OECD Statistics Porta
- Office for National Statistics
- Statistical Institute of Belize
- Statistics Austria
- Statistics Belgium
- Statistics Canada
- Statistics New Zealand
- Statistics Singapore
- Statistics South Africa
- The State Statistical Committee of the Republic of Azerbaijan
- The World Bank Data
- The World Bank Data & Research
- UK National Statistics
- UNICEF
How do I access
21st Century Expat?
21st Century Expat is available either in report form or on a subscription basis:
In report form, for information on a few Expats
21st Century Expat is available in report form for companies who require information for only a few expats. We will collect your information regarding your unique expatriate details, and provide you with a detailed report.
OR
As a subscription, for information on many Expats
Companies who require information for many expats can purchase a subscription with the option of either a yearly subscription, or a 7-day subscription.
Applying calculations to expat salaries is quick and accurate. Register and buy locations, run the premium content calculators, and receive your reports instantly. Reports can be re-run for the time period purchased and for each location purchased.
How do I calculate Cost of Living Allowances (COLA) for short-term assignments?
The Cost of Living Allowance (COLA) Calculator
Cost of Living Allowance
The COLA calculator calculates how much additional allowance (over and above your current salary) you need to earn in another location to compensate for cost of living, hardship, and exchange rate differences, in order to have the same relative spending power – and as a result, have a similar standard of living as you have in your current location.
The cost of living difference is the cost difference between the same basket of goods and services in order to maintain the same standard of living when relocating to a different location. When you relocate, the cost of everything you spend your salary on will either cost more or less. Some of the costs may be higher in the new location and some of the costs may be lower.
The cost of living difference is based on calculating the difference in cost in each location of selected basket groups. If you change the selection of basket groups you are likely to get different results, as some basket groups may cost relatively more and some relatively less between the selected locations.
Weights2 reflects the proportion of salary spent on each basket as a result of extensive research of actual spending habits. By applying the weights we have reported the weighted indexes which are used to report the overall weighted difference in the cost of living. The difference in the cost of living between different locations is expressed as an index.
As an example, dividing the cost of living in Location A by the cost of living in Location B may result in an index of 140. This means that Location A is 40% more expensive than Location B. A person who moves from Location B to Location A would need to earn 40% more in order to enjoy the same standard of living they currently have.
The difference in the aggregate cost of all the items in selected basket groups are examined in each location (this is done by using the average reported price in each location for the same quantity of each item).
A Cost of Living Allowance (COLA) is a salary supplement paid to employees to cover differences in the cost of living, particularly as a result of an international assignment. If the cost of living difference is 30% then in order to have the same purchasing power the COLA would be the amount paid to compensate for the 30% higher cost of living.
The formula for calculating the cost of living allowance is as follows:
(Net Spendable Salary x Cost of Living Index x Hardship Index x Exchange Rate) less (Net Spendable Salary x Exchange Rate) = Net COLA
The baskets are based on information – collected in each location – for approximately 200 different goods and services. Prices for the same quantity of each item are collected. The data is thoroughly quality assured and manually checked and moderated by experienced analysts.
For ease of use, the 200 goods and services have been grouped into 13 basket groups. To compare the cost of living, we use the total cost of the basket in each location. The basket groups that have been included in calculating the cost of living difference, are those that will be paid by the employee from their salary*. The difference in the cost of the basket at the ruling exchange rate is the basis of the cost of living difference.
- The basket groups that have been excluded are those that will be provided by either the employing company, or in some cases, by the state in the new location.
The 13 different basket groups are weighted according to Expatriate expenditure norms.
These are as follows:
Alcohol and Tobacco Basket (Weight=2%)
*Cigarettes (International Brand Pack of 20)
*Cigarettes (International Brand Pack of 30)
*International Beer from a shop (330ml)
*International Beer from a Shop (500ml)
*Locally Produced Spirit at Bar (1 Glass Double Tot)
*Locally Produced Spirit a shop (1 Bottle)
*Whiskey at Bar (1 Glass Double Tot)
*Whiskey from a shop (1 Bottle)
*Wine (mid-range) at Bar (1 Glass)
*Wine (mid range) from a shop (1 Bottle)
Clothing Basket (Weight=2.4%)
*Business Suit (1 men’s suit)
*Business Suit (1 women’s suit)
*Business Jacket or Blazer (1 men’s)
*Business Jacket (1 women’s)
*Casual Long Sleeve Shirt (1 men’s)
*Casual Jeans (1 men’s)
*Casual Blouse (1 women’s)
*Casual Summer Dress (1 women’s)
*Children’s Jeans (1 pair aged 10-12)
*Children’s Skirt (1 pair aged 10-12)
*Children’s Boys Shoes (1 pair)
*Children’s Girls Shoes (1 pair)
*Coat (1 men’s outdoor)
*Coat (1 women’s outdoor)
*Evening Wear (1 men’s suit)
*Evening Wear (1 women’s suit)
*Hat (1 men’s outdoor)
*Hat (1 women’s outdoor)
*Shoes (international brand of running shoes)
*Shoes (office leather shoes)
*Underwear (1 men’s boxer shorts)
*Underwear (1 women’s Brassiere)
Communication Basket (Weight=2%)
*Monthly Phone Rental Charge (1 Domestic Landline)
*Internet Subscription Fixed Line (1 Month Standard Plan)
*Mobile Tariff (1 Minute Standard Rate)
*Mobile Data Rate (1 Meg Standard Rate)
Education Basket (Weight=5%)
*Annual Creche/Pre-School Fees (International; Private; Excluding Extras)
*Annual Primary School Fees (International; Private; Excluding Extras)
*Annual High School Fees (International; Private; Excluding Extras)
*Annual First Year Tertiary/University Fees (International; Private; Excluding Extras)
Furniture and Appliances Basket (Weight=5%)
*Dining Table and 6 Chairs (Executive)
*Home Entertainment Blu-ray Player (Sony BDP-S270 Blu-ray Player or Equivalent)
*Home Entertainment Television (46′ LED HD TV)
*Kitchen Appliances Fridge Freezer (Large Double Door)
*Kitchen Appliances Iron (1 Clothing Hand Steamer Iron)
*Kitchen Appliances Light Bulb (Energy Saver e.g. 11w=60w)
*Kitchen Appliances Microwave (Medium Sized)
*Kitchen Appliances Toaster (2 Slice Toaster)
*Kitchen Appliances Vacuum Cleaner (Household Carpet Vacuum Cleaner)
*Kitchen Appliances Washing Machine (Automatic Washing Machine)
*Kitchen Appliances Kettle (Standard Electric Kettle)
*Sofa / Lounge Suite (6 Seater; Leather)
Groceries Basket (Weight=16.5%)
*Baby Consumables (Powdered Milk Formula)
*Baby Consumables (Pured Baby Food)
*Baked Goods (Packet Plain Biscuits)
*Baked Goods (500g Loaf of Brown Bread)
*Baked Goods (500g Loaf of White Bread)
*Baking (1kg Cake Flour)
*Baking (12 Large Eggs)
*Baking (1kg Sugar)
*Canned Foods (1 Tin Baked Beans)
*Canned Foods (1 Tin Fruit Salad)
*Canned Foods (1 Tin Meat Balls)
*Canned Foods (1 Tin Soup)
*Canned Foods (1 Tin Tuna)
*Cleaning Products (1 kg Automatic Clothes Washing Powder)
*Cleaning Products (1 Litre Dish-Washing Liquid)
*Cleaning Products (1 Litre Window Cleaning Liquid)
*Dairy (1kg Breakfast Cereal)
*Dairy (250g Butter)
*Dairy (1 kg Standard Cheese e.g. Cheddar)
*Dairy (1 Dozen Large Eggs)
*Dairy (1 Litre Full Cream Milk)
*Fresh Fruits (1 kg Bananas)
*Fresh Fruits (1kg Green Apples)
*Fresh Fruits (1 kg Oranges)
*Fresh Vegetables (1 Head Lettuce)
*Fresh Vegetables (1kg Potatoes/Rice/Pasta)
*Fresh Vegetables (1kg Tomatoes)
*Fruit Juices (1 Litre Apple Juice)
*Fruit Juices (1 Litre Orange Juice)
*Frozen (1kg Mixed Vegetables)
*Frozen (1kg Peas)
*Meat (1kg Beef Steak)
*Meat (1kg Leg Lamb)
*Meat (1kg Minced Beef)
*Meat (1kg Boneless, Skinless, Chicken Breast)
*Meat (1kg Whole Chicken)
*Oil & Vinegars (1 Litre Cooking Oil)
*Oil & Vinegars (1 Litre Olive Oil)
*Pet Food (2kg Dry Cat Food)
*Pet Food (5kg Dry Dog Food)
*Pre-Prepared Meals (1 Frozen Meal e.g. Lasagne)
*Sauces (500ml Jam/Marmalade)
*Sauces (500ml Tomato Ketchup)
*Sauces (500ml Soy Sauce)
*Seafood (1kg Calamari)
*Seafood (1kg Fresh Fish)
*Seafood (1kg Frozen Fish)
*Snacks (100g Bar Chocolate)
*Snacks (250g Salted Peanuts)
*Soft Drinks/Non-Alc Bev (1 Can Coke)
*Soft Drinks/Non-Alc Bev (1 Litre Carbonated/Fizzy Cola)
*Soft Drinks/Non-Alc Bev (1 Litre Carbonated/Fizzy Soft Drink)
*Soft Drinks/Non-Alc Bev (1.5 Litre Natural Mineral Water)
*Soft Drinks/Non-Alc Bev (250g Tea Bags)
*Soft Drinks/Non-Alc Bev (500g Instant Coffee)
*Soft Drinks/Non-Alc Bev (500g Ground Coffee)
*Spices & Herbs (250g Pepper)
*Spices & Herbs (250g Salt)
Healthcare Basket (Weight=5%)
*Private Practice Doctor Visit for Uninsured Patient
*Private Hospital stay per day including nursing care, medications, diagnostic tests, food, and related costs
*Non-Prescription Medicine (1 Bottle Cough Mixture)
*Non-Prescription Medicine (1 Box Plasters)
*Non-Prescription Medicine (30 Multivitamins)
*Non-Prescription Medicine (1 Tube Anti-Inflammatory)
*Non-Prescription Medicine (1 Tube Anti-Septic Ointment)
*Private Medical Insurance/Medical Aid (Contribution Member+1)
Household Accommodation Basket (Weight=30%)
*Apartment Purchase (Per M2 Central Location)
*Apartment Purchase (Per M2 Central Suburban)
*Mortgage (Annual Interest Rate)
*Rental Secure Upmarket Unfurnished Apartment Excluding Utilities (1 Bedroom Central Location)
*Rental Secure Upmarket Unfurnished Apartment Excluding Utilities (1 Bedroom Suburban Location)
*Rental Secure Upmarket Unfurnished Apartment Excluding Utilities (3 Bedroom Central Location)
*Rental Secure Upmarket Unfurnished Apartment Excluding Utilities (3 Bedroom Suburban Location)
*Rental Secure Upmarket Unfurnished House/Villa Excluding Utilities (4 Bedroom Central Location)
*Rental Secure Upmarket Unfurnished House/Villa Excluding Utilities (4 Bedroom Suburban Location)
*Utilities (Power, Water, Garbage & Local Tax for 1 Bedroom Apartment)
Miscellaneous Basket (Weight=3%)
*Domestic Help (1 Hour Part Time Salary)
*Domestic Help (1 Months Full Time Salary)
*Dry Cleaning (1 Men’s 2 Piece Suit)
*Dry Cleaning (1 Men’s Leather Jacket)
*Dry Cleaning (1 Woman’s Sued Jacket)
*Dry Cleaning (1 Women’s Suit)
*Linen (1 Duve for Single Bed)
*Linen (1 Large Bath Towel)
*Linen (1 Sheet for Single Bed)
*Newspapers and Magazines (1 International Daily Newspaper)
*Newspapers and Magazines (1 International Magazine)
*Newspapers and Magazines (1 Local Daily Newspaper)
*Newspapers and Magazines (1 Local Magazine)
*Office Supplies (1 Black Inkjet Printer Cartridge)
*Office Supplies (1 Colour Inkjet Printer Cartridge)
*Office Supplies (1 Pack of 500 sheets of fine printer paper)
*Postage Stamps (1 International Airmail Stamp – Short-haul)
*Postage Stamps (1 Local Domestic Stamp)
Personal Care Basket (Weight=3%)
*Cosmetics (1 Blush Compact)
*Cosmetics (1 Lipstick)
*Haircare (1 Men’s Cut and Blow Dry)
*Haircare (1 Women’s Cut and Blow Dry)
*Toiletries (100ml Hair Conditioner)
*Toiletries (100ml Hair Shampoo)
*Toiletries (250g Bar of Soap)
*Toiletries Moisturiser/Sun Block (250ml Moisturising Body Lotion)
*Toiletries Moisturiser/Sun Block (50ml Factor 30 Sunblock)
*Toiletries Nappies (Disposable Nappies)
*Toiletries Nappies (Wetwipes)
*Toiletries Pain Relief Tablets (24 Tablets)
*Toiletries Toilet Paper (1 Roll Double Ply)
*Toiletries Toilet Paper (1 Roll Single Ply)
*Toiletries Toothpaste (1 Tube Toothpaste)
Recreation and Culture Basket (Weight=6%)
*Books (1 New Paperback – Fiction)
*Cinema 1 Adult Ticket (latest release international (average of on and off peak where applicable)
*Sport (1 Hour Tennis Court Hire)
*Sport (1 Month International Gym Membership for 1 Person)
*Sport (1 Round of Golf – Green Fees)
*Theatre Ticket (1 Ticket to Evening Theatre Show)
Restaurants, Meals Out and Hotels Basket (Weight=2%)
*Hotel Rates (3 Star Daily Rate in City Hotel)
*Hotel Rates (4 Star Daily Rate in City Hotel)
*Hotel Rates (5 Star Daily Rate in City Hotel)
*Restaurant (Meal Out for 1 Inexpensive Excl Alcohol)
*Restaurant (Meal Out for 2 Mid-Range Excl Alcohol)
*Restaurant Burger Meal (International Franchise or similar)
*Restaurant Business Dinner (3 Courses for 2 at 5 Star Hotel Excl Alcohol)
*Restaurant Cappuccino (Regular, Medium)
*Take Away (1 Medium Sized Pizza)
*Take Away (1 Toasted Sandwich)
*Take Away (330 ml Water))
*Take Away (Coke/Pepsi (330ml)
Transport Basket (Weight=18%)
*Hire Purchase/Lease of Vehicle (Sedan Monthly Payment Only)
*Petrol/Diesel (1 Litre Premium Unleaded Petrol)
*Petrol/Diesel (1 Litre Premium Diesel)
*Public Transport (1 Bus Ticket 2 Stops City Centre)
*Public Transport (Taxi Start Normal Tariff)
*Public Transport (Taxi 1 Hour Standard Tariff)
*Public Transport (Monthly Pass (Central))
*Service Maintenance (Sedan Annual Maintenance)
*Tyres (1 Imported Sedan Tyre)
*Vehicle Insurance (Sedan Monthly Insurance)
*Vehicle Purchase (Price Volvo XC90 Manual New)
*Vehicle Purchase (Price Subcompact/Small / Economy (VW Golf 1.4 or Equivalent)
The exchange rate between two currencies specifies how much one currency is worth in terms of the other.
Most countries have a free-floating exchange rate. This means that its exchange rate is allowed to vary against that of other currencies, determined by the market forces of supply and demand. Exchange rates usually change almost constantly as quoted on the financial markets worldwide. Exchange rates change whenever the values of either currencies change. A currency tends to be more valuable when demand is greater than supply (i.e. when a large amount of that currency is sort after for purchase), and less valuable when demand is less than supply (i.e. when very little of that currency is required for purchase. This typically occurs when the majority prefer holding their wealth in some other form – possibly in another currency.
Current and future exchange rates incorporate interest rate differentials between 2 currencies. Large interest rate differentials may result in a temporary imbalance in exchange rates.
Due to these factors, 21st Century Expat makes use of an arbitrage exchange rate rather than the ruling exchange rate. Arbitrage is the practice of taking advantage of a price difference between two or more markets. The 21st Century Expat Arbitrage Exchange Rate calculates each currency against a single currency in order to ensure that any temporary price differences that may occur are negated.
This data is updated quarterly.
Hardship refers to the relative level of difficulty an expatriate and their family are likely to experience in adapting to their new location and the relative impact on their lifestyle when moving between different locations.
Our hardship ranking system measures the relative quality of living in each location, and assesses the relative level of difficulty that will be experienced in adapting to each location.
- Economic Factors – e.g. poverty levels and level of service provision.
- Political Factors – e.g. freedom / tolerance towards different points of view / lifestyle.
- Religious Factors – e.g. freedom / tolerance towards different religions.
- Public Service Factors – e.g. provision of water, electricity, sanitation, work permits etc.
- Environment/Climate Factors – e.g. extreme weather.
- Personal Safety Factors – e.g. personal safety / level of crime.
- Health Factors – e.g. prevalence of disease and health standards.
- Education Factors – e.g. education standards, prevalence of international schools.
- Transportation Factors – e.g. prevalence of public transport, fuel and road safety.
- Login using your username and password.
- Check that you have purchased locations.
- Select the Cost of Living Allowance Calculator (COLA) from the menu.
- The calculator will prompt you for the following inputs:
- Reference Information:
- Give your report a reference name
- Include the name of the individual for whom you are running the report. (This will help you identify your reports for future reference)
- Locations:
- Select the location that is being relocated FROM (Home)
- Select the location that is being relocated TO (Host).
- Cost Allocations:
- Select the basket costs that will be paid for by the employee from his own salary (column on right).
Please note that basket costs that are provided for by the employer are NOT included in the cost of living calculation. The default is that all basket costs will be paid for by the employee from their own salary unless otherwise specified. - Select what will be provided for by the employer or state, for the employee (column on left).
- Select the basket costs that will be paid for by the employee from his own salary (column on right).
- Reference Information:
NOTE: There is no point in selecting that ‘all costs are provided for the employee by the employer’, as then theoretically the employee would not need to earn a salary.
-
- Currency Details:
- Enter the appropriate currency. You can choose any currency, it does not have to be the currency of the selected locations.
- Enter the salary amount in the current location, used to pay for the items indicated above as “Paid from Salary”.
- This is used as the basis of the calculation.
- You can choose the salary you wish to use as the basis for the calculation – for example, depending on your salary structure, you may choose to use:
- Basic Salary
- Base Salary
- Guaranteed Cash
- Total Cash
- Total Remuneration
- Any other structure.
- We recommend using net salary (i.e. after tax) as the basis for the calculation, as we do not have tax tables within the calculator. This will provide you with the equivalent net salary in the “moving to location” equivalent net salary.
- Currency Details:
- Run Report: When you are sure that all your selection criteria are correct, click on run report.
You can re-run your reports for each location purchased for the time period purchased, either seven days or an annual subscription.
How do I calculate single (or multiple) host location Cost of Living Indexes using a selected home base?
The Cost of Living Index (COLI) Calculator
Cost of Living Index
The COLI calculator calculates Cost of Living Indexes for the locations you select using the home location you specify.
After extensive research of actual international expatriate spending habits, we have selected 13 basket groups of items to compare the cost of living between locations. The difference in cost is examined as an aggregate cost of all the items in each of the 13 basket groups in each location. This is done by using the average reported price in each location for the same quantity of each item. The 13 different basket groups are weighted according to expatriate expenditure norms.
- The data is collected and updated on a continual basis.
- The 3-month cycle involves closing off input and then conducting a rigorous quality assurance process before publishing the updated indexes.
- Quality assured indexes are updated quarterly on 1st January, 1st April, 1st July, and 1st October.
- The collected data (from more than 50 sources) comprises the local prices for goods and services applicable to expatriates.
- Prices are converted to USD at the time the data is collected.
- The goods and services have been grouped together into categories (baskets) and the cost calculated for each basket in each location.
- The baskets have been weighted based on extensive research of actual expatriate spending habits.
- The indexes are influenced by both the actual local prices as well as the ruling exchange rates at the time the prices were collected. Statistical fluctuations can occur – particularly as a result of old data dropping out, and new data coming into the database.
- The maximum time between gathering prices and producing an updated index is 12 months. Data dated older than 12 months is dropped from the database based on the date it was collected. Any price on which the current index is based is therefore between 1 and 12 months old.
The salary amount should only be the salary that is exposed to the cost of living difference. The international benchmark for host net spendable salary is 40% of the home net salary. Therefore if 60% of the salary remains in the home country and 40% is paid in the host country then the COLA or SPPP calculation would only apply to 40% of the salary.
Income tax on salaries is excluded from the calculators, while mandatory sales taxes on goods and services are included. The prices collected in each location include applicable mandatory sales taxes. The objective is to arrive at the full price of all goods and services as applicable to a typical expatriate living in each location. This takes different forms such as VAT, GST etc.
The salary used in the calculator is the salary entered by the person running the report. You can use gross or net salary. However, the best practice is to use the home net salary (i.e. after tax) as the basis for the calculation. The resulting host net spendable salary is then grossed up for the appropriate tax in the host country.
The calculator will then apply the following formula based on the selections in the calculator: Salary x Cost of living Index Differential x Exchange Rate x Hardship Differential = Calculated Salary in new location If you use net salary the result will be the net salary in the new location. You would then gross up the net salary for tax and statutory deductions. The net salary in the home country is the input salary. This would be net of home country tax and statutory deductions. The calculated salary is the net host country salary. You would gross up the net host country salary by the amount of tax and statutory deductions in the host country. This approach ensures the net salary is adjusted for cost of living, hardship and exchange rate. It also results in the gross salary being comparable relative to tax and statutory deductions.
Each basket has a different weighting. The 13 basket groups are weighted according to Expatriate expenditure norms.
The following basket weights are used for the full set of baskets:
- Alcohol & Tobacco 2.0%
- Clothing 2.5%
- Communication 2.0%
- Education 5.0%
- Furniture & Appliances 5.0%
- Groceries 16.5%
- Healthcare 5.0%
- Household 30.0%
- Miscellaneous 3.0%
- Personal Care 3.0%
- Recreation & Culture 6.0%
- Restaurants Meals Out and Hotels 2.0%
- Transport 18.0%
If you exclude basket items in the calculator then the weighting changes accordingly.
- Select between 1 and all host locations purchased.
- Choose from any one or all of the 13 baskets for each location.
- Reports for each location purchased can be re-run at any time during the purchase period (either seven days, or the annual subscription period)
How do I calculate long-term expatriate assignment packages using the build-up approach?
International Assignment Management (IAM) Calculator
International Assignment Management
The IAM calculator calculates the remuneration and benefits for a typical expatriate assignment of 6 months – 5 years, using your choice of home and host location.
The report sets out clear guidelines to make an expatriate’s transfer both fair and financially viable, taking into account the reward structure and market dynamics of both the home country and the host country.
The objective is to ensure consistent equitable treatment and benefits for all expatriate assignees and have a user friendly reward structure to provide seamless coverage for different family scenarios.
The calculations use the build-up / balance sheet / home-based approach and include:
- hypothetical tax
- cost of living index
- hardship premium
- exchange rate
- expatriation premium
- benchmark housing allowance
- benchmark transport allowance
- Login using your username and password
- Check that you have purchased locations
- Select “Calculators” from the menu
- Choose the International Assignment Management Calculator (IAM)
- The calculator will prompt you for the following inputs:
- Reference Information:
Give your report a reference name and then include the name of the individual for whom you are running the report. This will help you identify your reports for future reference. - Home Location Information:
Provide the name of your Home Company, then select your Home Location and Currency. - Host Location Information:
Provide the name of your Host Company, select your Host Location and Currency; then select the appropriate job level and family size. - Cost Allocations:
Select the basket costs that will be paid for by the employee from his own salary* (column on right) and what will be provided for by the employer or state, for the employee (column on left). Basket costs that are provided for by the employer, are not included in the cost of living calculation. The default is that all basket costs will be paid for by the employee from their own salary unless otherwise specified. Note: There is no point in selecting that all costs are provided for the employee by the employer, as then theoretically the employee would not need to earn a salary. - Currency Details:
- Home Base Salary:
Provide the Basic Salary plus the cash value of all allowances and benefits. Base Salary excludes all variable payments and payments related to performance. - Hypothetical Tax:
Provide the typical/Average (Hypothetical) Tax to be deducted from Home Base Salary, if applicable, in terms of home location prevailing tax rates. - Home Net Salary:
This is the Base Salary less Hypothetical Tax and will automatically be calculated for you - Host Essential Spending %:
This is the percentage of Home Net Salary to be used for spending in the host location. The international benchmark is 40%, however this can be increased or decreased accordingly. This becomes an input into the essential spending portion. - 40% Essential Spending:
This is the amount of the Home Net Salary to be used in the Host Location. The international benchmark is 40% of Home Net Salary, however this can be increased or decreased accordingly. - 60% Home Net Balance:
This is the balance of the Home Net Salary to be kept in the Home Location, however, this can be increased or decreased accordingly. - Expatriation Premium %:
This is the percentage of the Home Base Salary to encourage international mobility. The international benchmark is 15%, however this can be increased or decreased.
- Home Base Salary:
- Reference Information:
- Run Report:
When you are sure that all your selection criteria are correct, click on run report.
How do I calculate salaries with equivalent purchasing power for similar positions based in different geographic locations?
Salary Purchasing Power Parity (SPPP) Calculator
Salary Purchasing Power Parity
The SPPP calculator calculates how much you need to earn in another location to compensate for cost of living, hardship, and exchange rate differences, in order to have the same relative spending power – and as a result, have a similar standard of living – as you have in your current location.
Purchasing Power Parity (PPP) is an economic theory that compares different countries’ currencies to the cost of living difference. According to this concept, purchasing power parity is when the same basket of goods is priced the same in both countries / cities, taking into account the exchange rates.
You can choose the current salary you wish to use as the basis for the calculation. For example, depending on your salary structure, you may choose to use:
- Basic Salary
- Base Salary
- Guaranteed Cash
- Total Cash
- Total Remuneration
- any other structure
- Login using your username and password
- Check that you have purchased locations
- Select “Calculators” from the menu
- Choose the Salary Purchasing Power Parity Calculator (SPPP)
- The calculator will prompt you for the following inputs:
-
- Reference Information:
Give your report a reference name and then include the name of the individual for whom you are running the report. This will help you identify your reports for future reference. - Locations:
Select the location that is being relocated FROM (Home) and the location that is being relocated TO (Host). - Cost Allocations:
Select the basket costs that will be paid for by the employee from his own salary (column on right) and what will be provided for by the employer or state, for the employee (column on left). Basket costs that are provided for by the employer, are not included in the cost of living calculation. The default is that all basket costs will be paid for by the employee from their own salary unless otherwise specified.
Note: There is no point in selecting that all costs are provided for the employee by the employer, as then theoretically the employee would not need to earn a salary. - Currency Details:
Enter the appropriate currency. You can choose any currency, it does not have to be the currency of the selected locations. - Salary Amount:
Enter the salary amount in the current location, used to pay for the items indicated above as “Paid from Salary”. This is used as the basis of the calculation.
Note: We do not have tax tables within the calculator. We therefore recommend using net salary (i.e. after tax) as the basis for the calculation. This will provide you with the equivalent net salary in the “moving to location”. You can then apply tax to the equivalent net salary, if any tax is applicable. - You can choose if you want to apply negative hardship differences, or negative cost of living differences to your calculation by checking the box.
- 7) Run Report: When you are sure that all your selection criteria are correct, click on run report.
- Reference Information:
You can re-run your reports for each location purchased for the time period purchased, either seven days or an annual subscription.