As the placement season begins at college campuses, the “one-crore” package offered will hit the news headlines. These high-paid jobs are usually offered by offshore corporates that hire Indian talent to work abroad. But how relevant does the seven-figure remains once you shift overseas?
Answering a question in Rajya Sabha this year, the Ministry of External Affairs informed that in 2021, a total of 4,44,553 Indian students went abroad to study, and this number is bound to rise with every passing year. Indian students often move abroad to pursue education at top-tier universities which offer excellent education, global cultural exposure and a chance to explore international job opportunities with attractive salary packages. It is not uncommon for students studying abroad to land stellar jobs with lucrative salary packages in the same country after they finish pursuing their education, however, are these salary packages truly that lucrative?
When considering your salary package, it is crucial to think whether the salary offered in these countries are in proportion with the cost of living and education in these countries. Moreover, it is important to consider whether it is up to the industry standards and whether you will be able to sustain your cost of living including the rent, food, utilities, travel and entertainment. So, considering all these factors, how does one determine the salary offered for a certain role? Here are a few factors to look into:
#1 Cost of living
While calculating your salary, it is imperative to consider whether the salary offered is in proportion with the cost of living and education in that countries. Moreover, it is important to consider whether it is up to the industry standards and if you will be able to sustain your cost of living including your rent, food, utilities, travel and entertainment. Furthermore, chances are that you have to pay off a loan that you may have taken to pursue your education abroad and you need to factor in the monthly payments within your total budget.
2 Salary as per work country currency
Calculate your salary in the currency of the country where you will be living and working in and understand what it is worth in that country. Figure out the worth of your salary, what your take home pay will be and whether it will be enough to maintain your standard of living. You also need to account for 2% to 5% inflation per year. The average salary after graduating in the USA is 110,000 USD. This number should help you estimate your monthly budget and how you should be managing it.
Next, take into account the cost of living in just one city in the country where the job offer is from but understand that you will now be moving out of your student life and into your work life. Therefore, you will need to re-evaluate your budget accordingly. Understand if your take home salary will be enough to sustain the new expenses that you will incur as a result of your work life like packing and moving expenses, socializing and transportation cost and other everyday things like down to the cost of your coffee and entertainment expenses and if you’ll have anything left to save.
Extra allowances
You also need to confirm whether your company offers you any extra allowances or benefits like health insurance, travel allowance, paid leaves, bonuses, overtime pay which can supplement you daily expenses.
Taxes to be paid
The most important is the tax you will need to pay. When working abroad, what taxes will you have to pay? What is the total deduction amount? Is your position non-taxable? Or does it put you in a higher tax bracket? It is crucial for you to understand the taxation rules and regulations of that country. For example, in Germany, you as an international student do not need to pay any tax if you earn less than 450 euros. If you are working professional, most employers will deduct taxes from your salary and submit them to the tax office depending on which of the four tax brackets you fall in.
The author is founder & CEO, ReachIvy.com
Source link
