When we hear that any multi-national company offers a high package, for example, Rs 1 Crore per annum to a student who is studying in the top college of India, our first reaction goes, Wahoo!!. Similarly, when we hear that a person in our known circle gets a job in some abroad country, the very first thing we ask is about the package and we immediately convert that currency to Rupees. (Typical Bhartiya Mentality). And this makes most of us think, that we should also look for a job outside Bharat. Correct?
Now let me give the opportunity to break your myth of high package. For this, let’s take a simple example and do a simple calculation.
Assume that a person got a job in the US with the package of $72,000 per annum,that’s at today’s exchange rate of the dollar to rupee is Rs 47,95,124.40.
$72,000 = Rs 47,95,124.40 Per Annum (Sounds good)
$72,000 / 12 = $6000 Per Month
= Rs 3,99,593.70 Per month (Decent amount, right?)
In Bharat, Rs 3,99,593.70 per month is really excellent package. Right?
Now let’s focus on the USA. In the USA, “Nonresident aliens” which refer to migrants who are working in the USA has flat 30% tax reduction. Therefore,
$6,000 x 30% = $1,800 Pay as tax.
$6,000 – $1,800 = $4,200 (Left)
In the USA, living cost is very high, which includes Rent, traveling, groceries, etc. Assume, that you don’t want to share flat and living individually and flat cost $1,000 and let’s assume if your traveling and groceries also cost $1,000.
$4,200 – $2,000 = $2,200
= Rs 1,46,517.69
Now compare Rs 1,46,517.69 vs. Rs 3,99,593.70 per month.
Now, if you are staying with family and your children are studying, then you should add up that cost in expense along with medicals, insurance, etc.
I hope you got a rough picture of how much a person can save after all those expenses. And you can convert that saving into rupees and then you can have your estimation of how good is the earning or the package.
Anyway, $40,000 to $60,000 per annum is an average package of a fresher software engineer in the USA.
Similarly, every country has different expense cost, tax rates, etc. You need to figure out before you take up the job in another country.
Getting a job in abroad MNCs directly from campus is really a wonderful achievement. But that is only the start of a career. But making the money beyond the imagination sometimes takes years. Because as you move forward in life, new responsibilities take over space.
It will be good to find out and take a rough estimation of living cost before you take up a job in abroad. You should not feel afterward, that you could live more lavish life in an own country with less salary compare to living in another country with double salary package.
Please post your queries in the Forum, will try to respond all your queries.