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Before you leave SA - compare!

14 July 2012, 13:50
I have been planning on migrating to Australia for a while now. I finally received an offer from a company and I thought I would share a couple of things with everyone.

Most people, mostly uninformed, will look at an offer on face value. Although the amounts seems astronomical compared to your South Africa Salary, look at it a bit closer. Before you make your mind up consider the following.

Lets assume that you currently earn R400 000 per month and you get offered around AU$ 80 000 (which is a good median). On face value this looks great because at the current exchange rate it amounts to just over R664k. Now we you compare this you say, this is an increase of 66%. Now that is not bad.

If you start evaluating it a bit more and use sites like numbeo you will quickly see that cost of living is probably a lot more. As a comparison between Johannesburg and Brisbane you will find a couple of differences based on housing, vehicles, entertainment and more. I have calculated that Brisbane is 1.64 time more expensive than Johannesburg. So what does that mean from your salary offer.

If you take you current salary and multiple by 1.64 you will get R656k. Compare that to your offered salary of R664k you will see that it is only worth about a 1% increase. Yes this is guided by a couple of sites and my own interpretation and calculation but it is not very far off.

Start looking at tax structures, cost of moving there etc. you might be surprised that you are better off, financially, staying in South Africa.

Use it, don't use it -

Note: Does not reflect my own salary, circumstances in any way

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