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Sydney is the 23rd most expensive city in the world for expatriates living in accordance with the conclusions of an international cost of living comparison of 228 locations International, conducted by the international relocation calculator, Xpatulator.com.
The international cost of living comparison uses Xpatulator.com prices of goods and services that expatriates spend their salaries at each site, and calculates the cost of living index (COLI) of 13 different groups that use shopping New York as the base (ie, New York, equals 100).
The world's most expensive city for expatriates is London with a total of 126.6 ICV. At the other end of the classification, the least expensive city (for expatriates living in) is Harare with a total of 16.4 ICV. This means that on average, goods and services that cost an expat U.S. $ 100 New York, USA London would cost $ 126.6, compared with just U.S. $ 16.4 in Harare and US101.73 in Sydney.
How Sydney Compare
For each aspect of cost of living, Sydney is ranked by Xpatulator.com follows (of 228 international locations from the highest cost of living at a lower cost of living):
• Alcohol and Snuff (Alcoholic and snuff products): 29
• Clothing (Clothing and footwear): 116A
• Communication (Telephone, Internet, mobile communication): 150a
• Education (Nursery, Primary, Secondary and Tertiary fees): 13
• Furniture and Appliances (Furniture, Household Equipment and Appliances): 94A
• Food (Food, nonalcoholic beverages and cleaning materials): 44th
• Healthcare (General Health, Medical and Health Insurance): 11
• Home (Rent, mortgage, Water, Electricity, Gas, Household, Household fuels, local tax rates and Residential): 33 º
• Miscellaneous (Stationary, Linen, General Goods and Services): 112
• Personal Care (Personal Care Products and Services): 7
• Recreation and Culture (Books, Movies, DVDs, sporting goods, etc.): 29
• Restaurant meals in restaurants and hotels: 24 º
• Transportation (Public transport, vehicle costs, vehicle fuel, vehicle insurance and vehicle maintenance): 41a
For other parts of the world, Sydney is relatively expense of personal care products and services, however, Sydney is relatively cheap phone, Internet and wireless.
Expatriate pay Approaches
Cost of living information is used by organizations to set salary levels for expatriates undertaking assignments international. How do I use the cost of living of the information depends on the payment methodology adopted by the organization. There are 3 main criteria for establishing salary levels for international assignments, salary accumulation approach, the focus of the purchasing power of wages and cost of living allowance approach.
Salary Build-up
The approach is the accumulation of foreign home salary as a starting point and then build up the salary package for an international mission. The elements Typical wages are added to the cost of living differences, differences in hardship, and exchange rate. Difficulties is the relative difference in the quality of life of a person and his family are likely to experience.
For example, a person earning $ $ 100 000 in Sydney taking an assignment in London, would accumulation following:
Basic pay AUD $ 100 000 XX ICV Difficulties Premium X = exchange rate Pounds allocation package.
Use Xpatulator.com, a person earning AUD $ 100 000 in Sydney, could win a package allocation Pounds UK £ 58 447.
Salary Purchasing Power Approach
The power Salary purchasing approach aims to achieve parity between international locations. What would be the equivalent of a salary in Sydney in other parts of the world in terms purchasing power? We compared the purchasing power compare salary levels adjusted for cost of living differences and difficulties related Xpatulator.com using.
A salary of $ 50 000 in Sydney, Australia is equivalent to:
• USD $ 44 031 in Beijing
• USD $ 48 578 in Dubai
• USD $ 62 238 in London
• $ 46 USD 142 in New Delhi
• USD $ 51 514 in Paris, France
This means that an organization based in Sydney, with international offices in each of the above locations will pay a position that pays $ 50 000 in Sydney, U.S. $ 62 238 in London and U.S. $ 44 031 in Beijing, in order to achieve the same salary as purchasing power in each place.
Cost of living allowance (COLA) Approach
The organizations that carry Use of Cost of Living Allowances (COLA) cost of living information used to determine the amount to pay for COLA international assignments. Cola is a compensation paid to an expatriate to ensure they are compensated when the cost of living is higher than their country of origin. When the cost of living is lower, most organizations do not fit to low salaries, not simply pay a COLA in such cases. Using the example of a person who earns U.S. $ 50 000 Sydney sent an international mission to London, a COLA would be paid as follows:
USD $ 62 238 in London at least $ 50 000 in Sydney = USD $ 12 238 COLA in London
The COLA is paid in addition to individual's current salary for the duration of the international mission, and usually reviewed annually, or when you change the ICV over 10%.
About the Author:
Steven McManus has been an Information and Reward Consultant to over 100 organisations for over a decade. Steven runs the most comprehensive global relocation calculator available, an internet service that is used primarily to calculate expatriate salary levels for global assignments, which can be found at http://www.xpatulator.com. This site includes free location overviews, cost of living, and hardship rankings for 228 global cities.
Article Source: ArticlesBase.com – Sydney Ranked 23rd in International Cost of Living Comparison
