When mentioning an annual income of 6.5 million rupees in India, many people perceive this amount as significant. However, the situation changes drastically if this amount is earned in Germany, as taxes, rent, insurance, and the generally high cost of living affect it.
One cannot evaluate foreign earnings solely through currency conversion; the key question is how much money remains in the worker's hands. This was discussed on social media after an Indian user posted.
The user X, named Tanuj, stated that he lived in Germany for about six years. He shared an analysis for Indians regarding a salary of 70,000 pounds sterling.
According to Tanuj, 70,000 pounds sterling is equivalent to approximately 6.5–7 million Indian rupees. Nevertheless, there are differences between gross and net salary in Germany. A portion of the income goes towards paying taxes and social contributions.
Furthermore, one of the biggest expenses can be housing rent. According to Tanuj, in large cities, rent can be 1,500 pounds or even more. In addition, costs for insurance, electricity, internet, food, and other daily services must be taken into account.
Thus, an annual income of 70,000 pounds sterling does not guarantee that a person can spend the same amount. Savings can vary greatly depending on the city, family composition, rental costs, tax status, and lifestyle.
In his social media post, the salary of 70,000 pounds sterling was presented as equivalent to approximately 3.2–3.5 million Indian rupees in India, using the concept of Purchasing Power Parity (PPP). However, PPP and currency conversion are two different concepts. Currency conversion only shows how much one currency is worth in another, whereas PPP compares purchasing power by considering the prices of goods and services in different countries.
For this reason, making a decision about working abroad based only on how much the salary will look in Indian rupees is extremely difficult.
If an Indian plans to move to Germany for work, it is crucial to consider many aspects beyond the salary package itself. One must study the net salary amount, the cost of rent in the city where the job is located, the scope of medical insurance and other contributions, as well as monthly daily expenses.
In conclusion of his post, Tanuj advised people not to make decisions about moving from a good job in India based solely on salary conversion. Consequently, a salary of 70,000 pounds sterling may offer a good savings opportunity for one person, while for another living in a big city with a family, expenses might be significantly higher.