Many companies perform a net-to-net calculation when moving/hiring someone onto local terms in a location. A net-to-net shows a side-by-side comparison of gross compensation, income taxes, and net income (after tax income) to paint a picture of how attractive a move is for the individual.
If an individual has more money after taxes then that is good news. If they have less money after the move, then the question becomes:
- Are there additional benefits provided/covered by income tax?
- And/or is the location less expensive to the extent that the decrease in net income is offset by how much more affordable the new location is?
Global Salary Comparison
AIRINC's Global Salary Comparison report produces both a net-to-net calculation as well as a cost-of-living comparison between the two locations. This enables you to answer both questions:
- Is this person better off after taxes?
- How does cost of living compare between two locations?
That information is often critical to having successful conversations with employees relocating onto local compensation packages as well as new hires that may be relocating internationally. Hiring managers and recruiters are able to address potential employee concerns with reliable information as opposed to potentially inaccurate internet articles that may describe a location as incredibly unaffordable.
Curious to see the GSC live in action?
If you are a potential vendor partner, or a corporate Global Mobility, Human Resources, or Compensation professional, contact us to receive a free report. One of our team members will reach out to gather the necessary information to run a sample calculation for you.
