Expat Eye on the World

Being much more visual when it comes to gathering information or purely learning just about anything, I am always on the look out for videos that will help me achieve this.

Deciding to become an expat IS a big deal, especially when it is the first time you take on this type of an adventure. Like any adventure or trip the most interesting part of it is to research everything about the place you are going to, from accommodation, to schools, to entertainment and shopping. The best part of researching is finding interesting and realistic information and videos where you can visualize what to expect when you arrive. You can plan better and set yourself up for positive experiences rather than nasty surprises.

So it was with great delight that I found this website that does just that, although not all locations are on here it does give a pretty good visual idea of a lot of places on our world map.

And for cost of living information that is affordable for the man on the street and accurate, look at our comprehensive international cost of living information. This information will tell you what your cost of living expectations should be when moving from your current city to your new location.


We provide great visual website with free international cost of living reviews and  cost of living rankings covering 13 baskets with 300 international locations as well as 3 premium content calculators:

Click one of the Calculators to see
an example of a full report

Cost of Living Index Calculator

Cost of Living Allowance Calculator

Salary Purchasing Power Parity Calculator

Reports derived from the calculators cost US$99 each. Registration is free. There are no annual subscription charges.

Register, purchase credit online and use the calculators to create, run and receive your personalized report today. To get started Register Now

How to Calculate a Cost of Living Allowance - Part 3

The formula for calculating a cost of living allowance using the inputs discussed in part 2 are as follows:

(Net Spendable Salary X Cost of Living Index X Hardship Index X Exchange Rate) less (Net Spendable Salary X Exchange Rate) = COLA

Examples of COLA Calculations using our data

Example 1) An Australian employee with a net spendable salary of AUD$100,000 moving from Perth to London where healthcare and communication will be provided by the employer

($100,000.00 X 1.2806 X 1 X 0.4768) less ($100,000.00 X 0.4768) = COLA of £13,379.44 (GBP)

Based on all the above factors a person would require a Cost of Living Allowance of £13,379.44 (GBP), in addition to their current salary of 100,000.00 Australian Dollar (AUD) to compensate for relocating from Perth to London. This Cost of Living Allowance compensates for the overall cost of living difference of +28.06% and the relative difference in hardship of 0%.

Example 2) A British employee with a net spendable salary of £18,000 moving from London to Mumbai where the employer will provide housing and education

Note: Because the Cost of Living Index is negative it is not applied.

(£18,000.00 X 1 X 1.3 X 67.2852) less (£18,000.00 X67.2852) = COLA of 363,340.32 Indian Rupee

Based on all the above factors a person would require a Cost of Living Allowance of 363,340.32 (INR ), in addition to their current salary of £18,000.00 British Pound (GBP ) to compensate for relocating from London to Mumbai. This Cost of Living Allowance compensates for the overall cost of living difference of [-30.53%] and the relative difference in hardship of 30%.

COLA Payment
The COLA is paid as a salary supplement (i.e. as an additional allowance) net of tax in the host country. If the COLA is a taxable allowance in the host country it should be grossed up in order that the full amount of calculated COLA is paid net of tax given that the basis of the calculation is Net Spendable Salary. The COLA is often accompanied by other allowances and benefits such as flights home, relocation / settling in allowance, and furnishing allowance.

Exchange Rate Fluctuations
Significant changes in the exchange rate can make a considerable difference in the COLA calculation. In 2010-2011 some of the major global exchange rates changed by as much as 30-40%.

The cost of living index reflects the changes caused by inflation and exchange rates. In the short-term there may be disequilibrium between inflation and the exchange rate (the one pushes the other), however over time the cost of living index provides the most accurate view of the cost of living.

It is important to remind expatriates that when the cost of living difference is negative, and the negative value has not been applied, they have higher purchasing power in the host country than they would at home.

Where a negative cost of living index has not been applied (our recommended approach), and a change in the exchange rate indicates an upward adjustment in COLA may be required, it is recommended that the COLA should not be adjusted upward until the cost of living index becomes positive i.e. the cost of living reflects that there is a “real” increase in cost of living between home and host countries. This may mean that their would be no increase in the COLA as a result of exchange rate fluctuations for some considerable time. During this time the employee’s purchasing power decreases. But it is important to remember that until the cost of living difference becomes positive, the individual will still have a higher purchasing power than they do in their home country.

It is advisable to stipulate a currency protection rule, rather than reacting to every fluctuation in the exchange rate. For example the rule may state that COLA will be reviewed if exchange rates or local inflation move by more than +10% during a year. It is important to keep in mind that the prices of goods and services are unlikely to drop in local currency. This would only occur in a period of deflation (negative inflation). Therefore the currency protection rule would normally make provision for upward adjustments in COLA and not downward adjustments during an employee’s assignment. Downward adjustments to an existing COLA due to exchange rate fluctuations without a corresponding drop in the prices of local goods and services puts immense pressure on an employee’s host currency budget commitments and can lead to the employee experiencing financial difficulty.

Using an independent service provider provides an independent, objective basis for determining an employee’s COLA.

We recommend therefore that a COLA is calculated by applying the specific (customized) cost of living index to the net spendable salary at the beginning of the assignment and monitoring exchange rate fluctuations thereafter in addition to the annual salary review.

How to Calculate a Cost of Living Allowance - Part 2

The formula for calculating the specific cost of living index for an international assignment is as follows:

Cost of Living Index = Customized Cost of Living Index for Host City / Customized Cost of Living Index for Home City

When moving to a higher cost of living host city, the index will be greater than 1 (positive). When moving to a lower cost of living host city the index will be less than 1 (negative). Where the index is negative it means that in real terms the cost of living in the host city is lower than the home city. This means that if the negative index where to be applied to the employee’s salary, they would actually be paid proportionately less spendable salary in the host city. It is important to note that the majority of organizations do not apply a negative cost of living index because it makes it difficult to persuade an employee to take up an assignment as they tend to see it as a reduction in salary. 

Examples of Cost of Living Index Calculations using our data:

Example 1) An Australian employee moving from Perth to London where healthcare and communication will be provided by the employer

More Expensive in London:
Alcohol & Tobacco +4.77%
Clothing +21.85%
Education +31.53%
Furniture & Appliances +16.03%
Groceries +16.35%
Household +50.72%
Miscellaneous +137.47%
Personal Care +11.18%
Recreation & Culture -6.82%
Restaurants Meals Out and Hotels +34.99%
Transport +19.80%

The overall difference in cost of living moving from Perth and London is +28.06%.

In this case the cost of living index is positive and would be applied as it is.

Example 2) A British employee moving from London to Mumbai where the employer will provide housing and education

More Expensive in Mumbai:
Alcohol & Tobacco -37.53%
Clothing -9.58%
Communication -44.92%
Furniture & Appliances -19.31%
Groceries -24.03%
Healthcare -31.24%
Miscellaneous -72.43%
Personal Care -24.94%
Recreation & Culture -35.73%
Restaurants Meals Out and Hotels -33.11%
Transport is -27.99%

The overall difference in cost of living moving from London Mumbai is -30.53%.

In this case the cost of living index is negative and would not be applied.

Net Spendable Salary

Differences in cost of living only impact the portion of the salary that is spendable in the host country. Items in the home country such as retirement funding, medical insurance and other home based costs are not impacted by the cost of living in the host country.

To determine the Net Spendable Salary establish what amount / portion of the current salary (in home currency) is spent in maintaining the employee’s current standard of living / lifestyle. What will the expatriate need to spend their salary on in the host country? For example will accommodation be provided or will the employee pay rent, will healthcare be provided etc. Deduct all items that are either provided in kind or are spendable in the home country. Deduct the hypothetical amount of tax, social contributions and any other statutory deductions applicable in the home country from the Spendable Salary. What is left is the Net Spendable Salary.

In part 3 we discuss the formula for calculating a cost of living allowance using the above inputs

How to Calculate a Cost of Living Allowance - Part 1

 

 A Cost of Living Allowance (COLA) is a salary supplement paid to employees to cover differences in the cost of living, particularly as a result of an international assignment.

The amount of COLA should enable an expatriate to be able to purchase the same basket of goods and services in the host location as they could in their home country. The basis for calculating a COLA is the Cost of Living Index (COLI) which indexes the costs of the same basket of goods and services in different geographic locations. COLA is a simple accurate method of measuring fluctuating salary purchasing power and ensuring parity.

Cost of Living Index
Xpatulator's cost of Living Indexes measure the cost of 230 products and services across 13 different basket groups in 300 cities across the globe. The data is gathered by a team of research analysts who survey comparable items that are available internationally. A minimum of 3 prices for the same brand/size/volume of product is used to determine the average price for each item in each location. The items are priced on a quarterly basis and tend to rise and fall with inflation. The 13 different basket categories are as follows:

1. Alcohol & Tobacco: Alcoholic beverages and tobacco products
2. Clothing: Clothing and footwear products
3. Communication
4. Education
5. Furniture & Appliances: Furniture, household equipment and household appliances
6. Groceries: Food, non-alcoholic beverages and cleaning material
7. Healthcare: General Healthcare, Medical and Medical Insurance
8. Household Accommodation: Housing, water, electricity, household gas, household fuels, local rates and residential taxes
9. Miscellaneous: Stationary, Linen and general goods and services
10. Personal Care: Personal Care products and services
11. Recreation and Culture
12. Restaurants, Meals Out and Hotels
13. Transport: Public Transport, Vehicle Costs, Vehicle Fuel, Vehicle Insurance and Vehicle Maintenance

Each basket category does not count equally and are weighted in the final calculation based on expatriate spending patterns.

In order to calculate an accurate cost of living index for a specific individual the basket items that are not relevant to the individual should be excluded from the calculation. For example if education and housing is provided by the employer these basket categories would be excluded from the cost of living index calculation. This increases the accuracy of the cost of living index and makes it possible for each individual to have their own customized cost of living index based on their specific arrangements rather than using an overall “generic” index which is likely to contains costs that are not relevant to the individual.

In part 2 we discuss the formula for calculating the specific cost of living index for an international assignment.

Cost of living - Communication - October 2011

Cost of living rank of Communication cost of living indexes as at October 2011 for 300 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). The calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Communication costs include various communication costs such as home telephone rental and call charges, internet connection and service provider fees, mobile / cellular phone contract and calls.

Xpatulator.com is the most comprehensive source of international cost of living index information.

Premium Content Calculators:

Salary Purchasing Power Parity Calculator (SPPP): Download Demo SPPP Report

The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new SPPP report uses 1 credit ($99). Recommended for a detailed comparison of 2 locations.

Cost of Living Allowance Calculator (COLA): Download Demo COLA Report

The COLA report calculates how much additional allowance (over and above your current salary) you need to earn in another location to compensate for a higher cost of living, hardship and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new COLA report uses 1 credit ($99). Recommended for calculation of a cost of living allowance for short-term assignments.

Cost of Living Index Calculator (COLI) : Download Demo COLI Report

The COLI report calculates cost of living indexes for the host locations you select, using the home location you specify. You can choose from any one of the 13 baskets or you can choose the overall cost of living index. Each new COLI report uses 1 credit ($99) allowing you to choose 1 home location and up to 300 available host locations.Recommended for the calculation of 3 or more cost of living indexes using your choice of base city.

1 credit costs $99. Register, buy credits online and you can run the premium content calculators and receive your reports online within minutes.

The October 2011 communication international cost of living rank is as follows:

October 2011 Rank Country, City

1 Italy, Milan
2 Italy, Rome
3 Papua New Guinea, Port Moresby
4 Swaziland, Mbabane
5 New Caledonia, Noumea
6 Equatorial Guinea, Malabo
7 Vatican City, Vatican City
8 Latvia, Riga
9 Burkina Faso, Ouagadougou
10 San Marino, San Marino
11 Thailand, Bangkok
12 Cameroon, Douala
13 Gabon, Libreville
14 Solomon Islands, Honiara
15 Colombia, Bogota
16 Norway, Oslo
17 Germany, Munich
18 Peru, Lima
19 Germany, Frankfurt
20 Germany, Cologne
21 Togo, Lome
22 Cameroon, Yaounde
23 Monaco, Monaco
24 Germany, Berlin
25 Germany, Bonn
26 Germany, Hamburg
27 Kenya, Nairobi
28 Brazil, Sao Paulo
29 Slovakia, Bratislava
30 Liechtenstein, Vaduz
31 Saint Lucia, Castries
32 Spain, Madrid
33 Brazil, Rio de Janeiro
34 Botswana, Gaborone
35 Cape Verde, Praia
36 Spain, Barcelona
37 Bolivia, La Paz
38 Switzerland, Geneva
39 Estonia, Tallinn
40 Brazil, Brasilia
41 French Polynesia, Papeete
42 Cote DIvoire, Abidjan
43 USA, Boston Mass
44 China, Beijing
45 Uzbekistan, Tashkent
46 Austria, Vienna
47 Switzerland, Zurich
48 Canada, Toronto
49 Micronesia, Palikir
50 USA, Philadelphia Pa
51 Greece, Athens
52 Djibouti, Djibouti
53 Kiribati, South Tarawa
54 Cuba, Havana
55 Canada, Vancouver
56 Russia, Moscow
57 Gibraltar, Gibraltar
58 Croatia, Zagreb
59 Somalia, Mogadishu
60 Japan, Tokyo
61 Canada, Calgary
62 Bahamas, Nassau
63 Grenada, Saint Georges
64 Tunisia, Tunis
65 Azerbaijan, Baku
66 Nauru, Yaren
67 Kazakhstan, Almaty
68 Korea Democratic Republic of, Pyongyang
69 Canada, Montreal
70 Burundi, Bujumbura
71 Dominica, Roseau
72 France, Paris
73 Chile, Santiago
74 Marshall Islands, Majuro
75 Guinea-Bissau, Bissau
76 United Kingdom, London
77 Saint Vincent and the Grenadines, Kingstown
78 Oman, Muscat
79 Mali, Bamako
80 Pakistan, Lahore
81 Central African Republic, Bangui
82 Luxembourg, Luxembourg
83 Iceland, Reykjavik
84 Turkmenistan, Ashgabat
85 Canada, Ottawa
86 Mexico, Mexico City
87 Pakistan, Islamabad
88 Isle of Man, Douglas
89 Ireland, Dublin
90 Morocco, Rabat
91 Andorra, Andorra la Vella
92 Guernsey, St Peter Port
93 Pakistan, Karachi
94 Tuvalu, Funafuti
95 Netherlands, Amsterdam
96 Costa Rica, San Jose
97 Uruguay, Montevideo
98 Niger, Niamey
99 China, Wuhan
100 United Kingdom, Glasgow
101 Nepal, Kathmandu
102 China, Shenzhen
103 Falkland Islands, Stanley
104 USA, Detroit Mich
105 Vanuatu, Port Vila
106 Qatar, Doha
107 Guadeloupe, Basse-Terre
108 United Kingdom, Birmingham
109 Ethiopia, Addis Ababa
110 Eritrea, Asmara
111 Comores, Moroni
112 Moldova, Chisinau
113 Poland, Warsaw
114 China, Dalian
115 United Kingdom, Leeds
116 Lithuania, Vilnius
117 Guyana, Georgetown
118 Bangladesh, Dhaka
119 USA, Fort Worth Tex
120 Mozambique, Maputo
121 China, Shanghai
122 Jersey, Saint Helier
123 Saint Kitts and Nevis, Basseterre
124 Mauritania, Nouakchott
125 Russia, St. Petersburg
126 Bermuda, Hamilton
127 Maldives, Male
128 USA, Austin Tex
129 USA, St Louis MO
130 USA, Chicago Ill
131 Fiji, Suva
132 Saint Helena, Jamestown
133 France, Lyon
134 United Kingdom, Belfast
135 USA, Baltimore Md
136 Slovenia, Ljubljana
137 China, Guangzhou
138 France, Marseille
139 Palau, Melekeok
140 USA, Dallas Tex
141 USA, Seattle Wash
142 USA, Columbus Ohio
143 Sierra Leone, Freetown
144 Syria, Damascus
145 China, Tianjin
146 Japan, Osaka
147 Denmark, Copenhagen
148 Sweden, Stockholm
149 Antigua and Barbuda, Saint Johns
150 Cook Islands, Avarua
151 Congo Democratic Rep, Kinshasa
152 USA, El Paso Tex
153 Bulgaria, Sofia
154 USA, Houston Tex
155 Australia, Sydney
156 USA, Denver Colo
157 Samoa, Apia
158 Japan, Nagoya
159 USA, Charlotte NC
160 French Guiana, Cayenne
161 Honduras, Tegucigalpa
162 Armenia, Yerevan
163 Belgium, Brussels
164 USA, San Diego Calif
165 USA, Los Angeles Calif
166 Libya, Tripoli
167 Czech Republic, Prague
168 USA, San Antonio Tex
169 USA, Memphis Tenn
170 Australia, Canberra
171 USA, Milwaukee Wis
172 Greenland, Nuuk
173 Japan, Yokohama
174 Malaysia, Kuala Lumpur
175 Martinique, Fort-de-France
176 Lesotho, Maseru
177 Guam, Hagatna
178 USA, Atlanta GA
179 Puerto Rico, San Juan
180 Australia, Perth
181 Bosnia and Herzegovina, Sarajevo
182 USA, Portland Ore
183 Australia, Melbourne
184 Albania, Tirana
185 Laos, Vientiane
186 Chad, NDjamena
187 Kosovo, Pristina
188 Brunei, Bandar Seri Begawan
189 USA, Jacksonville Fla
190 USA, Washington DC
191 Argentina, Buenos Aires
192 Kyrgyzstan, Bishkek
193 Paraguay, Asuncion
194 Indonesia, Jakarta
195 Egypt, Cairo
196 USA, Pittsburgh Penn
197 Saudi Arabia, Riyadh
198 USA, New York NY
199 New Zealand, Auckland
200 China, Hong Kong
201 USA, San Francisco Calif
202 USA, Cleveland Ohio
203 USA, Tampa Fla
204 Korea Republic of, Seoul
205 Australia, Brisbane
206 USA, Miami Fla
207 Northern Mariana Islands, Saipan
208 Bhutan, Thimphu
209 Rwanda, Kigali
210 USA, Anchorage AK
211 USA, Phoenix Ariz
212 Australia, Adelaide
213 Timor-Leste, Dili
214 Macedonia, Skopje
215 Jordan, Amman
216 Cayman Islands, George Town
217 Palestinian Territories, West Bank
218 Barbados, Bridgetown
219 Iraq, Baghdad
220 Lebanon, Beirut
221 South Africa, Johannesburg
222 Portugal, Lisbon
223 Hungary, Budapest
224 Suriname, Paramaribo
225 Montenegro, Podgorica
226 Madagascar, Antananarivo
227 El Salvador, San Salvador
228 Vietnam, Hanoi
229 Saudi Arabia, Jeddah
230 Zambia, Lusaka
231 Ecuador, Quito
232 Philippines, Manila
233 Dominican Republic, Santo Domingo
234 South Africa, Cape Town
235 Vietnam, Ho Chi Minh City
236 South Africa, Pretoria
237 Yemen, Sanaa
238 Sri Lanka, Colombo
239 Haiti, Port-au-Prince
240 Turkey, Istanbul
241 South Africa, Durban
242 USA, Las Vegas Nev
243 Malawi, Lilongwe
244 Nigeria, Lagos
245 Serbia, Belgrade
246 Mauritius, Port Louis
247 Israel, Jerusalem
248 Senegal, Dakar
249 Mongolia, Ulaanbaatar
250 Romania, Bucharest
251 Georgia Republic of, Tbilisi
252 Taiwan, Taipei
253 Guatemala, Guatemala City
254 Kuwait, Kuwait City
255 Turkey, Ankara
256 Congo, Brazzaville
257 Namibia, Windhoek
258 Sudan, Khartoum
259 Benin, Cotonou
260 Bahrain, Manama
261 Malta, Velletta
262 Nicaragua, Managua
263 Finland, Helsinki
264 Myanmar, Yangon
265 Liberia, Monrovia
266 USA, Indianapolis Ind
267 Zimbabwe, Harare
268 Seychelles, Victoria
269 Afghanistan, Kabul
270 Trinidad and Tobago, Port-of-Spain
271 Belize, Belmopan
272 Singapore, Singapore
273 Algeria, Algiers
274 Ukraine, Kiev
275 Cambodia, Phnom Penh
276 Angola, Luanda
277 Sao Tome and Principe, Sao Tome
278 Cyprus, Nicosia
279 Panama, Panama City
280 Tonga, NukuAlofa
281 China, Macao
282 Venezuela, Caracas
283 Jamaica, Kingston
284 Uganda, Kampala
285 Belarus, Minsk
286 Tajikistan, Dushanbe
287 India, Mumbai
288 United Arab Emirates, Dubai
289 United Arab Emirates, Abu Dhabi
290 Guinea, Conakry
291 Ghana, Accra
292 India, Chennai
293 India, New Delhi
294 India, Calcutta
295 India, Hyderabad
296 India, Bangalore
297 Gambia, Banjul
298 USA, San Jose Calif
299 Tanzania, Dar es Salaam
300 Iran, Tehran

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