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By Fritzi Roth (More) • Last updated on October 09.05.2016, XNUMX • First published on 09.05.2016/XNUMX/XNUMX • So far 6376 readers, 2670 social media shares Likes & Reviews (5 / 5) • Read & write comments
When it comes to remuneration, not only is a full wage packet decisive, but also what employees expect from theirs salary can afford. A study has made the standard of living in Europe comparable on the basis of salary information and consumer prices. Despite slightly below-average nominal wages, Germany ranks third.
When it comes to remuneration, a full wage packet is not the only decisive factor. What matters is that employees can also afford things that the Quality of life increase. For the average Otto consumer, the difference between net income and the price level is more important than the pure nominal wage.
In the current study “Which Countries in Europe Offer the Best Standard of Living?” Therefore, Glassdoor Economic Research in cooperation with Llewellyn Consulting not only examined salaries but also the cost of living. Based on this, a value was determined that makes the national standard of living internationally comparable. 18 European countries were examined. According to the results, the standard of living is only higher in Switzerland and Denmark than in this country. In a transatlantic cross-comparison, the Federal Republic is just ahead of the USA. The study results are based on OECD and Numbeo data.
If you only look at the nominees, there are considerable differences within Europe. With around 44.000 Euro, Germany is slightly below the average in the middle of the European market - behind the UK and France. Switzerland is the first place in the world: the average nominee pay is nearly five times higher for 72.000 Euros with the Swiss than with the light of Estonia (13.000 Euro).
One way to determine the differences in price levels across different countries is to analyze the cost of living in each country's largest metropolitan area. In addition, Glassdoor has consumer prices – that is Costs for groceries, restaurants, transportation, public utilities as well as the Value-added tax – compared and combined into an index value.
The top places are two cities in Switzerland, Geneva and Zurich. These two large cities are even more expensive than New York (3 percent or 1 percent). In third place, London, the metropolis with the highest rents in Europe. The most expensive German cities after Munich are Hamburg and Munich, which are only in the middle of Europe.
By linking the income (according to income tax) with the price level (including value added tax), it is possible to derive a local value based on purchasing power based on the standard of living. In this comparison, Germany ranks third in Europe, although it is not among the top-ranked countries in terms of average salaries according to purchasing power.
This means that the average worker earns more money in other countries, but can make an above-average contribution on the basis of lower living costs. The standard of living in Germany is comparable to that of Sweden, the Netherlands, Finland and Norway. Europe, Portugal, Greece and Estonia are the most important.
Fritzi Roth is Product Specialist at Glassdoor DA-CH. She has been with Glassdoor in California since January 2016 and is the Product Specialist responsible for the German-speaking markets. Born in Berlin, she has lived in the USA since 2014. There she previously worked as a consultant for market entry strategies at the German-American Chamber of Commerce in Atlanta and at the German Society for Foreign Trade and Location Marketing in Washington DC. More information at www.glassdoor.de All texts by Fritzi Roth.
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