Hello r/personalfinance,
I actually just created my account especially to post my question, because I reckon you could help me with information. Where, if not on reddit, with it's infinite wisdom about so many things ;)
TL,DR: Got a job offer from Sweden, below my current salary. What would you advise?
Quick background: I'm 30 years old, from Germany, work as a design/development engineer in the automobile industry in the south-western part of Germany (heavy commercial vehicles more specifically), professional experience 3,5 years, master's degree (Dipl.-Ing.) from a renowned technical university in Germany.
Earlier this year I started applying for jobs outside of Germany, because I want a change and find the idea of living/working abroad appealing and exciting. Last week I got an offer from a large company near Stockholm, Sweden. The position would be in the exact same field I'm working in now, so my professional experience is directly applicable. So, naturally, I'm happy about this, in general.
But, there is a downside: They've offered me a salary below what I currently earn. It's roughly 60% of my current salary, if I compare both numbers (before taxes). I was surprised when I heard that number. For several reasons, I've expected a higher salary.
Their argument for making me an offer below my current salary was, that in Sweden wages are lower compared to Germany, and their offer is based "on my market value".
My key questions:
- Where can I find information about how to assess my "market value" in Sweden?
E.g. in Germany the unions publish wage tables, which offer good orientation. I haven't found something like this for Sweden yet. Without further information, I feel like I can't really verify their argument, and just would have to take their word for it. - My web-research has actually led me to believe that the cost of living in Sweden is higher compared to Germany, ca. 22% higher. Also, higher VAT (Germany: 19%, Sweden: 25%). First conclusion from that is that my pay would have to be higher to maintain my standard of living.
But then, the tax systems are different, so for standard of living I would also have to compare my salary after taxes.
It's hard to find reliable information about the exact amount of deductions each months in Sweden, and what is included in these deductions.
E.g. in Germany, deductions are PAYE, so each month my employer automatically deducts from my income: income tax, solidarity surcharge, pension insurance, unemployement insurance, health insurance, and finally nursing care insurance. All in all, 43% of my gross income are deducted, only 57% make it into my pocket.
How exactly does this work for Sweden? I've found these tables from the Skatteverket that tell you, which amount goes away each month, depending on where you live. https://www.skatteverket.se/privat/skatter/arbeteinkomst/vadblirskatten/skattetabeller.4.18e1b10334ebe8bc80005221.html#!/start
Which deductions are covered by that amount (compared to my German deductions), and which extra deductions I would have to expect on top of that?
Thank you for your patience reading through that post. I'm looking forward to your replies!
Submitted July 07, 2018 at 07:21AM by bestengineerever https://ift.tt/2zeyCt3
