# Salary compensation to work in the US



## avocati (Sep 4, 2008)

hi guys, need help in making my decision before accepting a job offer.
I am currently working in europe,and recently got an offer from a company in the US. Was very excited about it,until i started negotiating the salary. The best offer they can give is around 10% lower than my current. Is it normal for american companies to hire europeans with lower salary based on the assumption that living cost and taxations are lower in the us? Can someone please help me out here.

p/s: i;m an engineer with 8 years experience.


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## Fatbrit (May 8, 2008)

avocati said:


> hi guys, need help in making my decision before accepting a job offer.
> I am currently working in europe,and recently got an offer from a company in the US. Was very excited about it,until i started negotiating the salary. The best offer they can give is around 10% lower than my current. Is it normal for american companies to hire europeans with lower salary based on the assumption that living cost and taxations are lower in the us? Can someone please help me out here.
> 
> p/s: i;m an engineer with 8 years experience.



It's perfectly normal for US employers to ride roughshod over you, yes.

You need the full deal:
relocation expenses, salary, bonuses, 401k matches, health insurance, vacation time, agreement about who's paying for visa costs and subsequent status changes and also the timetable for this, repatriation costs if necessary, etc.

And it all needs to be in writing. If they're interested, now is the only time you have them by the short and curlies -- make the most of it.

You don't make much mention of where you're going to be living. Costs in rural Alabama cannot be compared with, for example, San Diego.


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## avocati (Sep 4, 2008)

Fatbrit said:


> It's perfectly normal for US employers to ride roughshod over you, yes.
> 
> You need the full deal:
> relocation expenses, salary, bonuses, 401k matches, health insurance, vacation time, agreement about who's paying for visa costs and subsequent status changes and also the timetable for this, repatriation costs if necessary, etc.
> ...


yep,pretty much got all the deal mentioned above. But still it doesnt match to what i'm earning at the moment.My biggest concern is my future prospect, took me all these years to get to this level, and finally managed to break thru the US job market (which is extremely hard unless you're an Indian IT specialist) but when it comes to the money,it just seems unpalatable. I just cant imagine how long it would take me to get back that 10% if i accepted this offer. Anyways,thank you for your advice dear sir fatbrit.And further assistance regarding this matter would be highly appreciated. 
Almost forgot to mention that this future employer would be in oregon.


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## Fatbrit (May 8, 2008)

See how you compare here: PayScale

One thing to note is that there is no job security here. If you're leaving a job in Europe where there is a lot of worker protection, it's another thing to take into consideration.


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## synthia (Apr 18, 2007)

Europe and America are pretty big places. If you are moving from London to almost anywhere, you should be fine, and if you are moving from London to Columbus, Ohio, you'll be doing fantastically well. If you are moving froma small city in France to New York City, that's another issue altogether.


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## avocati (Sep 4, 2008)

synthia said:


> Europe and America are pretty big places. If you are moving from London to almost anywhere, you should be fine, and if you are moving from London to Columbus, Ohio, you'll be doing fantastically well. If you are moving froma small city in France to New York City, that's another issue altogether.


I totally agree with that. And with the current offer i;m getting,it still seems pretty generous, all the benefits, sponsored visa and 5 weeks of vacation (which seems quite rare after i read others experience in this forum). But for this future employer to offer me less than my current income, i just dont get it. Imagine if you;re already earning 100k usd working in europe, and by accepting a job offer in the us,you have to settle with 10% lower than you;re getting now. That is bad career prospect, do correct me if i;m wrong.


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## RICHNTRISH (Jun 4, 2008)

avocati said:


> I totally agree with that. And with the current offer i;m getting,it still seems pretty generous, all the benefits, sponsored visa and 5 weeks of vacation (which seems quite rare after i read others experience in this forum). But for this future employer to offer me less than my current income, i just dont get it. Imagine if you;re already earning 100k usd working in europe, and by accepting a job offer in the us,you have to settle with 10% lower than you;re getting now. That is bad career prospect, do correct me if i;m wrong.


Surely it all depends on the cost of living where you are now compared to the cost of living in Oregon ?
If you are earning 10% less but your cost of living is 25% less in the new location (all figures for example) then surely in real terms you have a 15% pay increase ? no ?


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## avocati (Sep 4, 2008)

RICHNTRISH said:


> Surely it all depends on the cost of living where you are now compared to the cost of living in Oregon ?
> If you are earning 10% less but your cost of living is 25% less in the new location (all figures for example) then surely in real terms you have a 15% pay increase ? no ?


nope. i did all the calculations and at this level, the cost of living is pretty much the same. As fatbrit mentioned before, its common for american employers to offer lower salary when hiring. And if they can justify that, rather than telling me that my nett income will be much more, there is just no good reason for me to move.
Should i conclude that it is normal for american employer to not match my current income???thats the big question...


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## twostep (Apr 3, 2008)

It is called demand and supply and a free economy. 
The job market has changed since the sub-prime crash and this has also affected the IT sector. 
In case no one has read this morning's news amongst others GMAC Financial is closing 200 offices laying off 5k. This means sales; back office and support on the West Coast.


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## synthia (Apr 18, 2007)

If you had been given the same dollar offer a few years ago, when the euro was only at $1.38, you would be getting more. It really is very dependent on the exchange rate, and if the dollar gains in the time you are here, your salary could end up looking pretty good. Besides, won't you get raises? No one is going to ask what you were making when you started, and they will have no way of checking, anyway. American employers are not allowed to give out salary information without your written consent, and if you give it, all they can do is verify that your current salary falls within a range.

I did take a salary cut, as a matter of fact. I took a job in South Africa that paid less than I was making in the US. But I was able to afford rent on a three bedroom house with a pool, a maid (twice a week, though I could have had one full time if there would have been anything for her to do), travel all over the area during my six weeks vacation each year, and save enough to pay for an overland trip to London, five weeks in London, four months of travel in the US, and set up costs when I went to work.

By the time I started to look for work, the rand had fallen a great deal, and on paper it looked as if I had taken a pay cut of nearly 35%. I had trouble finding work, too, but the salary didn't figure into it. It was working in a far-off country where people didn't even think they had computers (this was in 1985), an unpopular country, and worst of all, taking a year off to travel that made it hard to find a job.


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## Tiffani (Dec 4, 2007)

a better idea is to look at the cost of living, not just the salary. But like the other said, your perks may not be so great as they are back home, and job security is practically non-existent in the US


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## COWA (Mar 11, 2009)

*Try to get a European contract!!!!*

Hi
I would always advise you to look for an expatriate status. So try to find a European company (job chances should be great as an engineer with experience) that sends you over to the US. 
Advantages:
higher salary (if not, the points below will definitely rise your net income) 
housing allowance
school allowance for the kids
all the benefits like health insurance and socuial security are paid for in Germany
lower taxes 
secured return to Europe 
home flights for free
free english lessons for spouse/ partner
automatic visa process
paid move
sometimes companies also provide help with the move through relocation companies, which is great as they support you with all administrative and social stuff throughout your whole move.

Good luck
Teresa
COWA relocation Detroit





avocati said:


> hi guys, need help in making my decision before accepting a job offer.
> I am currently working in europe,and recently got an offer from a company in the US. Was very excited about it,until i started negotiating the salary. The best offer they can give is around 10% lower than my current. Is it normal for american companies to hire europeans with lower salary based on the assumption that living cost and taxations are lower in the us? Can someone please help me out here.
> 
> p/s: i;m an engineer with 8 years experience.


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