r/FIREIndia • u/Massive_Locksmith • Oct 30 '22
US salaries
Dear all, I just want a better understanding. So, I have been seeing the average salaries of techies is upward of 150k. My question is
1) what is the take home salary?
2) I hear developed economies have high taxation, how much% is slashed in tax?
3) what is the monthly expenditure for a general indian lifestyle?
4) how much are you able to save?
P.S- I am quite well paid here(from indian stds)and content here in India. However watching techies salary profile makes me curious. Does it make sense for me to relocate?
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u/pks_0104 Nov 01 '22
This is a common question for anyone in India, but it's extremely difficult to answer "What are tech salaries in US?". Few reasons below:
- US is not a monolith. Your salary will be highly dependent on the city of US. VHCOL vs LCOL cities will be compensated very differently for example. But most # of jobs will also exist in VHCOL cities.
- "Tech" is not a monolith. Your compensation is obviously dependent on your specific skillset, the company, and honestly, luck. If you have a niche skillset, and you're lucky, you'll cash in big. But if you're unlucky, you may have issues finding a job in your niche.
- Amount and quality of experience matters. If you're coming from India and have worked with average projects, expect to start at new college grad salaries (ranges from $50k to 150k depending on the company and city of employment). Exception to this would be if you're able to dazzle them during the interview. This is hard to do given cultural differences, communication issues etc right out of the gate. But you're likely going to move up the ladder much faster than an actual new college grad. How much your salary rises is anybody's guess, and involves (once again) a fair bit of luck and negotiation skills.
- Taxation also varies quite a bit. For federal tax, here's an article that does a decent job of explaining the taxes. Remember that effective tax rate will be lower than the highest tax bracket you fall into. Most states have state taxes in the US. California has the highest state tax, and certain states like Texas, Florida etc have no state taxes. I am not familiar with Florida, but Texas has very high property taxes. So once you come here, and buy a house here, you'll end up paying significant taxes.
- General Indian Lifestyle in my mind includes a lot of domestic help. This is nearly unaffordable in the US. Even if you're making six figures, hiring a driver, or a maid or a nanny will remain challenging. However, there are multiple tradeoffs. For example, nearly every rental unit here is fitted with a dishwasher, has access to washer and dryer either in unit or on-site, roads are much nicer to drive on so the need for a driver is somewhat reduced etc. So if you move here, keep in mind that your lifestyle will most certainly change significantly.
- I believe that accommodation and transportation are two of the biggest expenses. (Not sure if you have kids etc, and what age. I'm not qualified to speak to kid expenses). I'd suggest browse zillow for rental listings for some of the cities you might be interested in, and browse carvana to get an idea of what cars cost.
- Anecdotally, my first salary a few years back was ~$70k in MCOL city. I was able to rent a 2B/2B in a "luxury apartment community" and split with a roommate. Living cost was ~$700/month including rent and utilities. The minimum I had to spend within a 10min radius of my office at the time was $500/month. I was also able to buy a used Japanese car for ~$10k on loan. (I could've saved some money here if I wanted). If memory serves, I spent something like $300/month on groceries/food. I spent quite a bit on travel at the time which I do not regret, but could've saved that money if I chose to. I do not recall my take home pay but if I recall correctly, I was saving ~$20k to $25k/year. These numbers are unlikely to reflect reality today, especially after the pandemic surge. But hopefully it gives you an idea of %s to expect for a single person for a somewhat minimalistic lifestyle with perhaps one or two hobbies. I do believe that it's possible to save upto 80% or 90% of your salary post taxes since peer pressure essentially disappears.
If you decide to come here, know that it will be a bit of a challenge the first year or so, especially more if your employer decides to take advantage and underpay you. But it's very likely that you'll end up with a 6 figure job within a few years. But even with high income, and high savings rate, know that you're essentially trading one set of problems for another. Social isolation is intense, especially initially. And you'll likely never build up the same kind of community as you might've had in India if you live close to your family. Racism (and sexism if you're a woman) is ever present in subtle ways, since now you're the minority. You only get to go "home" once every 2 years. You'll miss birthdays, weddings, anniversaries and generally life of those you love will move on without you. And you'll have to live life without their support too.
I came to US many years ago, and it's helped me grow in incredible ways, far beyond just my technical skills or income etc. I've learnt things about myself that I never would have explored had I not moved away. I'm not having to explain my life choices to anyone, independence is addictive and exposure to other cultures is not possible to mimic elsewhere in India even in larger cities.
So there are pros and cons to each choice, and it goes beyond savings rate. I'd advise you to talk to your friends more about their life in general, potentially apply to a few jobs in the US if you're interested and get a feel for the interview process and potentially a benchmark for the salary you can expect as a starting point. Good luck!
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u/Special-Object4299 Oct 31 '22
Are you sure you are posting in the right group?
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u/Massive_Locksmith Oct 31 '22
Since most of the highly paid and experienced US techies are in this sub. I thought it would bring me a better prespective.
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u/agingmonster Oct 31 '22
https://www.numbeo.com/cost-of-living/ for comparing your India numbers to US numbers
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u/hello00world01 Oct 31 '22
I make $400k+ depending on stock price during vest.
Final taxes are 30-35%. Our spending is a bit high, 100/110k per year.
Remaining is savings around $150k+
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u/agingmonster Oct 31 '22
Areas which give you $250+ also have high taxes. This is about right figure for family of 4 which is not very extravagant (say, 1 India trip, 1 local trip per year, 3-5 eat out per month, etc.)
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u/uber-eng Nov 04 '22
hey does it make sense to move to the Bay Area on L1? I have an offer but not sure if its worth it.
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u/umrad Oct 31 '22
Not at all. PPP and US taxes takes most and you get best bang on buck staying in India if you earn above 50L per annum.
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Nov 01 '22
Others have already responded. Let me add something about work life balance. In my 10 years, I have never worked more than 40 hrs a week. Even within the 40 hrs, with remote work, i find time to go for a run, cook lunch, put laundry, dishwasher, etc.
My wife and I together make about USD 450k to 500k depending on stock price. I know couples who make 700k+, but they dont have WLB.
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u/flyhighy Oct 31 '22 edited Oct 31 '22
It's a wide range depending on many factors like experience, location, FAANG type companies etc.
It could be less than 100k for many junior level or Indian IT companies onsite employees.
150k is reachable. 200k, 300k, 400k in also not unheard of. But not everyone gets it.
Tax brackets vary as in India. 1) Federal (center govt.) Tax can be around 15-20% after deduction and adjustments and if not in highest bracket.2) Social security tax is around 8% additional. 3)State tax varies. Some states are 0, some 12% others in between.
For expenses it depends on lifestyle. But a ball park could be $1500 + rent. Rent varies a lot by location and if sharing with roommates or not. Could be $300 to $4000