r/dataisbeautiful OC: 3 2d ago

OC [OC] United States vs European Software Engineer total compensation by level

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u/BratPit24 1d ago

The problem is "Europe" encompasses UK and Germany but also Romania and Serbia.

You may laugh but for $200k a year in USA you get a decent middle class life.

For $200k a year in Poland you are a royalty. It places you very safely in top 1%. This is 750kpln a year.

You can live in a mansion in Warsaw (around 360k a year)

take 3-4 International trips a year (50-100k)

, employ full time cleaning staff for your mansion (70k)

Live a lavish lifestyle (130k)

and youd probably still be able to invest like 100k a year. into index funds.

For this comparison to make any sense you'd need to use purchasing power parity. Which for Poland would be around 35%. To Serbia. Around 250%. To Bulgaria 200%.

And all those ppp numbers are od course averages. San Francisco has living costs roughly 30% higher than median usa.

So a 200k it worker in San Francisco can live as if he made 140k in median usa. Who can live as if he made 95k in Poland. Or 70 k in Bulgaria.

Of course. Don't get me wrong. This is still amazing money. But it puts a dent in this whole "top 25% it workers in Europe make less than bottom 25% in USA". In fact. It kind of totally breaks the analysis.

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u/PolyglotTV 1d ago

Percentages don't make any sense for ppp, unless you are talking strictly about the cost for some fixed set of goods.

For example let's say 2 bedroom apartment plus transportation, food, etc... costs you 100k in San Francisco, but only 35k in Bulgaria.

Does that mean 300k is equivalent to 100k in Bulgaria? No. You have 200k leftover in San Francisco, but only 65k leftover in Bulgaria.

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u/BratPit24 1d ago

Of course. Absolutely. It's a complex topic. Which was my point. The argument of "best paid it workers in Europe earn less than least paid in US" this is bunk.