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-   -   Why are salaries in the UK so ... low ... compared to Aus? (https://britishexpats.com/forum/moving-back-uk-61/why-salaries-uk-so-low-compared-aus-876420/)

jasey Apr 24th 2016 12:30 pm

Why are salaries in the UK so ... low ... compared to Aus?
 
In Aus, average salaries in the digital space are around $100-130k and often $140/$150k too.

In the UK, the same jobs are in the £35-40k range, which is $65-$85k. That's almost half of what you can earn in Aus.

How do people manage to work and live and commute and save in London at £35k, when it's hard enough doing so at double the salary in Sydney? Is London cost of living HALF that of Sydney's? The rents aren't much cheaper, that's for sure.

Or am I missing something?

TrishP Apr 24th 2016 12:46 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by jasey (Post 11930787)
In Aus, average salaries in the digital space are around $100-130k and often $140/$150k too.

In the UK, the same jobs are in the £35-40k range, which is $65-$85k. That's almost half of what you can earn in Aus.

How do people manage to work and live and commute and save in London at £35k, when it's hard enough doing so at double the salary in Sydney? Is London cost of living HALF that of Sydney's? The rents aren't much cheaper, that's for sure.

Or am I missing something?

You have to calculate cost of living using costs of goods and services as a percentage of your total overall take-home pay - you can't just compare numbers after the currency symbol.

christmasoompa Apr 24th 2016 1:47 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 
I've no idea what somebody 'in digital space' does, but are you sure about the London salaries? That seems rather low for any kind of professional salary - even a legal secretary will earn that or more in London!

scrubbedexpat100 Apr 24th 2016 2:13 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by jasey (Post 11930787)
In Aus, average salaries in the digital space are around $100-130k and often $140/$150k too.

In the UK, the same jobs are in the £35-40k range, which is $65-$85k. That's almost half of what you can earn in Aus.

How do people manage to work and live and commute and save in London at £35k, when it's hard enough doing so at double the salary in Sydney? Is London cost of living HALF that of Sydney's? The rents aren't much cheaper, that's for sure.

Or am I missing something?


I assume it would depend on which profession you are in? Some could be paid more in UK and visa versa? I've read on here, and other forums of salaries being higher in both countries.

How do people manage? That would depend on the level of their (if any) debt, outgoings etc... Living/saving can be hard in any country.

Novocastrian May 3rd 2016 9:28 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by christmasoompa (Post 11930831)
I've no idea what somebody 'in digital space' does, but are you sure about the London salaries? That seems rather low for any kind of professional salary - even a legal secretary will earn that or more in London!

The digital space is the bit between the fingers in a **** off sign.

Bermudashorts May 4th 2016 2:07 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by jasey (Post 11930787)
In Aus, average salaries in the digital space are around $100-130k and often $140/$150k too.

In the UK, the same jobs are in the £35-40k range, which is $65-$85k. That's almost half of what you can earn in Aus.

How do people manage to work and live and commute and save in London at £35k, when it's hard enough doing so at double the salary in Sydney? Is London cost of living HALF that of Sydney's? The rents aren't much cheaper, that's for sure.

Or am I missing something?

I think you are missing something. Some occupations may pay more, some less, a lot will be much the same.


Originally Posted by christmasoompa (Post 11930831)
I've no idea what somebody 'in digital space' does, but are you sure about the London salaries? That seems rather low for any kind of professional salary - even a legal secretary will earn that or more in London!

Agree. I know "ordinary" (non legal) personal assistants that were earning £50k in London ten years ago. That a professional could only command a salary of £35k in London seems extraordinary to me.

Moses2013 May 4th 2016 7:18 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by jasey (Post 11930787)
In Aus, average salaries in the digital space are around $100-130k and often $140/$150k too.

In the UK, the same jobs are in the £35-40k range, which is $65-$85k. That's almost half of what you can earn in Aus.

How do people manage to work and live and commute and save in London at £35k, when it's hard enough doing so at double the salary in Sydney? Is London cost of living HALF that of Sydney's? The rents aren't much cheaper, that's for sure.

Or am I missing something?


Not all salaries in the digital space will be that high in Australia and if it was the case, the recession would be even closer. Why on earth would you pay that much money, if the same work could be done elsewhere for a lot less?




I don't know how people in London live when they are on £40K, but it's reality for many people, however you also have plenty earning way way more. It could also be the case that more people now own their home outright than have a mortgage (according to data), so people are financially better off.




As you can see, a graduate software developer might only get £25K, but a PHP Developer might get £60K


It jobs in London - reed.co.uk




A lot of things will be cheaper in the UK, so maybe in OZ you pay $5 for some bread, but in the UK it might be a £1. The more competition you have, the lower salaries are and that means the rich get richer and the poor get poorer (Best examples are the UK, Germany, USA).

niki723 Nov 20th 2016 1:18 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 
I've noticed similar things when looking for jobs- a postdoctoral researcher will earn at least 80k pa anywhere in Australia (in Sydney, it's over 90k), while in England, you're looking at 28-35k.

verystormy Nov 20th 2016 6:11 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by niki723 (Post 12109438)
I've noticed similar things when looking for jobs- a postdoctoral researcher will earn at least 80k pa anywhere in Australia (in Sydney, it's over 90k), while in England, you're looking at 28-35k.

Cost of living difference.

I earn now less than half of what I earned in Oz, but a, financially better off.

niki723 Nov 20th 2016 1:32 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by verystormy (Post 12109520)
Cost of living difference.

I earn now less than half of what I earned in Oz, but a, financially better off.

Yes and no. a 30k salary would be fine outside of London, but won't get you far if you're working at a university or research centre in Central London- you'd either have to live with flatmates, or live further away from work. Considering the amount of time and effort it takes to get a PhD, it's pretty disheartening to see that it's only earning you an extra 4k per year in the UK, vs. an extra 20-30k per year in Australia.
In comparison, 80k in Melbourne would allow you to live alone in a central area, and still have a very good standard of living.

spouse of scouse Nov 20th 2016 8:45 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by niki723 (Post 12109711)
Yes and no. a 30k salary would be fine outside of London, but won't get you far if you're working at a university or research centre in Central London- you'd either have to live with flatmates, or live further away from work. Considering the amount of time and effort it takes to get a PhD, it's pretty disheartening to see that it's only earning you an extra 4k per year in the UK, vs. an extra 20-30k per year in Australia.
In comparison, 80k in Melbourne would allow you to live alone in a central area, and still have a very good standard of living.

I know these things vary greatly, but I'd say that a taxable income of $80,000 while living in central Melbourne city would give you an ok standard of living, but not a great one.

On the 2015/2016 ATO income rates, you'd have around $1,170 per week after paying income tax and the Medicare levy. $400 per week would get you a rather ordinary and small 1 bedroom rented flat, you'd pay more for something nicer/bigger (think $650 for a decent 2 bed 1 bathroom). Even if you only paid $400, you'd have under $800 per week to pay for everything else. When you consider that you wouldn't get much change out of $200 for dinner and drinks for two at a decent (not fine dining) restaurant, you wouldn't be living high off the hog on $800 per week.

You'd be able to cover the basics, but there wouldn't be much over for holidays, restaurants/pubs/clubs, theatres/concerts, etc - the things that a lot of people see as indicative of a very good standard of living.

niki723 Nov 21st 2016 1:06 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 
Of course, everyone's standard of living varies- as a student in Melbourne, I would have felt like a queen on 80k :rofl:

I do think that 80k in Melbourne goes substantially further than 30k in London, however. Not many people live in the centre of Melbourne; most people I know live in very close, trendy suburbs like Fitzroy, Brunswick, Northcote etc., where you'd get a decent one bedroom flat for $400pw or less. As a comparison, I was paying $335pw for a 2 bedroom house (granted, not a great one) in Preston (about 8km to the city centre)- not likely in London.

verystormy Nov 21st 2016 5:01 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 
The OP is not a student and expecting a student life. They are a professional - post doc researcher.

christmasoompa Nov 21st 2016 10:39 am

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by verystormy (Post 12110128)
The OP is not a student and expecting a student life. They are a professional - post doc researcher.

They also started this thread in April, and haven't been on the forum for over 6 months, so I'm not sure why the thread has been resurrected! Niki723, you can check to see the date something has been posted on the top left of it so that you can see if it's a current thread or not.

Thx.

niki723 Nov 21st 2016 12:49 pm

Re: Why are salaries in the UK so ... low ... compared to Aus?
 

Originally Posted by christmasoompa (Post 12110296)
They also started this thread in April, and haven't been on the forum for over 6 months, so I'm not sure why the thread has been resurrected! Niki723, you can check to see the date something has been posted on the top left of it so that you can see if it's a current thread or not.

Thx.


Thanks, I'll keep an eye out next time.

Also, verystormy- the OP did not mention being a postdoc, and the comment about being a student was in regards to how everyone's idea of a good standard of living varies.


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