Monday, May 31, 2010

Clothing International Cost of Living Rank

This report provides you with the rank of Clothing cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Clothing costs include clothing and footwear products such as business suits, casual clothing, children’s clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear.
This report provides you with the rank of Clothing cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Clothing costs include clothing and footwear products such as business suits, casual clothing, children’s clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear.

Greenland, Nuuk Cost of Living April 2010

Country Full Name: Greenland. Status: Self-governing part of Denmark.

Location: Greenland (part of the Kingdom of Denmark) is in Northern North America, an island between the Arctic Ocean and the North Atlantic Ocean, northeast of Canada.

Country Climate: Arctic to subarctic; cool summers, cold winters.

Country Terrain: Flat to gradually sloping icecap covers all but a narrow, mountainous, barren, rocky coast.

Major Languages: Greenlandic, Danish.

Major Religions: Christianity.

Country Population: 0.058 million (2008 est.) 0.058 million (2009 est.).

Country Economy: The economy og Greenland remains critically dependent on exports of fish, whaling and textiles and substantial support from the Danish Government, which supplies about half of government revenues. The public sector, including publicly-owned enterprises and the municipalities, plays the dominant role in the economy.

Currency: Danish krone (DKK).

Country Inflation: 9.4% (2008)est.).

City: Nuuk is the capital and largest city of Greenland.

City Economy: Nuuk is one of the smallest capital cities in the world by population.
Cost of Living: Nuuk has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Nuuk is currently ranked 14 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Greenland, Nuuk

Miscellaneous International Cost of Living Ranking

This report provides you with the rank of Miscellaneous cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Miscellaneous costs include stationary, linen and general goods and services such as domestic help, dry cleaning, linen, office supplies, newspapers and magazines, and postage stamps.
The April 2010 miscellaneous international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Central African Republic, Bangui
2 Eritrea, Asmara
3 Norway, Oslo
4 Guinea-Bissau, Bissau
5 Finland, Helsinki
6 New Caledonia, Noumea
7 United Kingdom, London
8 Cape Verde, Praia
9 Denmark, Copenhagen
10 Qatar, Doha


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Expatriate Engagement

Engagement is a fairly recent term in business. In the past the talk was about “attracting, motivating and retaining” expatriate employees. All three strategies focused primarily on money. A competitive salary that takes into account the relative cost of living, exchange rate and hardship together with global expatriate benefits such as longer vacations, flights home, private school, club membership and the like were typically used to “attract” expatriates to where their skills were needed most. Bonuses, performance based pay, and recognition plans were used to “motivate” expatriates. Shares, retirement plans and tax-free gratuities were typically used to “retain” expatriates using the so-called golden handcuff approach.
The financial crises and recession have in my view provided further proof that money alone is not enough. When money gets tight will your expatriate employees stay and will they be motivated? Money on it’s own will not motivate or retain an expatriate when annual salary increases are reduced, bonuses are negligible if they are paid at all and shares are not performing.
To ensure expatriates will stay when times get tough, an engaged expatriate is required. An engaged expatriate is one who is committed to the organization (i.e. the host organization). An engaged expatriate is willing to exert extra effort in accomplishing tasks important to the achievement of the organizations goals.

Recruitment and Promotion
Ensuring that expatriates are put in the right job is a prerequisite for engagement. In reality expatriates are often hired because their skills are not locally available and because they are willing to relocate to a location that most people would not want to live in. As a result expatriates are often hired for their technical skills and not for their behavior, which in their home country would have been closely analyzed and subject to rigorous reference checking. It is critical that the right expatriate is recruited into the right job taking all aspects into account, including personality, age, culture, attitude, and previous track record through quality reference checks.

High Performance Standards
Average performance is usually associated with easy, low demand work. Responsibilities and accountabilities need to be well defined with clear perceptible differences compared to those they report to and to those who in turn report to them. Where differences in accountability are not clearly defined the result is a “non-job”. It is not possible to perform in a non-job as it is not clear who is accountable for what!
For engagement, expatriates need to be challenged with high standards of performance that will test their abilities fully. Hiring over qualified, over experienced expatriates into jobs that are too small for them will leave them unchallenged. Expatriates often perform badly when unchallenged by the job, but rise to accomplish the most difficult tasks when properly challenged.

Feedback
An engaged expatriate requires feedback. With this information the expatriate can control their outputs, measure how they are doing, guide themselves to reach their goals, and accept complete responsibility for their tasks, assignment and job.
In conclusion I ask again. When money gets tight will your expatriate employees stay and will they be motivated? A competitive salary that takes into account the relative cost of living, exchange rate and compensation for the hardship of living in an unfamiliar/foreign location together with global expatriate benefits will attract and to some degree retain expatriates. However if you really want your expatriates to stay motivated when times get tough you need to ensure you have engaged expatriates. Engaged expatriates are committed to the organization. You can better engage your expatriates by ensuring that expatriates are put in the right job, are challenged with high standards of performance that will test their abilities fully, and by providing feedback on how they are doing.

This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Greece, Athens Cost of Living April 2010

Country Full Name: The Hellenic Republic.

Location: Greece is in Southern Europe, bordering the Aegean Sea, Ionian Sea, and the Mediterranean Sea, between Albania and Turkey.

Country Climate: Temperate; mild, wet winters; hot, dry summers.

Country Terrain: Mostly mountains with ranges extending into the sea as peninsulas or chains of islands.

Major Languages: Greek.

Major Religions: Christianity.

Country Population: 11.1 million (2008 est.) 11.2 million (2009 est.).

Country Economy: The Greek economy is a developed economy with the public sector accounting for about 40% of GDP. The service sector contributes 75.7% of the total GDP, industry 20.6% and agriculture 3.7%. Greece is the twenty-fourth most globalized country in the world and is classified as a high income economy.

Currency: Euro (EUR).

Country Inflation: 4.2% (2008 est.) 1.1% (2009 est.).

City: Athens is the capital and largest city of Greece.

City Economy: Athens is one of the world's oldest cities, its recorded history spans around 3,400 years. Athens is central to economic, financial, industrial, political and cultural life in Greece and it is rated as an alpha- world city. It is rapidly becoming a leading business centre in the European Union.
Cost of Living: Athens has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Athens is currently ranked 106 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Greece, Athens

Sunday, May 30, 2010

Communication International Cost of Living Ranking

This report provides you with the rank of Communication cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Communication costs include various communication costs such as home telephone rental and call charges, internet connection and service provider fees, mobile / cellular phone contract and calls.

Xpatulator.com is the most comprehensive source of international cost of living index information.
The April 2010 communication international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Kiribati, South Tarawa
2 New Caledonia, Noumea
3 Burkina Faso, Ouagadougou
4 Germany, Munich
5 Cameroon, Douala
6 Latvia, Riga
7 Germany, Frankfurt
8 Germany, Cologne
9 Cape Verde, Praia
10 Gabon, Libreville


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Gibraltar, Gibraltar Cost of Living April 2010

Country Full Name: Gibraltar. Status: Self-governing part of United Kingdom, claimed by Spain.

Location: Gibraltar (Overseas Territory of the UK) is in South Western Europe, bordering the Strait of Gibraltar, which links the Mediterranean Sea and the North Atlantic Ocean, on the southern coast of Spain.

Country Climate: Mediterranean with mild winters and warm summers.

Country Terrain: A narrow coastal lowland borders the Rock of Gibraltar.

Major Languages: English, Spanish.

Major Religions: Christianity.

Country Population: 0.03 million (2008 est.) 0.03 million (2009 est.).

Country Economy: The economy of Gibraltar is managed and controlled by the Government of Gibraltar. Whilst being part of the European Union, the British overseas territory of Gibraltar has a separate legal jurisdiction from the United Kingdom and enjoys a different tax system. Gibraltar has historically been an important base for the British Armed Forces and is the site of a Royal Navy base.

Currency: Gibraltar Pound (GIP) which is fixed to the British Pound.

Country Inflation: 2.9% (2005 est.) 0.0% (2009 est.).

City: Gibraltar is a self-governing British overseas territory.

City Economy: The role of the UK Ministry of Defence, which at one time was Gibraltar's main source of income, has declined, with today's economy mainly based on shipping, tourism, financial services, and the Internet.
Cost of Living: Gibraltar has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Gibraltar is currently ranked 92 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Gibraltar, Gibraltar

Personal Care International Cost of Living Ranking

This report provides you with the rank of Personal Care cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Personal Care costs include personal care products and services such as cosmetics, hair care, moisturizer / sun block, nappies, pain relief tablets, toilet paper, toothpaste, and soap / shampoo / conditioner.
The April 2010 personal care international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Kiribati, South Tarawa
2 Comores, Moroni
3 Gambia, Banjul
4 Algeria, Algiers
5 Slovakia, Bratislava
6 Iran, Tehran
7 Brazil, Brasilia
8 Kyrgyzstan, Bishkek
9 Turkmenistan, Ashgabat
10 Samoa, Apia


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

How to Calculate a Cost of Living Index

Definition:
A Cost Of Living Index (COLI) is a price index that measures the relative cost of living over time. It is an index that measures differences in the price of goods and services.

A COLI measures changes over time in the amount that consumers need to spend to reach a certain level or standard of living. COLI is typically a number, where the Base Index is 100.

A Consumer Price Index (CPI) on the other hand is a measure of the average change over time in the prices paid by consumers. CPI is typically a percentage change compared to the previous period. An increase in CPI is called inflation, while a decrease is called deflation. Both the COLI and the CPI use a market basket of consumer goods and services.

A COLI is also used to measure the price of the same quantities and types of goods and services in different geographic locations. The COLI used in this way shows the difference in living costs between different locations.

An international COLI measures the differences in the local currency price of the same quantities and types of goods and services in different countries converted to a single currency. This shows the difference in relative living costs between international cities. The cost of living difference between locations indicates the amount that consumers need to spend to maintain a certain level or standard of living.

Amongst other uses, COLI’s are used by organizations and individuals in the calculation of expatriate salary and cost of living allowances in order to ensure consistent salary purchasing power between the home and host country.

Next we will discuss how to calculate a COLI between 2 locations applicable to expatriate employees.


Methodology:
For consistency the goods and services are grouped into similar/related basket groups.

For accuracy the exact quantity and type of each of the goods and services within each basket are defined. Using these definitions, the prices of the same quantities and types of goods and services in each geographic location is obtained from at least 3 different suppliers representative of those that would typically be used by expatriates.

When calculating the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item.  The basket groups are weighted according to Expatriate expenditure norms.

If for example the following 13 basket groups had the following weighting, The 13 basket groups do not count equally.:

•Alcohol & Tobacco (Weight 2.0%)
•Clothing (Weight 2.5%)
•Communication (Weight 2.0%)
•Education (Weight 5.0%)
•Furniture & Appliances (Weight 5.0%)
•Groceries (Weight 16.5%)
•Healthcare (Weight 5.0%)
•Household (Weight 30.0%)
•Miscellaneous (Weight 3.0%)
•Personal Care (Weight 3.0%)
•Recreation and Culture (Weight 6.0%)
•Restaurants, Meals Out and Hotels (Weight 2.0%)
•Transport (Weight 18.0%)

The prices for the defined quantities and types of goods and services in each location are gathered on a quarterly basis and the resulting index is updated for each of the 13 baskets in each location. These indexes are then used to calculate the COLI between any 2 locations. The COLI is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations.

When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index using one of the locations as the Base. We typically refer to the home location as the Base Location (Index = 100).


Practical Example:
Take for example a company headquartered in Location A with overseas operations in Location B and C. They send employees on 2 to 3 year assignments from time to time to Location B and C and need a set of COLI’s using Location A as the Base City in order to calculate assignment salary and cost of living allowances.

In our example Location A has an index of 92, Location B has an index of 129, and Location C has an index of 75.

Using our example, you want to know what the COLI is for Location B and C using Location A as the Base Location:

•Location A COLI = (Location A / Location A) X 100 = (92 / 92) X 100 = 100
•Location B COLI = (Location B / Location A) X 100 = (129 / 92) X 100 = 140.2
•Location C COLI = (Location C / Location A) X 100 = (75 / 92) X 100 = 81.5

The COLI indicates the difference in the cost of living between the locations. In the above example the COLI of 140.2 means that Location B is 1.402 times more expensive than Location A. In this example the COLI is positive (higher). This would mean that a person who moves from Location A to Location B would need to earn 40.2% more, to have the same standard of living in Location B as they have currently in Location A.

Location C on the other hand has a COLI of 81.5. This means that Location C is 0.815 times less expensive than Location A. In this example the COLI is negative (lower). This would mean that a person who moves from Location A to Location C could earn 18.5% less and have the same standard of living in Location C as they have currently in Location A.


Steps to calculating a cost of living index:
Given that it is costly and time consuming to create comprehensive baskets and to price them accurately in each location yourself, it is generally more cost effective to use a service provider such as Xpatulator. Xpatulator has comprehensive index data for 13 basket groups in 282 global locations updated quarterly and available online.

The following steps will help you create a set of COLI’s using Xpatulator’s Cost of Living Index Calculator (COLI):

Before you start you will need to have registered.

1) Login using your username and password
2) Check that you have sufficient credit(s)
3) Select "Calculators" from the left hand menu
4) Choose the Cost of Living Index Calculator (COLI): The COLI report calculates cost of living indexes for the locations you select using the base location you specify.  You can select between 1 and all 282 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. The COLI report uses 1 credit per set of 4 cost of living indexes.
The calculator will prompt you for the following inputs:
5) Reference Information: Give your report a reference. This will help you identify your reports for future reference.
6) Base Location: Select the location that will be the base location. All other selected locations will be compared to this location.
7) Available Locations: Select all locations that you require a cost of living index for. Each credit will allow you to select 4 locations. You will notice that as you select each additional location the "Remaining number of locations you can select" will change decrease by 1. You will also notice that for each set of 4 locations the "Selected locations will cost" will increase by 1 credit.
8) Select which cost of living index basket you require. The Overall Cost of Living Index covers all 13 Cost of Living Baskets, weighted for expatriate expenditure norms.
9) Run Report: When you are sure that all your selection criteria are correct, click on run report. At this point the calculator will use the number of credits shown in the calculator. Just above the cost of living baskets the number of credits required will be displayed "Selected locations will cost: XX credits". If you do not have enough credits you will need to either need to "Purchase Credits" using the left hand menu or decrease the number of locations selected.

Using Xpatulator’s Cost of Living Index Calculator (COLI) your report will look like the attached example View Demo


Applying a cost of living index to a salary calculation:
The COLI values are useful in calculating an appropriate salary in another location. A calculator such as Xpatulator’s Salary Purchasing Power Parity Calculator (SPPP) calculates an appropriate salary using the COLI, exchange rate and hardship difference.

The salary used in the calculator is gross or net salary. We advise using net (after tax) salary. This has will result in a net salary result in the new location, which would then be grossed up for tax and any other statutory deductions in the new location. The calculator will then apply the following formula based on the selections in the calculator:

Salary X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Salary in new location

Applying the formula to our earlier example with a salary of $100,000 in Location A, sent on assignment to Location B, with an increase in hardship of 10% and paid in US Dollars:

•Location B COLI = 140.2
•Location C COLI = 81.5

Salary Calculation = $100,000 X 1.402 X 1 X 1.1 = $154,220

This means that an employee earning a salary of $100,000 in Location A, requires a salary of $154,220 in Location B to compensate for a 40.2% higher cost of living and a 10% higher level of hardship.

Using Xpatulator’s SPPP Calculator your report will look like the attached example
View Demo

Ghana, Accra Cost of Living April 2010

Country Full Name: Republic of Ghana.

Location: Ghana is in Western Africa, bordering the Gulf of Guinea, between Cote d'Ivoire and Togo.

Country Climate: Tropical; warm and comparatively dry along southeast coast; hot and humid in southwest; hot and dry in north.

Country Terrain: Mostly low plains with dissected plateau in south-central area.

Major Languages: English, African languages including Akan, Ewe.

Major Religions: Christianity, indigenous beliefs, Islam.

Country Population: 22.5 million (2008 est.) 23.1 million (2009 est.).

Country Economy: The economy of Ghana, West Africa has a diverse and rich resource base, and as such, has one of the highest GDP per capita in Africa. Ghana remains somewhat dependent on international financial and technical assistance as well as the activities of the extensive Ghanaian diaspora. Gold, timber, cocoa, diamond, bauxite, and manganese exports are major sources of foreign exchange.

Currency: Ghanaian New Cedi (GHS).

Country Inflation: 16.5% (2008 est.) 18.5% (2009 est.).

City: Accra is the capital and most populous city of Ghana.

City Economy: Accra is the administrative, communications, and economic centre of the country. Over 70% of Ghana's manufacturing capacity is located within the Accra region.
Cost of Living: Accra has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Accra is currently ranked 180 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Ghana, Accra

Saturday, May 29, 2010

Education International Cost of Living Ranking

This report provides you with the rank of Education cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Education costs include creche / pre-school fees, high school / college fees, primary school fees, and tertiary study fees.

Xpatulator.com is the most comprehensive source of international cost of living index information.


The April 2010 education international cost of living rank is as follows:


April 2010 Top Ten Rank Country, City

1 Venezuela, Caracas
2 Brazil, Brasilia
3 Angola, Luanda
4 Solomon Islands, Honiara
5 Australia, Sydney
6 New Caledonia, Noumea
7 Central African Republic, Bangui
8 Bermuda, Hamilton
9 Gabon, Libreville
10 Kiribati, South Tarawa


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Germany, Munich Cost of Living April 2010

Country Full Name: Federal Republic of Germany.

Location: Germany is in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.

Country Climate: Temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

Country Terrain: Lowlands in north, uplands in center, Bavarian Alps in south.

Major Languages: German.

Major Religions: Christianity.

Country Population: 82.1 million (2008 est.) 82.0 million (2009 est.).

Country Economy: The economy of Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world.

Currency: Euro (EUR).

Country Inflation: 2.75% (2008 est.) 0.14% (2009 est.).

City: Munich is the capital city of Bavaria and is the third largest city in Germany, after Berlin and Hamburg.

City Economy: Munich has the strongest economy of any German city, as well as the lowest unemployment rate of any German city with more than a million people. The city is also the economic centre of southern Germany.
Cost of Living: Munich has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Munich is currently ranked 15 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Germany, Munich

Recreation and Culture International Cost of Living Ranking

This report provides you with the rank of Recreation and Culture cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Recreation and Culture costs include books, camera film, cinema ticket, DVD and CDs, sports goods, and theatre tickets.
The April 2010 recreation and culture international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Papua New Guinea, Port Moresby
2 Vanuatu, Port Vila
3 Central African Republic, Bangui
4 Chad, NDjamena
5 Benin, Cotonou
6 Gabon, Libreville
7 Switzerland, Geneva
8 Switzerland, Zurich
9 Niger, Niamey
10 Solomon Islands, Honiara


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Germany, Hamburg Cost of Living April 2010

Country Full Name: Federal Republic of Germany.

Location: Germany is in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.

Country Climate: Temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

Country Terrain: Lowlands in north, uplands in center, Bavarian Alps in south.

Major Languages: German.

Major Religions: Christianity.

Country Population: 82.1 million (2008 est.) 82.0 million (2009 est.).

Country Economy: The economy of Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world.

Currency: Euro (EUR).

Country Inflation: 2.75% (2008 est.) 0.14% (2009 est.).

City: Hamburg is the second-largest city in Germany (second to Berlin) and the eleventh-largest city in the European Union.

City Economy: The Port of Hamburg, ranks 2nd only to Rotterdam in Europe. Hamburg, along with Seattle and Toulouse, is an important location of the civil aerospace industry. Heavy industry includes the making of steel, aluminum, copper and a number of shipyards.
Cost of Living: Hamburg has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Hamburg is currently ranked 49 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

Fore more cost of living information on Germany, Hamburg

Friday, May 28, 2010

Furniture & Appliance International Cost of Living Ranking

This report provides you with the rank of Furniture & Appliance cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Furniture & Appliance costs include furniture, household equipment and household appliances such as dvd player, fridge freezer, iron, kettle, toaster, microwave, light bulbs, television, vacuum cleaner, and washing machine.
The April 2010 furniture & appliance international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Mali, Bamako
2 Brazil, Brasilia
3 Cameroon, Douala
4 New Caledonia, Noumea
5 Central African Republic, Bangui
6 Cameroon, Yaounde
7 Chad, NDjamena
8 Russia, Moscow
9 Vanuatu, Port Vila
10 Denmark, Copenhagen


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Germany, Frankfurt Cost of Living April 2010

Country Full Name: Federal Republic of Germany.

Location: Germany is in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.

Country Climate: Temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

Country Terrain: Lowlands in north, uplands in center, Bavarian Alps in south.

Major Languages: German.

Major Religions: Christianity.

Country Population: 82.1 million (2008 est.) 82.0 million (2009 est.).

Country Economy: The economy of Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world.

Currency: Euro (EUR).

Country Inflation: 2.75% (2008 est.) 0.14% (2009 est.).

City: Frankfurt is the largest city in the German state of Hesse and the fifth-largest city in Germany.

City Economy: Frankfurt is one of the leading financial centres in Europe.
Cost of Living: Frankfurt has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Frankfurt is currently ranked 27 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Germany, Frankfurt

Restaurants Meals Out and Hotel International Cost of Living Ranking

This report provides you with the rank of Restaurants, Meals Out and Hotels cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Restaurants, Meals Out and Hotel costs include business dinner, dinner at a restaurant (non fast food), hotel rates, take away drinks and snacks (fast food).
The April 2010 restaurants, meals out and hotel international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 United Arab Emirates, Dubai
2 United Arab Emirates, Abu Dhabi
3 Greece, Athens
4 Belgium, Brussels
5 Slovenia, Ljubljana
6 Russia, Moscow
7 Qatar, Doha
8 Korea Republic of, Seoul
9 Norway, Oslo
10 Brazil, Brasilia


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Germany, Bonn Cost of Living April 2010

Country Full Name: Federal Republic of Germany.

Location: Germany is in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.

Country Climate: Temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

Country Terrain: Lowlands in north, uplands in center, Bavarian Alps in south.

Major Languages: German.

Major Religions: Christianity.

Country Population: 82.1 million (2008 est.) 82.0 million (2009 est.).

Country Economy: The economy of Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world.

Currency: Euro (EUR).

Country Inflation: 2.75% (2008 est.) 0.14% (2009 est.).

City: Bonn is the 19th largest city in Germany.

City Economy: Bonn remains a centre of politics and administration. Roughly half of all government jobs were retained as many government departments remained in Bonn when numerous sub-ministerial level government agencies relocated to the former capital from Berlin and other parts of Germany.
Cost of Living: Bonn has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Bonn is currently ranked 50 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Germany, Bonn

How to Calculate a Cost of Living Index

Definition:
A Cost Of Living Index (COLI) is a price index that measures the relative cost of living over time. It is an index that measures differences in the price of goods and services.

A COLI measures changes over time in the amount that consumers need to spend to reach a certain level or standard of living. COLI is typically a number, where the Base Index is 100.

A Consumer Price Index (CPI) on the other hand is a measure of the average change over time in the prices paid by consumers. CPI is typically a percentage change compared to the previous period. An increase in CPI is called inflation, while a decrease is called deflation. Both the COLI and the CPI use a market basket of consumer goods and services.

A COLI is also used to measure the price of the same quantities and types of goods and services in different geographic locations. The COLI used in this way shows the difference in living costs between different locations.

An international COLI measures the differences in the local currency price of the same quantities and types of goods and services in different countries converted to a single currency. This shows the difference in relative living costs between international cities. The cost of living difference between locations indicates the amount that consumers need to spend to maintain a certain level or standard of living.

Amongst other uses, COLI’s are used by organizations and individuals in the calculation of expatriate salary and cost of living allowances in order to ensure consistent salary purchasing power between the home and host country.

Next we will discuss how to calculate a COLI between 2 locations applicable to expatriate employees.


Methodology:
For consistency the goods and services are grouped into similar/related basket groups.

For accuracy the exact quantity and type of each of the goods and services within each basket are defined. Using these definitions, the prices of the same quantities and types of goods and services in each geographic location is obtained from at least 3 different suppliers representative of those that would typically be used by expatriates.

When calculating the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item.  The basket groups are weighted according to Expatriate expenditure norms.

If for example the following 13 basket groups had the following weighting, The 13 basket groups do not count equally.:

•Alcohol & Tobacco (Weight 2.0%)
•Clothing (Weight 2.5%)
•Communication (Weight 2.0%)
•Education (Weight 5.0%)
•Furniture & Appliances (Weight 5.0%)
•Groceries (Weight 16.5%)
•Healthcare (Weight 5.0%)
•Household (Weight 30.0%)
•Miscellaneous (Weight 3.0%)
•Personal Care (Weight 3.0%)
•Recreation and Culture (Weight 6.0%)
•Restaurants, Meals Out and Hotels (Weight 2.0%)
•Transport (Weight 18.0%)

The prices for the defined quantities and types of goods and services in each location are gathered on a quarterly basis and the resulting index is updated for each of the 13 baskets in each location. These indexes are then used to calculate the COLI between any 2 locations. The COLI is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations.

When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index using one of the locations as the Base. We typically refer to the home location as the Base Location (Index = 100).


Practical Example:
Take for example a company headquartered in Location A with overseas operations in Location B and C. They send employees on 2 to 3 year assignments from time to time to Location B and C and need a set of COLI’s using Location A as the Base City in order to calculate assignment salary and cost of living allowances.

In our example Location A has an index of 92, Location B has an index of 129, and Location C has an index of 75.

Using our example, you want to know what the COLI is for Location B and C using Location A as the Base Location:

•Location A COLI = (Location A / Location A) X 100 = (92 / 92) X 100 = 100
•Location B COLI = (Location B / Location A) X 100 = (129 / 92) X 100 = 140.2
•Location C COLI = (Location C / Location A) X 100 = (75 / 92) X 100 = 81.5

The COLI indicates the difference in the cost of living between the locations. In the above example the COLI of 140.2 means that Location B is 1.402 times more expensive than Location A. In this example the COLI is positive (higher). This would mean that a person who moves from Location A to Location B would need to earn 40.2% more, to have the same standard of living in Location B as they have currently in Location A.

Location C on the other hand has a COLI of 81.5. This means that Location C is 0.815 times less expensive than Location A. In this example the COLI is negative (lower). This would mean that a person who moves from Location A to Location C could earn 18.5% less and have the same standard of living in Location C as they have currently in Location A.


Steps to calculating a cost of living index:
Given that it is costly and time consuming to create comprehensive baskets and to price them accurately in each location yourself, it is generally more cost effective to use a service provider such as Xpatulator. Xpatulator has comprehensive index data for 13 basket groups in 282 global locations updated quarterly and available online.

The following steps will help you create a set of COLI’s using Xpatulator’s Cost of Living Index Calculator (COLI):

Before you start you will need to have registered.

1) Login using your username and password
2) Check that you have sufficient credit(s)
3) Select "Calculators" from the left hand menu
4) Choose the Cost of Living Index Calculator (COLI): The COLI report calculates cost of living indexes for the locations you select using the base location you specify.  You can select between 1 and all 282 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. The COLI report uses 1 credit per set of 4 cost of living indexes.
The calculator will prompt you for the following inputs:
5) Reference Information: Give your report a reference. This will help you identify your reports for future reference.
6) Base Location: Select the location that will be the base location. All other selected locations will be compared to this location.
7) Available Locations: Select all locations that you require a cost of living index for. Each credit will allow you to select 4 locations. You will notice that as you select each additional location the "Remaining number of locations you can select" will change decrease by 1. You will also notice that for each set of 4 locations the "Selected locations will cost" will increase by 1 credit.
8) Select which cost of living index basket you require. The Overall Cost of Living Index covers all 13 Cost of Living Baskets, weighted for expatriate expenditure norms.
9) Run Report: When you are sure that all your selection criteria are correct, click on run report. At this point the calculator will use the number of credits shown in the calculator. Just above the cost of living baskets the number of credits required will be displayed "Selected locations will cost: XX credits". If you do not have enough credits you will need to either need to "Purchase Credits" using the left hand menu or decrease the number of locations selected.

Using Xpatulator’s Cost of Living Index Calculator (COLI) your report will look like the attached example View Demo


Applying a cost of living index to a salary calculation:
The COLI values are useful in calculating an appropriate salary in another location. A calculator such as Xpatulator’s Salary Purchasing Power Parity Calculator (SPPP) calculates an appropriate salary using the COLI, exchange rate and hardship difference.

The salary used in the calculator is gross or net salary. We advise using net (after tax) salary. This has will result in a net salary result in the new location, which would then be grossed up for tax and any other statutory deductions in the new location. The calculator will then apply the following formula based on the selections in the calculator:

Salary X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Salary in new location

Applying the formula to our earlier example with a salary of $100,000 in Location A, sent on assignment to Location B, with an increase in hardship of 10% and paid in US Dollars:

•Location B COLI = 140.2
•Location C COLI = 81.5

Salary Calculation = $100,000 X 1.402 X 1 X 1.1 = $154,220

This means that an employee earning a salary of $100,000 in Location A, requires a salary of $154,220 in Location B to compensate for a 40.2% higher cost of living and a 10% higher level of hardship.

Using Xpatulator’s SPPP Calculator your report will look like the attached example
View Demo

Thursday, May 27, 2010

Germany, Cologne Cost of Living April 2010

Country Full Name: Federal Republic of Germany.

Location: Germany is in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.

Country Climate: Temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

Country Terrain: Lowlands in north, uplands in center, Bavarian Alps in south.

Major Languages: German.

Major Religions: Christianity.

Country Population: 82.1 million (2008 est.) 82.0 million (2009 est.).

Country Economy: The economy of Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world.

Currency: Euro (EUR).

Country Inflation: 2.75% (2008 est.) 0.14% (2009 est.).

City: Cologne is Germany's fourth-largest city (after Berlin, Hamburg and Munich), and is the largest city both in the German Federal State of North Rhine-Westphalia and within the Rhine-Ruhr Metropolitan Area, one of the major European metropolitan areas with more than ten million inhabitants.

City Economy: Cologne is known as an important media center. Cologne is a major cultural center of the Rhineland and has a vibrant arts scene.
Cost of living: Cologne has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Cologne is currently ranked 34 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Germany, Cologne

Healthcare International Cost of Living Ranking

This report provides you with the rank of Healthcare cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Healthcare costs include general healthcare, medical and medical insurance such as general practitioner consultation rates, hospital private ward daily rate, non-prescription medicine, and private medical insurance / medical aid contributions.
The April 2010 healthcare international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Kiribati, South Tarawa
2 Japan, Tokyo
3 Brazil, Brasilia
4 China, Hong Kong
5 Australia, Sydney
6 Venezuela, Caracas
7 Comores, Moroni
8 Bermuda, Hamilton
9 Switzerland, Geneva
10 Chad, NDjamena


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Germany, Berlin Cost of Living April 2010

Country Full Name: Federal Republic of Germany.

Location: Germany is in Central Europe, bordering the Baltic Sea and the North Sea, between the Netherlands and Poland, south of Denmark.

Country Climate: Temperate and marine; cool, cloudy, wet winters and summers; occasional warm mountain (foehn) wind.

Country Terrain: Lowlands in north, uplands in center, Bavarian Alps in south.

Major Languages: German.

Major Religions: Christianity.

Country Population: 82.1 million (2008 est.) 82.0 million (2009 est.).

Country Economy: The economy of Germany is the largest national economy in Europe, the fourth largest by nominal GDP in the world. The service sector contributes around 70% of the total GDP, industry 29.1%, and agriculture 0.9%. Most of the country's products are in engineering, especially in automobiles, machinery, metals, and chemical goods. Germany is the leading producer of wind turbines and solar power technology in the world.

Currency: Euro (EUR).

Country Inflation: 2.75% (2008 est.) 0.14% (2009 est.).

City: Berlin is the capital city and one of 16 states of Germany.

City Economy: Berlin is a major center of culture, politics, media, and science in Europe. Its economy is primarily based on the service sector, encompassing a diverse range of creative industries, media corporations, congress and convention venues. Berlin serves as a continental hub for air and rail transport, and is one of the most visited tourist destinations in the EU.
Cost of Living: Berlin has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Berlin is currently ranked 62 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Germany, Berlin

Wednesday, May 26, 2010

Alcohol & Tobacco International Cost of Living Ranking

This report provides you with the rank of Alcohol & Tobacco cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.
Alcohol & Tobacco costs include alcoholic beverages such as alcohol at bar, beer, locally produced spirit, whiskey, and wine as well as tobacco products such as cigarettes.
Xpatulator.com is the most comprehensive source of international cost of living index information.
The April 2010 alcohol & tobacco international cost of living rank is as follows:




1 Kiribati, South Tarawa
2 Comores, Moroni
3 Norway, Oslo
4 Korea Republic of, Seoul
5 Thailand, Bangkok
6 Qatar, Doha
7 Brazil, Brasilia
8 Colombia, Bogota
9 Turkmenistan, Ashgabat
10 Papua New Guinea, Port Moresby


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Georgia Republic of, Tbilisi Cost of Living April 2010

Country Full Name: Georgia.

Location: Georgia is in South Western Asia, bordering the Black Sea, between Turkey and Russia.

Country Climate: Warm and pleasant; Mediterranean-like on Black Sea coast.

Country Terrain: Largely mountainous with Great Caucasus Mountains in the north and Lesser Caucasus Mountains in the south; Kolkhet'is Dablobi (Kolkhida Lowland) opens to the Black Sea in the west; Mtkvari River Basin in the east; good soils in river valley flood plains, foothills of Kolkhida Lowland.

Major Languages: Georgian, Russian.

Major Religions: Christianity.

Country Population: 4.4 million (2008 est.) 4.4 million (2009 est.).

Country Economy: The economy of Georgia has traditionally revolved around Black Sea tourism, cultivation of citrus fruits, tea and grapes; mining of manganese and copper; and output of a big industrial sector producing wine, metals, machinery, chemicals, and textiles.

Currency: Georgian Lari (GEL).

Country Inflation: 10.0% (2008 est.) 1.2% (2009 est.).

City: Tbilisi is the capital and the largest city of Georgia.

City Economy: Tbilisi is a significant industrial, social, and cultural center. The city is also emerging as an important transit route for global energy and trade projects. Located strategically at the crossroads between Europe and Asia and lying along the historic Silk Road routes, Tbilisi has often been the point of contention between various rivaling powers and empires.
Cost of Living: Tbilisi has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Tbilisi is currently ranked 153 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Georgia Republic of, Tbilisi

Household International Cost of Living Ranking

This report provides you with the rank of Household cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Household costs include housing, water, electricity, household gas, household fuels, local rates and residential taxes such as house / flat mortgage, house / flat rental, household electricity consumption, household gas / fuel consumption, household water consumption, and local property rates / taxes / levies.
The April 2010 household international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Japan, Tokyo
2 China, Hong Kong
3 Venezuela, Caracas
4 Taiwan, Taipei
5 Korea Republic of, Seoul
6 United Arab Emirates, Dubai
7 Angola, Luanda
8 Qatar, Doha
9 Croatia, Zagreb
10 Singapore, Singapore


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Gambia, Banjul Cost of Living April 2010

Country Full Name: Republic of The Gambia.

Location: The Gambia is in Western Africa, bordering the North Atlantic Ocean and Senegal.

Country Climate: Tropical; hot, rainy season (June to November); cooler, dry season (November to May).

Country Terrain: Flood plain of the Gambia River flanked by some low hills.

Major Languages: English (official), Mandinka, Wolof, Fula.

Major Religions: Islam, Christianity.

Country Population: 1.63 million (2008 est.) 1.67 million (2009 est.).

Country Economy: The economy of the Gambia is a liberal, market-based economy characterized by traditional subsistence agriculture, a historic reliance on groundnuts (peanuts) for export earnings, a re-export trade built up around its ocean port, low import duties, minimal administrative procedures, a fluctuating exchange rate with no exchange controls, and a significant tourism industry.

Currency: Gambian Dalasi (GMD).

Country Inflation: 4.5% (2008 est.) 6.5% (2009 est.).

City: Banjul is the capital of The Gambia.

City Economy: Banjul is the country's economic and administrative centre and includes the Central Bank of The Gambia. Peanut processing is the country's principal industry, but beeswax, palm wood, palm oil, and skins and hides are also shipped from Banjul's port.
Cost of Living: Banjul has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Banjul is currently ranked 195 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Gambia, Banjul

Tuesday, May 25, 2010

Grocery International Cost of Living Ranking

This report provides you with the rank of Grocery cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Grocery costs include food, non-alcoholic beverages and cleaning material items such as baby consumables, baked goods, baking, canned foods, cheese, cleaning products, dairy, fresh fruits, fresh vegetables, fruit juices, meat, oil & vinegars, pet food, pre-prepared meals, sauces, seafood, snacks, soft drinks, spices and herbs.
The April 2010 grocery international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Kiribati, South Tarawa
2 Solomon Islands, Honiara
3 Central African Republic, Bangui
4 Japan, Tokyo
5 Denmark, Copenhagen
6 Congo, Brazzaville
7 Gabon, Libreville
8 Korea Republic of, Seoul
9 Norway, Oslo
10 Vanuatu, Port Vila


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

Gabon, Libreville Cost of Living April 2010

Country Full Name: The Gabonese Republic.

Location: Gabon is in Western Africa, bordering the Atlantic Ocean at the Equator, between Republic of the Congo and Equatorial Guinea.

Country Climate: Tropical; always hot, humid.

Country Terrain: Narrow coastal plain; hilly interior; savanna in east and south.

Major Languages: French, Bantu-group languages.

Major Religions: Christianity.

Country Population: 1.45 million (2008 est.) 1.47 million (2009 est.).

Country Economy: The economy of Gabon enjoys a per capita income four times that of most nations of sub-Saharan Africa. This has supported a sharp decline in extreme poverty; yet because of high income inequality a large proportion of the population remains poor.

Currency: CFA Franc (XAF).

Country Inflation: 5.3% (2008 est.) 2.6% (2009 est.).

City: Libreville is the capital and largest city of Gabon.

City Economy: The city is home to a shipbuilding industry, brewing industry and sawmills. The city exports raw materials such as wood, rubber and cocoa from the city's main port, and the deepwater port at Owendo.
Cost of Living: Libreville has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Libreville is currently ranked 29 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Gabon, Libreville

Transport International Cost of Living Ranking

This report provides you with the rank of Transport cost of living indexes as at April 2010 for each of the 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). The calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.
Transport costs include public transport, vehicle costs, vehicle fuel, vehicle insurance and vehicle maintenance such as hire purchase / lease of vehicle, petrol / diesel, public transport service maintenance, tires, vehicle Insurance, and vehicle purchase.
The April 2010 transport international cost of living rank is as follows:

April 2010 Top Ten Rank Country, City

1 Norway, Oslo
2 Switzerland, Geneva
3 Germany, Munich
4 Cameroon, Douala
5 Switzerland, Zurich
6 Germany, Frankfurt
7 Liechtenstein, Vaduz
8 Germany, Cologne
9 Comores, Moroni
10 Denmark, Copenhagen


This article may be freely copied as long as reference is made to http://www.xpatulator.com/

France, Paris Cost of Living April 2010

Country Full Name: French Republic.

Location: France is in Western Europe, bordering the Bay of Biscay and English Channel, between Belgium and Spain, southeast of the UK; bordering the Mediterranean Sea, between Italy and Spain.

Country Climate: Generally cool winters and mild summers, but mild winters and hot summers along the Mediterranean; occasional strong, cold, dry, north-to-northwesterly wind known as mistral.

Country Terrain: Mostly flat plains or gently rolling hills in north and west; remainder is mountainous, especially Pyrenees in south, Alps in east.

Major Languages: French.

Major Religions: Christianity.

Country Population: 62.3 million (2008 est.) 62.6 million (2009 est.).

Country Economy: The economy of France is a mixed economy which is the fifth largest economy in the world, by measurement of GDP (nominal), behind the United States, Japan, China and Germany. It is the second largest economy in Europe.

Currency: Euro (EUR).

Country Inflation: 3.2% (2008 est.) 0.4% (2009 est.).

City: Paris is the capital of France and the country's most populous city.

City Economy: The diverse economy of Paris is essentially a service economy, with business and financial services generating nearly half of the Paris Region's GDP.
Cost of Living: Paris has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Paris is currently ranked 16 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on France, Paris

Monday, May 24, 2010

Clothing International Cost of Living Rank

This report provides you with the rank of Clothing cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Clothing costs include clothing and footwear products such as business suits, casual clothing, children’s clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear.
This report provides you with the rank of Clothing cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Clothing costs include clothing and footwear products such as business suits, casual clothing, children’s clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear.

Finland, Helsinki Cost of Living April 2010

Country Full Name: Republic of Finland.

Location: Finland is in Northern Europe, bordering the Baltic Sea, Gulf of Bothnia, and Gulf of Finland, between Sweden and Russia.

Country Climate: Cold temperate; potentially subarctic but comparatively mild because of moderating influence of the North Atlantic Current, Baltic Sea, and more than 60,000 lakes.

Country Terrain: Mostly low, flat to rolling plains interspersed with lakes and low hills.

Major Languages: Finnish, Swedish.

Major Religions: Christianity.

Country Population: 5.3 million (2008 est.) 5.3 million (2009 est.).

Country Economy: The economy of Finland is a highly industrialized, free-market economy with a per capita output equal to that of other western economies such as France, Germany, Sweden or the United Kingdom. The largest sector of the economy is services at 65.7 percent, followed by manufacturing and refining at 31.4 percent.

Currency: Euro (EUR).

Country Inflation: 3.9% (2008 est.) 1.0% (2009 est.).

City: Helsinki is the capital and largest city in Finland.

City Economy: The Helsinki metropolitan area generates approximately one third of Finland's GDP. GDP per capita is roughly 1.5 times the national average, making Helsinki one of the wealthiest capitals in Europe.
Cost of Living: Helsinki has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Helsinki is currently ranked 32 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Finland, Helsinki

Miscellaneous International Cost of Living Ranking

This report provides you with the rank of Miscellaneous cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Miscellaneous costs include stationary, linen and general goods and services such as domestic help, dry cleaning, linen, office supplies, newspapers and magazines, and postage stamps.
The April 2010 miscellaneous international cost of living rank is as follows:

April Top Ten 2010 Rank Country, City

1 Central African Republic, Bangui
2 Eritrea, Asmara
3 Norway, Oslo
4 Guinea-Bissau, Bissau
5 Finland, Helsinki
6 New Caledonia, Noumea
7 United Kingdom, London
8 Cape Verde, Praia
9 Denmark, Copenhagen
10 Qatar, Doha


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Expatriate Engagement

Engagement is a fairly recent term in business. In the past the talk was about “attracting, motivating and retaining” expatriate employees. All three strategies focused primarily on money. A competitive salary that takes into account the relative cost of living, exchange rate and hardship together with global expatriate benefits such as longer vacations, flights home, private school, club membership and the like were typically used to “attract” expatriates to where their skills were needed most. Bonuses, performance based pay, and recognition plans were used to “motivate” expatriates. Shares, retirement plans and tax-free gratuities were typically used to “retain” expatriates using the so-called golden handcuff approach.
The financial crises and recession have in my view provided further proof that money alone is not enough. When money gets tight will your expatriate employees stay and will they be motivated? Money on it’s own will not motivate or retain an expatriate when annual salary increases are reduced, bonuses are negligible if they are paid at all and shares are not performing.

To ensure expatriates will stay when times get tough, an engaged expatriate is required. An engaged expatriate is one who is committed to the organization (i.e. the host organization). An engaged expatriate is willing to exert extra effort in accomplishing tasks important to the achievement of the organizations goals.

Recruitment and Promotion
Ensuring that expatriates are put in the right job is a prerequisite for engagement. In reality expatriates are often hired because their skills are not locally available and because they are willing to relocate to a location that most people would not want to live in. As a result expatriates are often hired for their technical skills and not for their behavior, which in their home country would have been closely analyzed and subject to rigorous reference checking. It is critical that the right expatriate is recruited into the right job taking all aspects into account, including personality, age, culture, attitude, and previous track record through quality reference checks.

High Performance Standards
Average performance is usually associated with easy, low demand work. Responsibilities and accountabilities need to be well defined with clear perceptible differences compared to those they report to and to those who in turn report to them. Where differences in accountability are not clearly defined the result is a “non-job”. It is not possible to perform in a non-job as it is not clear who is accountable for what!
For engagement, expatriates need to be challenged with high standards of performance that will test their abilities fully. Hiring over qualified, over experienced expatriates into jobs that are too small for them will leave them unchallenged. Expatriates often perform badly when unchallenged by the job, but rise to accomplish the most difficult tasks when properly challenged.

Feedback
An engaged expatriate requires feedback. With this information the expatriate can control their outputs, measure how they are doing, guide themselves to reach their goals, and accept complete responsibility for their tasks, assignment and job.
In conclusion I ask again. When money gets tight will your expatriate employees stay and will they be motivated? A competitive salary that takes into account the relative cost of living, exchange rate and compensation for the hardship of living in an unfamiliar/foreign location together with global expatriate benefits will attract and to some degree retain expatriates. However if you really want your expatriates to stay motivated when times get tough you need to ensure you have engaged expatriates. Engaged expatriates are committed to the organization. You can better engage your expatriates by ensuring that expatriates are put in the right job, are challenged with high standards of performance that will test their abilities fully, and by providing feedback on how they are doing.

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Salary Purchasing Power Parity

Internationally comparable cost of living data is crucial to forming sustainable expatriate pay policies and monitoring progress.  Market exchange rates give misleading comparisons because they do not reflect salary purchasing power differences. Purchasing Power Parity (PPP) accounts for price differences between countries and so measures real quantities.

The purpose of an expatriate pay program is to maintain employee spending power and standard of living irrespective of global location. Salary Purchasing Power Parity (SPPP) is the amount of salary that equalizes the purchasing power of different currencies given the relative cost of the same basket of goods (cost of living) at the exchange rate versus one US Dollar.  This means that a given salary, when converted into different currencies at the SPPP rates, will buy the same basket of goods and services in all countries.

Currency exchange rates are highly volatile as they are based on short-term factors and are subject to substantial distortions from speculative movements, economic outlook and government interventions. Currency exchange rates, on their own, do not in our view reflect cost of living changes in the short-term. Exchange rates, even when averaged over a period of time such as a year, are not a good measure of the comparative value of a salary in relation to its comparative international purchasing power. In the short to medium term at least, apparent changes in the comparative level of remuneration between one country and another may be principally a function of changes in the exchange rate as opposed to cost of living.

The basket of goods and services used in SPPP calculations is derived on an International basis and includes certain items often excluded from expatriate cost of living data (most notably housing costs), however any or all of the 13 basket groups can be included or excluded from a calculation.  SPPP's provide a reasonably good picture of the differences in standards of living for individual’s resident and paid in different countries.

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Fiji, Suva Cost of Living April 2010

Country Full Name: Republic of the Fiji Islands.

Location: Fiji is an island group in the South Pacific Ocean, about two-thirds of the way from Hawaii to New Zealand.

Country Climate: Tropical marine; only slight seasonal temperature variation.

Country Terrain: Mostly mountains of volcanic origin.

Major Languages: English, Fijian, Hindi.

Major Religions: Christianity, Hinduism, Islam.

Country Population: 0.877 million (2008 est.) 0.883 million (2009 est.).

Country Economy: The economy of Fiji is endowed with forest, mineral, and fish resources, and is one of the more developed of the Pacific island economies, though still with a large subsistence sector.

Currency: Fiji Dollar (FJD).

Country Inflation: 7.8% (2008 est.) 5.0% (2009 est.).

City: Suva is the capital and largest city of Fiji.

City Economy: Suva is the commercial and political centre as well as the main port city of Fiji.
Cost of Living: Suva has an overall cost of living index which equates it with middle cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Suva is currently ranked 176 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more information on Fiji, Suva

Sunday, May 23, 2010

Communication International Cost of Living Ranking

This report provides you with the rank of Communication cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups). Our calculators make use of the cost of living indexes, based on your input and Xpatulator's data, to create reports online which you can save, e-mail or convert to a pdf file.

Communication costs include various communication costs such as home telephone rental and call charges, internet connection and service provider fees, mobile / cellular phone contract and calls.

Xpatulator.com is the most comprehensive source of international cost of living index information.
The April 2010 communication international cost of living rank is as follows:

April Top Ten 2010 Rank Country, City

1 Kiribati, South Tarawa
2 New Caledonia, Noumea
3 Burkina Faso, Ouagadougou
4 Germany, Munich
5 Cameroon, Douala
6 Latvia, Riga
7 Germany, Frankfurt
8 Germany, Cologne
9 Cape Verde, Praia
10 Gabon, Libreville


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Falkland Islands, Stanley Cost of Living April 2010

Country Full Name: Falkland Islands. Also called Las Malvinas by Argentina.

Location: The Falkland Islands (Overseas Territory of the UK; also claimed by Argentina) are islands in the South Atlantic Ocean, east of southern Argentina.

Country Climate: Cold marine; strong westerly winds, cloudy, humid; rain occurs on more than half of days in year; average annual rainfall is 24 inches in Stanley; occasional snow all year, except in January and February, but does not accumulate.

Country Terrain: Rocky, hilly, mountainous with some boggy, undulating plains.

Major Languages: English.

Major Religions: Christianity.

Country Population: 0.003 million (2008 est.) 0.003 million (2009 est.).

Country Economy: The economy of the Falkland Islands, previously heavily over-dependent on sheep farming (and historically whaling), has become more diversified in the last decades and now also has income from tourism and commercial fishing as well as a service base for the fishing industry.

Currency: Falkland Islands Pound (FKP).

Country Inflation: N/A.

City: Stanley (also known as Port Stanley) is the capital and only true city in the Falkland Islands.

City Economy: Stanley is the main shopping centre on the islands and the hub of East Falkland's road network.
Cost of Living: Stanley has an overall cost of living index which equates it with high cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Stanley is currently ranked 84 overall, most expensive place in the world for expatriates to live, out of 282 international locations.

For more cost of living information on Falkland Islands, Stanley

Personal Care International Cost of Living Ranking

This report provides you with the rank of Personal Care cost of living indexes as at April 2010 for each of our 282 global locations. The indexes are calculated using the prices for specific quantities of the same goods and services in each location, based on expatriate spending patterns across 13 broad categories (Basket Groups).
Personal Care costs include personal care products and services such as cosmetics, hair care, moisturizer / sun block, nappies, pain relief tablets, toilet paper, toothpaste, and soap / shampoo / conditioner.
The April 2010 personal care international cost of living rank is as follows:

April Top Ten 2010 Rank Country, City

1 Kiribati, South Tarawa
2 Comores, Moroni
3 Gambia, Banjul
4 Algeria, Algiers
5 Slovakia, Bratislava
6 Iran, Tehran
7 Brazil, Brasilia
8 Kyrgyzstan, Bishkek
9 Turkmenistan, Ashgabat
10 Samoa, Apia


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How to Calculate a Cost of Living Index

Definition:
A Cost Of Living Index (COLI) is a price index that measures the relative cost of living over time. It is an index that measures differences in the price of goods and services.

A COLI measures changes over time in the amount that consumers need to spend to reach a certain level or standard of living. COLI is typically a number, where the Base Index is 100.

A Consumer Price Index (CPI) on the other hand is a measure of the average change over time in the prices paid by consumers. CPI is typically a percentage change compared to the previous period. An increase in CPI is called inflation, while a decrease is called deflation. Both the COLI and the CPI use a market basket of consumer goods and services.

A COLI is also used to measure the price of the same quantities and types of goods and services in different geographic locations. The COLI used in this way shows the difference in living costs between different locations.

An international COLI measures the differences in the local currency price of the same quantities and types of goods and services in different countries converted to a single currency. This shows the difference in relative living costs between international cities. The cost of living difference between locations indicates the amount that consumers need to spend to maintain a certain level or standard of living.

Amongst other uses, COLI’s are used by organizations and individuals in the calculation of expatriate salary and cost of living allowances in order to ensure consistent salary purchasing power between the home and host country.

Next we will discuss how to calculate a COLI between 2 locations applicable to expatriate employees.


Methodology:
For consistency the goods and services are grouped into similar/related basket groups.

For accuracy the exact quantity and type of each of the goods and services within each basket are defined. Using these definitions, the prices of the same quantities and types of goods and services in each geographic location is obtained from at least 3 different suppliers representative of those that would typically be used by expatriates.

When calculating the cost of living between 2 locations the difference in the aggregate cost of all the selected basket groups are examined in each location using the average reported price in each location for the same quantity of each item.  The basket groups are weighted according to Expatriate expenditure norms.

If for example the following 13 basket groups had the following weighting, The 13 basket groups do not count equally.:

•Alcohol & Tobacco (Weight 2.0%)
•Clothing (Weight 2.5%)
•Communication (Weight 2.0%)
•Education (Weight 5.0%)
•Furniture & Appliances (Weight 5.0%)
•Groceries (Weight 16.5%)
•Healthcare (Weight 5.0%)
•Household (Weight 30.0%)
•Miscellaneous (Weight 3.0%)
•Personal Care (Weight 3.0%)
•Recreation and Culture (Weight 6.0%)
•Restaurants, Meals Out and Hotels (Weight 2.0%)
•Transport (Weight 18.0%)

The prices for the defined quantities and types of goods and services in each location are gathered on a quarterly basis and the resulting index is updated for each of the 13 baskets in each location. These indexes are then used to calculate the COLI between any 2 locations. The COLI is the relative differential in the local cost of the basket groups and the ruling exchange rate between the 2 selected locations.

When comparing the cost of living between different locations the objective is to calculate the difference in the cost of living expressed as an index using one of the locations as the Base. We typically refer to the home location as the Base Location (Index = 100).


Practical Example:
Take for example a company headquartered in Location A with overseas operations in Location B and C. They send employees on 2 to 3 year assignments from time to time to Location B and C and need a set of COLI’s using Location A as the Base City in order to calculate assignment salary and cost of living allowances.

In our example Location A has an index of 92, Location B has an index of 129, and Location C has an index of 75.

Using our example, you want to know what the COLI is for Location B and C using Location A as the Base Location:

•Location A COLI = (Location A / Location A) X 100 = (92 / 92) X 100 = 100
•Location B COLI = (Location B / Location A) X 100 = (129 / 92) X 100 = 140.2
•Location C COLI = (Location C / Location A) X 100 = (75 / 92) X 100 = 81.5

The COLI indicates the difference in the cost of living between the locations. In the above example the COLI of 140.2 means that Location B is 1.402 times more expensive than Location A. In this example the COLI is positive (higher). This would mean that a person who moves from Location A to Location B would need to earn 40.2% more, to have the same standard of living in Location B as they have currently in Location A.

Location C on the other hand has a COLI of 81.5. This means that Location C is 0.815 times less expensive than Location A. In this example the COLI is negative (lower). This would mean that a person who moves from Location A to Location C could earn 18.5% less and have the same standard of living in Location C as they have currently in Location A.


Steps to calculating a cost of living index:
Given that it is costly and time consuming to create comprehensive baskets and to price them accurately in each location yourself, it is generally more cost effective to use a service provider such as Xpatulator. Xpatulator has comprehensive index data for 13 basket groups in 282 global locations updated quarterly and available online.

The following steps will help you create a set of COLI’s using Xpatulator’s Cost of Living Index Calculator (COLI):

Before you start you will need to have registered.

1) Login using your username and password
2) Check that you have sufficient credit(s)
3) Select "Calculators" from the left hand menu
4) Choose the Cost of Living Index Calculator (COLI): The COLI report calculates cost of living indexes for the locations you select using the base location you specify.  You can select between 1 and all 282 locations. You can choose from any one of the 13 baskets or you can choose the overall cost of living index for each location. The COLI report uses 1 credit per set of 4 cost of living indexes.
The calculator will prompt you for the following inputs:
5) Reference Information: Give your report a reference. This will help you identify your reports for future reference.
6) Base Location: Select the location that will be the base location. All other selected locations will be compared to this location.
7) Available Locations: Select all locations that you require a cost of living index for. Each credit will allow you to select 4 locations. You will notice that as you select each additional location the "Remaining number of locations you can select" will change decrease by 1. You will also notice that for each set of 4 locations the "Selected locations will cost" will increase by 1 credit.
8) Select which cost of living index basket you require. The Overall Cost of Living Index covers all 13 Cost of Living Baskets, weighted for expatriate expenditure norms.
9) Run Report: When you are sure that all your selection criteria are correct, click on run report. At this point the calculator will use the number of credits shown in the calculator. Just above the cost of living baskets the number of credits required will be displayed "Selected locations will cost: XX credits". If you do not have enough credits you will need to either need to "Purchase Credits" using the left hand menu or decrease the number of locations selected.

Using Xpatulator’s Cost of Living Index Calculator (COLI) your report will look like the attached example View Demo


Applying a cost of living index to a salary calculation:
The COLI values are useful in calculating an appropriate salary in another location. A calculator such as Xpatulator’s Salary Purchasing Power Parity Calculator (SPPP) calculates an appropriate salary using the COLI, exchange rate and hardship difference.

The salary used in the calculator is gross or net salary. We advise using net (after tax) salary. This has will result in a net salary result in the new location, which would then be grossed up for tax and any other statutory deductions in the new location. The calculator will then apply the following formula based on the selections in the calculator:

Salary X Cost of living Index Differential X Exchange Rate X Hardship Differential = Calculated Salary in new location

Applying the formula to our earlier example with a salary of $100,000 in Location A, sent on assignment to Location B, with an increase in hardship of 10% and paid in US Dollars:

•Location B COLI = 140.2
•Location C COLI = 81.5

Salary Calculation = $100,000 X 1.402 X 1 X 1.1 = $154,220

This means that an employee earning a salary of $100,000 in Location A, requires a salary of $154,220 in Location B to compensate for a 40.2% higher cost of living and a 10% higher level of hardship.

Using Xpatulator’s SPPP Calculator your report will look like the attached example
View Demo