Hello everyone. Thanks for all the great posts and information. I would love your help and advice on my situation:
Im currently negotiating a move from Boston to London and have been asked by my company to outline a salary and relo. package I feel is reasonable for both parties. For background, Ill continue to be paid in US dollars during a 2-3 year period in London. My wife is European, so my visa/work permission will be handled by the company&but will utilize my marriage as grounds&
Anyway, Im planning to provide 2 options, as follows:
Option a (Salary + housing):
- A 44% salary increase (from $125,000 to $180,000) (or roughly £90,000). This option uses a straight 1.45 cost of living multiplier (outlined by Mercer HR, 06) that considers Boston and Londons indices vs. the norm of New York City (a 100 index ). Bostons index is 76, Londons is 110&percentage change comes out to a 1.45, roughly.
- Relocation help (shipping expenses, temporary housing (>3 months, until we find a flat)
- Company pays for a flat while were in London (roughly £400 per week + council tax per Londons normal system). We believe £400 per week will allow us to rent a 2 bedroom flat comparable to what we currently have here in Boston (small, but reasonably nice&)
- Request for a company car lease while in London. (I work for a car company, so this should be fairly easy)
This option would allow the company to pay for housing as part of my compensation, instead of all of it coming as salary increase. Housing will be by far our largest expense and I believe this sort of agreement would make my eventual transition back to the U.S. easier on my company (as my straight salary will remain lower).
Option b (Salary only):
- A 65% salary increase (from $125,000 to $206,250) (or roughly £103,125).
- Relocation help (shipping expenses, temporary housing (>3 months, until we find a flat)
- Request for a company car lease while in London.
This option would allow the salary increase to cover housing and all cost-of-living increases associated with the move.
I feel almost ridiculious proposing such a dramatic salary increase, but based on the information Ive found 65% isnt all that unreasonable.
I will also ask my company for advice and guidance on taxes in the U.S. and U.K., and plan on keeping my 401k, American Health Insurance and Social Security Payments all active, as well only be in London for a few years before returning to the U.S.
I should also mention that my wife will be getting a job in London earning roughly £25,000-£30,000.
Our ideal situation would be that my company chooses option a and majority of our living expenses can be covered by spending my wifes entire salary in London. Overflow will be covered by transferring dollars from my bank account in the U.S. to a new account in the U.K. that well set up with the help of my companies London office.
My general question here is, does this sound good? Am I missing anything obvious?
Thank you all so much for your input, I really appreciate it.
N.E.
England
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