Background: So I was originally offered a position at a company in California but due to covid I was told I could either start work from home in Canada or still come to the US.
Seeing as how things were going and not wanting to deal with the hassle of finding a place to live during shelter in place + some other reasons, I told the recruiter I would prefer to work from home in Canada.
Turns out my base salary will be reduced by a bit more than 50% to I guess match the CoL here in my Canadian city.
Original base was 120k USD (or 163k CAD with conversion)
WFH Salary in Canada will be 58783 USD (or 80k CAD with conversion)
(EDIT: I will be moving to the US whenever work from home ends there…might be a few months or to the end of this year…and they said my original US compensation +RSUs would be paid once I get there)
My Question: Based on the numbers below, should I try to negotiate my work from home salary a bit more (like maybe to 90k CAD)? Or does this seem fair?
(calculations done in USD for simplicity)
|Canada (Ontario)||USA (California)|
|Income Pre-tax||$58.7k USD||$120k USD|
|Cost of Living Expenses||$26.4 k USD (roughly 3k CAD/month)||$45 k USD (roughly 3.7k USD/month)|
|Income less Taxes||$41 149 USD||$84 000 USD|
|Savings ('Income less taxes' – 'Cost of Living Expense')||$14749 USD||$39 000 USD|
*Rough calculation for CoL includes studio apt in both locations, utilities, student loan payment, groceries etc. I come up with these as annual figures from there.
**I also assumed 30% tax in both places as a hypothetical (although I believe my tax in cali would be slightly less than Ontario so I might be saving a bit more there).
Based on the table, looks like I'll still be saving 2.6 times as much if I was living in Cali?
Even if I reduce my monthly CoL expenses to 2k CAD I would only be saving $23 515 USD by working from Canada.
This is what I worked out but if someone could provide some feedback on my numbers that would be great. Or if there is another way to look at this please let me know. Thanks!