Salary Purchasing Power Parity Calculator (SPPP): Download Demo SPPP Report
If you are an organization planning to relocate an employee to an international location, or an individual with a job offer in another country, use the current home location salary to calculate the equivalent host location salary in terms of purchasing power.
SPPP calculates how much an individual needs to earn in another (host) location to compensate for cost of living, hardship, and exchange rate differences, in order to have the same relative spending power and as a result have a similar standard of living as they have in their current (home) location. Each new SPPP report uses 1 credit ($99). Recommended for host salary calculations and a detailed cost of living comparison (basket by basket) for 2 locations.
1 credit costs $99. Register, then login using your email address and password, and buy your credits online. Please note that credit card verification time is usually a few minutes, but can take a few hours. Once you have your credits you can run the premium content calculators and receive your reports online within minutes.
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How do you run a Salary Purchasing Power Parity Calculator (SPPP) Report?
Follow the steps below:
1) Login using your username and password
2) Check that you have sufficient credit(s)
3) Select "Calculators" from the left hand menu (Can only be seen when logged in)
4) Choose the Salary Purchasing Power Parity Calculator (SPPP): The SPPP report calculates how much you need to earn in another location to compensate for a higher cost of living, hardship, and the exchange rate, in order to have the same relative spending power and as a result have a similar standard of living as you have in your current location. Each new SPPP report uses 1 credit.
The calculator (Report Wizard) will prompt you for the following inputs:
5) Reference Information: Give your report a reference and the name of the individual for whom you are running the report. This will help you identify your reports for future reference.
6) Locations: Select the location that is being relocated FROM and the location that is being relocated TO.
7) Cost Allocations: Select the basket costs that will be paid for by the employee from his own salary (column on right) and what will be provided for by the employer or state, for the employee (column on left). Basket costs that are provided are not included in the cost of living calculation. The default is that all basket costs will be paid for by the employee from their own salary unless otherwise specified. Note that there is no point in selecting that all costs are provided for the employee by the employer, as then theoretically the employee would not need to earn a salary.
8) Currency Details: Select the appropriate currency. You can choose any currency, it does not have to be the currency of the selected locations. Enter the salary amount in the current location, used to pay for the items indicated above as "Paid from Salary". This is used as the basis of the Xpatulator calculation. You can choose the salary you wish to use as the basis for the calculation. For example depending on your salary structure you may choose to use Basic Salary, Base Salary, Guaranteed Cash, Total Cash, Total Remuneration or any other structure. Please note that we do not have tax tables within the calculator. We therefore recommend using net salary (i.e. after tax) as the basis for the calculation. This will provide you with the equivalent net salary in the “moving to location”. You can then apply tax to the equivalent net salary, if any tax is applicable.
9) You can choose if you want to allow negative cost of living differences to be applied to your calculation by checking the box. If you choose to allow negative cost of living differences, the calculator will decrease the salary when the cost of living is lower in the TO location. Unless you choose to allow negative cost of living differences, the calculator will only apply positive (higher) cost of living differences.
10) You can choose if you want to allow negative hardship differences to be applied to your calculation by checking the box. If you choose to allow negative hardship differences, the calculator will decrease the salary when the hardship is lower in the TO location. Unless you choose to allow negative hardship differences, the calculator will only apply positive (higher) hardship differences.
11) Run Report: When you are sure that all your selection criteria are correct, click on run report. At this point the calculator will use 1 credit ($99).
Your report will be created immediately and will look like this Download Demo SPPP Report
