Consulting Salaries outside US and Europe

luizeba's picture
Rank: Senior Chimp | 23

Hello guys.

I always had this question, and it seems that none of my friends here at my university know the answer. We had this doubt specifically about Brazil, but all non-major countries (outside US, Canada and Europe) can be included in this question. In fact, there are two questions:

1) How the Consulting salaries are calculated outside the Euro-zone and Dollar? Are they always calculated in local currency, or they have to be paired with a major currency?

2) It seems pretty obvious to me that the salaries in Developing countries (Russia, Brazil, Colombia, Egypt, Thailand...) are lower than the ones in America/Europe. But, in average, the salaries are how much % of the salaries in those major areas?

The second question is pretty straightfoward question.

The first one is a little tricky, and the idea is to understand better what will happen to the wages when there are some major swing with the local currency.
If the salary is calculated locally, a local currency appreciation will increase my real wage when compared to the ones in the US, and my purchase power (in terms of imported products) will increase.
In the other hand, if the salary is calculated as a fixed % of the salaries in the US, in dollars, a local currency appreciation will decrease my real wage in terms of local products.

Thanks, guys.

Comments (4)

Apr 15, 2014

Salaries within Europe are not as standardized as you might think. From my experience, Spain/Portugal/Eastern Europe pay around 1/3 or less of what you get in Germany. Belgium pays around 50-70%, and Switzerland pays around 120%. UK salaries are similar to those in Germany, but due to a relatively weak Pound you currently get less.

Outside of Europe you also have a few selected countries that pay competitive salaries.
A colleague of mine transferred from Germany to Brazil - he told me the salary structure is very different from Germany. Consultants on the lower levels (Analyst/Associate) earn significant less than in Germany/the US (less than 50%). However, on the higher levels (Project/Engagement Manager) the pay is actually better than in Germany.

Dubai and Singapore also pay salaries similar to Germany/US (Singapore pays a little less, but you have the tax advantage).

For most other countries, don't expect to get paid much more than 50% of the US level.

I have not yet heard of any country, where your salary is fixed to the Dollar value. This only happens, if you have an expat contract. But then your salary is very different from the local salary anyway.

Note: The figures above are for tier 1/2 strategy consulting - Big 4 advisory/IT consultin has a different salary structure that I am not too familiar with)

Apr 15, 2014

Speaking from experience, the starting salary at an MBB in CIS (I would consider that outside of Europe) is indeed lower than the one in the US/Western Europe, but if you take into account the lower taxes and the lower cost of living, the net income at purchasing power parity is EXACTLY the same - I've ran the numbers.

Also, the salary is nominated in Euros, so you do not get affected by the exchange rates. If anything, the devaluation of local currency (happens to most of the developing markets at the moment) makes your salary larger.

Apr 16, 2014 ?

Apr 17, 2014