Salary when moving from US to Canada on ICT

[bismi]

I currently work in California and (hopefully) moving to Toronto later. My employer offered a +3% in the US Salary amount as the Canada salary. That in effect would be a 22% reduction when we do the USD to CAD conversion. I'm not complaining, I believe this is still a good offer because salary here generally would have a premium for the location compared to other states. I know one of my friends who moved from Boston to Toronto a few years back on ICT (different company) also got a similar salary offer with a 3 to 4% increase to his US salary. So just wondering if there is any norm for this.

To make this clear - Let's say my current salary is USD $100k. Adding 3% would become my Canada salary - CAD $103k.

CAD $103k = USD ~$78k, which is -22% of my current US salary and yes, I understand this totally depends on the exchange rate.

I saw many posts regarding ICT from the US to Canada. So, I would like to get a general idea and to understand if the employers follow any common standard while converting the US salary to Canada. I know that the answer is most probably employer-specific and location in the US versus Canada. Still, it would be great if anyone could provide the details from their experience.

 

[scylla]

I currently work in California and (hopefully) moving to Toronto later. My employer offered a +3% in the US Salary amount as the Canada salary. That in effect would be a 22% reduction when we do the USD to CAD conversion. I'm not complaining, I believe this is still a good offer because salary here generally would have a premium for the location compared to other states. I know one of my friends who moved from Boston to Toronto a few years back on ICT (different company) also got a similar salary offer with a 3 to 4% increase to his US salary. So just wondering if there is any norm for this.

To make this clear - Let's say my current salary is USD $100k. Adding 3% would become my Canada salary - CAD $103k.

CAD $103k = USD ~$78k, which is -22% of my current US salary and yes, I understand this totally depends on the exchange rate.

I saw many posts regarding ICT from the US to Canada. So, I would like to get a general idea and to understand if the employers follow any common standard while converting the US salary to Canada. I know that the answer is most probably employer-specific and location in the US versus Canada. Still, it would be great if anyone could provide the details from their experience.

This is normal based on my experiences.

There is no common standard / rule / law.

However this is generally what larger companies do in my experience.

 

[Yqing237]

I got US salary -30% into CAD. So if I have 100k USD salary in California then I get 70k CAD salary in BC. Yet I’m not complaining, having an easier immigration is the most important thing. I would consider it as paying this much money to buy a green card.

 

[bismi]

I got US salary -30% into CAD. So if I have 100k USD salary in California then I get 70k CAD salary in BC. Yet I’m not complaining, having an easier immigration is the most important thing. I would consider it as paying this much money to buy a green card.

Thanks for your response. I totally agree. Money can't do much after a certain point. Peace of mind is what we need.

 

[Nick1233]

I currently work in California and (hopefully) moving to Toronto later. My employer offered a +3% in the US Salary amount as the Canada salary. That in effect would be a 22% reduction when we do the USD to CAD conversion. I'm not complaining, I believe this is still a good offer because salary here generally would have a premium for the location compared to other states. I know one of my friends who moved from Boston to Toronto a few years back on ICT (different company) also got a similar salary offer with a 3 to 4% increase to his US salary. So just wondering if there is any norm for this.

To make this clear - Let's say my current salary is USD $100k. Adding 3% would become my Canada salary - CAD $103k.

CAD $103k = USD ~$78k, which is -22% of my current US salary and yes, I understand this totally depends on the exchange rate.

I saw many posts regarding ICT from the US to Canada. So, I would like to get a general idea and to understand if the employers follow any common standard while converting the US salary to Canada. I know that the answer is most probably employer-specific and location in the US versus Canada. Still, it would be great if anyone could provide the details from their experience.

Depending on your actual salary, taxes too would reduce your take home pay. Higher the pay, more the taxes compared to California. Marginal tax can go as high as 45% or something like that.

Sounds like you are a full time. How are rest of your benefits transferred? You might have to check on parity.

FWIW, folks should just get another offer in US, use that to negotiate with your employer for ICT with better pay. This works better when one is critical for the team. Also, should Dems come back in 2020, not many employers might do this anymore. Tech lobby is in bed with Dems.

If it is too late, take the deal, move to Canada and keep looking for better opportunity and negotiate. The best thing about being a PR is being able to say "No" and that freedom is priceless.

 

[poppedpluto]

Luckily my employer kept the same US salary for me, i.e, if I make 100k USD, I would make close to $133K CAD given an FX rate of 1.33 CAD = 1 USD. I currently live in the heart of New York City (very expensive!) and I’m hoping my money is worth a lot more in Canada.

Although I’ve heard that Canada is more expensive than the US (at least Toronto is and that’s where I’m moving to). Have you guys heard the same as well?

Also what relocation package is your employer offering you guys? Just wanted to get a rough idea on what international relocation looks like in other companies.

Thanks!

 

[Nick1233]

Luckily my employer kept the same US salary for me, i.e, if I make 100k USD, I would make close to $133K CAD given an FX rate of 1.33 CAD = 1 USD. I currently live in the heart of New York City (very expensive!) and I’m hoping my money is worth a lot more in Canada.

Although I’ve heard that Canada is more expensive than the US (at least Toronto is and that’s where I’m moving to). Have you guys heard the same as well?

Also what relocation package is your employer offering you guys? Just wanted to get a rough idea on what international relocation looks like in other companies.

Thanks!

Again, due to tax differences, it is not apples to apples anymore. It will not be the same as US salary.

 

[scylla]

Luckily my employer kept the same US salary for me, i.e, if I make 100k USD, I would make close to $133K CAD given an FX rate of 1.33 CAD = 1 USD. I currently live in the heart of New York City (very expensive!) and I’m hoping my money is worth a lot more in Canada.

Although I’ve heard that Canada is more expensive than the US (at least Toronto is and that’s where I’m moving to). Have you guys heard the same as well?

Also what relocation package is your employer offering you guys? Just wanted to get a rough idea on what international relocation looks like in other companies.

Thanks!

Stuff in general just costs more in Canada (food, electronics, gas, etc.). Tax rate is higher.

 

[fr72]

Luckily my employer kept the same US salary for me, i.e, if I make 100k USD, I would make close to $133K CAD given an FX rate of 1.33 CAD = 1 USD. I currently live in the heart of New York City (very expensive!) and I’m hoping my money is worth a lot more in Canada.

Although I’ve heard that Canada is more expensive than the US (at least Toronto is and that’s where I’m moving to). Have you guys heard the same as well?

Also what relocation package is your employer offering you guys? Just wanted to get a rough idea on what international relocation looks like in other companies.

Thanks!

Housing in Toronto is cheaper than NYC and SFO in absolute dollar terms. Taxes in Ontario are not much different to taxes in California.

Sources: Just compare Zillow to Condos.ca to compare condos.

For tax: http://www.ees-financial.com/img/uploads/Tax-Take-Home-Pay-Calculator-for-2019.htm (100k CAD = 72k take home in Ontario)
https://smartasset.com/taxes/new-york-paycheck-calculator#8AMxxPjUCs (100k USD = 66k take home in NYC) (incl city tax)
https://smartasset.com/taxes/california-paycheck-calculator (100k USD = 68k take home in California)

Overall cost of living:
NYC vs Toronto: https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Canada&city1=Toronto&country2=United+States&city2=New+York,+NY

As you can see, NYC is more expensive in every category. Salaries in Toronto are lower, but that doesnt make a difference to you. Toronto is more expensive only in relation to local salaries, not absolute dollar terms.

 

[Yqing237]

Luckily my employer kept the same US salary for me, i.e, if I make 100k USD, I would make close to $133K CAD given an FX rate of 1.33 CAD = 1 USD. I currently live in the heart of New York City (very expensive!) and I’m hoping my money is worth a lot more in Canada.

Although I’ve heard that Canada is more expensive than the US (at least Toronto is and that’s where I’m moving to). Have you guys heard the same as well?

Also what relocation package is your employer offering you guys? Just wanted to get a rough idea on what international relocation looks like in other companies.

Thanks!

Yea, I don’t think Canada is more expensive at least rent-wise it’s much cheaper in Vancouver than where I am right now. You just can’t say Canada is more expensive than the US, it’s like saying men are always taller than women, it all depends on the locations.

Tax wise yea it sucks cuz there is no state tax from where I live.

Salary wise, the average in Vancouver is not even half of San Francisco. Considering that you should be satisfied as making US comparable salary basically makes you a king.


Living expenses wise it should be similar. This should give you a rough idea. https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Canada&city1=Vancouver&country2=United+States&city2=New+York,+NY

Relocation-wise they just pay for air tickets or drive cost by mileage, a few days of hotels on the road and when I arrive, and a huge chunk of money.

 

[Copingwithlife]

Again, due to tax differences, it is not apples to apples anymore. It will not be the same as US salary.

Probably not, it is a different country , and has different social program to fund compared to the US, since as mentioned, it is a different country, which people seem to forget

 

[Nick1233]

Probably not, it is a different country , and has different social program to fund compared to the US, since as mentioned, it is a different country, which people seem to forget

Yeah, not a knock. Just for folks to negotiate better with their employers before their move to Canada.

 

[justinline]

If you are moving to Canada with job....consider yourself lucky. You are in the rare 4-5%.
Having said that I know even best of the companies won't give you the USD to CAD exchange rate salary......whether it's Deloitte, Accenture, KPMG on upper end or TCS or Cognizant on the lower end. This is in most part true if you take internal transfer and move your payroll from US to Canada. In my present company for example if you want to move to Canada, the Canadian operating unit will charge the department a significant amount to provide you desk space, internet and laptop, payroll services etc etc. Almost like a service that they would charge a third party. That money must come out of your salary as well.
I have seen few companies do try keep a some parity between US and Canada staff, especially if your manager sits in US and departments budgeting happens in USD. But it's rare. Everyone knows salary levels are much lower in Canada compared US.

 

[canuck78]

Yea, I don’t think Canada is more expensive at least rent-wise it’s much cheaper in Vancouver than where I am right now. You just can’t say Canada is more expensive than the US, it’s like saying men are always taller than women, it all depends on the locations.

Tax wise yea it sucks cuz there is no state tax from where I live.

Salary wise, the average in Vancouver is not even half of San Francisco. Considering that you should be satisfied as making US comparable salary basically makes you a king.


Living expenses wise it should be similar. This should give you a rough idea. https://www.numbeo.com/cost-of-living/compare_cities.jsp?country1=Canada&city1=Vancouver&country2=United+States&city2=New+York,+NY

Relocation-wise they just pay for air tickets or drive cost by mileage, a few days of hotels on the road and when I arrive, and a huge chunk of money.

A lot of people aren’t immigrating from the very expensive areas in the US like greater NYC or greater San Francisco. You really need to compare where you are marrying from and moving to. Lots of places where real estate is pretty inexpensive and minimum wage is much lower in most areas of the US. Plenty of Americans who move within the US and are shocked in the difference in housing cost. For example knew a family moving from Texas to Seattle. Hadn’t done much research and expected they could get the same type of 3000+ sq ft new build they had in Texas in Seattle for around the same cost. Were very shocked when they realized they’d be paying more for a home that was 1000 sq ft of less in Seattle.

 

[Copingwithlife]

Yeah, not a knock. Just for folks to negotiate better with their employers before their move to Canada.

Wasn’t taken as a knock . But just pointing out that many individuals moving from the US to Canada are surprised that wages are different, taxes are different , housing prices , cell phone providers are all different. I’d assume individuals would do more research prior to moving /PR process at the beginning stage, versus the end when they are moving to a different country , just so that they aren’t surprised.