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Job offer salary... is this enough for me?

Hi,

I am Mark, a software quality assurance tester living in the Philippines. Recently, I got an offer from a company in Budapest. I accepted it and currently they are processing the work permit. The offer ranges from 30000 to 36000 HUF after taxes. Is this enough for me to have a good living and at the same time save money?

I am single, no kids whatsoever. I am at my early 20s and I plan to save money so I can help my family back in the PH and also for myself. I plan to rent a single studio type apartment in Budapest with no other roommates. I plan to go out once a week just to enjoy Budapest, and do grocery shopping and buying some clothes.

Any ideas?

I think you must of forgotten another zero, 30,000 is roughly only $100.
Even so 300,000F after taxes is liveable but not much, not enough to live in Budapest and take care of people overseas as well.
Don't forget, you must pay some taxes on your earnings in Hungary, they usually quote wages before taxes.

Marilyn Tassy :

I think you must of forgotten another zero, 30,000 is roughly only $100.
Even so 300,000F after taxes is liveable but not much, not enough to live in Budapest and take care of people overseas as well...

Ooops. My bad. Yeah, it is 300k - 360k HUF. It is already after taxes (net income).

Marilyn Tassy :

...Don't forget, you must pay some taxes on your earnings in Hungary, they usually quote wages before taxes.

Based on your statement above, is this different from the taxes being deducted on the gross pay then after that turns to net pay? I stated the amount 300K - 360K as after taxes already (net pay). If my understanding is correct, does that mean that I have to pay taxes on my gross income AND pay another set of taxes after net income? :O

From my understand, the "after tax salary" will be my take home salary.

Please enlighten me. I am new to the tax scheme of Budapest.

kiros0027 :

I am at my early 20s and I plan to save money so I can help my family back in the PH and also for myself. I plan to rent a single studio type apartment in Budapest with no other roommates. I plan to go out once a week just to enjoy Budapest, and do grocery shopping and buying some clothes.

Any ideas?

Estimated costs you might expect each month:

A studio: 120,000 HUF
Groceries: 30,000 HUF
Utilities: 40,000 HUF
Transportation: 17,000 HUF (for to and from work at 350 HUF per one way ticket)

Total: 207,000 HUF.

And that does not include extras like phone, Internet, cloths (you will need a winter wardrobe), going out, medical expenses (if you get sick - e.g. aspirin is quite expensive here), any other sort of extra traveling, or any other of life's little unexpected events (like having to buy light bulbs to needing to replace a computer). There will not be much left over for both savings and supporting people back home.

klsallee :
kiros0027 :

I am at my early 20s and I plan to save money so I can help my family back in the PH and also for myself. I plan to rent a single studio type apartment in Budapest with no other roommates. I plan to go out once a week just to enjoy Budapest, and do grocery shopping and buying some clothes.

Any ideas?

Estimated costs you might expect each month:

A studio: 120,000 HUF
Groceries: 30,000 HUF
Utilities: 40,000 HUF
Transportation: 17,000 HUF (for to and from work at 350 HUF per one way ticket)

Total: 207,000 HUF.

And that does not include extras like phone, Internet, cloths (you will need a winter wardrobe), going out, medical expenses (if you get sick - e.g. aspirin is quite expensive here), any other sort of extra traveling, or any other of life's little unexpected events (like having to buy light bulbs to needing to replace a computer). There will not be much left over for both savings and supporting people back home.

Thanks for your ideas. What can you suggest to me when I become an expat there with the salary that being offered?

klsallee :

A studio: 120,000 HUF

Only if you're not smart enough to avoid paying the "expat tax" and/or you absolutely must stay in district 5.

klsallee :

Utilities: 40,000 HUF

Only if you're staying in a brand new luxury condo with receptionist, gardener, janitor, etc.

klsallee :

Transportation: 17,000 HUF (for to and from work at 350 HUF per one way ticket)

Only if the 10k/month monthly pass is not good for you for some weird reason.

A lot of hungarians would be extremely happy with a 300k/month salary in Budapest.

kiros0027 :

Hi,

I am Mark, a software quality assurance tester living in the Philippines. Recently, I got an offer from a company in Budapest. I accepted it and currently they are processing the work permit. The offer ranges from 30000 to 36000 HUF after taxes. Is this enough for me to have a good living and at the same time save money?

I am single, no kids whatsoever. I am at my early 20s and I plan to save money so I can help my family back in the PH and also for myself. I plan to rent a single studio type apartment in Budapest with no other roommates. I plan to go out once a week just to enjoy Budapest, and do grocery shopping and buying some clothes.

Any ideas?

Are you a Filipino?  Do you have a degree?   In what subject?  Technical subject?

I think 300K HUF after tax (and assuming tax includes ALL the deductions - e.g. social payments/healthcare etc) is not so much for a qualified person and to have a good life with disposable income to send back home.  A civil servant equivalent to a paper shuffling clerk gets about this much.

Prices in HU are Euro-normal, i.e. expensive.  The prices quoted at you needs to include telecoms - 5-6K HUF per month.

atomheart :
klsallee :

A studio: 120,000 HUF

Only if you're not smart enough to avoid paying the "expat tax" and/or you absolutely must stay in district 5.

klsallee :

Utilities: 40,000 HUF

Only if you're staying in a brand new luxury condo with receptionist, gardener, janitor, etc.

klsallee :

Transportation: 17,000 HUF (for to and from work at 350 HUF per one way ticket)

Only if the 10k/month monthly pass is not good for you for some weird reason.

A lot of hungarians would be extremely happy with a 300k/month salary in Budapest.

Thank you for making me feel at ease because of your comment! Anyway, maybe this is out of topic, where do you think is the most practical place to get a solo flat with washing machine, etc.?

fluffy2560 :

Are you a Filipino?  Do you have a degree?   In what subject?  Technical subject?

Yes, I am a Filipino with a Bachelor of Science in Information Technology degree in a renowned university here in the Philippines.

fluffy2560 :

I think 300K HUF after tax (and assuming tax includes ALL the deductions - e.g. social payments/healthcare etc) is not so much for a qualified person and to have a good life with disposable income to send back home.  A civil servant equivalent to a paper shuffling clerk gets about this much.

Prices in HU are Euro-normal, i.e. expensive.  The prices quoted at you needs to include telecoms - 5-6K HUF per month.

What do you think is the range acceptable for my degree and qualifications? The company is an IT startup. Do you think that the salary is justifiable with those circumstances?

Thank you!

kiros0027 :

Anyway, maybe this is out of topic, where do you think is the most practical place to get a solo flat with washing machine, etc.?

It depends, where is your worplace located, do you mind long commutes, do you party a lot, etc.

atomheart :

It depends, where is your worplace located, do you mind long commutes, do you party a lot, etc.

Well I will be working near this place. Commute-wise, I am OK with a short commute like 15-30 minutes. I do not party actually but I hope I can find some great friends there to party with soon. Lol. Haha

Any ideas where is the most practical flat?

Thanks!

kiros0027 :

Well I will be working near this place.

Looks like metro line 3 gets you close. I'd recommend an apartment in an apartment bloc built in '60-'80, not higher than 5 storeys that is located in a neighborghood with similar buildings. The advantage: it's definitely far from center, cheap, but not too old, utilities are cheap too. József Attila-lakótelep would be a good example.

Thank you so much for this suggestion!

atomheart :

Only if you're not smart enough to avoid paying the "expat tax"

Most expats pay the expat tax to some extent, even the smart ones, and especially new arrivals. Potentially even worse for non-Europeans.

klsallee :

Only if you're staying in a brand new luxury condo with receptionist, gardener, janitor, etc.

1) Do note the important words I used: "estimated" and "might".

2) Better to budget high than be caught out of money that month. And people who are over optimistic about their budgets are the ones that go bankrupt.

3) I did include the expat tax. Potentially foolish not to consider doing so.

klsallee :

the 10k/month monthly pass

Yes, there is the monthly pass. Good point. But only saves 7,000 a month.

Besides, my main point was needing to consider that there are many different sources of costs each month to consider (and many people tend to forget about transportation costs)

klsallee :

A lot of hungarians would be extremely happy with a 300k/month salary in Budapest.

True. But locals have insider information and relationships to help them make it on a lower salary. Not so true for many expats.

kiros0027 :

Do you think that the salary is justifiable with those circumstances?

http://www.payscale.com/research/HU/Cou … ary/Salary

I suppose all in all, you do not have allot to lose. Can give it the, " old college try" and if it doesn't work out then you can pick up and move on.

I have been living for 2 years. Would recommend small flat out of center but with direct metro/bus connection. Medical service is quite expensive (comparing to salary). As suggested above: monthly pass, internet, etc. can be extra.  I think with tight life style can save 200-300 Euro. But just to make two ends meet with daily stuff (no traveling, eat out).

Alexander Spagin :

I have been living for 2 years. Would recommend small flat out of center but with direct metro/bus connection. Medical service is quite expensive (comparing to salary). As suggested above: monthly pass, internet, etc. can be extra.  I think with tight life style can save 200-300 Euro. But just to make two ends meet with daily stuff (no traveling, eat out).

About the medical expenses, will the hungarian social security will aid the burden?

Marilyn Tassy :

Can give it the, " old college try" and if it doesn't work out then you can pick up and move on.

One benefit of making it to Budapest is being in a position to go to, in person, interviews in nearby locations with better salaries (i.e. Vienna).

kiros0027 :

....About the medical expenses, will the hungarian social security will aid the burden?

Just be clear with the employer - they need to define exactly what "net salary" means.

When I say "net salary" I mean after all deductions including social security and health costs etc.

But they might mean something else.

fluffy2560 :
kiros0027 :

....About the medical expenses, will the hungarian social security will aid the burden?

Just be clear with the employer - they need to define exactly what "net salary" means.

When I say "net salary" I mean after all deductions including social security and health costs etc.

But they might mean something else.

The HR told me that the value is "after taxes". Will ask them if other deductions are already applied in the amount.

I must say that for one reason or the other my husband was looking online at wages here in Hungary.
At McDonald's they pay 160,000 HUF for the first 2 months while one is in training( seems a bit long) and after that it goes to 200,000 and after 6 months if one wants to train others then it is increased to  , forgot exactly but something like 202,250 or there about's.
Surprised a bit that they pay that much for a service worker, they do deserve it for sure but still without a college degree in HU it is rather a good job after all. They also get a few little perks.
My 17 ( at the time) year old son became a assistant manager at M icky D's after only 2 weeks of work, quit 4 days later when he realized he was actually "babysitting" a grown women who was the manager.( She couldn't do the nightly count without his help, as it was it took her 2 hours to do the nightly totals without anyone getting paid for those extra hours of counting)
Just saying 300,000 for anyone who has a degree is really a rip.
When I was 18 I worked in the food service industry as a (totally American job) car hop, then was the head hop at Bob's Big Boy. Loved that job made a ton of cash without really doing much more then giving a smile and being fast. Made more money then my older sister did at that time, we were room mates and it only took me 3 or maybe 4 days of work to cover my share of the rent on a 2 bd. with a pool in S. Cal. Sad how much"they" now abuse workers.. Talking way back in the early 1970's when a dollar was worth a dollar.

Marilyn Tassy :

I must say that for one reason or the other my husband was looking online at wages here in Hungary.
At McDonald's they pay 160,000 HUF for the first 2 months while one is in training( seems a bit long) and after that it goes to 200,000 and after 6 months if one wants to train others then it is increased to  , forgot exactly but something like 202,250 or there about's.
Surprised a bit that they pay that much for a service worker, they do deserve it for sure but still without a college degree in HU it is rather a good job after all. The also get a few little perks.
My 17 ( at the time) year old son became a assistant manager at M icky D's after only 2 weeks of work, quit 4 days later when he realized he was actually "babysitting" a grown women who was the manager.( She couldn't do the nightly count without his help, as it was it took her 2 hours to do the nightly totals without anyone getting paid for those extra hours of counting)
Just saying 300,000 for anyone who has a degree is really a rip.

To be fair with the company, it is only a startup IT company.  I believe startup companies offer small salaries compared to the other big ones. I. In my case, to be exact, the take-home salary will be around 360000 HUF. What do you think? Will this be a fair deal for me?

You know, nothing to lose and you can always move on from there.
Not to be rude or anything but to get into Europe with a job already set up for you is rather good in my mind.
About being rude, I mean even for schooled and educated people coming in from a "3rd world" country" it has to be hard. Jobs are in short supply everywhere right now. I would do it if I were you.
You are young and adventure is waiting for you. Good luck.

Marilyn Tassy :

You know, nothing to lose and you can always move on from there.
Not to be rude or anything but to get into Europe with a job already set up for you is rather good in my mind.
About being rude, I mean even for schooled and educated people coming in from a "3rd world" country" it has to be hard. Jobs are in short supply everywhere right now. I would do it if I were you.
You are young and adventure is waiting for you. Good luck.

You got a point. I just want to have your opinions since you are the seasoned expats here. And I guess I just need to take a leap of faith...

Exactly, my husband and I are "older" so from life experience I would say go for it, nothing to lose.
Once you are married and have kids etc. then your options are limited.
Enjoy life while you are young, never look back and always go forward.
You must be very good at what you do for a job offer to come your way so take advantage of it.
Best of luck to you.

kiros0027 :

To be fair with the company, it is only a startup IT company.  I believe startup companies offer small salaries compared to the other big ones.

True, also, they expect you to work a lot harder than the usual multinational software consultancy... How big is that startup, are you sure it'll be around in two months?

kiros0027 :

Will this be a fair deal for me?

How could we tell withot knowing you and your capabilities? Maybe you'll be underpaid, maybe they'll find you're not worth that much, and show you the door after two weeks.

atomheart :

True, also, they expect you to work a lot harder than the usual multinational software consultancy... How big is that startup, are you sure it'll be around in two months?

The company is around for years now, and they create excellent products.

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