Considering accepting a job offer in Rio

Member since 25 October 2012

brazilexexpatNew member26 October 2012 15:46:10

Olá,
I'm considering taking a job offer in Rio and I could really use your help in making a decision.

Some background: I grew up in Brazil and visit regularly, so I'm used to all the "problems", etc. But have been living in the US for many many years, with a good job.

My high level question is: can I keep a good standard of living in Rio with today's prices? In the US, we have two incomes and in Rio we will only have one, at least initially. Though I'm hoping my partner can get a job as an ESL teacher.

The type of life I want to be able to live is: rent a decent 2 bed apartment in Ipanema, be able to afford bars and restaurants 3/4 times a week and beach, lots of it :-) The job I'm being offered is in the ball park of R$20K + company car. I don't know if it will include "ticket restaurant" and how much that would be. Despite that, our combined income in US$ will be cut in half with the move. I'm prepared to give up some of the conveniences of the US (cheap electronics, cheap brand clothes, etc). But I don't want to be worried about money in Brazil.

My reason to move is to have a better quality of life (better climate, the wonderful Rio atmosphere, walking culture, the social aspect, etc). I'm just afraid I may be shocked with a drastic cut in standard of living (purchase power, I mean), and safety in general. Yes, I know it's not as bad as they say, but you do need to take precautions and I don't know if I will be happy living that way.

For US expats living in Rio or Brazil in general, how did your life change? Did you have to lower your standard of living considerably? Despite that, do you feel your quality of life is better down there? What makes you stay? I know that nobody can make the decision for me, but having your insights could help.

On the more practical side of things, I've also been doing some research on the cost of rent, which will be the highest expense for sure. Prices seem to vary drastically and not be consistent. For example, take a look at the two listing below: one is twice as much as the other but seems to be a much worse apartment. What gives?

http://cidaderiodejaneiro.olx.com.br/be … -445879741 http://www.zap.com.br/imoveis/oferta/Ap … ID-3515474

Thanks for any hep you can offer. It's a tough decision to make.

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James ViP

Member since 20 June 2010

Brazil & Canada Expert

JamesViP26 October 2012 18:21:22

11272

Hi Brazilexexpat,

I presume that the figure R$20K is your gross monthly salary? If that is the case you will not have any problem having a really decent lifestyle even in Rio. Probably not a heck of a lot different than that you're used to in the Pacific Northwest since it would translate to about about US $120K per year... not bad at all.

As far as your partner making a living as an ESL teacher, it won't be much at all teachers are notoriously undervalued here in Brazil (in any subject) schools pay relatively low wages per hour taught (prep time, etc, is unpaid) and it will take a long while to establish a student base should your partner opt for teaching private classes.

If you haven't already done so please take the time to read my posting 'A Gringos Survival Guide for Brazil' and pay specific attention to my tips about safety. I would think that you really would have no problem fitting into Brazilian society once again and I doubt you'd find the security measures much different anywhere in the world.

With regard to the apartments the difference in the rent (double) is probably strictly because of the name of the bairro.... you're going to pay through the nose just to tell somebody you live in Ipanema? I sure wouldn't. That is the only logical conclusion I can make - it's more about a status symbol and name than it is obviously about the value of the apartment. Also you must realize too that the prices in Rio are going crazy right now with the run-up to the 2014 World Cup and 2016 Olympic Games. They will drop back to normal after these events, but for now everybody and his dog wants to cash in on the gringos that these events will attract.

If there's anything else I can do for you please don't hesitate to ask.

Cheers,
William James Woodward - Brazil Animator, Expat-blog

paulopereirra ViP

Member since 11 November 2011

paulopereirraViP28 October 2012 02:38:18

1322

For sure its an "executive" salary range. Dont forget the local taxes, if they apply.

James ViP

Member since 20 June 2010

Brazil & Canada Expert

JamesViP28 October 2012 13:22:50

11272

Hi brazilianexepat,

You will have 27% (which is the current maximum) deducted at the source for income tax and you will also have a deduction for INSS the federal pension. I'm not sure of the current rates but you should be able to find that online. Since most major employers here also provide medical/dental insurance coverage in their salary packages that shouldn't be a concern. You should do quite well on the proposed salary. You may even find it's enough that you don't want your partner to go out and work.

Cheers,
William James Woodward - Brazil Animator, Expat-blog

brazilexexpat New member

Member since 25 October 2012

brazilexexpatNew member29 October 2012 14:21:30

Thanks for the detailed response, William.

As much as I love Brazil and Rio, making a big decision like this is quite nerve-wracking, especially going from two incomes down to one. It will ultimately be a matter of comparing "purchase power" to "quality of life" and deciding which one matters the most.

Good to hear it will be enough to live well over there. I also have to get the details on benefits, etc and still have a couple of weeks to make the decision, so I will take evaluate the pros and cons.

Just can't believe I might be living in Rio after all these years :-)

James ViP

Member since 20 June 2010

Brazil & Canada Expert

JamesViP29 October 2012 15:43:21

11272

With a salary of R$20K and car I can only imagine the rest of the remuneration package will be spectacular too. You will most certainly have an excellent private medical plan which will cover dental as well, maybe even prescription drugs.

Obviously the holidays will follow the law and you will get a month of holidays after the first year of employment. Statutory holidays here in Brazil are numerous and most businesses shut down completely on those days. Many holidays that fall on a Thursday, Friday, Monday or Tuesday are cause for a 'mini vacation' since most Brazilians don't even bother to show up for work on Friday if the holiday falls on Thursday, nor on Monday if it falls on Tuesday. Then there are the holidays around Christmas/New Year and Carnaval and Semana Santa which are prolonged as well.

One of the benefits guaranteed by law is called "13º salário" (13th salary) which is a month's salary that you will receive just before Christmas. Depending on the employer that may be paid out in a single lump sum or in two installments. Most common is the single payment. This is extremely helpful with the costs of the holiday season and/or the expenses that all fall at the beginning of the year such as IPVA (auto taxes), IPTU (property taxes), school material (if you have kids), etc.

Good luck with the decision making process. If you decide not to take the job then put in a good word for me........ I'd kill to have a salary like that.

Cheers,
William James Woodward - Brazil Animator, Expat-blog