A European salary can look impressive when converted into Indian rupees, but the figure alone may not tell the full story. An Indian man living in Finland has sparked a conversation after explaining why comparing salaries across countries using exchange rates can be misleading, pointing to the stark differences in purchasing power and everyday costs of living.
In a video shared on Instagram, the man used the example of a €1,500 salary to explain why simply converting it into rupees could create an unrealistic picture of someone’s financial position in Europe.
“So, as of today, 1 Euro equals to almost Rs 110. So, people think that if the salary is 1500 Euros, it means that the salary is 1.5 lakh rupees,” he said. However, he argued that the purchasing
power of the same amount of money can vary significantly in Finland and India.
He Explains Purchasing Power Parity
Giving the example of groceries, he said 100 Euros could cover only a day or two of expenses I Europe, while the equivalent amount in India could stretch much further. “But people don’t realise that from 100 Euros, you can spend a maximum of 1-2 days in Europe. But from the same 100 Euros, in India, it is around 10-11 thousand rupees. You can buy ration for at least 2 weeks,” he explained.
He then shared this is where Purchasing Power Parity (PPP) becomes important when comparing incomes between countries. “I am making this video so that people should know what we call Purchasing Power Parity,” he said. “That is, your salary equals to your expenses.”
He further pointed out that hearing figures such as €1,500 or €2,000 can make European salaries sound significantly higher when converted into Indian currency. However, the comparison can change once local costs are factored. “In reality, when you come here and see the expenses, then you will realise that they are very different,” he added.
The man shared the video with the caption, “Reality is different, don’t fall in trap!”
Internet Is Divided Over His Opinion
His post has people to discuss the realities of earning and living abroad, with several agreeing that salary comparisons based solely on exchange rates can be misleading.
“Aap bilkul sahi kahe rahe ho. Logon ko yeh nahi pata hai ki kitne sare cheezon ke liye tax bharna parta hai aur ghar ka rent kitna hai. 1500 euro me se yaha kuch nahi bachta hai, logo bahut hi mushkil se apna kharcha chalate hai,” said a user.
“U r right but 1-2 lakh bach jata hai na sare kharche nikalne ke baad,” another quipped.
“Make your own food best way to save money and be healthy,” someone suggested.
Meanwhile, a section disagreed with his observation, with one saying, “Brother this is wrong 20 euro bhe ni kharch hote 2 din mein.”
(Disclaimer: This article is based on user-generated content. The claims made in the original post have not been independently verified by News18)
