A thought-provoking analysis by a Google software engineer based in Bengaluru is sparking widespread debate online about the true value of salaries across international borders. Vaibhav Agarwal's LinkedIn post challenges the conventional method of comparing incomes through direct currency conversion, advocating instead for a Purchasing Power Parity (PPP) approach to reveal a more realistic picture of lifestyle affordability.
The PPP Lens: Rethinking Salary Comparisons
Vaibhav Agarwal framed his argument around the economic concept of Purchasing Power Parity (PPP), which measures how much a currency can buy in terms of local goods and services, rather than just its exchange rate. He argued that raw currency conversion is often misleading when judging quality of life. To illustrate his point, he compared two specific salary figures: an annual package of Rs 45 lakh (Rs 45 LPA) in Bengaluru versus an annual salary of £108,000 (approximately Rs 1.32 crore) in London.
While the UK figure appears substantially larger on paper, Agarwal detailed how the lived experience diverges dramatically. According to his breakdown, a Rs 45 LPA salary in India translates to a monthly take-home pay of roughly Rs 2.7 lakh. This income level, he suggests, places professionals within India's top one per cent, enabling a highly comfortable lifestyle.
Bengaluru's Luxury vs London's Upper-Middle Class Comfort
In Bengaluru, Agarwal explained that the monthly income of Rs 2.7 lakh allows for significant luxuries that define comfort for many. This includes renting a spacious two-bedroom apartment in a premium gated community, employing domestic help for cleaning and chores, regularly using food and grocery delivery apps, and frequently opting for cab rides over public transport. The affordability of these time-saving and convenience services marks a key differentiator.
The scenario in London presents a stark contrast. A £108,000 salary results in a post-tax and national insurance monthly take-home of about £6,100 (roughly Rs 7.45 lakh). A significant portion is immediately consumed by high living costs. Agarwal notes that rent for a fairly basic one-bedroom apartment in Zone 2 can cost around £2,200 (approximately Rs 2.69 lakh). After accounting for housing, utilities, and other essentials, disposable income shrinks considerably. Consequently, professionals often rely on public transport and handle daily tasks like cooking and cleaning themselves. Agarwal summed up this lifestyle as comfortable but firmly upper-middle class, not extravagant.
Viral Reaction and Broader Perspectives
Agarwal concluded his comparison with a resonant statement: “If you want Luxury and Comfort, choose Bengaluru. If you want Global Exposure, Clean Air, and Stronger Currency, choose London.” This line struck a chord, prompting hundreds of reactions and comments on the platform.
The post quickly attracted engagement from others who supported the PPP argument. One user commented on the prevalence of misleading cross-country salary comparisons on social media, calling such posts “equivalent to spreading misinformation.” Another commenter added a crucial caveat, pointing out that earning Rs 45+ LPA in India is statistically much harder than securing a £108,000 job in England for a software engineer, where such a figure might be closer to the average.
A third perspective highlighted that financial remuneration is not the sole driver for moving abroad. Many professionals seek multicultural exposure, quality of life, advanced education and healthcare systems, environmental factors, and personal growth. This commenter also noted that performing one's own chores can be a matter of personal choice rather than purely a financial constraint.
The discussion initiated by Vaibhav Agarwal underscores a critical nuance in global career decisions. It moves beyond headline salary numbers to examine the tangible lifestyle, disposable income, and personal priorities that ultimately define the value of a paycheck, whether in India's tech capital or a global metropolis like London.
