McKinsey Prague salary cut

Question

I’m a UX designer and I received an offer with McKinsey for a Product Design position in Prague, Czech Republic. BUT the salary they’re offering is way lower - about 50% less. Working in Europe temporarily is a dream of mine and it was hard to find a reputable company that provided sponsorship for the work permit. They say it’s rationalized because living costs are lower, but I’m still not confident that I’ll still be able to live the lifestyle I have now. Is the pay cut and exit opportunity still worth it?

Answer 1

Czech Republic is a middle income country. It's GDP per capita is about 50% of Germany's. It's very unlikely that you'll be able to move there without a reasonable (if not "sizeable) drop in lifestyle. Moreover, you seem to be moving from the United States, where salaries are already higher than those in high wage european countries (e.g. Germany, France, Nordics, …).

This is not Mckinsey's fault - it's how the world works. So unless you are moving from a really high cost location in the US (e.g. NY, SF) where housing costs are outrageous, you'll have to accept that a drop in lifestyle is inevitable.

Given that this is Mckinsey, I am pretty sure you will be able to have a decent life with that salary (but of course double check). Moreover, please note that personal taxes in czech republic are low for european standards (~I believe it is 28% combining income tax, social security and health insurance, with a small tax credit of ~1000€ applying).

And while you won't be able to have the same lifestyle please realize some things will be significantly cheaper and you can splurge on those :) Of course, you're after the best benefit: you are in a really great location to travel around Europe.

Answer 2

Hi Suse,

I'm sorry but I completely agree with Pedro.

Salaries are reflective of the country you are in. If the country has lower incomes/GDP, you will have a lower salary.

Good job on negotiating, but now you basically need to decide if it's worth the pay cut or not! Importantly, think about what the next 3-10 years look like after you've spent some time in this role.

Good luck to you!

Answer 3

Hello,

Whether the pay cut and other considerations are worth it depend on your overall priorities and goals. I'm not sure where you are moving from, but I agree with Ian and Pedro that McKinsey's salaries should be calibrated to the income / GDP of the country they are operating in, so you should be able to comfortably live in Prague on the salary they are offering.

That being said, if you are concerned, I highly recommend talking to some people in the Prague office. They can help you get an understanding of what the salary can afford, as well as a better picture of the exit opportunities.

Answer 4

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