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Methodology
This document describes the official methodology used to calculate all Olikit scoring systems. These frameworks are designed to standardise cross-market comparisons and provide professionals, researchers, and employers with transparent, reproducible measures of compensation, purchasing power, relocation feasibility, career opportunity, and net earning power across global markets.
Raw salary data alone is insufficient for evaluating international job opportunities or making relocation decisions. A nominal salary figure does not account for differences in tax regimes, cost of living, purchasing power, career mobility, or the practical realities of moving to another country. Two professionals earning the same gross salary in different markets can have vastly different financial outcomes and quality of life.
Olikit scoring systems were developed to address this gap. Each score isolates a specific dimension of the employment landscape and normalises it onto a 0-100 scale, enabling meaningful comparisons across countries, professions, and experience levels. The frameworks are designed to be:
The five scoring systems are designed to be used together. A complete evaluation of a market requires reviewing all five scores in combination with personal circumstances, career stage, and individual preferences.
The Compensation Score measures the earning potential of a given profession within a specific market. It answers the question: how competitive is compensation for this role in this country, relative to global benchmarks?
The Compensation Score is a weighted composite of four input categories. Weightings reflect the relative importance of each factor in determining overall earning potential:
| Input | Definition | Weight |
|---|---|---|
| Median Salary | Market median base salary for the profession at the mid-career level (5 years of experience). | 50% |
| Senior Salary Potential | 75th percentile total compensation for experienced professionals (8+ years). | 20% |
| Bonus and Equity Prevalence | Frequency and typical size of performance bonuses, stock grants, and other variable compensation. | 15% |
| Tax Efficiency | Effective tax rate on a mid-career salary, including income tax and mandatory social contributions. | 15% |
Each input is normalised to a 0-100 sub-score using min-max scaling against the full range of observed values across all tracked markets. Sub-scores are then combined using the weightings above to produce the composite Compensation Score. The formula is:
| Score Range | Tier | Interpretation |
|---|---|---|
| 90-100 | Exceptional | Top-tier global compensation. Market-leading salaries with significant bonus and equity potential. |
| 80-89 | Strong | Highly competitive compensation. Above-median salaries with good variable pay opportunities. |
| 70-79 | Competitive | Solid compensation aligned with market benchmarks. Moderate variable pay prevalence. |
| 60-69 | Moderate | Below-median compensation. Limited bonus and equity availability in the market. |
| Below 60 | Limited | Significant gap from global benchmarks. May reflect early-stage markets or roles with constrained earning potential. |
The Purchasing Power Score measures the real-world spending power of net compensation after adjusting for local price levels. It answers the question: how far will my income go in this market?
High nominal salaries do not automatically translate to high purchasing power. Markets with strong gross compensation often have proportionally elevated costs for housing, goods, and services, which can erode or eliminate the nominal advantage.
| Input | Definition | Weight |
|---|---|---|
| Net Income | After-tax income for a mid-career professional, including mandatory social contributions. | 30% |
| Housing Costs | Median rent for a one-bedroom apartment in a desirable area of the primary tech hub. | 35% |
| Essential Goods and Services | Cost of groceries, transportation, utilities, healthcare, and communication services. | 20% |
| Discretionary Capacity | Proportion of net income remaining after essential expenses, indicating financial flexibility. | 15% |
Net income is calculated by applying the applicable tax regime to the median gross salary. Housing costs are subtracted at the market median for a standardised rental unit. Remaining net income is then adjusted using a cost-of-living index derived from World Bank purchasing power parity (PPP) conversion factors and third-party consumer price data. The result is normalised to the 0-100 scale, where 100 represents the maximum observed purchasing power across all tracked markets.
| Score Range | Tier | Interpretation |
|---|---|---|
| 90-100 | Exceptional | Net income provides substantial discretionary spending after all essential costs. |
| 75-89 | Strong | Good balance of income and costs with meaningful savings potential. |
| 60-74 | Adequate | Essential costs consume a moderate share of net income. Limited discretionary capacity. |
| 40-59 | Compressed | Housing and essential costs absorb most of net income. Low financial flexibility. |
| Below 40 | Stressed | Net income is insufficient to cover essential costs at a comfortable standard. Significant trade-offs required. |
The Relocation Score evaluates how favourable a country is for professionals considering international relocation. It combines objective policy metrics with quality-of-life indicators that affect the overall relocation experience.
| Input | Definition | Weight |
|---|---|---|
| Visa Accessibility | Availability of skilled-worker visa pathways, processing times, and success rates. | 30% |
| Path to Residency | Clarity, duration, and predictability of the pathway from temporary visa to permanent residence and citizenship. | 20% |
| Healthcare Quality | Quality, accessibility, and affordability of healthcare for residents and temporary visa holders. | 15% |
| Safety and Stability | Crime rates, political stability, and rule of law indicators. | 15% |
| Employment Market Access | Ease of obtaining work authorisation, recognition of foreign qualifications, and labour market integration support. | 20% |
Each input is scored using a structured rubric. Visa accessibility, for example, is evaluated against criteria including whether a dedicated tech-worker visa exists, typical processing times, family inclusion policies, and whether the visa is tied to a single employer. Path to residency considers the minimum residency period required before applying for permanent residence, language requirements, and annual caps or quotas. Scores are combined using the weightings above and normalised to 0-100.
| Score Range | Tier | Interpretation |
|---|---|---|
| 85-100 | Open | Streamlined immigration pathways, clear residency routes, strong quality of life. |
| 70-84 | Accessible | Structured visa programmes with moderate processing times. Good expatriate support infrastructure. |
| 55-69 | Selective | Visa pathways exist but may involve competitive quotas, employer sponsorship requirements, or longer processing times. |
| 40-54 | Restrictive | Limited visa options, significant bureaucratic hurdles, or unfavourable conditions for family relocation. |
| Below 40 | Challenging | Substantial barriers to entry. Limited or no dedicated skilled-worker pathways. |
The Career Opportunity Score assesses the long-term professional potential of a market. While the Compensation Score measures what you can earn now, the Career Opportunity Score measures the strength and resilience of the market over time.
| Input | Definition | Weight |
|---|---|---|
| Employer Density | Number of relevant employers per capita and concentration of industry-leading firms. | 30% |
| Industry Diversity | Range of industries employing the profession, indicating market resilience to sector-specific downturns. | 25% |
| Talent Demand | Job posting volume, vacancy-to-candidate ratios, and year-over-year hiring growth. | 25% |
| Market Maturity | Stage of market development: presence of established career ladders, professional networks, and advancement pathways. | 20% |
| Score Range | Tier | Interpretation |
|---|---|---|
| 90-100 | Global Leader | Deep talent market with high employer density, diverse industries, and strong long-term demand. |
| 75-89 | Strong | Robust market with good employer variety and healthy talent demand. Solid advancement infrastructure. |
| 60-74 | Developing | Growing market with increasing opportunities but limited employer density or industry breadth. |
| 40-59 | Emerging | Small or concentrated market. Limited career advancement options and narrower industry exposure. |
| Below 40 | Niche | Very limited market size. Career progression may require geographic mobility or industry switches. |
Net Earning Power estimates the disposable income available to a mid-career professional after accounting for taxes, mandatory contributions, and essential housing costs. It is the closest single metric to answering: how much wealth can I build in this market?
Gross Annual Salary
Minus: Income Tax (Federal / National + State / Provincial)
Minus: Mandatory Social Contributions (Pension, Healthcare, Unemployment)
Minus: Median Annual Rental Cost (One-Bedroom in Primary Tech Hub)
Equals: Estimated Net Earning Power
Net Earning Power is expressed in USD equivalent to facilitate cross-market comparison. A higher value indicates greater wealth-building potential. The metric is most valuable when comparing two specific offers or markets, as it strips away the confounding effects of different tax regimes and housing cost structures. It should be used alongside the Compensation Score and Purchasing Power Score for a complete financial picture.
All Olikit scoring systems draw on data from the following categories of sources. Specific source references are provided on individual country and profession pages where scores are displayed.
Olikit does not fabricate or synthesise data. Where direct data is unavailable, proxy indicators from comparable markets are used and clearly annotated. All data sources and their effective dates are documented on the relevant methodology notes within each page.
The following limitations apply to all Olikit scoring systems. Users should consider these when interpreting scores and making decisions based on them.
Olikit scoring systems are designed as informational tools to support professional decision-making. They are not a substitute for personalised financial, legal, or immigration advice from qualified professionals.
Olikit scores are reviewed and updated on a quarterly cycle. Major updates occur in January, April, July, and October to align with tax-year changes and the release of new government labour statistics. Intra-quarter adjustments may be applied when significant events — such as tax reform, currency volatility, or updated immigration policy — materially affect a score.
Raw salary data is only one input. A country may have high nominal salaries but also high taxes, elevated housing costs, or lower career mobility, all of which reduce its composite scores. For example, a market with a Compensation Score of 95 may have a Purchasing Power Score of only 70 if cost of living consumes a disproportionate share of net income. Each score measures a distinct dimension; they should be read together rather than in isolation.
Net Earning Power is an estimate of the disposable income a professional can expect after accounting for taxes, mandatory social contributions, and essential housing costs. It differs from simple take-home pay because it also adjusts for the cost of securing comparable accommodation in the target market, giving a more realistic view of wealth-building potential.
The Relocation Score should be interpreted as a measure of overall relocation feasibility, not a recommendation. A score of 90 indicates a market with streamlined visa pathways, strong expatriate support, and high quality of life. A score of 50 suggests significant barriers such as complex immigration procedures, limited healthcare access, or cultural adjustment challenges. Professionals should use the score alongside their personal circumstances, family needs, and career goals.
Yes. The scoring frameworks are profession-agnostic at the methodology level. A Compensation Score of 85 means the same thing for a Data Scientist, a Software Engineer, or a Product Manager: the role's compensation ranks in the Strong tier (80-89) relative to its own market benchmarks. However, the underlying inputs — median salary, senior potential, bonus prevalence — differ by profession, so direct nominal comparisons across professions are not meaningful without consulting the profession-specific data pages.
The Compensation Score measures current earning potential: how competitive salaries are right now. The Career Opportunity Score measures long-term market strength: employer density, industry diversity, promotion pathways, and talent demand. A market may have a high Compensation Score but a moderate Career Opportunity Score if salaries are strong but the market is small or dominated by a single industry.
Olikit aggregates data from government statistical agencies (US Bureau of Labor Statistics, UK Office for National Statistics, Australian Bureau of Statistics, Statistics Canada, and their international counterparts), tax authority publications, World Bank purchasing power parity indicators, OECD cost-of-living indices, publicly available salary datasets, and immigration authority policy documentation. All sources are cited on individual page methodology notes where applicable.
The 0-100 scale provides an intuitive, universally understood reference. A score of 100 represents the theoretical maximum: a market where net income, after adjusting for local costs, delivers optimal real-world spending power. Scores below 50 indicate markets where housing and essential costs consume a significant share of net income, reducing discretionary spending capacity.
Currency exchange rates are reviewed quarterly. All salary figures are converted to USD equivalents using the average annual exchange rate for the most recent completed calendar year, supplemented by the most recent quarter's rate where significant divergence exists. Users should be aware that short-term currency volatility can affect country rankings and consult the latest data for time-sensitive decisions.
No. Olikit Relocation Scores are informational only and are not recognised by any immigration authority for visa, residency, or citizenship applications. They are designed to help professionals compare relocation destinations, not to satisfy legal or regulatory requirements. Applicants must consult official government sources for immigration criteria.
For markets where comprehensive data is unavailable, Olikit applies proxy indicators from comparable economies, adjusts for known differences, and clearly annotates the limitation on the relevant page. Scores for data-limited markets carry a wider confidence interval and are marked with an asterisk or footnote explaining the data quality tier.
Significant tax law changes are incorporated within 30 days of enactment. Minor or phased changes are applied during the next quarterly update cycle. The effective date of the most recent tax data update is displayed in the methodology notes on each country salary page.
All Olikit scores carry an estimated margin of error of plus or minus 3 to 5 points, depending on data quality and market transparency. Scores for established markets with robust statistical infrastructure (United States, United Kingdom, Australia, Canada, Singapore) have tighter confidence intervals. Emerging markets or those with limited official data may have wider intervals. Scores should be treated as directional indicators rather than precise measurements.
Senior salary potential is defined as the 75th percentile of total compensation for professionals with 8 or more years of experience in the relevant profession and market. This includes base salary, cash bonuses, and equity grants where applicable. The 75th percentile was chosen because it represents the threshold at which a professional can expect to be compensated at an experienced, high-performing level without reaching executive or C-suite tiers.
Yes. Many Olikit scores are derived from the same inputs used in professional compensation benchmarking, including median salary data, percentile distributions, and market premium factors. Employers may reference Olikit scores as one input among several when evaluating international salary bands, but should not rely solely on any single scoring system for compensation decisions.