When you're a developer weighing a remote offer in dollars against one in euros, the first instinct is to convert at today's rate and pick the bigger number. That's the least useful comparison you can make.
Step 1: Convert, but use a range
Use a current exchange rate, then check what the comparison looks like if the rate moves ±10%. Exchange rates have swung that much in recent years. If the decision flips within that range, the offers are effectively equal on pay.
Step 2: Compare net, not gross
Taxes and social contributions differ a lot by country, and by employment type (employee vs contractor). Estimate take-home pay for each:
- Income tax
- Social security / national insurance
- Mandatory pension or health contributions
Official government tax calculators exist for most countries. Use them.
Step 3: Value the benefits
| Benefit | Often included in EU employment | Often separate in US |
|---|---|---|
| Healthcare | Through public system | Employer plan with premiums, deductibles |
| Paid holiday | Statutory minimums, often 20+ days | Varies widely, no federal minimum |
| Pension | Statutory plus employer schemes | 401(k) match, varies |
| Parental leave | Statutory | Varies by employer and state |
| Equity | Less common | More common at startups |
Put an approximate euro or dollar value on each. Healthcare and pension matching can be worth a lot.
Step 4: Normalise for hours
Divide annual pay by actual working hours, including holidays. My Salary to Hourly calculator does this. An offer with 30 days of holiday and a 38-hour week is worth more per hour than the same salary with 15 days and 45 hours.
Step 5: Cost of living (if relocating)
If the job means moving, compare rent, transport, childcare, and taxes on purchases in each city. VAT in Europe is included in shelf prices; US sales tax is added at checkout and is usually lower. See EU VAT Rates 2027.
Step 6: Currency risk (if remote)
If you live in one currency and are paid in another, you carry the exchange-rate risk. Options:
- Negotiate pay in your expense currency
- Hold a buffer in your home currency
- Use a multi-currency account to time conversions sensibly
A simple comparison sheet
| Offer A (EUR) | Offer B (USD) | |
|---|---|---|
| Gross | ||
| Net (estimated) | ||
| Benefits value | ||
| Working hours/year | ||
| Effective net per hour | ||
| Currency risk | Low / Medium / High | |
| Growth / equity |