An Indian man living in Finland has sparked a conversation online after explaining why directly converting a European salary into Indian rupees can give a misleading picture of how much someone actually earns. In an Instagram video, he highlighted the difference in purchasing power and cost of living between India and Europe, arguing that a salary that appears substantial after currency conversion may feel very different once local expenses are taken into account.
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‘Actual reality is vastly different’
The man shared the video on his Instagram account, @sharedtales_journal, where he used everyday expenses to explain the concept of Purchasing Power Parity (PPP).
"So as of today, 1 Euro is almost equal to ₹110. So people think that if the salary is 1,500 Euros, it means a salary of ₹1.5 lakh. But what people don’t realize is that with 100 Euros in Europe, you can manage your expenses for at most one to two days. But with that same 100 Euros in India—which comes to around ₹10,000 to ₹11,000—you can buy at least two weeks' worth of groceries," he said.
He added that simply converting salaries based on the prevailing exchange rate does not reflect how much money can actually buy in different countries.
{{/usCountry}}He added that simply converting salaries based on the prevailing exchange rate does not reflect how much money can actually buy in different countries.
{{/usCountry}}"So I am making this video so that people become aware of what we call Purchasing Power Parity. That is: as much as your salary is, your expenses match it. Over here, it might sound impressive hearing salaries like 1,500 Euros or 2,000 Euros—meaning ₹2 lakh or ₹2.5 lakh in Indian currency—but the actual reality, once you come here and see the living expenses, is vastly different."
The clip was shared with a caption that read, "Reality is different, don’t fall into a trap!"
Watch the clip here:
Internet reacts
The video drew reactions from users who agreed that salaries abroad cannot be fairly assessed through currency conversion alone, particularly without considering rent, groceries, transport and other everyday expenses.
One user wrote, “People often forget about the cost of living.” Another commented, “Cost of living changes the entire salary comparison.” A third person agreed with the creator and wrote, “Yes, you're right.” Another user summed up the discussion by saying, “Salary looks impressive only on paper.”
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HT.com has reached out to the user for his comments, and the copy will be updated once his response is received.
(Disclaimer: This report is based on user-generated content from social media. HT.com has not independently verified the claims and does not endorse them.)