Comparing two job offers beyond the headline salary
Build a like-for-like comparison of net pay, hours and the costs of taking a job.
A larger salary can be attractive without telling you the full story. Start with a consistent cash-pay comparison, then add the costs and working conditions that the salary calculator cannot price for you.
Step 1: identify the cash salary
Read each offer carefully. Write down the gross cash amount and the paid hours it represents. If one offer describes a total package including employer contributions or other benefits, separate those components before entering the salary. Comparing a package total with a cash salary can exaggerate the difference.
Step 2: compare the same deductions
| Annual gross | Income tax | ACC | Employee KiwiSaver | Student loan | Annual net |
|---|---|---|---|---|---|
| $75,000.00 | $14,720.50 | $1,312.50 | $0.00 | $0.00 | $58,967.00 |
| $85,000.00 | $17,927.50 | $1,487.50 | $0.00 | $0.00 | $65,585.00 |
These examples exclude KiwiSaver, a student loan and IETC. The net increase is $6,618.00 a year, rather than the $10,000 gross difference. That is approximately $551.50 per average month. If you have other deductions, rerun both offers with the same options.
Step 3: account for your time
A $75,000 role at 37.5 paid hours per week has a gross hourly equivalent of about $38.46 over 52 weeks. An $85,000 role at 45 hours has an equivalent of about $36.32. This does not decide which job is better; it shows why the hours assumption belongs beside the salary, not in a footnote.
Step 4: make a separate cost list
List commuting, parking, meals away from home, equipment and any other costs that genuinely change between jobs. Use your own amounts. A $200 monthly increase in travel costs would consume $2,400 of an annual cash increase. Avoid counting a cost twice if it already exists in your budget.
Keep benefits and uncertainty visible
Guaranteed pay and a discretionary bonus are not interchangeable. Record bonus conditions separately. Leave, flexibility, training and stability may matter even when they do not have a simple cash value. Save the salary scenarios with descriptive names, then keep a short note of the costs and non-cash considerations outside the calculator.
Compare salaries · Compare hourly equivalents · Income-tax rate source ↗
Questions or corrections?
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