Job relocation to London. Compensation?

[LOMS]

Hello,

My company have asked me to relocate to the London office. We haven't discussed financials yet but obviously a compensation will be in place.

What is a reasonable number to ask? Has anybody been in a similar situation before?

For discussion purposes, let's assume I'm paid 45K gross annually. This is obviously somewhere outside our expensive capital.

As far as incremental monthly expenses go, my initial calculations show a monthly increase of £650-700, that's predominantly in rent.

This would bring us to £8.4K a year before tax. After tax 14K. I'm not taking into account NI taxes here even.

Question is, does this sound reasonable/realistic? What's the legalities here? Has anybody been through this before who could share their opinion?

Cheers lads

 

[LOMS]

Now, yes. In London I won't (factored in the calculations).

 

[LOMS]

Thanks all for your input - very helpful indeed!

Seems some people missed the point of this thread. This isn't about where would I want to live or how much am I willing to spend. I've computed what it would cost me more or less to maintain at least my existing standard of living in the new location. The question really is whether asking for such a raise (almost 1/3!) is considered reasonable when negotiating relocations with employers (or whether you could make the argument that you'd need to at least maintain your current standard of living).

I know it does depend on the going rate of such role in other companies/in the company, but that’s a bit tricky to gauge/not very applicable in my case (long story).

But so far I get the feeling that this is a reasonable request.

And yes I’ll be asking for a bit more than what would enable me to maintain current standard of living, as suggested, to make the move worthwhile, but let’s keep that to the side for now and focus at whether the argument of maintaining standard of living is at least considered valid in these situations, keeping in mind that of course I’ll be benefiting a lot (non-financially) from moving to London.

How big is the company?

It's a FTSE 100.

I work for a large financial institution and the London weighting is a measly £4k per year for a salary around then 45k mark.

Yes that's the problem. Trouble is some even major companies’ London Allowance is a mere £4-5K, whereas others are £10K+, so you can't really tell.

BTW, not with you on the 60K+ to live in London too mate . As explained it really does depend on each individual's lifestyle and circumstances. I know many people with much lower salaries and they are living just fine. But yeah as you could notice I would be nearer to the number you quoted if I am to maintain existing standard of living.

I just found it funny using the word 'Compensation' London isn't that traumatic!

Haha that's the word they used with me

You should be thanking them for bringing you to civilisation rather than asking for compensation!

You're right actually

Thanks all.