Archive for category Dhaka Cost of Living

Expatriate Cost of Living Bangladesh, Dhaka

Bangladesh can be found in Southern Asia, it is bordered on the west, north and east by India and the southeast by Burma (Myanmar). On the south there is an exceedingly uneven deltaic which is fissured by many rivers and streams which flows into the Bay of Bengal.
The Climate here is tropical with mild winters (October to March); and hot, humid summers (March to June).  Bangladesh has a tropical monsoon climate characterized by high humidity, variations in rainfall and high temperatures (June to October).  Dhaka has a hot, wet and humid tropical climate, with a monsoon season.  Average annual temperatures are logged at 27.5 °C (81.5 °F), monthly means varying between 19.5 °C (67 °F) in January and 32 °C (90 °F) in April. 87% of the annual average rainfall is logged between May to October this measures up to 2,121 millimeters (83.5 in).
Public health and the quality of city life are negatively affected by the increasing air and water pollution caused largely by the traffic congestion and industrial waste. Coupled with this pollution, is the erosion of the natural habitats which threatens to destroy much of the regional biodiversity.
The Bangladesh terrain is mostly flat alluvial plains and is hilly in the southeast.
Dhaka is the capital of Bangladesh and the principal city of Dhaka District.
Dhaka consists of tropical vegetation and moist soils, which are flat and close to sea level. This results in Dhaka being susceptible to flooding when the monsoon season arrives owing to heavy rainfall and cyclones, and its’ location on the Eastern banks of the Buriganga River.  The city also lies on the lower reaches of the Ganges Delta.
Bangladesh is a developing nation despite continuous domestic and international efforts to improve its economic and demographic prospects.  Bangladesh grows a significant amount of rice (chal), tea (Cha) and mustard. Although two-thirds of the population are farmers, more than three quarters of the export earnings come from the garment industry. A large portion of foreign currency earnings is from  remittances sent by expatriates living in other countries.
Dhaka is the commercial heart of Bangladesh. There are a large number of migrant workers, which results in a large segment of the population being employed as hawkers, peddlers, small shops, rickshaw transport, roadside vendors and stalls.  The textile industry employs approximately 800,000 workers while half of the workforce is employed in household and unorganized labor. Its’ growing middle class population is driving the market for modern consumer and luxury goods. Even with all this work, unemployment remains high at 19%.
The Cost of Living in Dhaka:
The overall cost of living index, equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups.  Dhaka is currently ranked 283 overall, most expensive location in the world for expatriates to live, out of 300 international locations.
Comparing the cost of living in Dhaka, Bangladesh basket by basket with , shows that in Dhaka:
·         Alcohol & Tobacco is more expensive
·         Clothing is cheaper
·         Communication is more expensive
·         Education is cheaper
·         Furniture & Appliance is cheaper
·         Grocery is cheaper
·         Healthcare is cheaper
·         Household is cheaper
·         Miscellaneous is cheaper
·         Personal Care is cheaper
·         Recreation and Culture is more expensive
·         Restaurants, Meals Out and Hotel is cheaper
·         Transport is cheaper
The overall weighted cost of living difference between India, Mumbai and Bangladesh, Dhaka is -26.96%.
The Home Location India, Mumbai is ranked as a high degree of hardship location with a hardship premium of 30%
The To Location Bangladesh, Dhaka is ranked as an extreme hardship location with a hardship premium of 40%
The relative difference in hardship premium (i.e. Host Location Premium minus Home Location Premium) is 10%
The following arbitrage exchange rate was used as the basis of the Xpatulator calculation. (This exchange rate is updated quarterly):
1.5510 Bangladeshi Taka (BDT ) to 1 Indian Rupee (INR )
0.6447 Indian Rupee (INR ) to 1 Bangladeshi Taka (BDT )
Applying the cost of living difference based on what will be paid from salary, together with the hardship difference, and arbitrage exchange rate, the Xpatulator calculation is as follows:
* 7,245,300.00
Indian Rupee (INR ) = 100,000 US$
Home/Current location salary
*7,245,300.00
Indian Rupee (INR )
+ Cost of living difference – 26.9624%
-1,953,507.86
Indian Rupee (INR )
+ Hardship Difference 10%
724,530.00
Indian Rupee (INR )
Total
6,016,322.14
Indian Rupee (INR )
x Exchange Rate 1.5510
Salary in Host/New location
9,331,315.64
Bangladeshi Taka (BDT )
This means, based on all the above factors, that a person would require a salary of 9,331,315.64 Bangladeshi Taka (BDT ) in Bangladesh, Dhaka to have the same standard of living as currently enjoyed in India, Mumbai on a salary of 7,245,300.00 Indian Rupee (INR ). This salary compensates for the overall cost of living difference of – 26.9624%, the hardship difference of 10%, and the exchange rate.
Steven is Chief Instigator at http://www.xpatulator.com a website that provides cost of living index information and calculates what you need to earn in a different location to compensate for cost of living, hardship, and exchange rate differences. You can use the Salary Purchasing Power Parity (SPPP) calculator to produce a similar report to the example of Baku and Riyadh, using your own locations. The complete cost of living rank for all 300 locations for all 13 baskets is available here

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Bangladesh, Dhaka Cost of Living January 2010

LOCATION: Bangladesh is in Southern Asia, bordering the Bay of Bengal, between Burma and India.

CAPITAL CITY: Dhaka

LARGEST CITY: Dhaka

CURRENCY: Bangladeshi Taka (BDT)

ECONOMY: The past several years have seen a steady growth of 5-6% in the economy. The service sector generates half of the GDP, while two-thirds of the population are employed in the agricultural sector. Dhaka is the commercial heart of Bangladesh, growth has been strong in the finance, banking, manufacturing, telecommunications and services sectors. Tourism, hotels and restaurants continue as important elements of the Dhaka economy.

Dhaka has an overall cost of living index which equates it with low cost of living locations. The overall cost of living index is comprised of the prices for defined quantities of the same goods and services across all 13 Basket Groups. Dhaka is currently ranked 242 overall, most expensive place in the world for expatriates to live, out of 276 international locations. The cost of living overview for each of the 13 Basket Groups is as follows:

Alcohol & Tobacco costs for alcoholic beverages such as alcohol at bar, beer, locally produced spirit, whiskey, and wine as well as tobacco products such as cigarettes is relatively less expensive compared to other cities with a rank of 272 out of 276.

Clothing costs for clothing and footwear products such as business suits, casual clothing, childrens clothing and footwear, coats and hats, evening wear, shoe repairs, and underwear is relatively less expensive compared to other cities with a rank of 276 out of 276.

Communication costs for various communication costs such as home telephone rental and call charges, internet connection and service provider fees, mobile / cellular phone contract and calls is relatively more expensive compared to other cities with a rank of 88 out of 276.

Education costs such as creche / pre-school fees, high school / college fees, primary school fees, and tertiary study fees is relatively less expensive compared to other cities with a rank of 232 out of 276.

Furniture & Appliance costs for furniture, household equipment and household appliances such as dvd player, fridge freezer, iron, kettle, toaster, microwave, light bulbs, television, vacuum cleaner, and washing machine is equally expensive on average compared to other cities with a rank of 142 out of 276.

Grocery costs for food, non-alcoholic beverages and cleaning material items such as baby consumables, baked goods, baking, canned foods, cheese, cleaning products, dairy, fresh fruits, fresh vegetables, fruit juices, meat, oil & vinegars, pet food, pre-prepared meals, sauces, seafood, snacks, soft drinks, spices & herbs is relatively less expensive compared to other cities with a rank of 189 out of 276.

Healthcare costs for general healthcare, medical and medical insurance such as general practitioner consultation rates, hospital private ward daily rate, non-prescription medicine, and private medical insurance / medical aid contributions is relatively less expensive compared to other cities with a rank of 253 out of 276.

Household costs for housing, water, electricity, household gas, household fuels, local rates and residential taxes such as house / flat mortgage, house / flat rental, household electricity consumption, household gas / fuel consumption, household water consumption, and local property rates / taxes / levies is relatively less expensive compared to other cities with a rank of 247 out of 276.

Miscellaneous costs related to stationary, linen and general goods and services such as domestic help, dry cleaning, linen, office supplies, newspapers and magazines, and postage stamps is relatively more expensive compared to other cities with a rank of 38 out of 276.

Personal Care costs for personal care products and services such as cosmetics, hair care, moisturizer / sun block, nappies, pain relief tablets, toilet paper, toothpaste, and soap / shampoo / conditioner is relatively less expensive compared to other cities with a rank of 241 out of 276.

Recreation and Culture costs such as books, camera film, cinema ticket, DVD and CDs, sports goods, and theatre tickets is relatively less expensive compared to other cities with a rank of 265 out of 276.

Restaurants, Meals Out and Hotel costs such as business dinner, dinner at a restaurant (non fast food), hotel rates, take away drinks and snacks (fast food) is relatively less expensive compared to other cities with a rank of 256 out of 276.

Transport costs for public transport, vehicle costs, vehicle fuel, vehicle insurance and vehicle maintenance such as hire purchase / lease of vehicle, petrol / diesel, public transport service maintenance, tires, vehicle Insurance, and vehicle purchase is equally expensive on average compared to other cities with a rank of 144 out of 276.

Your exact customized cost of living index for Dhaka is based on which of the above basket groups as well as the comparison location you select in the Calculators.

In terms of the hardship people are likely to experience, assessed in global terms, Dhaka is ranked as an extreme hardship location with a hardship index of 40%.

Your exact customized hardship index premium for Dhaka is based on the comparison location that you select in the Calculators.

Source: http://www.xpatulator.com/outside.cfm?lid=19

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