When you're relocating for a job, your salary negotiation isn't just about the number — it's about the purchasing power that number gives you in your new city. Here's the exact script our clients use.
When you're relocating for a job, your salary negotiation isn't just about the number — it's about the purchasing power that number gives you in your new city. Most people negotiate in nominal dollars. The smart ones negotiate in real purchasing power.
Step 1: Calculate Your Current Purchasing Power
Take your current salary and divide it by your current city's cost-of-living index (available from the Bureau of Economic Analysis). This gives you your 'real' salary in normalized terms.
Step 2: Calculate the Target City's Required Salary
Average COL premium of top relocation destinations over national average
14.3%
Multiply your real salary by the target city's cost-of-living index. This is the minimum salary you need to maintain your current standard of living. Anything below this number is a pay cut, regardless of the nominal increase.
The Script
"I'm very excited about this opportunity. Before we discuss compensation, I want to make sure we're aligned on the cost-of-living context. My current salary of $X in [City A] has a purchasing power equivalent of $Y in [City B] based on the BEA cost-of-living index. I'd like to target a salary that maintains that purchasing power, which would be approximately $Z. Does that work within your range?"
Negotiating the Relocation Package
Always negotiate the relocation package separately from the salary. Ask for: moving cost reimbursement (binding estimate, not a flat amount), temporary housing for 30–60 days, a gross-up clause on all relocation benefits (so you don't pay taxes on them), and a signing bonus to cover the gap between your old lease end and new lease start.
The Gross-Up Clause
This is the most valuable and least-negotiated item in any relocation package. If your employer pays $10,000 in relocation benefits, you owe taxes on that $10,000 — typically $2,500–$3,500. A gross-up clause means your employer covers those taxes too. Always ask for it.
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