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There have been questions about the PPP factors, but I can't find an answer to my problem. The cost of 1GB of internet is close (thanks!), but I need to convert from GBP £ to USD then as well? My prices are in £ not starting in $. What do I do about that?

Example We have a staff member in Thailand. We want to make sure he is paid the same rate as he would be in the UK. How do I take the UK salary amount and adjust it to the cost of living in Thailand?

If I just do a simple currency conversion, that may result in an enormous salary for Thailand. The World Bank PPP for private consumption factors are:

  • UK 0.78
  • Thailand 12.7

I think this means that 78p (UK) buys the same as $1 which buys the same as 12.7 THB.

What are the steps to convert a UK salary of £2000 a month to the cost of living (PPP) equivalent in Thailand?

Is it (2000 / 0.78) * 12.7?

This has been confusing me for ages.

Thanks

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  • $\begingroup$ The suggested question doesn't completely answer my question. I tried to ask again but that was deleted. This isn't for homework but for work. No-one in similar organisations has been able to help. My A-level is economics didn't cover this. $\endgroup$
    – Kat
    Jul 7 at 13:40