Big Mac Index: Can Your Hourly Wage Afford to Achieve XX Freedom?

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Tiger_SG
03-12
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According to the 2023 Big Mac Index derived data, the hourly wage in Singapore's food service industry (median of 12.3 SGD) can purchase 1.8 Big Macs (priced at 6.8 SGD), which is 23-35% lower than Hong Kong (2.56 Big Macs), Tokyo (2.18 Big Macs).

The Big Mac Index, introduced by The Economist in 1986, has become a globally recognized informal economic indicator used to understand the consumption levels of different countries.

In Australia, hourly wages for workers in food and retail chains can buy 3.95 Big Macs, while in the UK and Hong Kong, it can buy 2.56 Big Macs, in the US 2.5 Big Macs, in Singapore about 1.8 Big Macs, and in South Korea 1.78 Big Macs.

In China's food service industry, the starting hourly wage is only around 15 RMB, while a Big Mac costs 25 RMB. In China, working at chains like McDonald's, Luckin, and Starbucks only provides " $Luckin Coffee Inc.(LKNCY)$ freedom". In China, outside of first-tier cities, the cost of meals remains very low.

For example, 15 RMB in Guangdong can get you two servings of cheung fun (steamed rice rolls) and a bowl of beef noodles, while in Beijing, it might only get you convenience store buns and eggs. However, the starting wage in the food service industry in Beijing is relatively higher.

Compared to Hong Kong (2.56 Big Macs) and Tokyo (2.18 Big Macs), where does your hourly wage purchasing power rank?

Hourly Freedom Level Diagnosis in Singapore:

  1. Food Court Freedom (Hourly wage ≥ $12): Enjoy food court meals at will.

  2. $Grab Holdings(GRAB)$ Freedom (Hourly wage ≥ $20): Feel free to take a Grab to Orchard Road during weekdays.

  3. True Financial Freedom (Hourly wage ≥ $35): Achieve hotpot delivery freedom.

What Metrics Are More Suitable for Evaluating Consumption Levels?

How Many Big Macs Can Your Salary Buy?

What Is Your Hourly Wage Level, and What Freedom Can It Afford?

Leave your comments and join our discussion to win tiger coins~

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Comments

  • Shyon
    03-12
    Shyon
    The Big Mac Index is a useful benchmark, but real purchasing power goes beyond fast food. A meaningful evaluation should factor in rent, transportation, healthcare, education, and leisure expenses. In cities with high living costs, even good wages can be offset by expensive housing and daily necessities.

    True financial well-being isn’t just about affording fast food—it’s about dining out comfortably, saving, traveling, and maintaining a good quality of life. While the Big Mac Index offers a quick comparison, a broader measure of living expenses better reflects real economic stability.

    @Tiger_SG @Tiger_comments @TigerStars @TigerGPT

  • Ah_Meng
    03-12
    Ah_Meng
    @TigerGPT What's Big Mac index used for? From my understanding, it's a simple way to compare relative value of currencies and cost of living between countries. For example, if a Big Mac costs $5 in US and £4 in UK, and exchange rate is 1.25, we will take 1.25 as the purchasing power parity. So, if the actual exchange rate is 1.10 dollars per pound, the pound is considered undervalued because the Big Mac is cheaper in UK than in US.
    I don't know about my Big Mac freedom, because I only eat McChicken [Tongue] [Happy] [Chuckle]
    Big Mac index is a mere simplified way of comparison. Countries or regions like Singapore and HK are influenced by land sizes. Food court prices might be relatively low doesn't mean cost of living is not high... Land related expenses abnormally skewed this balance. Countries like Australia, NZ or Canada are totally different in terms of population density. The cost of living and financial freedom requirements are  thus very different.
  • koolgal
    03-12
    koolgal
    🌟🌟🌟It is interesting to note that in terms of determining standard of living using Big Macs, Singapore does not rank high.  However compared to Malaysia, we are much better off especially when 1 Singapore Dollar is worth 3  Malaysian Ringgit.

    Ultimately it is up to each  individual to determine how they want to spend their money.  Some are content not to have much, yet they are happy.  In contrast others need  more in order to live more lavishly.  To each their own.

    Money is only a means to financial freedom.

    @Tiger_SG @Tiger_comments @TigerClub @CaptainTiger

  • icycrystal
    03-14
    icycrystal

    According to the 2023 Big Mac Index derived data, the hourly wage in Singapore's food service industry (median of 12.3 SGD) can purchase 1.8 Big Macs (priced at 6.8 SGD), which is 23-35% lower than Hong Kong (2.56 Big Macs), Tokyo (2.18 Big Macs).

    @Aqa @rL @GoodLife99 @Universe宇宙 @HelenJanet @LMSunshine @koolgal @SPACE ROCKET @TigerGPT

    What Metrics Are More Suitable for Evaluating Consumption Levels?

    How Many Big Macs Can Your Salary Buy?

    What Is Your Hourly Wage Level, and What Freedom Can It Afford?

    Leave your comments and join our discussion to win tiger coins~

  • MHh
    03-13
    MHh
    Big Mac is the classic index that many use. I think it is a common product that many countries have and so becomes a common comparator. In many countries, of course there are other cheaper alternatives and healthier alternatives than Big Mac. I have at least hot pot freedom[Grin] but i do see freedom as the choice to choose given the income. In life, there is more than just food as there are also many other expenditures. In Singapore, buying a house and car are often the most expensive purchases. So, consumer index might be a fairer comparison across countries as many people definitely need to consumer services too. There are also alternatives such as iPhone and kfc index to account for the different prices of raw ingredients and preference. So, maybe, for comparison across countries, the different indices need to be used to see how the differ and maybe consider an average for comparison.
  • RXU
    03-13
    RXU
    Mcd for the win. i think it is a fair comparison tool that adjust for the currency and country economic strength. I probably can buy say 3.5 burger per hr. pretty average. at least i know i will have meals and full. lol
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