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

Tiger_SG
03-12

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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  • Shyon
    ·03-12
    TOP
    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

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    • icycrystalReplying toShyon: 
      [Comfort] [Comfort] [Comfort]
      03-15
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      [Love you] [Love you] [Love you]
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  • Ah_Meng
    ·03-13
    TOP
    @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.
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  • koolgal
    ·03-12
    TOP
    🌟🌟🌟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

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  • icycrystal
    ·03-14
    TOP

    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~

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  • MHh
    ·03-13
    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.
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  • RXU
    ·03-13
    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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  • ZhongRenChun
    ·03-13
    big Mac is overpriced and skews in favor of western countries. it would be better to use something stateless and universal.  like a loaf of bread. or a gram of gold.
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  • ECLC
    ·03-13
    Used to eat BIG Mac frequently when younger but no longer eat big Mac since disappointed to see its size not that BIG.. surely can afford to achieve "XX" freedom.
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  • 北极篂
    ·03-12
    你的工资能买几个巨无霸？消费水平到底该怎么看？


    巨无霸指数虽然直观，但它只能反映特定商品的购买力，未必能全面衡量消费水平。要真正评估一个地方的生活成本，还得看更关键的指标，比如居民收入中位数、房价收入比、生活成本指数、以及恩格尔系数（食品支出占比）。毕竟，买得起巨无霸不代表能轻松支付房租、医疗或教育费用。


    如果单纯用巨无霸来衡量，你的时薪能买多少个？澳大利亚普通零售员工能买3.95个，美国是2.5个，新加坡是1.8个，韩国则只有1.78个。这意味着，在一些国家，即便最低工资工作者也能较轻松维持基本消费，而另一些地方的生活成本相对较高。


    至于你的时薪水平能负担得起什么自由？这就取决于你的生活目标。如果你的时薪能轻松覆盖基本开销，还有结余，那你可能已经拥有了一定的财务自由。但如果光是买个巨无霸都觉得肉疼，那或许得考虑如何提升收入，或者优化支出结构。毕竟，最终决定生活质量的，不是你能买多少个汉堡，而是你是否能自由选择自己想要的生活。
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  • AliceSam
    ·03-12
    35就财富自由的人，恐怕是没有几个孩子吧？如果有几个孩子，分分钟让他学会省钱😂
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  • Aqa
    ·03-15
    Big Mac Index is not accurate for me. I need to pay for my accommodation, transport, medicine and other essentials …… Thanks @Tiger_SG @icycrystal
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  • Success88
    ·03-13
    Wow. I didn't know have this kind of index. @TigerGPT what is the Big Mac index in sg?
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  • Twelve_E
    ·03-13
    Chinese employees need more payback
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  • AN88
    ·03-13
    no not big Mac but mine can
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  • fir3tiger
    ·03-13
    cannot..work till die
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  • TheStrategist
    ·03-12
    Big Mac ain't that big these days lol
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  • MilkTeaBro
    ·03-12
    salary is confidential [Shy]
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  • Maynrdo
    ·03-13

    Great article, would you like to share it?

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