[dragonwriter]

My local city, but the data isn't so much mine as data that the US government shares.

Sacramento, CA. Mean Salary (per latest BLS data) [0] for Software Developer, Applications: $107,540; for Web Developer: $78,050

Sacramento, CA Gitlab locality pay index: 0.39+0.25=0.51

Vs.

New York City, same BLS figures [1]: $108,770/$81,430

NYC Gitlab locality pay index: 1.00+0.25=1.25

Sac/NYC Salary Ratio (BLS): 0.989/0.958

Sac/NYC Salary Ratio (Gitlab): 0.512

Fundamentally, the rent index based methodology you are using is, I would guess, giving you below market pay almost everywhere that isn't NYC or San Francisco, assuming that you've hit the market wage for the skills you are targeting in your NYC baseline.

[0] https://www.bls.gov/oes/current/oes_40900.htm#15-0000

[1] https://www.bls.gov/oes/current/oes_35620.htm#15-0000

[ernstvn]

Thanks; this is useful. I've made an issue ( https://gitlab.com/gitlab-com/organization/issues/23 ) to make sure we cross check BLS data with the calculator.

[tedmiston]

I'm not sure what it is about small Midwestern cities but the calculator seems to dislike them. The calculated rates for Cincinnati are roughly half of market rate here. I understand the calculator will not be perfect in every city worldwide but it might be better to have no calculator as the current one is extremely discouraging even though I like GitLab.

[cookiecaper]

It's based on rent. Each city is punished in proportion to how much cheaper its rent is than the rent in NYC. As NYC is one of the top 5 most expensive cities worldwide for real estate [0], any city marginally more reasonable is going to get pummeled.

[0] http://www.globalpropertyguide.com/most-expensive-cities

[tedmiston]

Perhaps it's that there is lots of cheap housing in the suburbs here, and in the greater metro area but that is outside the city proper. But most of the tech / startup activity ie concentrated in one small gentrifying neighborhood where rent is much higher (+50–100%), so coincidentally people in tech aren't buying those houses because the commute is so far from the core.

I wonder if any of these indexes breaks down a city by zip code. A good analogy for here would be if you averaged all rent over the neighborhoods in Brooklyn then used that number for a bunch of candidates in Williamsburg.

It really penalizes living in a third- / fourth-tier startup hub, for example, vs either a first- / second-tier hub or a non-hub.

Taken from another perspective maybe it's an intentional filter on the candidate pool to specific cities or countries. That wouldn't seem to be consistent with most remote philosophies but it's something to consider.

Interestingly, Buffer's salary calculator is almost the opposite with a relatively small percentage difference between Nashville or Austin vs SF or NYC for instance.

[dragonwriter]

Correction: even though the ratio calculated from it and the calculation for it are correct, I somehow mistyped the Sacramento locality index, which is 0.64, not 0.51.

Didn't notice it until after the edit window was closed.