Slightly different reasons, but I'm seeing something similar in New Zealand.
Domestic companies benchmark against each other, and pay lower salaries. Meanwhile Australian companies have mostly come to terms with remote work after the lockdowns, which makes NZ as a valuable recruitment market. (If an engineer can be productive a 30m drive from their Sydney office, they can probably be productive a 3h flight too, especially if they're in a country with very similar laws, culture, educational system, etc.)
And since they benchmark against each other and because NZ is so small, close, and similar, Australian firms mostly don't adjust their salary bands from (higher) Australian norms, so they pay 25-30% more for comparable roles than a domestic NZ company would. Meanwhile a few American companies are also starting to recruit, and again, most don't adjust their salary bands, and so generally pay 50-80% more than domestic NZ companies.
It's an odd situation; I recently jumped from a NZ company to an Australian one (mostly for non-monetary reasons), but got a more than 25% raise, and when I resigned, my manager was quite open that yes, management is aware that Australian companies are paying more than local companies but as long as other NZ companies aren't competing, they don't feel like they can afford to either.
I moved home to NZ from an OE in Silicon Valley 20 years ago .... but kept my US job (and moved to others) - living in NZ it's a great deal, but local salaries make it virtually impossible to take a local job and keep my current standard of living.
I work remotely, consult so I pay tax here (lower marginal rates than the US - plus you should pay tax where you live), but suffer when the exchange rate goes against me (damn those Japanese dentists!)
Domestic companies benchmark against each other, and pay lower salaries. Meanwhile Australian companies have mostly come to terms with remote work after the lockdowns, which makes NZ as a valuable recruitment market. (If an engineer can be productive a 30m drive from their Sydney office, they can probably be productive a 3h flight too, especially if they're in a country with very similar laws, culture, educational system, etc.)
And since they benchmark against each other and because NZ is so small, close, and similar, Australian firms mostly don't adjust their salary bands from (higher) Australian norms, so they pay 25-30% more for comparable roles than a domestic NZ company would. Meanwhile a few American companies are also starting to recruit, and again, most don't adjust their salary bands, and so generally pay 50-80% more than domestic NZ companies.
It's an odd situation; I recently jumped from a NZ company to an Australian one (mostly for non-monetary reasons), but got a more than 25% raise, and when I resigned, my manager was quite open that yes, management is aware that Australian companies are paying more than local companies but as long as other NZ companies aren't competing, they don't feel like they can afford to either.
I'll be fascinated to see how this works out.