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▲ sva_ 7 hours ago

I think you should also mention the ~17k Euro social contributions that your employer pays on top, which could otherwise be part of your salary. Then it is actually pretty much 50%

▲alberto-m 6 hours ago | parent | next [-]

Correct: if one takes as basis not the Bruttolohn but the total cost for the company, the sum of taxes and mandatory social contribution can very well reach the half of the income. The method of splitting employer-side and employee-side deductions seems just there to hide this fact.

▲aktenlage 6 hours ago | parent [-]

Most taxes are deducted when money is transferred between two parties. The view that one party pays it all (Brutto-Netto and VAT) seems wrong to me.

I anyway doubt that the wages would be at the same standard if there wouldn't be any deductions (from the beginning). Wages in expensive cities are higher because the cost of living must be matched. Similarly salary negotiations account for deductions. Nobody wants a job that doesn't pay the bills.

▲KellyCriterion 6 hours ago | parent | prev | next [-]

There are two terms in German salary:

"visible" and "invisble" Brutto. The one is without "contributions from employer", which is a lie anyway since an employer makes a total comp perspective and he for sure includes his "contribution" into that

▲vel0city 4 hours ago | parent | prev [-]

US also has federal employer-paid payroll taxes the employee usually doesn't see or think about.

For a $110k salary the federal employer paid payroll taxes would be almost $8,500, or ~7.69%. They would also pay some amount to unemployment insurance, but that rate depends a lot state by state.

I realize that's less than the Euro taxes, just wanted to share so everyone is aware of these often forgotten US taxes when compared.