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by Galanwe
2362 days ago
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Just to be clear, I don't want to enter any kind of comparison between EU and US pension/medical systems here! All I'm saying, is that contribution to e.g. a 401k will be done after the $150k (even though the employer will contribute with e.g. 1:1 ratio). Whereas in EU the retirement contribution is already done before the 80k euro. Actually, MANY other contributions will happen before that 80k EUR. Thus, you cannot compare _directly_ EU and US salaries, you need to adjust for a rough estimate of everything that was already deducted from the EU 80k! This is why I mention that it is more _fair_ to compare EU super-gross against US gross, because both are expressed before the heavy medical/unemployment/retirement contributions. |
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Exactly same thing is true in the US. 401k is on top of Social Security retirement benefits. Employees pay 6.2% of their salary (up to $127,000 cap) into Social Security, and the employers pay matching 6.2% on top of the gross salary. The 401k is in addition to Social Security benefits, and the Social Security benefits are already higher than the French retirement benefits.