[magicalhippo]

But the employee does not see it on their pay slip, unlike the regular taxes and pension. So when people (aka employees) talk about taxes it is rarely mentioned. In that regard it is a hidden tax.

My boss told me he when thinking about our pay he considers the expense to the company to be about 2x what we get paid (pre-tax). So that's the "arbetsgivaravgift" (we got the same thing here in Norway) and pensions on top of our salary.

[wink]

2x is a good ball park figure that's also true for Germany. Of course it's not strictly taxes, but material, hardware, rent... if you as an employee have a gross sum of 50k, the employer should calculate with up to 100k. If it's less, even better.

[pengstrom]

It's not paid by the worker, it's paid by the employer. There no more need to have it on the pay slip than any other per-employee expenses.

[lultimouomo]

Let's say I'm the king of Sweden, and I take back the power from that annoying parliament. I want to appease my people and show that I will rule in favor of the average Joe and against the big evil corporation. So I cut the personal income tax rate by 10%, and I raise the arbetsgivaravgift rate by 10%.

Unless I also forbid renegotiating salaries, don't you think that after a short amount of time "gross" salaries (effectively salaries net of arbetsgivaravgift) will have adjusted and everything will be the same?

[ivanche]

If the worker doesn't earn for all these costs "paid by employer", the company would soon go bust.