[sweaty]

I'm surprised by these "generous" packages. Where I work in Europe, they must give me 3 months notice, my full salary is paid for 6 months, after which it's 75% up to 2 years, and if I still don't find anything new by then I get 50% indefinitely.

I've worked in both the US and various EU countries, while the higher salary is certainly enticing, it's also a trap; When shit hits the fan, you better have been saving. In Europe, the money I make is money I get to really use, because the rest is taken care of for me.

[throwaway4aday]

Those benefits are ludicrous. How can any small company or startup survive if they have to contend with those kinds of requirements? If I were a business owner wherever you are I'd restrict my hiring as much as possible and try to find ways to not hire anyone, probably by contracting work out to other businesses or offshore completely.

[sweaty]

It's a good question. Here, if you have a permanent contract, the employer is required to pay into various government insurances, and this is mandatory for all employers. The salaries here are lower because of this, but it's deceiving because the insurances are based on your salary. Your employer also pays anywhere between 2-10% on top of your monthly salary into a pension fund on top of your state pension. So in short, if you make 100k EUR, after taxes that's actually your money. So in my case, after I've made my monthly mortgage payment, set some aside for groceries and some subscriptions, the money I have left can be spent on whatever I want without worry, I practically don't need to save unless I choose to.

You're right in that employers restrict hiring as much as possible, what tends to happen here is you get a 1 year contract with the option to be taken on permanently, and these contracts don't have all of the insurances. Taking a permanent contract here is seen as a serious commitment to the company, so most people who just want more money in their bank account at the end of the month choose not to take permanent contracts and take the risk themselves.

If I saved for these things myself in the US, I would've been netting less than I do here in Europe, despite my US salary being 100k higher. A lot of people live way beyond their means with all these things considered.

[balfirevic]

> The salaries here are lower because of this, but it's deceiving because the insurances are based on your salary.

Salaries in Europe are much lower even when all the salary and benefit related expenses (so called "gross 2" salary) are taken into account.

[WalterBright]

The value of benefits packages in the US is often around 40% of the salary. For example, health insurance, social security, 401k matching contributions, stock options, etc.

[scld]

Many don't contend with those requirements and it's one of myriad reasons that we're mostly talking about U.S. companies on this site.

[fleddr]

I recognize those numbers and suspect he's talking about the Netherlands. If so, he/she is being incredibly inaccurate in describing benefits.

If you're on a permanent contract, there's a minimum legal notice that depends on years served and your age. So it's not "6 months", it's a variable amount of months. It may be as little as 0.5-2 months if you've worked there for < 5 years. If you're not on a permanent contract, the notice is: BYE.

As for "75% for 2 years", that's not the employer paying you, it's the state. Unemployment benefits. Where both "75%" and "2 years" are lacking some crucial details. It's max 75% of a fixed cap. So if you're a high earner, you might only get 25-50% of your previous salary. Further, you'll be intensely pressurized to find that new job, where you need to supply weekly evidence of job interviews. You can't just take a holiday for 2 years. By the way, you paid for the above yourself, directly from your payslip.

As for "50% indefinitely", this is state wellfare. Which is absolute hell. You don't easily qualify for it and you're even more pressurized to find a job, any job. You'll be closely monitored and you can't own anything of any worth. So if you were a highroller owning assets before, get ready to be stripped naked. Next, you'll have the social stigma of being a leech. Have this on your resume, and its goodbye career.

I'm honestly pissed about the inaccuracy of the poster.

[refurb]

Which is why in many European countries employers are so hesitant to hire - you’re signing up for years of paying someone.

So imagine your the next unicorn? Would you hire like crazy in Europe?

[systemvoltage]

I tried starting a manufacturing site in Switzerland. We wanted to get the Swiss Made badge (70% parts sourced in Switzerland and all major assembly steps done by Swiss employees). An hourly employee had basic rate of CHF 45 an hour and they had to be paid some ridiculous benefits totaling up to like CHF 120 an hour. Apart from the cost, the biggest issue is that you can’t fire them essentially if you hire them on “permanent basis”. It’s impossible to do anything there for a scrappy small business.

Modern Switzerland is much of a socialist state. It’s lost all the things that made it a great place for business. Zurich is still a small tech hub for startups but mostly services and finance. Labor is usually hired in US or elsewhere.

About the only place in EU that's pro-small business is Italy. It still has some 50% of the GDP from companies less than 50 employees.

[throwaway4aday]

Pretty much what I expected. Also, I'm surprised that the Swiss Franc is worth exactly the same as the US Dollar. Is it pegged to it? 45USD per hour for an hourly manufacturing job is shocking as well, that's about $90k per year. I'm sure it makes it a nice place to live but God help them if they ever need to get something done in a hurry. I imagine they have to tightly control immigration as well.

[vladvasiliu]

Those benefits are not paid by the company, but by the state. That's one of the reasons why cash-in-hand salaries are lower in most "socialist" European countries: the State takes a big fat cut out of it (47% in France), so it can pay for these benefits.

[dboreham]

Taxes in the USA are often just as high (remember to add in state and local taxes for an apples to apples comparison with European countries). And for that you get no "socialism" -- no healthcare until you're old, for example.

[vladvasiliu]

Income taxes (Federal + CA) seem to be roughly in the same ballpark as France based on [0]. A French income tax simulator is available at [1]. This is the "simplified" version. What matters is box 1AJ for salaried income.

For 100000 USD it's actually a bit higher than for 100000 EUR.

However, as another commenter said, income tax is not the full story - far from it. There are other taxes that you have to pay. Also, while social security comes out of your paycheck, it's considered taxable income in France for the purposes of the income tax. Also, social security is usually insufficient, so you usually have to pay for a separate insurance. Which, you guessed it, isn't deductible from taxes.

As far as a company's concerned, if the employee costs 100 EUR "fully loaded", they only get around 55-60 EUR in hand. Also, when comparing with the US, don't forget that VAT is at 20-25% depending on the country. And, at least in France, VAT is levied on some taxes (yup), like for example electricity and gas.

[0] https://www.forbes.com/advisor/income-tax-calculator/califor...

[1] https://simulateur-ir-ifi.impots.gouv.fr/calcul_impot/2022/s...

[mensetmanusman]

People forget to count the corporate taxes on the employers in Europe (to support the welfare state) which lowers the salaries of workers making the calculation look like taxes are similar.

[rendang]

Overall tax burden is quite different: https://data.oecd.org/tax/tax-revenue.htm

US is around 25% whereas France is 45%

[themitigating]

Why won't someone think of the business!

[throwaway4aday]

No jobs without businesses, so really we are keeping the workers in mind.

[themitigating]

No businesses without workers or consumers as well so it's a wash and neither should receive preferential treatment

[thunky]

> How can any small company or startup survive if they have to contend with those kinds of requirements?

That's why Twitter didn't start there.

[PeterStuer]

If Twitter had started there the US would have just scooped it up with their free monopoly money.

[friedman23]

The free monopoly money that is somehow worth more than the european monopoly money.

[PeterStuer]

Only the designated world reserve currency is truly free monopoly money.

[mola]

Because weapons.

[thunky]

That's beside the point if Europe's regulatory structure (among other reasons) made starting a business there less attractive anyway.

[oytis]

> When shit hits the fan, you better have been saving. In Europe, the money I make is money I get to really use, because the rest is taken care of for me.

I wonder where this happy country is. In Germany it is already a common knowledge that relying on state for your retirement is a sure recipe for poverty in the old age.

[patates]

> In Germany it is already a common knowledge that relying on state for your retirement is a sure recipe for poverty in the old age.

Is it? I'm living in Germany since so many years and nobody told me this. They send me estimates about the money I'd be getting when retiring regularly, and while it'd mean downsizing, I'd not be poor with the amounts named.

[hankerito]

Assuming you are somewhere in IT and earn above the average, you will be okay-ish. People with lower incomes will benefit less. But if you look at that receipt and consider inflation, the extreme rise in rent in Germany, etc and all of that over maybe 20-30 years from you ending your career. It becomes less. There are adjustments for inflation, but still.

These high pension values are also quite sure to be unsustainable for the government, as the workforce shrinks quite dramatically and people still get older.

Generally, people are advised to put some money for retirement on the side, if they can. If you are in a position to put some money aside probably try to do some research. "Geldanlage für Faule" by Sina Groß is a very down to earth starting place.

[jansan]

It is guaraneed to be less value in 20-30 years, because Germany's pensions are transferred directly from the pension fee deducted from salary of employees. And since in 20-30 years you will have a totally diffeerent ratio of number of employees vs. pensioners, the cake will be smaller and will have to be distributed to more people. No matter how inflation or anything works out in future, pensioners will then have less than pensioners now, who more or less live in paradise.

[Tainnor]

It's wise to be prepared for this scenario for the reasons you mention, but in 20-30 years a lot can obviously change; either a change to the way the pensions are funded (this already started happening to a small extent) or a sudden influx of qualified (!) migrants.

I wouldn't bet on any of it happening, but predicting the future is always hard.

[egeozcan]

Great reply! To be honest, It's easy to forget about the inflation. Well, worst case, one could make more kids and invent their own "take care of your parents" ponzi-scheme, hehe.

Seriously though, in Germany, you always get this sense that everybody seems to know what they are doing until ??it hits the fan and you realize all that time nobody had cared about what's coming.

[dopidopHN]

It’s probably France

[onli]

France would fit.

[balfirevic]

> and if I still don't find anything new by then I get 50% indefinitely

So you can just retire after being fired?

> In Europe, the money I make is money I get to really use, because the rest is taken care of for me.

That's certainly not universally true in Europe.

[twaway23]

> So you can just retire after being fired?

Not in my country (in Europe). You get unemployment benefits for up to 2+ years that is a percentage of your salary up to a certain level, depending on your job history in the last 2-3 years. The maximum you can get is around $40k USD, which can be difficult because you probably have a mortgage and other expenses that were calibrated to a much higher salary.

You are also required to actively apply for jobs, and you may be required to take a job application course. I think you can even be assigned to a job interview if you delay. It is not intended as a "free" paid vacation. I think that even in some cases you are theoretically required to take any job anywhere in the country even if you have to move, but I haven't heard of anyone who had to do that. I assume they look at your social situation (family etc.)

Every 2 weeks you need to send in a form where you state that you have been actively looking for work and your financial situation is unchanged. If you forget to check some boxes, you lose all your money for the 2 weeks. Vacation is also regulated and you need to inform your local government and in some cases you will not receive money for the period. You are assumed to spend a full working week applying for jobs.

After 2 years you are placed into a different type of program where you don't get a fixed amount, but you get money according to what the local government decides you need. That means you would need to sell your big house and move to a cheaper appartement if you want to get any support. If you had any savings, you would probably have to spend them before getting any assistance.

[sweaty]

Yes, but you don't tend to get fired on permanent contracts to begin with and it's much more enticing to find something new especially considering work-life balance is very very good, I work maybe 24 hours at most with my company explicitly putting your personal life before work because a healthy employee is a healthy employer. You also still pay taxes over the 50% income you're receiving and taxes are high, so it pushes you to find something new -eventually-.

[apetresc]

Sorry, what? Am I misunderstanding? In Europe after you get fired, you can opt to just draw 50% of your old salary indefinitely? Who's paying it?

[windmaster]

That's certainly not true in all European countries. In Switzerland, for example, you get 70% (80 for very low salaries) of your old salary for 1.5 years (2 years if you're over 50). After that, if you still don't have a job, you're on your own (if you're broke, you can apply for social welfare).

[balfirevic]

> In Europe after you get fired, you can opt to just draw 50% of your old salary indefinitely?

No, definitely not in "Europe" in general (well, according to sweaty you can in some parts of Europe, although I have my doubts).

[whoooooo123]

"Europe" isn't a unified system. Those benefits definitely don't exist in the UK, and I'd still consider our labour laws to be well-balanced and reasonably fair to both employees and employers.

[sweaty]

>Who's paying it?

Very rich people and large companies, generally.

[peruvian]

Properly taxed wealthy people and corporations.

[apetresc]

In what universe would that be "properly taxed"? You're saying I can work for 1 year in a $200K/year job and then draw $100k x 30 years = $3,000,000 of value from that one year of work? And it would be fair and just to tax "wealthy people" on my behalf for that?

I still feel like I must be misinterpreting something here, because I can't imagine even the leftiest of leftists thinking this sounds fair. That's basically just UBI except the rate is set for each individual based on whatever the high-water mark of their lifetime earnings were at any point?

[ryan93]

So in exchange for software engineering salaries that are 8-10 thousand american dollars lower per month at least. you get a fraction of a much lower salary in unemployment benefits?

[olabyne]

Lmao, americans shocked when they realized that proper social welfare is a thing always baffles me. To reply to you genuine question : 1. Yes it is a thing. 2. Everybody is paying for it through taxes.

[kaashif]

50% of yoursalary is not a simple safety net and is extremely excessive for well-paid software engineers of the sort being laid off at e.g. Twitter.

I support a modest minimum income provided by the government, but 50% of salary indefinitely is insane, it only makes sense if everyone is low paid.

[PeterStuer]

As a European I have never heard of such things.

[wreath]

> after which it's 75% up to 2 years, and if I still don't find anything new by then I get 50% indefinitely.

But this is not paid by the company, right? Where in Europe do companies have to pay you 6 months for firing you?

[whoooooo123]

Which country is that? Those benefits are insanely generous - the type that would make me never want to start a company there.