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by nolok 1121 days ago
I don't know this website but for France it says 38k€/year on average. Which means they're not using the total salary but the post employer's taxes.

I'm using France for reference, and approximate number for the sake of explanation: for 100€ cost to the company, 40€ is employer's taxes, 20€ is employee's taxes. We call 20+40 = 60 the "gross" salary, and 40 the net salary, we never talk about the 100 when negotiating a salary. I don't have the time to check if that 38k is gross or net.

It is my understanding that if you have a 50k€ gross salary offer in Europe, you need to add ~40% to it to compare to compare to total cost for the employer as understood in the US.

I'm 90% sure their number are "wrong" for Spain in the same way.

2 comments

In the US, the salaries that are typically listed show the "gross" salary, the way you defined it. It contains the 40 net salary and the taxes on top of it.

There is also a portion of taxes and other insurance that the employer must pay. These are generally not summed up in job offers. They include the employer's part of social security, insurance, 401k contribution, and other benefit plans which are often part of an offer for a salaries position.

On top of that come Europe's minimum vacation requirement of 4 weeks (although in practice, most are at anything from 24-30 days / 5-6 weeks), the unlimited sick days and numerous national holidays. Also, we have mandatory contributions for pension, social security, healthcare and (in Germany) workplace accident and elderly care insurance.

All of that needs some form of accounting on the employer's side that drives up the gross employment cost.

Or, to put it bluntly, us Europeans tend to see lower take-home amounts on our paystubs for the same gross cost the employer sees on their bank account, but a lot of stuff that you'd have to take care of on your own in the US is covered by that.

> but a lot of stuff that you'd have to take care of on your own in the US is covered by t

Not if you're a software engineer earning 150-200k+

That’s also how it works in the US. The numbers are just bigger.