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by SOLAR_FIELDS
461 days ago
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Enlightening! Sweden (and perhaps some of the other Nordics) seem to use net/month a lot more than gross/yr (anecdotal observation as an American expat). Everywhere I have chatted with Europeans all seem to talk in post tax numbers however by default. The unfortunate consequence of this cultural difference is that it makes it harder to compare salaries between the States and Europe. |
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- If you are in a lower tax bracket, the taxes are almost the same for everyone, so talking "net" is okay. If you have a more substantial income though, there starts to be more difference in net amongst people, as it depends on how your compensation is technically paid, and how much it is. So for the same gross, people can end up with different net.
- People tend to think in terms of what is wired to their bank account. For a long time, most (western) European countries did not have "source tax", meaning you would get your gross every month, and are supposed to save up for the income tax coming end of the year. That changed a lot in recent years, and more often now the income tax is directly subtracted from your monthly wages, which may direct people to talk in net.
> The unfortunate consequence of this cultural difference is that it makes it harder to compare salaries between the States and Europe.
I get you, and that's not just because of gros/net, but also just the general cost of living that changes. I lived in a baltic country for a number of years with half the gross I had in western Europe, and felt substantially wealthier.