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Let me correct your numbers. For 1500€ monthly net your employer will pay about 3000€ (~20% income tax + ~30% social security). Multiply by 14 (Yes there are 14

by paol 10y ago

Let me correct your numbers. For 1500€ monthly net your employer will pay about 3000€ (~20% income tax + ~30% social security). Multiply by 14 (Yes there are 14 salaries in a year. Don't ask.) and the yearly gross is 42000€. Edit: https://casa.sapo.pt/ https://casa.sapo.pt/ for a look at the real estate market. "para venda" is for sale, "para alugar/aluguer" is for rent.

marcocampos 10y ago
In Portugal, Social Security taxation for a full-time employee is 11%. 42000€ per year gross salary lands you in the 28.5% income tax. A yearly gross salary of 42000€ is about +/- 1800€ salary/month.
- paol 10y ago
  You're apparently unaware that not all tax appears on your salary receipt. Employers have to pay 20% to SS, on top of the 11% that the employee pays. (This amount doesn't count toward your gross income for IRS purposes though, which is relevant to your point) The distinction is largely a technicality, all the more because both parts of the SS contribution are paid by the employer directly to the state, but it does have one effect: because the 20% don't show up in the salary receipt, most portuguese people are, like you, blissfully unaware of what the real tax rate on their salaries is.
  - marcocampos 10y ago
    If companies all of the sudden didn't have to paid those 20% would I see that reflected on my paycheck? I bet you I wouldn't nor anyone else. I've heard that falacy time and time again: "Oh, if I didn't have to pay so much taxes for each worker I could pay higher salaries."
    - paol 10y ago
      You're responding to a statement I didn't make. I just corrected the common misconception that the SS tax is 11%, it's not, it's 34.75% [0] What would happen if those taxes were lowered is for economists to speculate, I'm not one (even then, as the joke goes, put a question to two economists, get three different opinions) [0] This conversation made go check the exact values, you can find them here: http://www.economias.pt/contribuicoes-para-a-seguranca-social-em-portugal/ http://www.economias.pt/contribuicoes-para-a-seguranca-socia...

by paol 10y ago

marcocampos 10y ago

In Portugal, Social Security taxation for a full-time employee is 11%. 42000€ per year gross salary lands you in the 28.5% income tax. A yearly gross salary of 42000€ is about +/- 1800€ salary/month.

paol 10y ago
You're apparently unaware that not all tax appears on your salary receipt. Employers have to pay 20% to SS, on top of the 11% that the employee pays. (This amount doesn't count toward your gross income for IRS purposes though, which is relevant to your point) The distinction is largely a technicality, all the more because both parts of the SS contribution are paid by the employer directly to the state, but it does have one effect: because the 20% don't show up in the salary receipt, most portuguese people are, like you, blissfully unaware of what the real tax rate on their salaries is.
- marcocampos 10y ago
  If companies all of the sudden didn't have to paid those 20% would I see that reflected on my paycheck? I bet you I wouldn't nor anyone else. I've heard that falacy time and time again: "Oh, if I didn't have to pay so much taxes for each worker I could pay higher salaries."
  - paol 10y ago
    You're responding to a statement I didn't make. I just corrected the common misconception that the SS tax is 11%, it's not, it's 34.75% [0] What would happen if those taxes were lowered is for economists to speculate, I'm not one (even then, as the joke goes, put a question to two economists, get three different opinions) [0] This conversation made go check the exact values, you can find them here: http://www.economias.pt/contribuicoes-para-a-seguranca-social-em-portugal/ http://www.economias.pt/contribuicoes-para-a-seguranca-socia...