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An example from Belgium. Imagine you're an employee and earning 38k€ a year including bonuses. Now you want to start a side activity as an independent contracto
by markvdb 9y ago
An example from Belgium. Imagine you're an employee and earning 38k€ a year including bonuses. Now you want to start a side activity as an independent contractor. You pay about 53.5% of taxes on this amount. On what is left after taxation, you pay 20.5% social contributions that you get literally nothing in return for. If you choose the cheapest "social contributions" provider. That means you get to keep about 36.96€ for every 100€ in pretax profit.
Don't you think this steers people in different directions?
- ENGNR 9y agoWouldn't the equivalent contractor wage factor those costs in though, plus a risk premium for short term work ideally
- jpttsn 9y agoWhat makes you think it would?
- RugnirViking 9y agoThe fact that they have to actually hire people for the position, and therefore need a decent value proposition?
- jpttsn 9y agoWhen the costs of hiring for the position are much higher, "need to hire" can start to look fuzzy. Just like the "need to buy a soda" is different at $2 and $20. Demand for labor is at least somewhat elastic.