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> The average salary for a developer in the top cities in Romania is around EUR 1,000 or $1,100 after taxes (that is about $2,500 in US before tax - yes, taxes

by jorams 9y ago

> The average salary for a developer in the top cities in Romania is around EUR 1,000 or $1,100 after taxes (that is about $2,500 in US before tax - yes, taxes are that high, actually a bit higher). Can you explain that ratio? €1000--€1100 is roughly equal to $1200--$1300, and some quick searches tell me income tax in Romania is a flat 16%. That ends up very far from $2500.

gspetr 9y ago
I know nothing about Romanian tax system, but in Russia the tax is flat 13%. What that doesn't tell you is that employer also pays 30% on top of your gross salary in "social insurance", so maybe Romania has something like that in place. And you don't even do your own taxes if you're employed in the vast majority of jobs. You do them if you're an entrepreneur or contractor.
AdrianB1 9y ago
The income tax is one of the many taxes you pay; on average for $1 you keep after tax, the state takes $0.85 on the pay day and another $0.19 when you spend it. You pay 2 health taxes, 2 pension taxes, unemployment tax and some smaller ones. Only a part appear on the payslip, so most people don't know the real cost they have for the employer. People think that Europe has free goodies - there is nothing free when taxes are 60-70%. The free health care is actually a tax that does not give any guarantee you will ever receive anything, you may die waiting for treatment and it happens a lot. I have included as taxes everything the employer is paying for you to the state without you having any decision power. Nothing of what I mentioned is optional or giving you anything guaranteed. The pension is also a tax because if you live to get something in return or you die before retiring, all the money you paid during your life are lost. The beauty of socialism is that the state takes almost everything from you and then it gives you some back, making you dependent on the state's good will.

by jorams 9y ago

gspetr 9y ago

I know nothing about Romanian tax system, but in Russia the tax is flat 13%. What that doesn't tell you is that employer also pays 30% on top of your gross salary in "social insurance", so maybe Romania has something like that in place. And you don't even do your own taxes if you're employed in the vast majority of jobs. You do them if you're an entrepreneur or contractor.

AdrianB1 9y ago

The income tax is one of the many taxes you pay; on average for $1 you keep after tax, the state takes $0.85 on the pay day and another $0.19 when you spend it. You pay 2 health taxes, 2 pension taxes, unemployment tax and some smaller ones. Only a part appear on the payslip, so most people don't know the real cost they have for the employer. People think that Europe has free goodies - there is nothing free when taxes are 60-70%. The free health care is actually a tax that does not give any guarantee you will ever receive anything, you may die waiting for treatment and it happens a lot. I have included as taxes everything the employer is paying for you to the state without you having any decision power. Nothing of what I mentioned is optional or giving you anything guaranteed. The pension is also a tax because if you live to get something in return or you die before retiring, all the money you paid during your life are lost. The beauty of socialism is that the state takes almost everything from you and then it gives you some back, making you dependent on the state's good will.