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This doesn't really make sense. They would be paying out the same before taxes, just spread out over more years. What you get as an employee might even be highe
by carlmr 9y ago
This doesn't really make sense. They would be paying out the same before taxes, just spread out over more years. What you get as an employee might even be higher because taxes are progressive.
This is of course assuming a European social system where health insurance etc. is taxes, so they're just a percentage of salary, not a fixed cost.
- skgoa 9y agoEmployers do have fixed costs per employee. E.g. office space, a desk a computer, accident insurance etc. Fewer employees working more hours each is cheaper than more employees working fewer hours. Even paying me 1.5x for overtime hours turns out to be financially beneficial for my employer once you figure in fixed costs.