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One clarification: Gross salaries in Spain are not as gross as in other countries. For example, a salary advertised as EUR 45K in Spain does not include taxes
by antaviana 8y ago
One clarification: Gross salaries in Spain are not as gross as in other countries.
For example, a salary advertised as EUR 45K in Spain does not include taxes and benefits (mostly unemployment insurance and medical) paid by the company.
So a SE with a gross salary of EUR45K directly costs the company employing here some EUR60K (i.e. some USD70).
The employee full cost to the company is never konwn to the employee (some 30% is somewhat hidden), unlike in other countries such as France. I guess it helps government to appear they do more with less taxes seen by their voters.
There are other indirect benefits, such as layoff benefits. If a Spanish company fires you without cause, it is liable to pay you 33 days per year worked.
I'm mentioning because comparing gross salaries in different countries, is a bit like comparing apples to samsungs.
- village-idiot 8y agoA month per year worked is awesome, but that seems insanely expensive. How can anyone afford to hire anyone with that risk?
- antaviana 8y agoBy offering a smaller nominal gross salaries than in “wild west” countries.
- village-idiot 8y agoAh, that makes sense. A conscious choice to trade high salaries for high security, I assume?
- antaviana 8y agoA more paternalistic approach by the state. It adds more protection by law for the population less likely to purchase such protection out of their pocket. It’s probably less efficient but less ruthless for those who do not know any better and could easily become homeless shortly after losing a job.
- def_true_false 8y agoThat's not exclusive to Spain. At least Czechia, Slovakia and (I think) Germany have similar gross not-really-gross salaries.