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> Also, only 7.5% comes out of your paycheck, the employer pays the other half This just means that paychecks are 7.5% lower then they would otherwise be. It
by gwright 8y ago
> Also, only 7.5% comes out of your paycheck, the employer pays the other half
This just means that paychecks are 7.5% lower then they would otherwise be. It is a mistake to think that the employer paid benefits are "free". The market adjusts. You find that out right quick of you are self-employed (at least in the US).
- pgeorgi 8y agoThe difference is that the other 7.5% (plus a few more such line items) don't appear in your progressive tax rate, and they also don't appear in "how much do you earn in country X" comparisons.
- testis321 8y agoIn most countries, even the first 7.5% don't apear in your tax rate. But still, if you count everything together, for a 2keur net paycheck you have to charge your customers 4.8k in my country (slovenia), and the government takes 2.8k (social benefits, pension, health, income tax and VAT). Say what you want, but 4.8k->2k is a huge amount of taxes.