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Oh I meant in terms of cost for the employer. As they have to pay additional taxes on top of the salary. E.g. the so called “employer’s fee” and pension fees (t
by cpach 6y ago
Oh I meant in terms of cost for the employer. As they have to pay additional taxes on top of the salary. E.g. the so called “employer’s fee” and pension fees (tjänstepension) and stuff like that.
BTW, if you want to go into details, feel free to shoot me an email.
- usr1106 6y agoThe additional mandatory fees are around 30% https://sv.m.wikipedia.org/wiki/Arbetsgivaravgifter_i_Sverige https://sv.m.wikipedia.org/wiki/Arbetsgivaravgifter_i_Sverig... So with 4 kEUR gross salary you end up at 5.2 kEUR cash costs. Then there are also non-cash costs, like 5 weeks of paid holidays (or did unions actually achieve the 6th one? It's 30 years I lived in Sweden...) And you might need an office, equipment, and what not. So the cost can easily be 6-7 kEUR even if the developer sees only 4 kEUR on their payslip. A few might earn (significantly) more. But that's more likely in corporations higher levels than for open source related development work.
- mongol 6y agoYes. An employer must also take into account the average sick time per employee and year, since it pays for sick pay day 2 - 14 when the employee is sick. That is an another contribution to the 2x ballpark number.
- usr1106 6y agoIn Germany you pay/get 13 - 14 monthly salaries per year. In Finland 12.65. Don't know the figure for Sweden, but I'm pretty sure it's > 12.
- ivanche 6y agoPlease, there are no additional costs for the employer. On paper yes, but from where do you think those "additional costs" are paid? Right, from the value an employee creates.
- premek 6y agoand their salaries?
- ivanche 6y agoEmployees salaries? They're paid because employees create some value for an employer. Where do you think money for salaries comes from anyway? I had a friend who owned a company at the time. His sole criteria for hiring was that net salary + taxes + health insurance + all additional costs (yes, even those "paid by employer") must be <= the money employee earns him.
- ecmascript 6y agoIn Sweden, what you get paid isn't really your full salary. Sweden has a hidden tax system called "arbetsgivaravgift" which only the employer can see. It's hidden and not labeled as a tax because it tricks people into believing you're paying less taxes than you actually do. So when you think you're paying ~32% income tax, in reality it's closer to 50%.
- Denvercoder9 6y ago> It's hidden and not labeled as a tax because it tricks people into believing you're paying less taxes than you actually do. That's some conspiracy bullshit. The first Google hit for "arbetsgivaravgift" gives the site of the Swedish IRS-equivalent, where it's both clearly marked as a tax and the exact percentage is given.
- magicalhippo 6y agoBut the employee does not see it on their pay slip, unlike the regular taxes and pension. So when people (aka employees) talk about taxes it is rarely mentioned. In that regard it is a hidden tax. My boss told me he when thinking about our pay he considers the expense to the company to be about 2x what we get paid (pre-tax). So that's the "arbetsgivaravgift" (we got the same thing here in Norway) and pensions on top of our salary.