1) If you are self employed (at least in the USA) you are responsible for some taxes typically paid by your employer. Additionally, your employer does not provi

1) If you are self employed (at least in the USA) you are responsible for some taxes typically paid by your employer. Additionally, your employer does not provide you any benefits. From the perspective of both the employee and the employer, this alone can make a 1x employee compensation effectively the same as a 1.5x contractor compensation. I personally HATE doing taxes for contracting work so I will not work for less than double my salary. 2) Anyplace in Europe, you are going to be comparatively "close" to Eastern Europe where the cost of living is low and super talented programmers can be found for "peanuts" and compensated under the table directly via paypal. This drives the local cost of talent way down. 3) Don't move to management unless you are sure that is the right role for you. A great programmer is not (necessarily) even a mediocre middle manager. If you are suited to it then great. If not, start your own company or look to find a senior position some place else with better compensation (remember, not all compensation is pay) For example, many employers off discounted home loans, education assistance, retirement contributions, or stock purchases.