4 ms·
I wouldn't be at all surprised if it's much more expensive to hire an employee in the UK than in the US.
by Hamuko 5y ago
I wouldn't be at all surprised if it's much more expensive to hire an employee in the UK than in the US.
- 0x737368 5y agoThe real money is in the US - their wages dwarf UK's and Western Europe's programmers' salaries no matter how you look at it.
- arethuza 5y agoI'd actually be pretty surprised if the fully loaded cost of an employee in the UK was higher than an equivalent in the US. Mind you - I'd love to see hard figures!
- iso1631 5y agoIn the UK on an £80k ($108k) salary an employer would have to pay 89,820.08 ($120222), plus pension contributions and the employee would receive £55,092.76 ($73740) In California someone paid $120k Gross I think would receive $79548, before healthcare deductions (optional private healthcare in the UK is typically about $700 a year for a single person of working age, in the US I believe premiums (employer and employee) are more like $7000 a year) Overall at the $120k range it seems a similar cost in the UK vs California. Office space in London is probably higher than in SF, but that doesn't apply for remote workers.
- Nextgrid 5y agoI wonder why would that be or where would that extra money would be going given we're talking pre-tax figures.
- mostlystatic 5y agoFor one, UK employers would pay an additional £10k in Employers National Insurance on an £80k salary. https://listentotaxman.com/?year=2021&taxregion=uk&age=0&time=1&ingr=80000 https://listentotaxman.com/?year=2021&taxregion=uk&age=0&tim... (Partially answering your "why", not commenting on whether the original statement is true.)
- arethuza 5y agoFor the US "the average health insurance cost for employers was $16,253 annually" https://www.peoplekeep.com/blog/cost-of-employer-sponsored-health-insurance https://www.peoplekeep.com/blog/cost-of-employer-sponsored-h... Now some employers in the UK add private health care as a benefit of course.
- ajb 5y agoCompany private health plans in the UK don't cost anything like those in the US, though: They don't need top cover everything because the NHS will pick up things they don't.
- iso1631 5y ago> Now some employers in the UK add private health care as a benefit of course. https://job-prices.co.uk/private-health-insurance-cost/ https://job-prices.co.uk/private-health-insurance-cost/ Average is £74 a month, or $1200 a year.
- yaseer 5y agoIt's much more expensive to hire in the US than UK, for engineering in particular. Context - We have a UK company with US parent, and choose to hire in the UK for this reason.
- Nextgrid 5y agoDo you mean expensive in terms of taxes, the market commending a higher salary, or other reasons?
- yaseer 5y ago> Do you mean expensive in terms of taxes, the market commending a higher salary, or other reasons? The market. The US market for high-salaried knowledge work always pays more, whether is Tech, Finance, Legal etc. In general, if you're a high-earner/rich, America is a great place to be. If you're poor, the UK offers more support and protections, but this is a digression.
- aphexairlines 5y agoGiven the same salaries in both countries, it's probably more expensive to hire that employee in the US given that the US firm is expected to pay for fairly expensive health insurance. UK firms pay for private health insurance too, but that's supplemental insurance on top of NHS coverage.