Hacker Newsnew | past | comments | ask | show | jobs | submitlogin

I don't know anyone who calls take-home (net) pay gross salary in Europe. I have lived and worked in multiple countries.

And the actual gross is definitely displayed on the payslips.



Let me try to reformulate OP's comment. In many European countries, there are three deduction levels: (1) the net salary, after all taxes and health and social care deductions, (2) the gross salary, after all mandatory employer contributions to the health and social care systems (3) the total cost of an employee to the employer (the English equivalent of the term used in Czechia would be "super-gross" salary). OP's point was that first, in the EU, there is often a big difference between (2) and (3), whereas they are very close or equal in the US, and second, gross salary usually refers to (2) in the EU and to (3) in the US.

That said, I don't think that the difference between (2) and (3) is as big as suggested by the OP even in the EU, at least in the countries that I'm familiar with.


Gross salary usually refers to #2 in the US, to, and, contrary to the upthread suggestion, just as in Europe, there is an “employer portion” (which in the US includes some of retirement and retirement healthcare, but not current healthcare—that is, specifically, federally half of the tax for Social Security and Medicare,—plus, a portion of the cost of federal and state unemployment insurance) which is not included in gross salary because it is paid out of employer taxes rather than employee taxes. There are also sometimes employer-provided benefits that while part of total compensation are not part of gross salary , and may or may not be part of taxable income; some portion of employer-provided healthcare cost is frequently part of this, and, though this is almost entirely a public-sector concern now, some portion of employer pension costs also frequently would be part of this, where a pension exists at all (adding these employer taxes and benefits to gross salary isn't the total cost to the employer of the employee either, as there is overhead and other employer costs for employment that that still excludes.)

It is true that the spread between #2 and #3 (when limited only to the required taxes and any benefits not part of salary, which seems to be the intention) is typically greater in Europe than the US, as the supported social services are greater.


> I don't know anyone who calls take-home (net) pay gross salary in Europe. I have lived and worked in multiple countries.

That is not what I am saying...

There are basically 3 stages of income in Europe: employer gross -> employee gross -> employee net.

Most Europeans refer to employee gross as simply “gross”. There are still the employee contribution part to be deducted before the net, but the whole employer contribution has completely been removed already.

Payslips as well as employment contracts usually display the employee gross. That is why the real total compensation including the employer contribution is rarely displayed anywhere in Europe and people forget about it, thus creating the incompréhension of this whole comment thread, where people compare incomparable incomes.


Yeah fair enough then, that's true - misunderstood your comment.




Guidelines | FAQ | Lists | API | Security | Legal | Apply to YC | Contact

Search: