Re:Ask HN: How to increase SWE salaries in Europe?
by physicsguy on Thursday January 14, 2021 @04:18AM
(#25774029)
Yeah, there's also serious disadvantages to taking > £100k salary in the UK because your marginal tax rate hits 60% as the personal allowance is withdrawn.
Re:Ask HN: How to increase SWE salaries in Europe?
by jpat on Thursday January 14, 2021 @06:50AM
(#25775283)
True, but it does dip back down to the marginal rate of 40% at £120k.
https://www.contractorcalculator.co.uk/marginal_tax_rates_ex... shows this with a clear graph.
For example, the "high" salary tax income bracket starts at £50k in the UK [1] and at €54k in Germany [2]. More or less, these rates are similar across western Europe (except for Switzerland). In the US, tax brackets are far more permissive [3].
Also, in the UK a £25k salary is fair enough to guarantee a visa [3], or €40k [4] in the Netherlands, hinting that these governments think that such a salary is high enough.
Most policies enacted by governments, I think more through ignorance rather than malice, assume that workers making ~€50k have enough and shouldn't need to get increased.
While other factors (lack of big companies & lack of VC investment) probably have a higher impact on the low wages, I think that government policies also have an affect on it.
[1] https://www.gov.uk/income-tax-rates [2] https://www.academics.com/guide/taxes-in-germany [3] https://www.bbc.com/news/uk-politics-51430811 [4] https://www.iamexpat.nl/career/employment-news/2019-income-r...