Re:Ask HN: Have tech salaries been stagnant for the past dec...
by yrgulation on Thursday September 15, 2022 @08:19AM
(#32850627)
Thats how the tax system works in any progressive tax system. I believe india has such a systen as well. Danish brackets are higher and so is every other tax.
Re:Ask HN: Have tech salaries been stagnant for the past dec...
by mrweasel on Thursday September 15, 2022 @08:34AM
(#32850827)
So your boss wants to give you a $1000 raise, but you don't want it, because you'll only get the $400 and the rest is just tax? At no point will taking the $400 impact what you're already making or how it's taxed. Even the Danish government isn't stupid enough to implement a system where your existing income is reduced, because you get a raise.
Again I see the point if you're offered or able to get some kind of benefits or vacation time instead. That may easily be of greater value to you. That's just not often an option.
Edit: If it helps: A progressive tax is what the US have. India may as well, that I don't know.
Re:Ask HN: Have tech salaries been stagnant for the past dec...
by IaacForHire on Thursday September 15, 2022 @08:30AM
(#32850770)
Well now I have a better idea of how much my friend makes (she's an exec at a big company). I just lost my sympathy for her.
This year it's 552.500DKK, anything you make ABOVE that, is taxed an additional 15%. So a raise will never leave you with less money. The amount is also adjusted yearly, so next year it normally higher, meaning that you are effectively taxed less.
It is true that if you're only getting 35 - 40% of that raise, because the rest is just taxes, it might be of greater value to you to get more vacation time. Benefits are a little tricky, because they are taxed as well. I believe you could do extra pension, because that's taxed when it's paid out.