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In the US you're just paying higher salary instead. You really should be taking into account not an employee's salary, but total cost (some call it "gross gross salary") - gross salary + all other taxes (payroll, health & social insurance, etc.). Then you figure out that "cheap" EU countries aren't that much cheaper...



We compute and call it as "total cost to company" or TCC.


>We compute and call it as "total cost to company" or TCC.

Quick rule of the thumb here (Italy) is that the TCC is typically:

1) for executives/managers 1.5-1.9 of the actual net wage[1]

2) for employees 1.9-2.5

3) for workers (let's call them "blue collars") 2.5-3.0

The difference in the factor depends on the specific industry/sector, and is mostly related to insurance and continuity of employment.

[1) by net wage I mean what the actual employee brings home, already net of income taxes




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