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For a gross salary of 100
  • the employee pays 20 in employee social security charges (out of the 100)
  • the employer pays 40 in employer social security charges (in addition to the 100)

Out of the 80, you pay income tax, which for median income levels will be around 10-15% depending on familiy situation. Despite my higher than average income, I paid only about 5% in net taxes last year, thanks to having 3 kids and legal deductions for the person we hire (legally) to clean the house and kindergarten fees. A single worker is likely to pay more than that, but I'd be surprised if the average tax rate (as opposed to the marginal one) were above 20% on an investment banker's income.

So out of 140 paid out, I get to keep 75. A 50% burden is about right, altogether.


In the long run, we're all dead. John Maynard Keynes

by Jerome a Paris (etg@eurotrib.com) on Mon Mar 27th, 2006 at 08:06:28 AM EST
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