Effective tax over the world#
| Country | Flag | Effective tax on employment contract [%] | Year | Source | ||
| Minimum wage | Average wage | Twice of average wage | ||||
| Luxembourg |  | 27.41 | 44.71 | 49.87 | 2020 | |
| Germany |  | 37.66 | 46.86 | 51.23 | 2020 | |
| Netherlands |  | 33.61 | 48.27 | 51.61 | 2020 | |
| France |  | 25.76 | 51.45 | 54.96 | 2020 | |
| United States |  | 18.99 | 29.94 | 35.3 | 2020 | |
| Poland |  | 38.89 | 40.19 | 40.8 | 2021 | |
| Romania |  | 40.96 | 42.81 | 42.79 | 2020 | |
| Lithuania |  | 27.6 | 39.22 | 40.55 | 2020 | |
| Czechia |  | 33.55 | 40.42 | 42.59 | 2020 | |
| Latvia |  | 42.7 | 42.63 | 43.62 | 2020 | |
Some facts#
- Money earned by an employee is decreased by various types of taxes or contributions:
- Total employer cost:
All money spent by the employer to pay salary for the worker is colloquially called total employer cost. In most tax jurisdictions, total employer cost is not the same as gross salary - it's bigger.
The total employer cost includes wages, salaries, commisions, employer's part of taxes, social security, health and pension contributions, insurance premiums and other benefits.
- Gross pay (gross salary):
The amount agreed between employer and employee is called "gross salary".
It is the total amount of money an employee receives before taxes and deductions are taken out.
It's less than total employer cost, as it doesn't include all taxes and benefits paid by employer (look above).
- Net pay (net salary):
The amount after deducting all required taxes and contributions is called net sallary or on-hand salary.
- Total employer cost:
- The amount and the type of paid taxes and contributions depends on both achieved income and form of employment (employment contract, B2B etc.).
Data up-to-date#
We periodically review minimum wage so that our data is always up-to-date.
Recent compliance with the regulations was confirmed on 2021-08-07.
If you want to be 100% sure after this date - check if the minimum salary have not changed.
Recent compliance with the regulations was confirmed on 2021-08-07.
If you want to be 100% sure after this date - check if the minimum salary have not changed.
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