this post was submitted on 14 Jun 2025
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Listed salaries are almost always what the employee pays, not what it costs the company. In the US, this includes the payroll tax, and cost of "benefits," like healthcare and unemployment insurance, and is referred to as the burdened rate. This is separate from the income tax the employee has to pay to the government, mind you.
The burdened rate for most employees at the companies I've worked for in the US is like 20-50% higher than the salary paid. Not sure exactly how it works in France, but I do know there's a pretty complex payroll tax companies have to pay. I think it's something like 40% at the salary you quoted.
seems like there's a problem here?
Pretty much the same in France. Companies pay 150% to 200% of the amount that the employee receives, when the employee has a relatively high pay, and the employee then pays a significant amount of its pay in diverse things, then the income tax hits. France is pretty much one of the countries that taxes the most in the world so...
Plus you have to add in the amortized cost of legal, HR, etc for employees.
Not a big deal for 1-2 employees, but as you scale you need support employees