More gross should always mean more net, unless income is below full time minimum wage. Academics in finance or engineering don’t become rich from income, but tend to have a relatively care-free life. Minimum wage means constant struggle to pay bills and survive.
I’m not very familiar with the benefits for families. If you’re comparing two identical families, one with a lower income, and one with a higher income, the benfits and tax breaks should be mostly the same. Unless we’re talking about the very lower end, with one family having no income or below full time minimum wage - when benefits are the largest part of the income, the wage will be less important. Depending on what numbers you put in, it’s not unlikely that around 40% of a raise of gross income goes to social insurances and tax. It does depend on the exact tax class of each income earner and the tax bracket.
The tax system is a straight forward progressive tax. BUT net income is generally calculated after the deductions of social insurances, which are all calculated as % of income. Social insurances are usually more than the effective income tax, unless income is very high.
Between minimum wage (full time ~22k€ per year) and about 70k€ the tax rate and insurance cost goes up a lot, which reduces the difference in net income considerably. Below minimum wage (not in full time or whatever), benefits make up the difference in part. Above 70k, you reach the highest marginal tax rate (42%), and the social insurance costs are capped.
More gross should always mean more net, unless income is below full time minimum wage. Academics in finance or engineering don’t become rich from income, but tend to have a relatively care-free life. Minimum wage means constant struggle to pay bills and survive.
I’m not very familiar with the benefits for families. If you’re comparing two identical families, one with a lower income, and one with a higher income, the benfits and tax breaks should be mostly the same. Unless we’re talking about the very lower end, with one family having no income or below full time minimum wage - when benefits are the largest part of the income, the wage will be less important. Depending on what numbers you put in, it’s not unlikely that around 40% of a raise of gross income goes to social insurances and tax. It does depend on the exact tax class of each income earner and the tax bracket.
The tax system is a straight forward progressive tax. BUT net income is generally calculated after the deductions of social insurances, which are all calculated as % of income. Social insurances are usually more than the effective income tax, unless income is very high.
Between minimum wage (full time ~22k€ per year) and about 70k€ the tax rate and insurance cost goes up a lot, which reduces the difference in net income considerably. Below minimum wage (not in full time or whatever), benefits make up the difference in part. Above 70k, you reach the highest marginal tax rate (42%), and the social insurance costs are capped.
https://xcancel.com/sozi_simon/status/1937278850917904435#m
Not sure what I’m supposed to do with that, seems like people on that thread are implying that people without a job should just starve or something