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Ask HN: Why do companies outside the US pay so much less?

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141–150 of 225 posts

Re: Ask HN: Why do companies outside the US pay so much less?

#141
post #34

Developers in Australia and New Zealand are really well paid.

Cost of living is very high in NZ though - 15% sales tax on everything, including food. Not to mention the housing is very low quality - not up to US or Western European standards.

Re: Ask HN: Why do companies outside the US pay so much less?

#142
post #133
post #123

Earlier quoted context omitted.

My wage in the US is about 3 times what I'd be making home in France. 3 times. Trust me I'm not working 3 times as many hours as my friends over there. Actually it's quite the opposite.

But... You're not living in France. There are many people who would rather be making 3 times less and living in France. It is a trade off, that's all there is to it, e.g. If you, God forbid, have get into a severe health condition in the US, you might very well be making 5x more, you're still going to get broke pretty soon because social healthcare is virtually nil.

That's the great thing about the internet, if you like France, stay in France! You can work anywhere. I prefer the USA compared to Europe because I can practice my favorite sport (competitive shooting) without any hassle.

Each place has their pros and cons.

Re: Ask HN: Why do companies outside the US pay so much less?

#143
In Sweden as far as I know the percentage paid on top of your salary by companies is around 33%, and I'm not sure that includes all of the fees and taxes related to hiring someone. From what other people write here that's a quite high number even compared to European standards, but it sure does explain why the salary paid to an employee would be lower here than in the US.

Re: Ask HN: Why do companies outside the US pay so much less?

#144
post #55

I don't really care how much someone in USA earns. As a software engineere in germany you are earning good money. There are no killings in cities, affordable health care, high quality living standards, university costs 150$ for 6 month, no donald trump, 30 days real holiday (i take them, everyone does, every year), seldom over hours, parental leave. Btw. IT is more than google, apple, facebook and twitter. And no we…

You act like everyone in the USA has to wear body armor, has to set broken bones themselves and lives in tent cities.

I have amazing dental, health, and eyecare. Free routine health checkups such as physicals, heck I even get a free gym membership. I drive a 350HP luxury sedan. Oh and I've never shot anyone, had to shoot anyone, or been the victim of a crime other than petty theft where my car was broken into one time. But I do have the freedom to participate in shooting sports (and I do) whenever the heck I want and I don't need to ask mommy for permission.

If that's not high quality living standards, you must make 500k a year and be rich because I don't know what is. I think your media has drastically altered your perception of what America is and is not. Tech workers are well compensated and I'd rather be making six figures in America. I'm sure your country is very nice as well, but there is not enough freedom.

Re: Ask HN: Why do companies outside the US pay so much less?

#146

Five things: 1. We are taxed on income heavily in the US. 2. Insurance is expensive here. 3. In the hubs, rent is very expensive. Take-home pay after considering these three things is a lot less than you might think. And also: 4. Generalizing the salary of positions across the whole US is misleading. An average engineering job in the midwest or outside of a hub can pay half the salary of SF or NYC. 5. It really depen…

> 1. We are taxed on income heavily in the US.

I was surprised at this so I looked it up. From the article [1] it looks as if income tax in the US is lower than in most of Europe. But yes, higher than Russia, Saudi Arabia or Mexico.

[1] http://www.bbc.co.uk/news/magazine-26327114

Re: Ask HN: Why do companies outside the US pay so much less?

#147

I'm in the US and a friend just moved to The Netherlands to accept a much lower paying job. He swears he has more disposable income due to cheaper health care, Internet, transportation (no car required!), etc. The basic assertion being that the cost of living is higher in the US. I would love to see salary vs cost-of-living comparisons globally. I suspect this might account for the disparity, but I'm afraid I don't h…

As an American living in Germany, I can vouch for this. My wife and I did a big calculation when we were thinking of moving back to the states. Basically we made three projections based on three different time frames/factors: (a) 1 year comparison (gross net income - tax only), (b) 1 year comparison (net income - all costs including taxes, fees, cost of living etc), and (c) 20 year estimate of point (b). For fun I tried to extend the tables out to a 'lifetime' value, but there are so many variables and assumptions that I don't think it's worth it for anything other than fun.

If you only look at salary - tax rate, the US is far and away better, but as soon as you start to factor in other things to get a real net income it goes to the German side pretty quickly. If you calculate out for 20 years (especially if you want to send kids to college) it's not even close. Moreover, we have a relatively high income and if you more in the middle or lower tax brackets, the values you get from services vs what you pay into the system would be even greater.

From what I see (commented here and elsewhere), many, many people do not have an accurate idea of what their actually paying and making over time. The easiest thing to compare is salary numbers, but it's also the most flawed because net income minus taxes is only the start of a real calculation not the end answer. You should also take into consideration the non-monetary things that come with living in each place as a more qualitative list (this will, of course, differ from person to person). As already mentioned vacation is lengthy and it's expected that it will be taken (and people really try not to bother you while you're away), lower anxiety due to less crime and a better social safety...

Slightly off topic, but I would highly encourage people to make projections like this for their households. It could be eye opening and I've found that is has a very positive benefit on long term goal planning and budgeting.

Re: Ask HN: Why do companies outside the US pay so much less?

#148
post #5

If you're comparing to European jobs, one factor is that the U.S. has higher income inequality then many other countries, which means generally the highly paid jobs pay more, and the poorly paid jobs pay less. This will make U.S. salaries look good in some areas, and bad in others. (The median U.S. salary is also a bit higher than most other countries, but not by enough to explain the differences seen specifically in…

> higher income inequality

This.

I'll gladly pay more (as in earn less) to live (and to raise my kids) in a more equal society. I grew up in a very unequal one (even though it had universal healthcare) and I was really tired of that.

Re: Ask HN: Why do companies outside the US pay so much less?

#149

Earlier quoted context omitted.

It's worth pointing out that, while health care in Germany is better than most of Europe, it is well below the standards Americans are accustomed to. Americans have a much higher survival rate for cancer and other serious diseases due to advanced diagnostic procedures and higher pay for physicians. Americans are comfortable asking doctors for more tests and services when the doctor doesn't think its necessary because…

Would you mind putting sources for these claims? There exist many contradictory claims [1]. 1) https://blogs.scientificamerican.com/cross-check/cancer-spen...

Well, if you're going to read that magazine you should expect to see contradictory information as it hasn't been a reputable publication for quite some time.

And, yes, I do mind.

Re: Ask HN: Why do companies outside the US pay so much less?

#150
post #55

I don't really care how much someone in USA earns. As a software engineere in germany you are earning good money. There are no killings in cities, affordable health care, high quality living standards, university costs 150$ for 6 month, no donald trump, 30 days real holiday (i take them, everyone does, every year), seldom over hours, parental leave. Btw. IT is more than google, apple, facebook and twitter. And no we…

You act like everyone in the USA has to wear body armor, has to set broken bones themselves and lives in tent cities. I have amazing dental, health, and eyecare. Free routine health checkups such as physicals, heck I even get a free gym membership. I drive a 350HP luxury sedan. Oh and I've never shot anyone, had to shoot anyone, or been the victim of a crime other than petty theft where my car was broken into one tim…

This is turning into a pissing contest.
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