Workers from Luxembourg, France and Spain earn the highest net salaries in Europe, according to a new survey.
The report, by AGN Shipleys, the accountancy arm of the Accountants Global Network (AGN), looked at 14 European Union countries, analysing what individuals, earning the same amount in each country, could expect to keep as net pay (the survey uses a base salary of 100,000 euros).
The survey found:
• Luxembourg citizens have the highest take home salary, clearing 73 per cent of their gross salaries
• Swedes pay the highest level of income tax at 48 per cent of their total salary
• The Danes pay the highest combined level of contributions (income tax and social security contributions) totalling 54.6 per cent
• France is the most expensive country in the EU when it comes to employing people - French employers pay an additional 44 per cent on top of the original salary (UK employers pay just 12.6 per cent extra).
Looking at the highest levels of net income, the French come in second to Luxembourg (on 73,000 euros) and can expect a net salary of 68,027 euros. Third come the Spanish with a net salary of 67,799 euros. The Finnish and the Danes take home the lowest net salaries from 100,000 Euros, expecting a salary of 48,682 and 45,400 Euros respectively. Britons come in at number five, with 61,719 euros.
When it comes to income tax, the Swedish pay the most in Europe, with 48 per cent, but this is offset by low social security contributions. Income tax is the lowest in France, but the French compensate by paying the highest social security contributions in Europe.
For employers, France is Europe's most expensive place to employ people, with a total cost to the employer of 144,016 euros per employee on a salary of 100,000 euros. Belgium is the second most expensive place for employers, costing 34,500 euros per employee and Sweden is third on 32,820 euros. UK employers fair pretty well, in ninth position with 12,634 euros.