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Feedback Fridays – A Friendly Feedback Exchange For Ideas and Products (surveys/polls are welcome) : startups

/u/AutoModerator by /u/AutoModerator
October 3, 2022
in Startups
0


We are a German startup and employ people remotely, but so far only in Germany.

Recently our employees are bombarded with remote job offers from US companies that seem substantially higher than what we and the surrounding eco system can offer.

For example, excellent mid level engineers can get ~65-85 k€ yearly gross salary in Germany these days. Now US startups come along and offer a 100k and more for remote jobs for people based in Germany.

I don’t want to complain that they are loaded or we can’t keep up. I am genuinely interested if these salaries are a bit fake or unfair to compare as the offers may hide the fact that they include the employer non wage labor costs. In Germany these are usually on the order of 20-23% for health insurances, social security etc. Hence, if I include these in the salary calculations, the gross salary band of 65-85 k€ actually becomes ~80-105 k€.

What are your experiences? Do these international remote job offers often include these deductions in their gross salaries? Especially since recently a lot of fairly new US startups have started looking for remote talent in Europe and they just might even not be aware of the non wage labor costs. Thus, for them the 100k is just the money they would send to a German bank account and employees (or services like deel) need to handle all taxes, deductions, and insurances themselves.

If this is the case, how can we make employees aware and  handle a) the unfair comparison of German gross salaries excluding employer deductions and international offers including them and b) the employee’s dissapointmet after the job change when the net salary didn’t really increase because they have to pay employer and employee deductions (and probably a tax accountant) on their not so shiny anymore new 100k salary?



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