Saturday, December 12, 2009

Cost of living questions

Question: I wonder in what way tax pressure and cost regarding social security are taken into account. As far as I can see the gross salary is calculated and not the net salary. Because of great differences in tax pressure, using the gross salary might give a somewhat less correct outcome.

Answer: The calculator does not take tax into account. Most users use their net/after tax salary as the basis for the calculation. This will calculate the equivalent net salary in the other location. You would then gross up the net salary by the amount of tax to arrive at a gross salary in the other location. for more information