Forbes 2008 Single Employee Happiness Index (Highest to lowest net salary after taxes to employee)
Single Salary 50,000 € Single Salary 100,000 € Single Salary 200,000 € Single Salary 1,000,000 €
Country Net To Employee € Country Net To Employee € Country Net To Employee € Country Net To Employee €
Qatar 50,000 Qatar 100,000 Qatar 200,000 Qatar 1,000,000
UAE (39) 47,500 UAE (39) 95,000 UAE (39) 190,000 UAE (39) 950,000
USA and Reform Graetz 46,200 Russia 87,000 Russia 174,000 Russia 870,000
Russia 43,500 Ukraine (24) 86,800 Ukraine (24) 173,800 Ukraine (24) 869,800
Ukraine (24) 43,300 Hong Kong 84,000 Hong Kong 168,000 Hong Kong 840,000
Hong Kong 43,000 Singapore (36) 83,700 Singapore (36) 164,400 Slovakia (17) 809,100
Taiwan 42,400 USA and Reform Graetz 82,000 Slovakia (17) 161,100 Singapore (36) 796,400
Singapore (36) 41,600 Slovakia (17) 80,100 USA and Reform Graetz 155,500 Romania (16) 776,900
South Korea 40,400 Romania (16) 77,600 Romania (16) 155,300 Estonia 770,000
Japan (34) 39,800 Taiwan 77,200 Estonia 154,000 Czech Republic 750,000
Cyprus 39,600 Estonia 77,000 Georgia (6) 150,000 Georgia (6) 750,000
Slovakia (17) 39,600 Czech Republic 75,000 Latvia (12) 148,100 Latvia (12) 748,100
Romania (16) 38,700 Georgia (6) 75,000 Brazil (26) 146,100 USA and Reform Graetz 736,600
Thailand (38) 38,600 Cyprus 74,600 Lithuania 146,000 Lithuania 730,000
Estonia 38,500 Japan (34) 74,300 Cyprus 144,600 Brazil (26) 726,100
Switzerland (Zurich) (22) 38,400 Brazil (26) 73,600 Mexico (28) 142,100 Cyprus 704,600
China (30) 38,300 Latvia (12) 73,100 USA 137,600 Mexico (28) 702,100
Georgia (6) 37,500 Lithuania 73,000 USA and Texas 137,600 India (31) 664,000
Czech Republic 37,400 South Korea 72,700 Taiwan 137,200 Malta before ref & imp. 652,900
USA 37,400 Thailand (38) 72,200 Thailand (38) 135,200 Argentina 652,000
USA and Texas 37,400 Mexico (28) 72,100 South Korea 133,600 USA 651,900
Brazil (26) 37,300 USA 71,900 India (31) 133,300 USA and Texas 651,900
Mexico (28) 37,100 USA and Texas 71,900 Malta before ref & imp. 132,900 Turkey (23) 651,600
Lithuania 36,500 China (30) 71,200 USA and Illinois 132,200 Thailand (38) 639,200
United Kingdom (25) 36,500 Switzerland (Zurich) (22) 69,900 Argentina 132,000 Indonesia (32) 638,200
USA and Illinois 36,000 USA and Illinois 69,000 Turkey (23) 131,600 USA and Illinois 628,400
Ireland (10) 35,800 Malta before ref &imp. 67,900 Japan (34) 130,600 South Korea 627,600
Latvia (12) 35,600 Argentina 67,000 Indonesia (32) 130,200 Taiwan 617,200
Spain (19) 35,600 India (31) 67,000 China (30) 126,800 Malaysia (35) 613,800
Luxembourg 35,400 Turkey (23) 66,600 Malaysia (35) 125,800 Greece (8) 605,500
Malta before ref & imp. 35,400 Indonesia (32) 66,600 United Kingdom (25) 125,400 South Africa (37) 605,100
Argentina 35,100 United Kingdom (25) 66,400 South Africa (37) 125,100 Luxembourg 603,400
South Africa (37) 35,100 South Africa (37) 65,100 Czech Republic 125,000 United Kingdom (25) 597,400
Switzerland (Geneva) (21) 35,000 Switzerland (Geneva) (21) 65,000 Luxembourg 123,000 Poland (14) 579,400
Canada (Ontario) (27) 34,900 Malaysia (35) 64,800 Switzerland (Zurich) (22) 122,900 USA and New York 569,600
Indonesia (32) 34,900 Ireland (10) 63,700 Switzerland (Geneva) (21) 122,600 Hungary (9) 569,100
Norway 34,800 Spain (19) 63,400 Greece (8) 120,700 Ireland (10) 567,600
Malaysia (35) 34,300 Luxembourg 62,900 Ireland (10) 119,600 China (30) 566,800
Australia (29) 34,200 Canada (Ontario) (27) 62,300 Spain (19) 118,400 Austria (1) 566,600
Turkey (23) 34,100 USA and New York 62,300 USA and New York 117,100 Switzerland (Geneva) (21) 561,900
India (31) 33,800 France (5) 61,600 Poland (14) 117,000 Spain (19) 558,400
France (5) 33,600 Norway 60,800 Austria (1) 116,400 Germany (7) 555,300
USA and New York 33,300 Austria (1) 60,100 Canada (Ontario) (27) 115,800 Germany and Berlin (7) 555,300
Netherlands (13) 32,600 Greece (8) 60,100 Hungary (9) 113,100 Japan (34) 547,800
Portugal (15) 31,900 Australia (29) 60,000 Portugal (15) 112,400 Canada (Ontario) (27) 544,500
Finland (4) 31,600 Poland (14) 59,200 France (5) 112,100 Portugal (15) 539,600
Greece (8) 31,300 Portugal (15) 59,000 Australia (29) 111,500 France (5) 539,500
Israel (33) 31,100 Netherlands (13) 56,900 Germany (7) 109,800 Switzerland (Zurich) (22) 533,100
Austria (1) 31,000 Israel (33) 56,500 Germany and Berlin (7) 109,800 Australia (29) 523,500
Poland (14) 30,300 Hungary (9) 56,100 Norway 109,500 Israel (33) 515,500
Denmark (3) 29,100 Italy (11) 55,300 Israel (33) 107,500 Italy (11) 506,400
Sweden (20) 28,900 Finland (4) 54,500 Italy (11) 105,600 Norway 499,100
Italy (11) 28,400 Germany (7) 54,100 Netherlands (13) 104,900 Netherlands (13) 488,900
Germany (7) 27,600 Germany and Berlin (7) 54,100 Finland (4) 99,500 Finland (4) 460,100
Germany and Berlin (7) 27,600 Sweden (20) 51,000 Sweden (20) 95,000 Sweden (20) 447,000
Hungary (9) 27,600 Denmark (3) 47,700 Belgium (2) 87,400 Belgium (2) 411,100
Belgium (2) 26,800 Belgium (2) 46,900 Denmark (3) 84,800 Slovenia (18) 396,400
Slovenia (18) 25,800 Slovenia (18) 45,900 Slovenia (18) 84,800 Denmark (3) 381,400
(A) Before application to expatriates of Totalization Agreements and EU Directives on social security.
(B) Before application of special expatriate tax rulings, e.g. Huyghe Reform, HQ ruling in France, treaty provisions and special statutory rules.
(C) This marginal income tax rate is applied to the next amount of additional income received.
(1) Austria - In column 8, Employer Social Security includes Social Security, employer part and other payroll taxes to be paid by the employer. The tax calculations are based on the assumption
that the annual salary is paid out in 14 installments (as usual in Austria) in order to achieve the most favorable tax rate.
(2) Belgium - An average of 7% communal tax has been applied for the calculations. For the employer social security in column 8, an estimate of 35% has been applied.
The calculations were based on the assumption of a non working spouse and the children being older than 3.
In column 4, the special social security contributions have been included in the calculation.
In column 10, the calculation includes an estimates of 3% crisis tax
(3) Denmark - Proposal is will reduce the corporate tax rate at 25%.
(4) Finland - In column 3, pension insurance payment of 4,6% is applied. A higher rate of 5,8% is applied to employees over years old.
In column 4, the National Income Tax and Municipal Tax are included. Church Tax is excluded. Municipal Tax ranges from 16% to 21%. .
In this calculation, the percentage of Helsinki (17,5%) is applied
(5) France - In column 3 and 7, the flat tax CSG / CRDS of 8% of which 5,1% is deductible is included. Above 100,000 the 11% rate applicable to passive income is used, DLF has opined this is an income tax.
2008 limitation on total personal income tax, flat tax , wealth tax and property tax to 50% of income not considered here
In column 3 and 8, 2007 French standard social security contributions rates and brackets and 2007 supplementary social contributions rates.
Assuming the employee is not a legal director or member of the board
In column 4, 2007 French income tax rates and schedules.
Assuming no other personal income is taken into account.
Column 10 does not consider local taxes such as professional tax
(6) Georgia - 2008 income tax rate is flat 25% and no social security additionally charged; integration. Corporate income tax is payable at the rate 15% of taxable income by enterprises carrying out economic activities in Georgia.
Georgian tax legislation does not provide special payroll taxation regime for single persons and married with two children ones.
(7) Germany - In column 3 - Social Security calculations including additional employee rate for nursing care is employee is between 23 and 65 of age with no children (where applicable)
In column 4 - The individual Income Tax includes solidarity surcharge; excluding church tax.
In column 7 - The marginal tax rates are with the solidarity surcharge of 5,5% of the income tax.
In column 9 - The solidarity surcharge of 5,5% of the corporate tax included.
In column 10 - The Corporate Income Tax excludes the local trade tax which is, for example, an additional 14% in Berlin.
(8) Greece - for employees insured prior to January 1, 1993.
(9) Hungary - In column 3, if the individual is a Hungarian national and is employed by a Hungarian entity, 8.5% pension contribution (capped at a salary-level of HUF 5,307,000 p.a.) and
4% health contribution are payable on the gross income.
(Furthermore the Hungarian entity has to pay 1% contribution the so called Unemployment Solidarity Fund.)
In column 7, the Hungarian tax rates are progressive up to 40%.
In column 8, if the individual is a Hungarian national and is employed by a Hungarian entity, the employer has to pay 29% social security contribution on the gross income and
HUF 3450 per month/person Health Fund contribution. (Furthermore the company is obliged to pay 1.5% Training Fund contribution.)
(10) Ireland - In column 3 and 8, Calculations in respect of the married individual assume that his/her spouse will not have any taxable income.
In column 4 - The standard rate of corporation tax for a trading company is 12,5%.
This rate applies to passive non-trading income. The rate of corporation tax payable by a company depends on whether the income earned by the company is trading or non-trading.
(11) Italy - In column 3, It is assumed that the local executive works in an Italian commercial company where the National agreement of "Dirigenti" (executive) of trading company is applied.
In column 4, before application of treaty provisions. For local tax purpose, it assumes that the individual lives in Milan.
In column 10, is included 33% for ordinary corporate tax and 4.25% for regional corporate tax ("IRAP")
(12) Latvia - The maximum annual income subject to social security contributions is LVL 19,900, however, this is likely to be increased to LVL 22,700.
(13) Netherlands - The partner's tax credit has been taken into account even though this credit can only be claimed by the partner. These calculations show the minimum social charges and not the maximum charges.
(14) Poland - There is no tax benefits due to the number of children. We assumed that the executive has non-earning spouse. In order to benefit from the preferential taxation in joint tax return,
the executive has to be married the entire tax year and there should be joint marital property regime between them
In column 3, the employee social security contributions include the healthcare contribution, which is not technically the part of social security,
but it is levied on the employee's remuneration and constitutes the additional burden.
The marginal tax bracket percentage is 40%.
(15) Portugal - In column 8, Assuming that they are Board members. Otherwise the social tax applicable would be 10% for the employee and 21.25% for the employer and a cap is also available.
In column 10, the corporate income tax includes a 10% municipal surcharge (25%+2.5%)
(16) Romania - No personal deductions are deducted for monthly gross incomes over ROL 30,000,000 (equivalent for approx. EUR 824)
The figures are rather estimatives, due to specific requirements regarding the computation of certain social security contributions (e.g. number of employees, risk of the activity etc.)
(17) Slovakia -
In column 4, should the spousal deduction and child bonus be applicable.
(18) Slovenia - In column 8, Employer Social Security includes the employer's tax on salaries paid. (if the monthly salary is in excess of SIT 750,000 employer's tax on salaries = 14,8%.
Employer's social security contribution = 16,1%)
(19) Spain - It is assumed that children are between 3 and 25 years old.
(20) Sweden - The employee's pension fee is 7% of the salary and benefits, capped at SEK 349,400. 12.5% of the paid pension fee is deductible against income and 87.5% is creditable against income tax
The pension fee is included in the preliminary tax withheld.
Employer social security contributions are 32.46% of the salary and benefits. No cap apply.
Corporate Income tax is a flat rate tax of 28%, however, due to the possibility to make tax allocations reserves the effective tax rate can be lower.
In column 7, the income tax rate includes the average Municipal Tax rate for Stockholm, Sweden (31%). The rate varies depending on where the individual is resident and range between 29% and 36%,
including church tax, which you pay if your are a member of the Swedish church (0.8-1.0%)
(21) Switzerland (Geneva) - In column 4, the Tax rates of the Canton and City of Geneva have been used. Minimum social charges shown.
(22) Switzerland (Zurich) - In column 10, Corporate Income Tax rate is progressive, highest rate is used. Taxes are without Church Tax. Minimum social charges shown.
(23) Turkey - In column 4, stamp duty has been included.
(24) Ukraine - All calculations reflects amounts per year
In column 3 and 8, the maximum amount subject to social security contributions is capped at UAH 4,100 per employee per month.
In column 8, the amounts are calculated based on the minimum total percentage of the employer social security contributions (37%) as it includes, in particular,
contributions to the social security fund against accidents at work that depends on the class of professional hazard established by the fund for each employer. The maximum total percentage is equal to 50%.
(25) United Kingdom - The calculations are based on the UK tax rates for the year ending 5 April 2008.
Social security rates are based on a "not contracted out" basis for State pension purposes. Contracted out rates result in slight reduction in social security cost up to £31,720.
If an employer pension scheme is contracted out the total employee social security will reduced by £432. The total employer social security figure will be reduced by £944 to £270.
(26) Brazil - The deductible amount per dependent is R$ 117,00/month per individual. The Social Security Contribution ceiling for the employee is R$ 275,96/month. In column 8, for the purpose
of this calculation some labor costs such as vacation, 1/3 additional salary for vacation, prior notice indemnity, etc. were not considered. This calculation included the Employer Social
Security (28,8%) plus the FGTS or Government Severance Indemnity Fund for employees (8,5%). In column 10, Corporate Income Tax (25%) plus Social Contribution Tax (9%).
(27) Canada (Ontario) - Calculations are based on the 2007 Federal and Provincial rates applicable in the Ontario Province. In columns 3 and 8, Employment Insurance payments are included.
Column 4 does not include the Ontario Health Care Premium.
(28) Mexico - Some States impose a 1% or 2% payroll tax which should be paid by the employer to the local authorities. In Mexico City, companies pay a 2% payroll tax.
(29) Australia - The amount in column 3 is based on the assumption that the taxpayer is not liable to an additional medicare levy surcharge of 1,5% on taxable income on the basis that the single
taxpayer (or the married taxpayer and family) is covered by private patient hospital insurance cover.
We have claimed spouse rebate of A$1,535 on the assumption the taxpayer maintains his/her spouse, the spouse's separate net income is less than
A$6,421, the spouse is a tax resident of Australia and he/she is not entitled to claim family tax benefit Part B (with children under age of 5)
For social security calculation, we have assumed the compulsory superannuation contribution obligation is satisfied by the employer in order to ensure the executive is still paid the gross amount of salary.
Compulsory superannuation contribution in Australia is 9% of base salary (capped at maximum earning base of A$122,240)
(30) China - Local PRC national employee hypothesis (Social Security is only applicable to local PRC national employees). In column 4, income tax is calculated based on
taxable income net of employee Social Security. In columns 3 and 8, the current Social Security Contributions rates applicable to the City of Shanghaï was used.
(31) India - The Indian tax year runs from April 1 to March 31. The calculations have, therefore been based on income earned during the year April 1, 2006 to March 31, 2007. The tax
rates for the year include a surcharge of 10% for incomes over and above Rs.8,50,000 and education Cess of 2% on total tax and surcharge.
An employee is eligible for a standard deduction from salary of Rs.30,000 or 40% (whichever is less) if income from salary is less than Rs.500,000 and Rs.20,000 (whichever
is less) if income from salary is more than Rs.500,000.
India has no system of social taxes. Instead for employees whose base salary is less than Rs. 6500 per month, there is a mandatory participation in Employee ProvidentFund
(EPF). Employee & Employer contribute @ 12% of base salary respectively. As in the given case, Salary is higher than Rs. 6500 per month there are no applicable
mandatory PF contributions
In Column 10, the maximum marginal tax rate for the Indian domestic company has been mentioned, i.e., 35% + 2.5% surcharge + 2% education Cess. However, foreign companies in
India are taxed at 41.82% (40%+2.5% surcharge + 2% education Cess).
(32) Indonesia - In column 3, employee social security is 2% of the gross salary. This represents payment of pension funds (old-age insurance) incurred by the employee and
is deducted from the employee's salary.
In column 8, employer social security is 4.24% of the gross salary contributed by the employer. Included in the percentage is 0.54% insurance premium,
which is included as the employee's gross income in calculation. The 0.54% insurance premium is the lowest rate for companies of services industry.
The rate varies according to the type of industry the employer engages in.
(33) Israel - Male local executive hypothesis. Income Tax rates are lower for women.
(34) Japan - As an assumption for the calculation, the taxpayer's age is less than 40 years old
(35) Malaysia - It is assumed that in the case of a married couple with children, those children are under 18 years of age and the spouse has no personal income in Malaysia.
(36) Singapore - Local Singaporean national employee hypothesis (Social Security - CIF - is only applicable to Singaporean and Singapore Permanent Resident employees).
(37) South Africa - where expat is not required to return home at the end of the contract period, unemployment insurance fund contributions of 1% of Gross Salary
up to R106032pa is withheld from employee and an equal amount is contributed by the employer.
(38) Thailand - It is assumed that in the case of a married couple with children, the spouse is non-working and the two children are attending school in Thailand.
(39) UAE - The social security is calculated on the Gross Salary of the employee.
While calculating social security it does not matter whether or not the employee is married or single since the calculation is based as follows: 12.5% of employees gross salary is contributed by the employer, 5% of the employees gross salary is contributed by the employee and 2.5% of the employees gross
salary is contributed by federal government.
There is no individual or corporate income tax in the UAE