> 40K is extremely low in tech, and where are you paying 40% tax on 40k??
Just to be clear, it was a random example just to show the calculation and how much tax percentages matter. You can simply double the comp numbers and it still works.
On top of that: 40k is really not extremely low. Fresh grad CS master's in French, average 2379 EUR net per month. That means about 35-40k gross. Very similar numbers in the Netherlands. Effective tax being 25-30% in both cases. Now compare post-tax to Japan, and Japan's comp at 0 YoE is maybe 1.5-2x lower. And then you look at rent in a Japanese big city vs a European big city, turns out that difference is much bigger than the comp difference.
And these are averages, not medians, so they're top-heavy. Medians will be even lower.
Maybe you've only been at a FAANG but you're overestimating European tech comp, for the huge majority of workers, Japan too is much, much better in terms of comp vs. CoL.
It's also a better deal for those US tech workers who live in high CoL areas without VC-backed comp, though that's of course a much smaller percentage compared to the Europeans.
> 40K is extremely low in tech, and where are you paying 40% tax on 40k??
Just to be clear, it was a random example just to show the calculation and how much tax percentages matter. You can simply double the comp numbers and it still works.
On top of that: 40k is really not extremely low. Fresh grad CS master's in French, average 2379 EUR net per month. That means about 35-40k gross. Very similar numbers in the Netherlands. Effective tax being 25-30% in both cases. Now compare post-tax to Japan, and Japan's comp at 0 YoE is maybe 1.5-2x lower. And then you look at rent in a Japanese big city vs a European big city, turns out that difference is much bigger than the comp difference.
And these are averages, not medians, so they're top-heavy. Medians will be even lower.
Maybe you've only been at a FAANG but you're overestimating European tech comp, for the huge majority of workers, Japan too is much, much better in terms of comp vs. CoL.
It's also a better deal for those US tech workers who live in high CoL areas without VC-backed comp, though that's of course a much smaller percentage compared to the Europeans.