Minimal Salary in Different European Union Countries
|1.||SALARY IN DIFFERENT EUROPEAN UNION COUNTRIES|
|1.2.||One of affecting factors on salary|
The lowest social security contributions for employee are in Spain - 4.7%, from what one part are unemployment insurance contributions.
Mostly in all countries tax relief is for persons who incomes are less then minimum wage and benefits for dependents. It is important because other way they will be disable support themselves and their family.
In countries where is a higher income - tax system is progressive, what shows that the more advanced countries choose a system where those who earn less – lees is paying taxes.
Countries that have, or some time ago had high unemployment rates - Spain, Portugal, Greece, Estonia, etc. there is unemployment insurance contributions, as they have higher risk of unemployment. Thus achieves is giving something like "safety pillow" if you loss a job.
After static data analyzing only one country where minimum wage was decreased is United Kingdom, the minimum wage in this country after 2008 was reduced by almost two times.
The overall conclusion is that countries fall into two broad categories:
- Progressive taxation - the Western European countries
- Proportion taxation - Eastern European countries.
In Latvia is not only one of the lowest wages, but also among the highest taxes for workers. Perhaps it is the main reason why people are emigrating to others Europe countries.
A country which has the greatest similarity to Latvia (minimum wage, tax systems) is in Romania.
- European Single Currency - Euro
- Minimal Salary in Different European Union Countries
- The Significance of the European Dimension on Riga Machinery Building Factory (RVR) in Latvia
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