»Chinese
labour costs would be economic nonsense in Europe. What money is the German
employee supposed to consume with? This whole “stinginess is cool” mentality is
in fact the real problem.«
– Wendelin Wiedeking
Former Chairman of Porsche AG
At present about half of the labour costs are
needed for deductions and only the other half is transferred to the employees.
This situation is disguised by the so-called »employer contribution«. Employees
only have to pay half of their insurances and social security contributions
from their wages and the employers pay the other half. This is of course just
eyewash as the employers also have to include the employer contribution in
their labour costs.
With the gradido gross and net incomes are the
same. The deductions saved are shared between employers and employees with the employees
receiving a higher net wage and employers having lower labour costs.
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