In a viral LinkedIn article, Anish Sengupta, a professional of technology based in Bengaluru, decomposed the invisible economy of employee work, revealing how taxes and beneficiaries of companies discreetly claim an important part of each pay check even before the employee sees it.
Sengupta’s analysis extends global examples, comparing the financial breakdowns facing workers in the United States, Europe, the Middle East and India. His message? Your salary could say $ 100,000, but you are not the only one to take advantage of it.
Government share
According to geography, tax charges vary radically. In the United States, a professional like Alex could lose 22-24% of his salary of $ 100,000 at taxes. In Europe, Sophie could separate from 38 to 45% of her income from € 100,000. On the other hand, Omar in the Middle East does not pay any tax on his 80K AED. Indian workers, like Arjun winning 24 Lakh per year, face a tax burden of 15 to 20%.
“In most regions, the government is paid before you,” writes Sengupta, stressing the central role of taxation in the distribution of income.
The employer’s return to your work
Sengupta also describes the amount of value that employees generate in relation to what they are paid. For example: an American factory worker like Joe could generate 3 to 5x his salary in value. Analysts like Emma in the United Kingdom deliver 5 to 8x.
Engineers in India, like Vikram, can produce their profit wages 6 to 12x for their employers. Vice-presidents in the United States can generate their compensation up to 20x.
“The more specialized your skills, the higher the return for the company. For mass roles, it is on a large scale but a lower individual value, ”notes Sengupta.
Who do you really work for?
When Sengupta breaks down the average work year, the image becomes more severe: in the United States, around 90 days go to taxes, 140 to the employer, and only 130 are really “for yourself”.
In India, only 130 days are intended for personal income after 75 years, go to taxes and 160 at the value of the employer.
Even in the savings of the Middle East in tax franchise, 180 days could serve the profits of the company.
Overview
Sengupta’s main argument? Most workers do not win for themselves for a large part of the year. “If half of your year goes to taxes and profits for others, do you really earn for yourself?”
He urges professionals to rethink their financial strategy: “The game changes when you learn to invest, optimize taxes and build assets. Real wealth does not concern how much you win – it is how much you keep. ”
When wages are often perceived as a successful success, Sengpta’s message is a brutal reminder: Understanding your money is the first step to own it.
