Rankings by Country as per the average monthly salary after tax

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Rankings by Country as per the average monthly salary after tax: 💸 💳 💲 💰

1. Switzerland : $6,144
2. Singapore : $4,923
3. Luxembourg : $4,918
4. USA : $4,232
5. Iceland : $4,100
6. Qatar : $3,884
7. Denmark : $3,551
8. UAE : $3,504
9. Netherlands : $3,483
10. Australia : $3,449
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11. Norway : $3,321
12. Canada : $3,049
13. Germany : $3,031
16. UK : $2,932
19. Sweden : $2,760
23. France : $2,505
24. Japan : $2,452
26. South Korea : $2,296
30. Italy : $1,719
37. South Africa : $1,208
43. China : $1,060
54. Mexico : $719
58. Russia : $648
64. India : $568
71. Turkey : $487
79. Brazil : $416
80. Argentina : $415
88. Indonesia : $341
100. Nigeria : $160
101. Pakistan : $148
102. Egypt : $145

𝐈𝐧𝐝𝐢𝐚 𝐬𝐭𝐚𝐧𝐝𝐬 𝐚𝐭 𝟔𝟒𝐭𝐡 𝐩𝐨𝐬𝐢𝐭𝐢𝐨𝐧 𝐰𝐢𝐭𝐡 𝐚𝐯𝐞𝐫𝐚𝐠𝐞 𝐦𝐨𝐧𝐭𝐡𝐥𝐲 𝐬𝐚𝐥𝐚𝐫𝐲 𝐚𝐟𝐭𝐞𝐫 𝐭𝐚𝐱 𝐨𝐟 $𝟓𝟔𝟖 𝐰𝐡𝐢𝐜𝐡 𝐢𝐬 𝐫𝐨𝐮𝐠𝐡𝐥𝐲 𝟒𝟔𝐤-𝟒𝟕𝐤.
(All above ranks are measured taking $ as base currency, if we take ₹ as base, India will come up to 54th rank)

When it comes to countries with high salary rankings after tax, several factors contribute to their favorable positions such as:

𝟏.Progressive Taxation: Many countries implement a progressive tax system where tax rates increase as income levels rise. This means that higher-income earners are subject to higher tax rates, resulting in a lower salary after tax. Conversely, individuals with lower incomes may fall into lower tax brackets, allowing them to retain a higher percentage of their earnings. This system is prevalent in countries like 𝐒𝐰𝐞𝐝𝐞𝐧, 𝐃𝐞𝐧𝐦𝐚𝐫𝐤, 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐍𝐞𝐭𝐡𝐞𝐫𝐥𝐚𝐧𝐝𝐬.

𝟐. Tax Deductions and Credits: Tax deductions and credits play a crucial role in determining the salary after tax. Governments provide various deductions and credits to reduce taxable income, such as deductions for mortgage interest, education expenses, or dependents. For instance, countries like 𝐒𝐢𝐧𝐠𝐚𝐩𝐨𝐫𝐞 𝐚𝐧𝐝 𝐇𝐨𝐧𝐠 𝐊𝐨𝐧𝐠 have gained recognition for their low tax rates and business-friendly policies.

𝟑. Social Security Contributions: Some countries require individuals to contribute to social security systems, which fund benefits like healthcare, pensions, and unemployment insurance.
Nations like 𝐆𝐞𝐫𝐦𝐚𝐧𝐲 𝐚𝐧𝐝 𝐅𝐫𝐚𝐧𝐜𝐞 have comprehensive social security programs that include healthcare, unemployment benefits, and pensions.

𝟒. Tax Rates and Thresholds: The tax rates themselves, along with income thresholds at which different rates apply, greatly influence the salary after tax. Higher tax rates or lower income thresholds for higher tax brackets result in a lower take-home pay.

𝟓. Additional Taxes: Apart from income tax, individuals may be subject to other taxes such as payroll taxes, local taxes, or value-added taxes (VAT). These additional taxes can reduce the overall salary after tax.

Source: World of Statistics