An example - in Serbia and Slovenia you arrange a net salary, and the company pays the taxes/insurance etc on top of net salary (usually around 50-60%). So for a senior salary in Serbia of around 4k euros. you're looking at the company paying around 6-7k euros. For a contractor (as a sole proprietor) you can make at most 50k euros a year and then you pay benefits that are minimum 300e. If you go above that you pay 10% tax on profit + 15% personal income tax. You can choose to still pay yourself salary and 50-60% on top of that, and you will most likely not pay yourself a big salary, but take the profit and pay the 15%.
What we would try to accomplish is:
- Not have developer as a contractor, but as an FTE
- Create a pipeline of US based companies
- Bump the salary for devs for 25%-30% -> pay the taxes/pension (30k+ more)
- Take a 15% of the annual salary (20-30k)
- Provide cheap senior/staff/principle devs that are cheaper than the same devs, but same or similar quality