Hospitality pay sits below the national average in most of the countries on this site, which puts a chef's salary squarely in the range where tax credits, allowances and contribution thresholds decide the outcome.
That makes this comparison structurally different from a comparison of senior professional pay. At the top of a schedule, rates dominate. At this level, the shape of the relief does.
The ranking after tax
Federal deductions only; state or provincial tax is charged on top. † Foreign employees pay no CPF, so a local resident keeps less. ‡ Cantonal tax is an estimated average; the real figure depends on the commune. § Excludes the 13th and 14th salary payments, which are taxed at 6%. Converted at rates current when this guide was written.
Where low income reliefs make the difference
- Ireland performs well because the personal and employee tax credits together remove a substantial slice of tax at this level, described in Ireland's tax credits.
- The Netherlands performs well for the same reason, with the labour tax credit at or near its maximum in this range. See Dutch tax credits.
- Italy and Spain keep a high proportion of a modest salary, because the employment credit and the personal minimum do most of the work.
- Germany, Austria and Belgium keep less, because social contributions apply from the first euro at high rates regardless of how modest the salary is.
- Denmark keeps the least, because AM-bidrag takes eight percent before anything else and municipal tax is broadly flat. See AM-bidrag explained.
What the figures do not capture
Kitchen pay is heavily supplemented by things that do not appear in a salary figure.
- Service charge and tips. Taxed as income in every country on this list, but collected and distributed in ways that vary enormously. Where a tronc or equivalent arrangement operates, social contributions may or may not apply depending on how it is administered.
- Staff meals. A taxable benefit in principle in most systems, with specific exemptions or nominal valuations in practice. Several countries set a fixed low value for meals provided at work.
- Accommodation. Common in seasonal and resort work and generally a taxable benefit, valued by formula.
- Overtime and unsocial hours. A large part of the real income and taxed as ordinary pay, covered in does overtime get taxed more.
Seasonal and split year work
Seasonal employment across borders is common in this profession, and it creates the exact situation that payroll handles worst: part of a year in one country and part in another, with each payroll applying a full year's allowances to a partial year's income.
In cumulative systems such as the United Kingdom and Ireland this usually produces a refund. In non-cumulative systems it produces an overpayment that only comes back if a return is filed. Anyone working a season abroad should check, as set out in which countries refund automatically.
Related: Marketing Manager Salary After Tax