The net-gross distinction is the most common source of budget confusion in private hiring, especially for cross-border households. Candidates describe salaries in net terms, clients budget in gross, and the gap between the two is where expectations diverge. By the time the misalignment surfaces, the offer is already on the table and the renegotiation is awkward.
This article explains how net and gross compensation actually work across key UHNW jurisdictions, what the structural differences mean for budget setting, and how to avoid the pitfalls that recur in cross-border hires. It is written for principals, family office directors, and senior operators setting budgets for private staff in 2025.
For current opportunities, see our job board. To discuss a search, see our Private Households & Estates page and Family Office recruitment page.
Gross salary is the amount the employer agrees to pay before income tax, employee social security, and any statutory deductions.
Net salary is what the employee actually receives in hand, after tax and contributions.
Total cost to employer is gross plus employer social security, employer pension contributions, employer-funded benefits (health insurance, accommodation in some cases), and any recruitment or placement fees.
The three numbers can differ substantially. A €5,000 net monthly salary in France can equate to gross pay of €7,000 to €8,000 and total employer cost of €10,000 to €11,000 once employer contributions are added. A misaligned expectation here costs money, time, and sometimes the candidate.
For domestic staff (housekeepers, nannies, chefs, butlers, chauffeurs) the net figure is the operational number. It is what the candidate sees in their bank account, what they budget against, and what they compare across offers. Most live-in candidates have little tax knowledge beyond the net-in-hand experience.
This is not ignorance. It is a different orientation. Candidates at this level focus on the practical outcome of an offer, not the structure behind it. Asking a housekeeper to quote a gross figure will either produce a translation done poorly or a blank look.
The implication for clients. The client needs to think in gross (and in total cost), but the conversation with the candidate happens in net. The recruiter's role is to bridge the two consistently.
For senior support staff (EAs, PAs, Chiefs of Staff) and for professional roles (Family Office Directors, investment staff), candidates typically describe compensation in gross terms, matching how corporate compensation is quoted. Their financial advisers and benchmarking sources use gross.
The implication for clients. Gross-to-gross conversations work. But in jurisdictions where the gap between gross and net is particularly wide, even professional candidates need the net implication spelled out. A £150,000 gross package lands differently in the UK than in Dubai.
UK private staff typically quote gross. The gross-to-net conversion is well-understood by most candidates at senior level.
Typical employee deductions from gross:
Income tax at marginal rates (20%, 40%, 45% depending on the band)
Employee National Insurance at relevant rates
Pension contributions, typically 5% employee under auto-enrolment
Typical employer cost above gross:
Employer National Insurance at 13.8% above the threshold (moving higher with 2025 changes)
Employer pension contribution, typically 3% under auto-enrolment, often higher at senior level
Health insurance, often provided, benefit-in-kind treatment applies
Rule of thumb: Employer total cost is typically 15% to 20% above gross salary, excluding discretionary benefits.
For domestic staff, gross figures are less commonly used in interview conversations. The recruiter translates between the candidate's net expectation and the client's gross budget.
US compensation is typically quoted gross, matching corporate norms.
Typical employee deductions:
Federal income tax at progressive rates
State and city tax (varies widely; New York, California, Massachusetts add substantially)
FICA (Social Security and Medicare) at 7.65% on relevant bands
Health insurance contributions (often employee cost-share)
401(k) contributions where elected
Typical employer cost above gross:
Employer FICA at 7.65%
State and federal unemployment taxes
Employer health insurance contribution (significant; often $15,000 to $25,000 per employee annually for family plans)
401(k) match
Workers' compensation insurance
Rule of thumb: US employer total cost is typically 20% to 30% above gross salary, with larger variation depending on state and benefits structure.
This is where the largest net-gross gaps emerge in UHNW private staffing.
Monaco. Residents pay no personal income tax. Social security contributions are significant for both employee and employer. Net-to-gross conversion is narrower than in France, but employer costs are still meaningful. A €5,000 net monthly salary typically translates to gross of €5,800 to €6,400 and employer total cost of approximately €8,000 to €9,000.
France. Personal income tax is progressive and relatively high at senior levels. Social charges (both employee and employer) are substantial. A €5,000 net monthly salary typically translates to gross of €6,800 to €7,800 and employer total cost of approximately €10,000 to €11,500. The gap between net and total cost is approximately double in France compared to Monaco.
Candidates quote net. Employers think in total cost. The translation is jurisdiction-specific and easy to get wrong. Clients budgeting a salary of "€5,000 per month" without specifying whether that is net, gross, or total cost will face an awkward moment at offer stage.
Swiss compensation is quoted gross. Deductions include federal, cantonal, and communal tax, which vary widely by canton.
Typical employee deductions:
Federal income tax at progressive rates
Cantonal and communal tax (Geneva is higher; Zug, Schwyz lower)
Social security (AHV, IV, EO) at around 5.3% employee share
Pension (second pillar) contributions
Typical employer cost above gross:
Employer social security at around 5.3%
Employer pension contributions (significant, typically 7% to 10%)
Occupational accident and illness insurance
Rule of thumb: Swiss employer total cost is typically 15% to 20% above gross, similar to the UK, but net-in-hand for the employee varies significantly by canton.
UAE-based compensation is usually quoted net because there is no personal income tax. Employer costs are minimal for non-nationals.
Typical components:
Base salary (net = gross for expats)
Housing allowance (significant component, often 25% to 40% of base)
Transport allowance
School fees for children (for senior roles)
Annual flights home
End-of-service gratuity (mandatory)
Rule of thumb: Dubai employer total cost is typically 5% to 15% above gross salary, making headline packages look favourable. The lack of personal tax makes net packages particularly attractive to expatriate staff.
Some employers offer a net package, particularly in France, Monaco, and occasionally Switzerland. This means the employer commits to paying a specific net amount to the employee, and covers any tax and social cost above that amount themselves.
Net packages are expensive. The employer takes on the tax risk, the progressivity, and any future changes in personal tax. A candidate earning "€5,000 net" guaranteed costs the employer substantially more if personal tax rates rise, if the candidate has other income that pushes them into a higher bracket, or if the employer's social contribution base changes.
When net packages work. When the candidate is a specialist, the package needs to be clear and stable, and the tax risk is modest. Household staff with a single income source and stable tax residence.
When net packages are problematic. When the candidate has multiple income sources, is internationally mobile, or is in a high-progressivity jurisdiction. The employer ends up underwriting unpredictable tax cost.
Advice: understand net packages before agreeing to them. They are a legitimate structure, but they shift risk and should be priced accordingly.
International placements multiply the complexity. A British nanny relocating to Dubai. A French chef moving to London. A Swiss Family Office Director moving to the US.
Each move involves:
Change of tax residence
Potential double-tax exposure during transition years
Relocation costs (flights, shipping, housing bridge)
Schooling if the candidate has children
Spouse employment considerations
Visa and right-to-work processes
For chefs, American families often want French or Swiss-trained professionals. Sponsorship and relocation add complexity and cost, but the demand is consistent. The same cross-border dynamic applies across many senior private roles. UK-trained nannies to the Middle East. German butlers to the US. Italian estate managers to Monaco. Each move requires a net-gross conversation, a tax advice step, and a structured relocation package that few clients anticipate at the brief stage.
Recommendation. Any cross-border hire at senior level warrants input from a tax adviser. The cost is modest and prevents structural errors that are expensive to fix after the fact.
Net-gross conversations often ignore non-cash components. For a senior private hire, the cash figure can be a minority of the total.
Accommodation. Live-in staff at principal households often receive accommodation worth £20,000 to £50,000 per annum in market terms, or significantly more for suites in prime residences. Tax treatment varies by jurisdiction, but the economic value is real.
Discretionary bonuses. Not guaranteed, often significant. A senior EA or PA at a UHNW household can receive bonuses worth 20% to 100% of base in a strong year.
Carried interest, co-investment, deal participation. At senior investment or Chief of Staff level, compensation often includes upside that dwarfs the cash element over time.
School fees, private health, travel insurance, private car use, club memberships. Smaller items individually, significant in aggregate.
Clients who summarise the full package in a single equivalent number, including cash, accommodation value, benefits, and a reasonable bonus estimate, negotiate more cleanly than those who hide components in separate line items.
State the unit up front. Gross, net, or total cost. Stick to it consistently.
Calculate the employer total cost before making an offer. Not the gross salary alone.
For cross-border hires, seek tax advice. Before the offer, not after.
Document the package in writing in the same unit as the candidate has quoted. Translate only when both sides understand the conversion.
Do not negotiate gross against net. One side will feel they have lost without understanding why.
Treat accommodation and benefits as part of the package. They are real economic value, even if they do not hit the cash line.
Oplu translates between the client's gross-and-total-cost view and the candidate's net view. For every search, we hold both numbers, confirm with candidates which unit they are quoting in, and brief clients on the implied total cost including employer contributions.
For cross-border searches, we recommend and often facilitate early tax advice. We do not provide tax advice ourselves. We make sure both sides have the specialist input they need before the offer stage, not after.
For current opportunities, see our job board. To discuss a search, get in touch.
Gross is the agreed pre-tax amount. Net is what the employee receives after income tax and statutory deductions. Total cost to employer adds employer-side social security, pension contributions, and benefits to the gross figure. All three numbers differ, and the gap between them depends on jurisdiction.
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