Some payroll taxes have to paid by employers (i.e. not subtracted from monthly salary). If they are higher than in the US, employers have less incentive to offer big salaries.
Just did a quick calculation for Brazil and for an employee that earns $1000/month, the employer has to spend $1528/month ($1000 salary + $528 in taxes and mandatory benefits).
Just did a quick calculation for Brazil and for an employee that earns $1000/month, the employer has to spend $1528/month ($1000 salary + $528 in taxes and mandatory benefits).