Employee Cost Calculator

Gross salary

Payroll contributions, %

Benefits a month

Workplace a month

Rent, hardware, software, connectivity.

Holiday days a year

Hours in a working day

Result

A month$143,000.00
A year$1,716,000.00
An hour of work$979.45
Of that, contributions$30,000.00
Everything above the salary$43,000.00
Times the salary1.43

The salary is about two thirds of it

Calculates what an employee actually costs a company once contributions, benefits and the workplace are added to the salary.

Payroll contributions alone add around thirty percent to a salary before anything else. Then come the benefits, the desk, the laptop, the software licences and the share of the rent — none of which appears on the employment contract.

The number worth knowing is the ratio: how many times the salary the person really costs. Once you have it, an hourly figure follows, and with it a way to price work and to see what an hour of meeting costs.

What this calculator shows

The monthly and annual cost of the employee
The cost of an hour of their working time
How much of it is contributions and how much is everything else

What to keep in mind

The default contribution rate is thirty percent, which is the standard Russian aggregate rate. Other jurisdictions differ and the field is editable.
The hourly figure spreads the annual cost over the working days left after holiday, so paid leave lands on the days actually worked.

FAQs

Why does an employee cost more than the salary?

Contributions, benefits, a workplace, hardware and software all sit on top. In practice the total lands between 1.4 and 2 times the salary.

Is the tax on the salary counted twice?

No. Income tax comes out of the salary and is already inside the gross figure; contributions are paid by the employer on top of it.

Should recruitment cost be included?

Ideally, spread over the expected tenure. A hire costing two months of salary against a three-year tenure adds a few percent to the monthly figure.

Why does the hourly cost look so high?

Because it is annual cost divided by hours genuinely worked. Holiday, sick leave and public holidays are paid but not worked, and they all land on the remaining hours.

Worked example

A hundred thousand a month

Input: 100,000 salary, 30 percent contributions, 5,000 benefits, 8,000 workplace

Output: 143,000 a month, 1.43 times the salary

Note: That is 1.72 million a year and about 979 an hour of real work. The hourly figure is what to use when deciding whether a task is worth doing in-house.

Useful links

All tools in Business and warehouse calculators

Employee Cost Calculator

Result

Related tools

Net Salary Calculator

Meeting Cost Calculator

Hourly Rate Calculator

Useful links