Payroll Cost Calculator: calculate payroll cost for your business. Formula, benchmarks, and practical tips included.
Total employer cost = Gross salary + Employer social insurance + Employer pension + Benefits + Overhead allocation
Worked example: Gross salary 45,000. Employer social insurance (13.8% above threshold) approximately 4,800. Employer pension (5%) 2,250. Benefits (health insurance, life cover) 1,500. Overhead allocation (20%) 9,000. Total employer cost ≈ 62,550 — 39% above gross salary. The cost to the business is approximately 1.4× the gross salary.