Employee Cost Calculator
What does an employee really cost you per month? Add the employer's social security and unemployment contributions on top of the gross salary to find the total employer cost.
The employee's gross monthly wage
Default ~20.75%; lower it if you have an incentive/discount
Multiply the total cost by how many people?
Enter the gross salary to see the cost.
Default rates are for 2026 and are editable. Employer social security rates and incentives may change over time; verify with an accountant/SGK for an exact figure.
How is an employee's cost to the employer calculated?
An employee's cost to the employer is higher than both the net salary they take home and the gross salary. On top of the gross salary, the employer pays the employer's social security (SGK) contribution and the employer's unemployment insurance contribution; the total is the sum of these. Roughly, the employer cost is about 1.22–1.23× the gross salary (it varies with incentives). This tool takes the gross salary and rates to calculate the total monthly and yearly employer cost. Note: the employee's net salary is a separate calculation; it is found by deducting the employee's social security share, unemployment share, income tax and stamp tax from the gross. Because income tax depends on cumulative brackets and exemptions, it is not calculated here.
Frequently Asked Questions
How much does an employee cost the employer?
Roughly 1.22–1.23× the gross salary. Employer social security (~20.75%) and employer unemployment insurance (~2%) are added to the gross. For example, a gross of 30,000 costs the employer about 36,800. Incentives/discounts lower this.
What is the employer social security rate?
The general rate is roughly 20.75%, plus 2% employer unemployment insurance. Certain incentives and discounts (e.g. a 5-point reduction) can lower the employer share. Because rates can change, verify the current situation with SGK or your accountant.
Why is the employer cost higher than the gross salary?
Because the gross salary is what the employee is entitled to; the employer additionally pays social security and unemployment insurance employer premiums on top. These are added on top of, not within, the gross.
Does this tool calculate the net salary?
No. This tool shows the cost to the employer. For the net salary, income tax (cumulative brackets) and stamp tax are also deducted from the gross; since this depends on exemptions, consult your accountant or official calculation tools.
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