How much does the employer pay for an employee - Your strategic HR partner - Smartree

How much does the employer pay for an employee

Costs for employee The employer costs for an employee represent not just the salary per month and the taxes and the contributions paid by the state. There are a number of costs associated with the employees that aren’t only about the salary and that, at first glance, can be neglected.

In addition to labor costs, the employer will have to allocate other costs related to:

  • recruitment, whether it is internal or outsourced;
  • training – according to art. 194 of the Labor Code, the employer is obliged to ensure the participation of all employees in training programs from time to time: 2 or 3 years, depending on the number of employees;
  • the work equipment for the employee: laptop, equipment etc., depending on the specific of the job;
  • benefits that may be provided to stimulate the employee.

But the most expensive can be the salary costs.

The net salary paid to an employee generates an almost double cost for the employer. Specifically, for each net euro paid as a net salary, the employer pays 0.83 euro by the state in the form of taxes and contributions.

Below you find the table with the contributions and the taxes that the employer must pay in conjunction with the employee net salary.

The employee fees The employer fees
  • Salary tax: 16%;
  • CAS – Social security contributions (pension): 10.5%;
  • CASS – Contributions for social and health insurance: 5.5%;
  • CFS – Contributions to the unemployment fund: 0.5%;
  • CAS – Social security contributions (pension): 20.8%
  • CASS – Contributions for social and health insurance: 5.2%;
  • CFS – Contributions to the unemployment fund: 0.5%;
  • Insurance for accidents and occupational diseases: 0.15% – 0.85%;
  • Holidays and allowances for social health insurance: 0.85%;
  • Salary claims fund: 0.25%;
  • Taxable Salary: Gross salary – (CASS + CAS + CFS) – personal allowance.

Get the cost of the employer and all the paid contributions for any gross salary, access the Smartree salary calculator.

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