Employee Cost Calculator
See the full cost of an employee beyond salary: employer taxes, benefits and overhead.
About the Employee Cost Calculator
Choose the country, enter the salary, and add benefits and overhead such as equipment and office space. The calculator adds the employer taxes for the US, UK or India (or a percentage you enter) and gives the total yearly cost, the cost as a share of salary and per hour worked.
An employee typically costs 1.2–1.4 times their salary. In the US employers pay 7.65% FICA plus unemployment taxes; UK employers pay 15% National Insurance above £5,000 and at least 3% auto-enrolment pension; Indian employers contribute 12% to PF and provide for gratuity.
The formula
Total = salary + employer taxes + benefits + overhead
Worked example
A $60,000 salary in the US with this page's benefit and overhead figures
- FICA 7.65% and federal unemployment tax added
- Total about $77,632 a year: 129% of salary
- About $43.13 per hour worked
Things to keep in mind
- State unemployment tax and workers' compensation vary by state and aren't included.
Questions people ask
Why divide by 1,800 hours?
Roughly 52 × 40 hours less holidays and leave.
Are contractors cheaper?
They don't carry employer taxes or benefits but usually charge more per hour.
What's usually the biggest extra cost?
In the US, health insurance; in the UK and India, employer social contributions.