Employee
Cost estimate
Total costs
$5,383
Per month
Employer pays
Employee pays
Indirect Taxes – How Much Does the Government Get From the Salary?
The employer pays salary plus contributions AND the employee pays taxes from their salary. Here's the full picture.
Summary: What Does the Government Get?
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Disclaimer
This calculator is for informational and entertainment purposes only. The calculations are estimates based on average percentages and may differ from actual costs. Do not use these figures for official accounting or legal purposes. Always consult an accountant or tax advisor for exact figures. Serviceform is not responsible for damages or errors arising from the use of this tool.
📊 Figures are based on estimated 2026 percentages.
Calculated with Serviceform Salary Calculator • serviceform.com/tools/salary-calculator
For informational and entertainment purposes only. Do not use for official accounting.
What does this calculator include?
Compare employer costs across 18+ countries with real 2026 rates
18+ Countries
USA, UK, Germany, France, Spain, Sweden, Finland, Netherlands, Italy, and many more with accurate 2026 rates.
Full Cost Breakdown
See employer vs employee contributions, pension, health insurance, unemployment, and vacation pay separately.
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Calculate company-wide costs, hiring budgets, and true hourly rates for pricing your services.
How Much Tax Does Your Company Pay by Country?
Compare employer payroll taxes and employee side costs across countries
| Country | Employer Rate | Employee Rate | Vacation Pay | Cost Multiplier |
|---|---|---|---|---|
| 🇫🇷 France | 45.0% | 22.0% | 10.0% | 1.55x |
| 🇪🇸 Spain | 32.15% | 6.48% | 16.67% | 1.49x |
| 🇸🇪 Sweden | 31.42% | 7.0% | 12.0% | 1.43x |
| 🇮🇹 Italy | 30.0% | 10.0% | 8.33% | 1.38x |
| 🇧🇪 Belgium | 27.0% | 13.07% | 15.34% | 1.42x |
| 🇵🇹 Portugal | 23.75% | 11.0% | 8.33% | 1.32x |
| 🇩🇪 Germany | 21.0% | 20.0% | 0% | 1.21x |
| 🇵🇱 Poland | 20.48% | 13.71% | 0% | 1.20x |
| 🇫🇮 Finland | 20.02% | 8.19% | 4.5% | 1.25x |
| 🇳🇱 Netherlands | 18.0% | 27.65% | 8.0% | 1.26x |
| 🇦🇺 Australia | 16.5% | 0% | 0% | 1.17x |
| 🇬🇧 United Kingdom | 15.0% | 8.0% | 0% | 1.15x |
| 🇳🇴 Norway | 14.1% | 7.8% | 12.0% | 1.26x |
| 🇮🇪 Ireland | 11.05% | 4.0% | 0% | 1.11x |
| 🇨🇦 Canada | 8.2% | 7.5% | 4.0% | 1.12x |
| 🇺🇸 USA | 7.65% | 7.65% | 0% | 1.08x |
| 🇨🇭 Switzerland | 6.4% | 6.4% | 0% | 1.06x |
| 🇩🇰 Denmark | 0% | 8.0% | 12.5% | 1.13x |
Cost multiplier = how much you pay total for every €1 of gross salary (including vacation pay). Rates as of 2026.
How to Calculate Employee Side Costs
Understanding how much your company pays in taxes for employees is crucial for budgeting and financial planning. Employee side costs (also called employer costs or payroll taxes) are the additional expenses companies pay on top of gross salaries.
The Formula for Total Employment Cost
Total Cost = Gross Salary × (1 + Employer Rate + Vacation Pay Rate)
What's Included in Employer Costs?
- Social Security / Pension: The largest component, ranging from 6-23% depending on country
- Health Insurance: Employer contributions to public or mandatory health coverage (0-13%)
- Unemployment Insurance: Funding for unemployment benefits (0-5%)
- Accident/Disability Insurance: Coverage for work-related injuries (0-2%)
- Vacation Pay: Additional pay for vacation time (0-17%)
Example: How Much Does a $5,000 Employee Really Cost?
🇺🇸 USA
$5,383
+7.65% employer FICA
🇬🇧 UK
$5,750
+15% employer NI
🇫🇷 France
$7,750
+45% + 10% vacation
Frequently Asked Questions About Employer Costs
How much tax does my company pay for employees?
The amount varies by country. In the USA, federal employer taxes are about 7.65% of salary (FICA). In the UK, it's 15% (National Insurance). Germany costs about 21%, France around 45%, and Spain about 32%. Use our calculator above to see exact amounts for your specific country and salary.
How do I calculate employee side costs?
Multiply the gross salary by (1 + employer rate + vacation pay rate). For example, in Sweden with a 40,000 SEK salary: 40,000 × (1 + 0.3142 + 0.12) = 57,368 SEK total cost. Our calculator does this automatically for 18+ countries.
How much does my company pay on top of my salary?
Companies pay 7-50% extra on top of your salary depending on the country. In low-cost countries (USA, Switzerland, Denmark), employers pay 0-8% extra. In high-cost countries (France, Belgium, Spain), employers pay 27-45% extra, plus vacation pay.
What is the total cost of an employee to a company?
Total cost = gross salary + employer contributions + vacation pay. The "cost multiplier" ranges from 1.06x (Switzerland) to 1.55x (France). For a €50,000/year employee: Switzerland = €53,000 total, France = €77,500 total.
How accurate are these payroll tax calculations?
These calculations use official 2026 rates and are intended for estimation and planning purposes. Actual costs may vary based on industry, company size, employee age, contract type, and regional variations. Always consult a local accountant or tax advisor for precise figures.
What's the difference between employer and employee contributions?
Employer contributions are paid by the company on top of salary and don't reduce the employee's paycheck. Employee contributions are deducted from the employee's gross salary. In some countries (Germany), these are roughly equal. In others (France), employers pay much more.