Employee Cost Calculator

The true cost of an employee typically ranges from 1.25x to 1.4x their base salary. This includes employer taxes (7.65% FICA in the US), health insurance (~$7,200/yr average), retirement matching (3-6% of salary), PTO costs, equipment, and office space. A $75,000 salary employee actually costs $93,750 to $105,000 per year.

In the US, employers pay 7.65% FICA (6.2% Social Security + 1.45% Medicare) plus federal and state unemployment taxes. The UK charges ~13.8% National Insurance. EU countries vary from 15-30% depending on the nation. These are mandatory costs on top of the employee salary.

The average employer contribution for health insurance in the US is approximately $7,200 per year for single coverage and $16,000+ for family coverage. This varies significantly by plan type, location, and company size. Some employers cover 50-100% of premiums.

PTO cost is calculated as: (Annual Salary / 260 working days) x PTO Days. For example, a $75,000 salary with 15 PTO days costs $4,327 in paid time off. This represents time the employee is paid but not productive, so it is an overhead cost.

Dewx OPS Hub centralizes HR operations, payroll tracking, and employee cost management. It automates compensation calculations, tracks benefits utilization, and provides real-time cost dashboards so you always know your true labor costs. The AI assistant Dew can help optimize team structures and identify cost-saving opportunities.