Work · Employer costs

Cost of hiring an employee in Europe: employer contributions by country

By Leonard Chioveanu · Updated 3 November 2026 · 6 min read

On a €60,000 gross salary, an employer in France pays about €83,700 in total, in Germany €73,800, in Ireland €67,700 and in Denmark only €61,200. The difference is employer social contributions, which go on top of the gross salary and never appear on the employee’s payslip as a deduction.

Total cost of a €60,000 salary, 2026

Statutory employer contributions only, our estimates with 2026 rates. Salaries outside the euro area converted at ECB rates of 22 October 2026. Benefits such as company pensions, health plans, meal vouchers and bonuses come on top.

Why the numbers differ so much

• Who pays. In Romania almost all contributions are taken from the employee’s gross salary; in France and Italy the employer pays most of them. Compare total cost and net pay together, not just one side.
• How the system is funded. Denmark funds its welfare state from income tax, so employer contributions are tiny, but employers usually pay an occupational pension of 8% to 12% under contracts.
• Ceilings. Germany, the Netherlands, Spain, Austria, Greece and Italy (above €122,295) stop most contributions above a ceiling, so the percentage falls for high salaries. France, Sweden, Portugal and Belgium charge on almost all of it.
• Reductions. France cuts employer costs sharply on salaries below about three minimum wages; at €25,000 the extra cost is only about 5%.

Costs that are not in the table

• 13th and 14th salaries in Austria, Greece, Portugal, Spain, Italy and Belgium are part of the yearly gross; make sure the salary you compare includes them.
• Company pensions: compulsory minimums are included for the UK, Ireland (auto-enrolment) and Switzerland; in the Netherlands, Sweden and Denmark sector agreements add a lot.
• Health insurance in the US, often $7,000 to $9,000 a year for a single employee.
• Paid leave and sick pay: 20 to 30 days of paid holiday are standard in Europe and are already part of the salary, but sick pay is often paid by the employer for the first weeks.

Hiring someone abroad

If you employ someone who lives in another country, you usually pay contributions in their country, not yours, and may need to register as an employer there or use an employer-of-record service. A short posting can stay in the home system with an A1 certificate.

Calculate the cost of an employee →

This guide is general information based on the tax rules we could verify for 2026, not tax or financial advice. Rules change and personal situations differ, so check with the tax authority or a qualified adviser before you act. Spotted a mistake? Email [email protected].