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Gross and net income etc
I know how to use internet based calculators for estimating net from gross and vice versa. But I gather that an employer also pays a substantial ADDITIONAL amount directly to the government. According to a friend who grosses 4000/month, his employer pays an additional 3200 to the government. I have no idea how to obtain such estimates. Can someone point me in the right direction?
Employers national insurance / social security contribution. IIRC, It's 30% of the gross salary. You will see it detailed on a payslip.
3200 thats a lot a month, if you are not an expat you can expect to pay about just less than 50% tax. everything depends on status ONSS and group insurance etc and also the sector you work in i.e. insurance sector is 306.00
good luck
Previous replies are on the difference between gross and net salary, while OP wants to know about the total costs per month to the employer, on top of the gross salary.
The only way to know for sure, I'm afraid, is to contact a "Secrétariat Social" such as Partena or Securex. As a rule of thumb, it's gross*12*2, i.e. for 4000 EUR gross the total cost would be 96.000 EUR, which divided by 14 "months" minus the gross salary is indeed an extra expense of about 3400 EUR per salary slip.
However, this difference does not go "to the government" - it also covers holiday pay, social security contributions, extra pension schemes etc....
30% of 4000 is 1200 not 3200.
It also depend if you have a non working spouse, how many children you have, how many things you can offset such as charitable givings, child care.
If I earned 4000 a month full time, I'd be on a net of around 2900 a month because of my personal circumstances, that's net of tax and social security, so losing roughly 27.5%, as a single person it would be 2300 a month.
"what the employer actually pays is almost double the gross salary"
No. It is nothing like that simplistic.
Mimi - indeed the total cost of an employee for an employer, in very simplistic terms, turns out to be a little less than double the gross salary.
But this is true only from a pure numeric, cash flow perspective. Part of that money will eventually go back in the employer's pockets, as it can be written off in the annual accounts, and in the employee's pockets, as it also covers social security, unemployment benefits etc.
