Payroll Cost Calculator
Calculate total employer payroll cost including gross salary and all mandatory employer contributions such as social security, superannuation, pension, and payroll taxes.
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How to use this calculator
- 1
Select the country where the employees are based.
- 2
Enter the gross annual salary for each employee.
- 3
Enter the number of employees.
- 4
Review the total employer cost per employee and total payroll cost for your workforce.
Frequently asked questions
What is the total cost of an employee vs. their salary?
The total cost of an employee to an employer is always higher than the gross salary because of mandatory employer contributions on top of the salary amount. In the US, expect to add roughly 10–11% for Social Security, Medicare, FUTA, and SUTA payroll taxes. In the UK, Employer National Insurance alone adds 13.8% on earnings above £9,100, plus a minimum 3% workplace pension contribution. In Australia, 11.5% Superannuation is required on top of salary under the Superannuation Guarantee. In India, EPF and ESI contributions add roughly 13–17% for lower-wage workers. This calculator shows the full "true cost" picture so employers can budget accurately for headcount.
What is EPF in India?
EPF (Employees' Provident Fund) is a mandatory retirement savings scheme in India. Both the employer and employee contribute 12% of the employee's basic salary. The employer contribution goes into the employee's provident fund account. For employers, this is a direct additional payroll cost of 12% of basic salary (assumed here as 50% of gross).
Does Australia superannuation count as part of salary?
It depends on the employment contract. Superannuation can be structured as "inclusive of super" (the total package includes super) or "plus super" (super is paid on top of the stated salary). This calculator treats super as an additional cost on top of gross salary, which is the most common arrangement — especially for salaried employees where the advertised salary is the pre-super amount.
What is FUTA and SUTA in the US?
FUTA (Federal Unemployment Tax Act) and SUTA (State Unemployment Tax Act) are employer-paid taxes that fund unemployment insurance. FUTA is a federal rate of 6% on the first $7,000 of wages, reduced to 0.6% after the standard credit for timely SUTA payments. SUTA rates vary by state and by the employer's experience rating — new employers pay an average new employer rate, while established employers' rates rise or fall based on former employees' unemployment claims.
Payroll Cost Calculator — True Cost of an Employee by Country
Why the true cost of an employee is always higher than salary
When budgeting for a new hire, employers must account for mandatory contributions on top of gross salary. In the United States, a $60,000-salary employee costs around $66,000–$67,000 once Social Security, Medicare, FUTA, and SUTA are added. In the UK, that same employee (converted to £60,000) costs an additional ~£7,000 in Employer NI and pension contributions. Australian employers must add 11.5% Superannuation, meaning a A$80,000 salary actually costs A$89,200 before any payroll tax. Understanding the true employment cost is critical for accurate financial planning, pricing, and hiring decisions.
Employer contributions explained by country
Each country funds social programs differently through employer payroll contributions. The US splits Social Security and Medicare between employer and employee (each pays 6.2% + 1.45%), then adds unemployment insurance taxes. The UK funnels most employer obligations through National Insurance, with employers also mandated to contribute to workplace pensions since auto-enrolment. India requires both Provident Fund (EPF) and, for lower-wage workers, Employee State Insurance (ESI). Canada mandates CPP (retirement) and EI (employment insurance) contributions from employers. Australia's Superannuation guarantee is unique in that it is entirely employer-funded with no employee match required — making it one of the most straightforward systems for workers to understand.
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Results are estimates for informational purposes only and do not constitute professional financial, medical, legal, or technical advice. Read full disclaimer →