Gross salary in costs per hour, a calculation

Introduction:

Below we do example calculations of what a payroll employee actually costs per hour.

Variables we included will vary, but roughly, these figures is what it comes down to. 

Having estimated the actual total costs of an employee, we calculate how many hours an employee actually works, finally giving us the estimated hourly costs. 

Having this figure available makes it easier to estimate if outsourcing to a 'pay per hour' would compare OK financially. 

After building the figures also a rule of thumb appears, making it easier in day to day life to roughly do a manual conversion of gross salary versus hourly costs. We divide the gross monthly salary by 100 and add 1/3 to it. Giving the hourly equivalent.

For instance, a gross Dutch salary of € 4.500 euro's per month would roughly mean an hourly cost of € 60,- euro's for that employee. 

Find some calculations and comparisons below!

Summarized table of gross monthly towards the hourly equivalent costs: 

Gross salary per month	Estimated hourly costs
3000	40
4500	60
6000	80

 

3 Example calculations of employee costs, calculated down to an estimated price per hour: 

 

Employer's costs (fulltime)
Gross salary	3000		4500		6000
Employer charges 33%	990		1485		1980
Holiday pay 1 month / 12	333		499		665
Bonus 13e month	333		499		665
Pension 15 %	450		675		900
Education and trips	400		400		400
Car / public transport / travel	350		350		350
Office space	400		400		400
Phone	30		30		30
Laptop (1600 / 36)	44		44		44
Software licenses, O365, Jira, etc.	50		50		50
Total monthly costs:	6379		8932		11484
Worked hours:
52 weeks x 5 days	260
Sick days/year	-10
Holiday	-22
Bank holidays (Christmas, etc)	-7
Worked days/ year	221
Worked hours / month	147
HOURLY COSTS calculated: THUMBRULE: SAL/100 + (1/3)	43 40		61 60		78 80