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0 pointseikenberry5y ago0 comments

I've always heard that, for the US, when thinking about salary you want to about double what the employee makes when considering the employers cost.

0 comments

Closi5y ago

This is overkill, add 35% to the top and you will be closer (depending on absence/sick levels).

Statutory allowances in the UK are higher than in the US, and in the UK for instance you would add:

- 12.5% national insurance + apprentice levy

- 3-4% pension

- 10% of days as holidays

- 5% of days as sick / other leave (dependent on amount taken in reality)

- 2% payroll fees / other

Note, this excludes training and equipment/office space.

cameronh905y ago

I guess it depends when there you consider other costs like office space, equipment, utility bills, HR overheads, consumables etc.

petercooper5y ago

Why add holidays and sick leave to an individual employee's costs? Most white collar employees would have an annual salary this is factored into already, unless you're having to hire temporary replacements for them perhaps (which would be more than a 15% cost, I suspect).

Closi5y ago

You are right, I usually do this to get to a worked daily or worked hourly cost (I work in consultancy) so I take holidays & sick into account to understand cost per worked hour / cost per worked day.

In reality it depends on the type of work you are doing.

1 more reply

TylerE5y ago

That metric isn't just about actual payroll expenses, but also things like office space, janitorial services, etc.

eikenberryOP5y ago

Health insurance is another big one in the states.

qeternity5y ago

This might apply to large organizations with lots of overheads and perks. But it definitely does not apply to startups.

IkmoIkmo5y ago

In NL it's about 35%. Doubt other countries vary that much, probably a lot in the 25-40% range.

j / k navigate · click thread line to collapse

0 comments

Closi5y ago

This is overkill, add 35% to the top and you will be closer (depending on absence/sick levels).

Statutory allowances in the UK are higher than in the US, and in the UK for instance you would add:

- 12.5% national insurance + apprentice levy

- 3-4% pension

- 10% of days as holidays

- 5% of days as sick / other leave (dependent on amount taken in reality)

- 2% payroll fees / other

Note, this excludes training and equipment/office space.

cameronh905y ago

I guess it depends when there you consider other costs like office space, equipment, utility bills, HR overheads, consumables etc.

petercooper5y ago

Closi5y ago

In reality it depends on the type of work you are doing.

1 more reply

TylerE5y ago

That metric isn't just about actual payroll expenses, but also things like office space, janitorial services, etc.

eikenberryOP5y ago

Health insurance is another big one in the states.

qeternity5y ago

This might apply to large organizations with lots of overheads and perks. But it definitely does not apply to startups.

IkmoIkmo5y ago

In NL it's about 35%. Doubt other countries vary that much, probably a lot in the 25-40% range.

j / k navigate · click thread line to collapse