What does an employee cost a company?

benjamin d

Just a thought that popped into my head, apropos of nothing really. What is the true cost of an employee to a company over and above their salary when you account for employers prsi, insurance and all the rest? Say if someone is earning €500 a week gross, what actually comes out of the company's account when all is added up? I understand the figure will be rough but is there a general rule of thumb?

yoursaviour1989

If you say a person on €500 working 40 hours a week is €12.50 per hour then the cost for PRSI, holiday pay and bank holiday (the statutory extras) that costs the employer €15.51 per hour. So an extra €100.40 per week at that rate.

That obviously doesn't include any extras like pensions/medical etc. so the cost would probably be a lot higher including those.

benjamin d

Great thanks. Does that tend to scale up fairly evenly? Say €1000 a week costs an extra €200.80 or thereabouts?

yoursaviour1989

No, it would change slightly I think. I don't have access from home but I'll check the difference for you tomorrow.

Nody

benjamin d wrote: »

Great thanks. Does that tend to scale up fairly evenly? Say €1000 a week costs an extra €200.80 or thereabouts?

You also as you go up need to add in the other perks; a minimum pay job is unlikely to offer for example company car, bonus, additional holidays etc. which tend to come into play the higher up you go the salary scale.

Peregrinus

You have to add other costs, though. The employer has to pay employers' liability insurance for his workers. I have no idea what that costs (and it will vary depending on the worker's occupation) but it's significant. He often has to provide premises for the employee, and equipment. Sometimes training. Sometimes the cost of professional accreditation or similar.

It can add up to a lot. But I suspect there's a wide range of outcomes, depending on what business the employer is in and what role the employee fills.

Senna

I work for a multinational and so the parent company are billed for each employee. In my case, the parent company pay almost 4 times what I actually get. Example, My wage €50k, billed is €175k
That includes benefits/healthcare/employer taxes/insurance/building, facilities and some support staff, computer/laptop/phone etc. I think it might include management as well.

Employee wage is only a part of what an employee costs.