Total employer cost

The Arbeitgeberbrutto (employer's gross cost, personnel costs) is the total amount your employer spends on you – your gross salary PLUS all employer contributions.

What the employer pays ON TOP of your gross salary (Germany):

• Health insurance: approx. 7.3% + additional contribution
• Pension insurance: 9.3%
• Unemployment insurance: 1.3%
• Long-term care insurance: 1.7%
• Accident insurance: approx. 1.3% (employer only!)
• Insolvency benefit levy: 0.06%
• Total employer share: approx. 20–21%

Sample calculation €3,500 gross:

• Your gross: €3,500
• Employer social security contributions: approx. €700
• Employer's gross cost: approx. €4,200
• Of which lands in your account (net): approx. €2,350

Why does it matter?

• For salary negotiations: your boss thinks in total costs, not gross pay
• For the self-employed: if you become a freelancer, you have to pay EVERYTHING yourself
• For employers: an employee on €50,000 gross costs approx. €60,000/year