# 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