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Tax, Payroll & HR toolCalculated result

True Employee Cost

Salary plus benefits, taxes, equipment and overhead.

100% FreeRuns instantlyNo watermark
?
  1. 1Enter detailsAdd the numbers for your scenario.
  2. 2CalculateVootkit updates the result instantly.
  3. 3ReviewCheck totals, notes and breakdowns.
Private by designProcessed on your device where possible.
Works on any deviceDesktop, tablet and mobile browsers.
No installationOpen the page and start working.
Always free coreUse the free plan for everyday tasks.

How to use True Employee Cost

Enter details

Add the numbers for your scenario.

01
Calculate

Vootkit updates the result instantly.

02
Review

Check totals, notes and breakdowns.

03
Use result

Copy the answer into your workflow.

04

Your files stay private

Your work is processed locally in your browser where possible and is never added to a Vootkit upload library.

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The salary is the number in the offer letter and roughly two-thirds of what the hire actually costs. Employers who budget on salary alone discover the rest one payroll run at a time.

What True Employee Cost does

Adds employer-side costs on top of gross salary — payroll taxes, pension contributions and benefits — to give the real annual cost of employing someone.

Defaults to a 60,000 salary with 12% employer taxes and 5% pension, which lands the true cost near 70,000 before benefits are added at all.

Cost components

Gross salaryDefault 60,000
Employer taxesDefault 12% — varies hugely by country
Employer pensionDefault 5%
BenefitsEntered as an annual figure
ReturnsTotal annual cost and the uplift over salary
Typical uplift20–40% above salary in most jurisdictions
ExcludesEquipment, software, office space, recruitment
Knows your country’s rates?<strong>No</strong>

Detailed steps

  1. Enter the gross salary.
  2. Enter employer tax and pension percentages for your jurisdiction.
  3. Add benefits as an annual figure, then compare against the salary.

Worth knowing

Add the costs this does not model before you commit to a hire: a laptop, software licences, a desk, recruitment fees, and the time existing staff spend onboarding. A useful rule is that the first year costs meaningfully more than steady state — which is exactly the year in which a marginal hire fails.

Frequently Asked Questions

How much more than salary does an employee cost?

Commonly 20–40% more once employer taxes, pension and benefits are counted, and the range is wide because employer contribution rates differ enormously between countries. The calculation makes your own assumptions explicit rather than assuming a figure.

What is missing from this?

Equipment, software licences, office space, recruitment fees, training and management time. Those are real and they land disproportionately in year one.

Does it apply to contractors?

Not directly. A contractor’s day rate typically includes their own taxes, equipment and unpaid time, so the comparison is between a total cost here and a rate there — and misclassifying an employee as a contractor carries real legal risk.

Are the default percentages right for me?

Almost certainly not — 12% and 5% are placeholders. Employer social contributions range from close to nothing to over 30% depending on the country. Look yours up.

Is True Employee Cost free?

Yes. The Vootkit free plan includes 5 tool runs a day. Upgrade to Vootkit Pro for unlimited daily use, an ad-free workspace and saved workflows.

Are my files uploaded?

No. True Employee Cost runs entirely in your browser — your file is processed on your own device and never sent to a server. There is nothing for us to store or delete.

Do I need to install anything?

No. True Employee Cost works in any modern browser on desktop, tablet or phone. Open the page and start.

How often can I use it? Is there a daily limit?

On the free plan you get 5 tool runs a day. When you reach the limit you'll see a prompt to upgrade, and it resets the next day. Vootkit Pro removes the cap entirely for unlimited daily use.

This tool processes everything locally in your browser. You can disconnect from the internet after the page loads and it will still work.