Current for 2026•As of: July 2026

Employer Cost Calculator calculate non-wage labor costs.

Calculate the true cost per employee – social security contributions, U1/U2/U3 levies and accident insurance contribution broken down transparently

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0 EUR15,000 EUR
1 (U1 levy applies, ≤30 employees) 100 (no U1 levy, >30 employees)

Note on the levies:

  • U1 (illness): 2.1% — only for employers with at most 30 employees (§ 1 AAG); average assumption, actual rate is set by each health fund (approx. 0.9–3.9%)
  • U2 (maternity): 0.44% for all employers — average assumption, actual rate is set by each health fund
  • U3 (insolvency): 0.15% for all employers (uniform statutory rate)
  • Levies are charged only up to the pension insurance contribution ceiling (€8,450/month)
  • Accident insurance contribution: industry-dependent (average)

Total employer costs

€4,973.60

per month (€59,683.20 / year)

Surcharge on gross salary

+24.34%

+€973.60 per month

Social security (employer share)

Health insurance (employer)€350.00
Pension insurance (employer)€372.00
Unemployment insurance (employer)€52.00
Long-term care insurance (employer)€72.00
Total social security (employer)€846.00

Levies & accident insurance contribution

U1 levy (illness)€84.00
U2 levy (maternity)€17.60
U3 levy (insolvency)€6.00
Statutory accident insurance€20.00
Total levies€127.60
Gross salary€4,000.00
+ Social security (employer)+€846.00
+ Levies & accident insurance+€127.60
= Total costs€4,973.60

Important note

These calculations are for non-binding information only and do not replace professional tax advice. All information without guarantee. Learn more

Sources & calculation basis

Our calculations are based on the following official sources (as of: July 2026):

Related guides

Salary Negotiation

What are employer costs?

The employer costs (also called non-wage labor costs) include all costs an employer must bear in addition to the gross salary of an employee. On average, these amount to 22-25% of the gross salary.

For workforce planning and costing, it is essential to know the actual cost per employee. Our calculator shows you all components transparently.

Components of non-wage labor costs

Social security contributions
Health, pension, unemployment and long-term care insurance - together approx. 21.2% of gross pay
U1/U2/U3 levies
Continued pay, maternity, insolvency - approx. 2.7% (with ≤30 employees)
Statutory accident insurance
Accident insurance - 0.5-6% depending on industry
Additional costs
Capital-forming benefits, occupational pension provision

Social security contributions 2026 (employer share)

Example: gross salary €4,000

Example: gross salary €4,000
ItemAmount
Gross salary€4,000.00
Health insurance (7.3% + 1.45% additional)+ €350.00
Pension insurance (9.3%)+ €372.00
Unemployment insurance (1.3%)+ €52.00
Long-term care insurance (1.8%)+ €72.00
U1/U2/U3 levies (2.69%, ≤30 employees)+ €107.60
Accident insurance contribution (office, approx. 0.5%)+ €20.00
Total employer costs€4,973.60

Factors influencing your costs

  1. Employee's health insurance fund: The additional contribution varies by health insurance fund between 0.2% and 2.5%
  2. Industry and hazard class: The accident insurance contribution depends on the occupational risk of the activity
  3. Company size: The U1 levy only applies to companies with up to 30 employees
  4. Region (East/West): Different contribution assessment ceilings through 2026

The levies in detail

U1, U2 and U3 explained

U1 - Illness
2.1% avg. (set by each health fund, approx. 0.9–3.9%) for continued pay during illness. Only for companies with ≤30 employees. Reimbursement up to 80%.
U2 - Maternity
0.44% avg. (set by each health fund) for maternity expenses. Applies to all companies. 100% reimbursement of the allowance.
U3 - Insolvency
0.15% for insolvency benefit (uniform statutory rate). Secures employee claims in the event of insolvency.

Frequently asked questions

Everything important about employer costs and non-wage labor costs

In 2026, non-wage labor costs for employers amount to about 22–25% of the gross salary. This includes the employer's share of social security contributions (approx. 21.2%), U1/U2/U3 levies (approx. 2.7% for companies with at most 30 employees) and the accident insurance contribution (approx. 1.3% on average). For a €4,000 gross salary, this adds around €900–1,000 in additional costs.

With a €3,000 gross salary, total employer costs in 2026 amount to about €3,600–3,690. The employer's share of social security contributions (health, pension, unemployment and long-term care insurance) adds up to around €588, plus levies (approx. €39) and the accident insurance contribution (approx. €39). Our employer cost calculator breaks down all items transparently.

U1 is the levy for continued pay during illness (only for companies with up to 30 employees). U2 is the levy for maternity expenses. U3 is the insolvency benefit levy. All levies are paid to the employee's health insurance fund.

The accident insurance contribution varies considerably by industry and hazard class. On average, it is around 1.3% of the gross wage total. Office occupations often pay only 0.5%, while the construction industry can pay up to 6%.

Yes, all employer costs including non-wage labor costs are fully tax-deductible as business expenses. They reduce the profit and thus the tax burden of the company.

For €538 mini-jobbers, the employer pays flat-rate contributions: 13% health insurance, 15% pension insurance, 2% flat-rate tax plus levies and the accident insurance contribution. In total, approximately 30% on top of the wage.

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