Employer Cost Calculator
Calculate the true cost per employee – social security contributions, U1/U2/U3 levies and accident insurance contribution broken down transparently
As of September 2026Basis: 2026 contribution rates, AAGCalculated in your browser – your inputs are not transmitted and are kept on this device only if you choose
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Industry , employees, based in .
Accident insurance rate: 0.5% · U1 levy applies (at most 30 employees)
Tap or drag here too: your budget becomes the possible gross salary.
For €4,000 gross you pay €4,974 in total – 24.3% on top of the salary, €59,683 per year.
- Social insurance (employer share)
- + €846.00
- Levies and accident insurance
- + €127.60
- On top of the salary
- €973.60 (+24.3%)
- Total cost per year
- €59,683.20
RZ-26 · headon.pro
Where your money goes
This part of the total cost reaches the person as net pay (tax class I, no church tax).
- Net pay€2,60652%
- Taxes€52511%
- Employee contrib.€87017%
- Employer contrib.€84617%
- Levies, accident ins.€1283%
Surcharge by gross salary
This percentage is added to the salary. Drag the point.
What you can do
U1 levy: €84.00 per month
In return the health insurer refunds part of the sick pay. It applies to businesses with at most 30 employees.
The person receives about €2,606 net
How this was calculated
- 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)
Legal basis: 2026 contribution rates (SGB IV, V, VI, XI), levies under the AAG and § 358 SGB III. U1, U2 and accident insurance are averages.
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)
Factors influencing your costs
- 1Employee's health insurance fundThe additional contribution varies by health insurance fund between approx. 2.2% and 4.3% (2026 average: 2.9%)
- 2Industry and hazard classThe accident insurance contribution depends on the occupational risk of the activity
- 3Company sizeThe U1 levy only applies to companies with up to 30 employees
- 4Contribution assessment ceilingsUniform nationwide since 2025 (pension/unemployment insurance 2026: €8,450/month) – above the ceilings, contributions stop rising
- 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
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
How high are employer costs as a percentage in 2026?
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.
What does an employee with a €3,000 gross salary really cost the employer?
With a €3,000 gross salary, total employer costs in 2026 amount to about €3,700–3,760. The employer's share of social security contributions (health, pension, unemployment and long-term care insurance) adds up to around €634, plus levies (approx. €81 for companies with at most 30 employees) and the accident insurance contribution (approx. €15–39 depending on the industry). Our employer cost calculator breaks down all items transparently.
What are the U1, U2 and U3 levies?
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.
How high is the accident insurance contribution?
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%.
Are employer costs tax-deductible?
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.
What does the employer pay for mini-jobbers?
For mini-jobbers (2026: up to €603/month), 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.