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This is overkill, add 35% to the top and you will be closer (depending on absence/sick levels). Statutory allowances in the UK are higher than in the US, and i
by Closi 6y ago
This is overkill, add 35% to the top and you will be closer (depending on absence/sick levels).
Statutory allowances in the UK are higher than in the US, and in the UK for instance you would add:
- 12.5% national insurance + apprentice levy
- 3-4% pension
- 10% of days as holidays
- 5% of days as sick / other leave (dependent on amount taken in reality)
- 2% payroll fees / other
Note, this excludes training and equipment/office space.
- petercooper 6y agoWhy add holidays and sick leave to an individual employee's costs? Most white collar employees would have an annual salary this is factored into already, unless you're having to hire temporary replacements for them perhaps (which would be more than a 15% cost, I suspect).
- Closi 6y agoYou are right, I usually do this to get to a worked daily or worked hourly cost (I work in consultancy) so I take holidays & sick into account to understand cost per worked hour / cost per worked day. In reality it depends on the type of work you are doing.
- petercooper 6y agoAh! Definitely makes sense in consulting/contracting :-)
- cameronh90 6y agoI guess it depends when there you consider other costs like office space, equipment, utility bills, HR overheads, consumables etc.
- TylerE 6y agoThat metric isn't just about actual payroll expenses, but also things like office space, janitorial services, etc.
- eikenberry 6y agoHealth insurance is another big one in the states.