What does an employee cost? Employer costs in 2026 calculated
Written by Ilias Aarrass6 min read · Published on · Last reviewed on 
In short
In 2026 an employee costs you roughly 25 to 35 per cent more than the gross salary. Holiday allowance (8 per cent), the unemployment contribution (2.74 or 7.74 per cent), the Aof contribution (6.27 per cent for small employers), the Whk and the employer's Zvw levy (6.10 per cent) turn € 3,000 gross into about € 3,779 a month.
- The low unemployment contribution of 2.74 per cent applies to a permanent written contract that is not an on-call contract.
- The employer's Zvw levy is 6.10 per cent in 2026, up to a maximum wage of € 79,409.
- The minimum wage has been € 14.99 gross per hour from age 21 since 1 July 2026.
- During illness you continue paying at least 70 per cent of the wage for up to two years.
Anyone hiring for the first time often calculates with the gross salary. But an employee costs more than that. On top of the wage you pay holiday allowance, employer contributions for employee insurance schemes and the employer's Zvw levy (health insurance contribution). There are also costs not shown on the payslip, such as an occupational health service, payroll administration and the risk of continued pay during illness. A rule of thumb is that you spend 25 to 35 per cent on top of the gross salary. This article sets out those costs, with the 2026 percentages and a worked example, so you can judge whether your first employee is financially feasible.
From gross salary to wage costs
The gross salary is the starting point. On top of it your employee accrues 8 per cent holiday allowance, which you usually pay out in May or June. On salary and holiday allowance you then pay employer contributions. The payroll tax you withhold from the gross salary is not an extra cost: the employee pays it, you only remit it. How that system works is explained in payroll taxes explained.
Keep the minimum wage in mind. Since 1 July 2026 it is € 14.99 gross per hour for employees aged 21 and over. Lower youth minimum wages apply to younger employees. A collective labour agreement (cao) may prescribe higher wages.
Employer contributions in 2026
These are the contributions you pay as an employer on top of the wage. They are calculated on wages up to a maximum of € 79,409 per year.
| Contribution | Rate 2026 | Explanation |
|---|---|---|
| Awf (unemployment) | 2.74% low / 7.74% high | Low with a permanent written contract that is not an on-call contract |
| Aof (disability) | 6.27% small / 7.63% large | Small employers pay the low rate |
| Whk (differentiated) | Around 1.5% on average | Depends on your sector; stated in your decision letter |
| Employer's Zvw levy | 6.10% | Contribution under the Health Insurance Act |
Worked example: € 3,000 gross per month
Suppose you hire a full-time employee at € 3,000 gross per month, on a permanent contract. You are a small employer and your Whk rate is 1.52 per cent.
Wage costs per month
- Gross salary
- € 3,000
- Holiday allowance 8%
- € 240
- Awf 2.74% on € 3,240
- € 89
- Aof 6.27%
- € 203
- Whk 1.52%
- € 49
- Employer's Zvw levy 6.10%
- € 198
Result: Around € 3,779 a month in total, or more than € 45,300 a year. That is 26 per cent above the gross salary, before the costs below are counted.
Costs not on the payslip
Besides contributions you face a range of fixed and variable costs. Include them before you post a vacancy.
- A contract with an occupational health service or company doctor is mandatory.
- During illness you continue paying at least 70 per cent of the wage for up to two years.
- Mandatory schemes from a cao or industry, if they apply to your sector.
- Travel costs, working-from-home allowance and staff outings, within the work-related costs scheme.
- A laptop, phone, work clothing and possibly a workspace.
- The payroll administration itself, or the cost of outsourcing it.
Can your business afford it?
A practical test: the extra turnover your employee generates or enables must comfortably cover the total wage costs. Read in hiring your first staff which steps follow, and see in hiring a freelancer or employing staff whether a freelancer fits your situation better.
Frequently asked questions
What percentage comes on top of the gross salary?
Count on 25 to 35 per cent: holiday allowance and contributions together are already around 26 per cent, then the occupational health service, absence risk and other costs come on top.
Is payroll tax a cost for the employer?
No. You withhold payroll tax from the employee's gross salary and remit it. The employer contributions and the employer's Zvw levy are your costs.
What is the minimum wage in 2026?
From 1 January 2026 € 14.71 and since 1 July 2026 € 14.99 gross per hour for employees aged 21 and over.
Sources
- Payroll tax rates, amounts and percentages 2026Belastingdienst · download.belastingdienst.nl
- Low and high unemployment contributionBelastingdienst · belastingdienst.nl
- Minimum wage amounts 2026Rijksoverheid · rijksoverheid.nl
Sources checked on
This article provides general information based on the rules known for 2026 and does not replace personal tax advice. For your specific situation, we're happy to take a look with you.
