Employee Benefit Cost Calculator

Cost a benefits package per employee and express it as a percentage of salary.

About Employee Benefit Cost Calculator

The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line. Working the benefits package up from its components makes clear which line is moving it, which a single headline number hides.

Formula

Employee Benefit Cost

Net Employer Benefit Cost per Employee = Health insurance + Pension contribution + Life and income protection + Wellbeing, learning and other perks − Employee contribution toward benefits

Health insurance: Component of the benefits package
Pension contribution: Component of the benefits package
Life and income protection: Component of the benefits package
Wellbeing, learning and other perks: Component of the benefits package
Employee contribution toward benefits: Component of the benefits package

Worked example

With the default values below, Employee Benefit Cost Calculator returns Net Employer Benefit Cost per Employee of 5,820.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Health insurance: 1,800
Pension contribution: 3,300
Life and income protection: 420
Wellbeing, learning and other perks: 900
Employee contribution toward benefits: 600

Results

Net Employer Benefit Cost per Employee: 5,820.00
Total Positive Components: 6,420.00
Total Deductions: 600.00
Result as Share of Positive Components: 90.65%
Verdict: Positive — the components net to a surplus

Step by step

1Values used
2Employee Benefit Cost
3Net Employer Benefit Cost per Employee= 5,820.00
4Total Positive Components= 6,420.00
5Total Deductions= 600.00
6Result as Share of Positive Components= 90.65
7Verdict= Positive — the components net to a surplus

Assumptions and limits

The result is derived only from the 5 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
Figures are rounded for display to 2 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Frequently Asked Questions

How is Employee Benefit Cost calculated?

Net Employer Benefit Cost per Employee = Health insurance + Pension contribution + Life and income protection + Wellbeing, learning and other perks − Employee contribution toward benefits The result is the signed sum of its components: positive items are added and deductions subtracted. Expressing it as a share of the positive components shows how much of the gross figure survives to the bottom line.

Why does Employee Benefit Cost matter?

Working the benefits package up from its components makes clear which line is moving it, which a single headline number hides.

What values do I need to enter?

This calculator takes 5 inputs: Health insurance, Pension contribution, Life and income protection, Wellbeing, learning and other perks, Employee contribution toward benefits. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.