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What Does an Employee Really Cost?

Calculate all labor costs for 2026 including social security contributions, levies, and trade association.

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Total Employer Costs
5.212,08 €
per month
Cost Breakdown
Gross Salary4.166,67 €
Social Security (Employer Share)
Pension Insurance387,50 €
Health Insurance337,50 €
Unemployment Ins.54,17 €
Long-term Care Insurance75,00 €
Total Social Security854,17 €
Levies & BG
U1 (Sick Leave)100,00 €
U2 (Maternity)18,33 €
U3 (Insolvency)6,25 €
Employers' Liability Insurance66,67 €
Total Levies191,25 €

Employer Costs: More Than Just Gross Salary

As an employer, you pay significantly more than just the gross salary. Labor costs include the employer's share of social security plus additional levies (U1, U2, U3) and trade association contributions.

Social Security (Employer Share)

  • Pension Insurance9.3%
  • Health Insurance7.3% + add-on/2
  • Care Insurance1.7%
  • Unemployment Insurance1.3%

Employer Levies

  • U1 (Sick Pay)~1.1%
  • U2 (Maternity)~0.22%
  • U3 (Insolvency)0.06%
  • Trade Association~1.3%

The German Levy System Explained

In addition to social security contributions, employers must pay several statutory levies:

  • U1 (Sick Pay Levy): Reimburses part of continued pay during employee illness. Rate varies by health insurer.
  • U2 (Maternity Levy): Covers employer costs during maternity protection. Mandatory for all employers.
  • U3 (Insolvency Levy): Protects employee claims in case of employer insolvency. Fixed rate.

Example: Total Cost Overview

How much does an employee cost at different salary levels? Here is a rough overview with approx. 21% ancillary costs:

Annual GrossAncillary CostsTotal Cost
30.000 €+ 6.300 €36.300 €
50.000 €+ 10.500 €60.500 €
80.000 €+ 16.800 €96.800 €

More Helpful Calculators & Guides

Table: Social security contributions and assessment limits 2026 (West/East)
Insurance BranchContribution Rate 2026Employee ShareAssessment Limit
Pension Insurance18,6%50%
West: 96.600 € (Prognose)
East: 96.600 € (Prognose)
Unemployment Insurance2,6%50%
West: 96.600 € (Prognose)
East: 96.600 € (Prognose)
Health Insurance14,6% (Prognose)
+ 2,2% (Prognose) Additional Contribution
50% (also on additional contribution)66.150 € (Prognose)
Care Insurance3,4%50%66.150 € (Prognose)

Sources & References (2026)

Federal Ministry of Finance
Official tax tables and tax calculation guidelines.
German Pension Insurance
Current pension values and contribution assessment ceilings.
Federal Ministry of Health
Social security contribution rates and thresholds.

All calculations are based on the official legal provisions for 2026. Despite careful research, no guarantee is given for correctness. This calculator does not replace professional tax advice.

German Employer Salary Calculator 2026 - Labor Costs in Germany | Brutto Netto Rechner