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Cost of employee calculatorTable of contents
In practice there are three different concepts: gross salary, net salary, and employer cost. These are not the same amounts, although they are often confused. Below is a quick explanation of what each means and why the differences are so large.
Gross is the amount in the contract from which contributions and tax are calculated. It is the base for calculations both on the employee and employer side.
Net is what the employee actually receives after contributions and tax advance are deducted. The difference between gross and net depends on contribution base, reliefs and current tax rules. A quick calculation is available in the net salary calculator.
Employer cost is gross increased by employer‑side contributions and FP/FGŚP funds (if applicable). This is the real cost of employment.
The most common mistake is comparing gross with employer cost or net with employer cost. These are different “levels” of the same money. If you plan a company budget, look at employer cost. If you negotiate salary, look at net.
The differences come from employer surcharges and employee‑side charges. In practice:
The company thinks about the “per‑position budget”, the employee about take‑home pay. These perspectives meet only when you place gross, net and employer cost side by side. Then you can see immediately whether the budget and expectations are realistic.
Use two tools:
If you plan hiring, you must consider employer cost, not just gross. The employee should compare net, not employer cost. Separating these concepts reduces planning errors.
If you want to understand cost components, see Employee cost — what it is and how to calculate it.
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