Topic hub
Hiring Costs
An employee who looks cheaper on hourly rate is often more expensive once you add taxes, benefits, equipment, and downtime. This hub helps you do the comparison honestly so you make a hiring decision you will not regret six months later.
Start with the tool
Run this in five minutes to get a concrete number or draft.
Read the guides
Plain-English explainers for the questions that come up most often in hiring costs.
Common questions
- What are employer on-costs?
- Social security, pension, payroll tax, mandatory insurances, and statutory benefits — typically 18–30% on top of gross salary in Europe and North America.
- When does a freelancer become more expensive than an employee?
- Usually when the freelancer is working close to full-time on your project. The Hiring Cost Calculator shows the exact break-even hours for your numbers.
- Should I always pick the cheaper option?
- No. Continuity, IP control, and knowledge retention often justify a 10–15% premium for an employee, especially in senior or strategic roles.