One of the main questions that every employer asks when he needs to expand his workforce, is how much it costs to hire a worker for his company. A question whose answer can vary greatly, generating all kinds of doubts that we will then try to solve.
And it is that the hiring of workers is part of the growth process of every company,being necessary to invest capital in professional and qualified talent. Of course, it is necessary to know approximately the cost that this entails.
So if you want to know how much it costs to hire a worker to your company,we tell you everything you need to know.
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The gross salary of the worker and the cost of Social Security will mark the total cost of hiring
When hiring a worker for your company, you must take into account that their remuneration will be based on the one hand, on the gross salary of the worker and, on the other, on the cost of the employee’s Social Security,at the expense of the company.
Gross worker’s salary
What the company pays to the worker is the gross salary, which is constituted by the salary perceptions in money and the extra-wage perceptions. While wage receipts contribute to Social Security, extra-wage contributions do not.
That said, you must be clear that you can not pay a worker the amount you decide, but you must pay him based on the provisions of the Collective Agreement of your sector and Autonomous Community or province,where the minimum wage is established for each professional category.
In any case, you can pay a higher salary if you think it necessary, depending on aspects such as the qualification or experience of the worker, and the competence that exists to perform a certain job.
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Worker’s net salary
To know the net salary of the worker you must take into account the two items that you must deduct from the gross land:
- Social security payable by the worker:
The worker’s social security is composed of three items:
- Common contingencies (4.70%).
- Contributions for training (0.10%).
- Unemployment contributions (1.55% in permanent contracts and 1.60% in temporary contracts).
The sum of these three items gives a total of 6.35%, which must be deducted from the gross salary of the worker, including the proportional part of the extra payments.
- Personal Income Tax Withholding:
The percentage of Personal Income Tax will increase depending on the worker’s income,and must be paid into the Treasury on a quarterly basis. This percentage will also vary depending on the personal circumstances of each employee.
Cost of social security borne by the company
The Social Security payable by the company entails an additional cost that must be taken into account when hiring a worker,which consists of a total of four items:
- Contribution for common contingencies: 23.60%.
- Unemployment contributions: 5.50% in permanent contracts and 6.70% in temporary contracts.
- Contributions for accidents at work and occupational diseases, the percentage of which will vary according to the contribution tables for each activity.
- Contribution for vocational training: 0.60%.
- Contribution to the Wage Guarantee Fund (FOGASA): 0.20%.
Knowing how much it costs to hire a worker to your company is one of the main concerns of every employer who needs to expand their workforce, so we hope to have solved any doubt about it through this post.
In any case, if you want to forget about worries and avoid mistakes, in AYCE Laborytax we have professional and experienced labor advisors, who will be responsible for managing the hiring of workers in your company in the most effective way.