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What is the employer cost of a budget?
What is the employer cost of a budget?

This article describes how to calculate the employer cost of budgets in Payflip.

Sofia Van Rijckevorsel avatar
Written by Sofia Van Rijckevorsel
Updated over 8 months ago

Payflip always works with the employer cost of budgets. In this article, we explain exactly how that employer cost per budget is calculated. 👇

💰 End-of-year premium

To calculate the employer's cost of an end-of-year bonus, the employer's NSSO applicable to it is taken into account.

🧮 Formula = Gross monthly salary + employer NSSO

The end-of-year premium is an automatic budget in Payflip. This means that Payflip automatically calculates the employer cost of this budget.

💰 One-off bonus

To calculate the employer cost of a one-off bonus, both the employer's NSSO and holiday pay applicable to it are taken into account.

🧮 Formula = [Gross amount * 1.08 * (1 + employer NSSO)] + (Gross amount * 0.0767)]

The one-off bonus is a manual budget in Payflip. This means that Payflip does not automatically calculate the employer cost of this budget and therefore this formula must be taken into account when uploading the budget.

💰 Recurring bonus (awarded more than once a year)

E.g. commission

To calculate the employer cost of a recurring bonus, account is taken of the employer NSSO, holiday pay and public holiday pay applicable to it.

🧮 Formula = [Gross amount * 1.08 * (1 + employer social security)] + (Gross amount * 0.0767) + [Gross amount * 0.04 * (1 + employer social security)]

The recurring bonus is a manual budget in Payflip. This means that Payflip does not automatically calculate the employer cost of this budget and therefore this formula must be taken into account when uploading the budget.

💰 Mobility Budget

To calculate the employer cost of a mobility budget, the amount the employee is still entitled to under pillar 2 and pillar 3 is taken into account.

🧮 Formula = Remaining amount within pillar 2 and 3 of the mobility budget

The mobility budget is a manual budget in Payflip. This means that Payflip does not automatically calculate the employer cost of this budget and therefore this formula must be taken into account when loading the budget.

💰 Theme budget

Eg. Smartphone budget

To calculate the employer cost of a theme budget, it simply takes into account the amount to which the employee is entitled under the rules applicable within the company.

🧮 Formula = Defined amount of the theme budget

A theme budget is a manual budget in Payflip. This means that Payflip does not automatically calculate the employer cost of this budget and therefore this formula must be taken into account when uploading the budget.

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