The employer cost (or total wage cost) is the total amount an employer pays to employ someone. It is the sum of the gross salary + the employer contributions (social security taxes the employer pays on top of the salary).
Why is this important for my Payflip budget?
In Payflip, budgets are often allocated including employer cost. This is good news: your budget includes not only your gross bonus but also the social contributions your employer would otherwise pay to the government. As a result, your total budget is higher than what you would see on your payslip.
💰 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.
Frequently Asked Question: Why does my benefit cost more than in the store?
I see online that this smartphone costs €600, but in the Payflip tool, €750 is deducted from my budget. How is that possible?
This is due to the principle of cost neutrality:
You received extra budget: We added the employer cost (the 'tax' the employer normally pays) to your budget pot. So, you start with a higher amount.
You pay the actual cost: Because you received that extra money (the employer contributions), the full cost to the employer is charged when purchasing certain benefits, not just the retail price.