What is cost of employment?

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The cost of employment is an estimate of how much it costs to hire an employee in a particular country. Many countries require social security or other contributions and costs in proportion to the gross salary awarded to an employee. These contributions are typically mandatory. The cost of employment is the sum of these contributions, core benefits (if any), Remote's management fee and the gross salary of the employee.

For example: in 🇵🇹 Portugal, every employer is required to pay an amount equivalent to 23.75% of the gross salary to social security, contribute the equivalent of 1% of gross salary to a mandatory compensation fund, provide labour accident insurance, bi-annual work medicine appointments, and 40 hours of training. All these are included in the cost of employing someone in Portugal.

See also: How to use the Cost Calculator


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