What is total cost of employment (TCE) and how do you calculate it?

Article author
Nneka
  • Updated

Many countries require social security or other contributions and costs in proportion to the gross salary awarded to an employee. The total cost of employment, also known as TCE, is the sum of these contributions, 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 elements make up TCE for employees in Portugal.

 

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