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EOR Ledger

EOR Ledger

Employer Cost Index · October 2026 edition

What it costs to employ someone in 19 countries

Mandatory employer costs on top of a US$60,000 salary, built from official contribution rates and ranked from highest to lowest.

Key findings

Highest

50.9%

Brazil: US$30,533 a year

Lowest

1.4%

South Africa: US$826 a year

Median

22.6%

Across 19 countries

From checked rates

97.7%

Of all employer costs in the index

Hiring the same person on a US$60,000 salary costs the employer about US$29,707 more a year in Brazil than in South Africa, before any EOR fee. In 7 of the 19 countries, mandatory employer costs exceed 30% of salary; in 3 they are under 10%.

Every figure comes from the cost model behind our country guides, where each contribution rate links to the law or official agency that sets it. Salaries are converted from US dollars at the US Treasury's official rates of 30 September 2026.

Ranking

Employer costs as a share of a US$60,000 salary

  1. Brazil50.9%
  2. France48.7%
  3. Argentina39.1%
  4. Italy34.6%
  5. Colombia34.2%
  6. Spain32.2%
  7. Mexico30.1%
  8. Netherlands26.2%
  9. Portugal25%
  10. Germany22.6%
  11. Poland22%
  12. Australia18.2%
  13. Singapore17.2%
  14. United Kingdom16.4%
  15. Ireland12.9%
  16. Philippines10.3%
  17. Canada9.4%
  18. India3.1%
  19. South Africa1.4%
From rates checked against official sources Estimate (rate set by insurer or not yet checked)

Data

The full index

#CountryEmployer cost% of salaryTotal cost% at local mid-level salaryContribution capFrom checked rates
1 BrazilUS$30,53350.9%US$90,53350.9%No100%
2 FranceUS$29,22148.7%US$89,22148.4%Yes95.4%
3 ArgentinaUS$23,46039.1%US$83,46039.1%No94.5%
4 ItalyUS$20,78834.6%US$80,78834.6%No95.9%
5 ColombiaUS$20,51334.2%US$80,51334.2%Yes100%
6 SpainUS$19,29032.2%US$79,29032.2%Yes100%
7 MexicoUS$18,07530.1%US$78,07532%Yes100%
8 NetherlandsUS$15,70226.2%US$75,70226.2%Yes100%
9 PortugalUS$15,02025%US$75,02025.2%No94.9%
10 GermanyUS$13,53022.6%US$73,53022.6%Yes94.5%
11 PolandUS$13,18822%US$73,18822%Yes100%
12 AustraliaUS$10,93218.2%US$70,93218.2%Yes100%
13 SingaporeUS$10,30617.2%US$70,30617.2%Yes100%
14 United KingdomUS$9,85416.4%US$69,85416.5%Yes100%
15 IrelandUS$7,74012.9%US$67,74012.9%Yes100%
16 PhilippinesUS$6,19310.3%US$66,19317.1%Yes100%
17 CanadaUS$5,6649.4%US$65,6649.4%Yes79.3%
18 IndiaUS$1,8503.1%US$61,8504%Yes100%
19 South AfricaUS$8261.4%US$60,8261.6%Yes88.3%
Annual figures for a US$60,000 salary, in US dollars at US Treasury rates of 30 September 2026. Employer cost excludes EOR fees and optional benefits.
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Method

How the index is calculated

  • Salary. US$60,000 a year, converted to each local currency at the US Treasury Reporting Rates of Exchange for 30 September 2026. The salary is treated as the annual gross as normally quoted in each country.
  • Employer costs. Only mandatory costs paid by the employer on top of salary: social insurance and pension contributions, payroll taxes and levies, accident insurance, and statutory extra payments (such as a 13th salary) where pay is normally quoted as 12 monthly salaries. Where pay is quoted as an annual figure that already includes extra payments (Italy, Portugal, Spain), they are part of the salary, not an extra cost.
  • Rates and caps. Each rate comes from the country's cost model, with contribution ceilings and floors applied. Where a rate varies by employer (for example, accident insurance), the guide states the rate we use. Every rate links to its official source on the country page.
  • Checked rates. “From checked rates” is the share of each country's employer cost that comes from rates checked against an official source. The rest are estimates, mostly accident insurance premiums set by private insurers.
  • Simplifications. Rates are applied to annual gross pay; real payroll applies some rates to narrower bases or by pay period. Collective agreements, regional rates and individual circumstances will change real figures. This is a comparison, not payroll advice.

Use the data

How to cite the index

The data is free to use with credit. Please link to this page and cite it as:

EOR Ledger, "Employer Cost Index", October 2026 edition, https://www.eorledger.com/employer-cost-index

Questions or corrections: contact the editor. Corrections are logged in our editorial policy.

Frequently asked questions

Which country has the highest employer costs?
Of the 19 countries in the index, Brazil has the highest mandatory employer costs: 50.9% on top of a US$60,000 salary, or about US$30,533 a year. South Africa has the lowest, at 1.4% (US$826).
What counts as an employer cost in the index?
Mandatory costs the employer pays on top of gross salary: social security, pension, health, unemployment and accident contributions, payroll taxes, and statutory extra payments such as a 13th salary where salaries are normally quoted as 12 monthly payments. Employee contributions, income tax, optional benefits and EOR fees are excluded.
Why use a US$60,000 salary for every country?
A common salary shows what the same hire costs in each country. Because many countries cap contributions at a salary ceiling, the percentage depends on salary level, so the index also shows the rate at each country's own mid-level example salary.
Can I use this data?
Yes. Download the CSV or JSON and cite the EOR Ledger Employer Cost Index with a link to this page. Each country links to its guide, where every rate cites its official source.
How often is the index updated?
Each country guide is updated when contribution rates change, and we publish a new edition of the index after each round of rate changes, normally at least every quarter. The edition date is shown at the top of this page.

For costs at other salary levels, see the cost to hire by country table or use the cost estimator in each country guide.