Skip to content
Geo-Parity
Ask Paid plans only

Where does a hire cost the employer least on top of salary?

New Zealand leads on employer contributions at 0.0%; Hungary is last of the 15 shown at 13.0%.

A salary is not what a hire costs. On top of it the employer pays its own social contributions, and the rate ranges from nothing at all to more than a third of gross pay. For a remote team spread across countries, it is the difference between two offers at the same salary costing very different amounts.

The figures are OECD's, for a single earner with no children at the average wage. Countries with contribution ceilings look cheaper at high pay than this flat rate suggests, and mandatory private schemes and benefits in kind are not included.

Only the 37 countries on this site that OECD measures are ranked. The rest are absent rather than shown as zero — a country we cannot see is not a country with no payroll tax. New Zealand's zero is real: it funds social insurance from general taxation and levies no employer contribution.

# Country Employer contributions Note
1 🇳🇿 New Zealand 0.0% wedge 20.8%
2 🇨🇱 Chile 0.4% wedge 7.5%
3 🇩🇰 Denmark 0.7% wedge 35.8%
4 🇱🇹 Lithuania 1.8% wedge 39.8%
5 🇦🇺 Australia 6.1% wedge 27.9%
6 🇮🇱 Israel 6.3% wedge 26.1%
7 🇮🇸 Iceland 6.3% wedge 31.5%
8 🇨🇭 Switzerland 6.4% wedge 23.0%
9 🇺🇸 United States 8.1% wedge 30.0%
10 🇨🇦 Canada 9.6% wedge 32.1%
11 🇲🇽 Mexico 10.8% wedge 21.6%
12 🇰🇷 South Korea 11.1% wedge 24.9%
13 🇮🇪 Ireland 11.2% wedge 32.6%
14 🇳🇱 Netherlands 12.6% wedge 35.9%
15 🇭🇺 Hungary 13.0% wedge 41.1%

How this is worked out: Employer social security contributions as a fraction of gross wage for a single person with no children at 100% of the average wage, from OECD Taxing Wages via the OECD public SDMX API, lowest first. OECD's tax wedge (total labour taxes over total labour cost) is shown beside it. Countries OECD does not cover are excluded, never scored zero. Estimates for comparison, not advice.

Check your own numbers

A ranking is a starting point, not an answer — your income, household and destination change the order. The Employer cost of a hire runs the same engine against your own figures, and every country above links to its own page.

Other questions

to move Enter to open