Payroll Cost Calculator for Employers
Adds up your staff salary bill and the employer contributions and other costs on top to show the true monthly payroll cost.
Recent
Formula
How the calculation works
Enter how many people are on the payroll and the average monthly salary in Taka across the team.
Enter the employer contribution rate as a percentage, covering items such as provident fund, gratuity and insurance that the employer pays on top of salary.
The tool multiplies count by average salary for the salary bill, applies the rate for the contributions, and adds any other cost for the total.
Common mistakes
- Treating the gross salary as the full cost, when employer contributions and benefits add a meaningful share on top of every salary.
- Using the net take-home figure as the salary, which understates the bill because tax and employee deductions sit above it.
When to use it
- Use it to budget the real cost of hiring before you approve a new team, since the salary you offer is only part of the bill.
- Use it to compare the cost of staff on payroll with contractors, who have no employer contribution but also no benefits.
Worked example
For 20 staff on an average salary of 30000 Taka with a 15 percent employer contribution and no other costs, the salary bill is 600000 Taka, the contribution is 90000 Taka and the total cost is 690000 Taka.
Common questions
What should I put in the other costs field?
Put recurring employer costs that are not in the salary or contribution rate, such as bonuses, transport allowance, workspace and equipment, to get a complete payroll figure.
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