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Employer Cost Calculator Germany 2026

Calculate the true cost of an employee in 2026, including all non-wage labour costs (Lohnnebenkosten), social security contributions and levies.

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Note: The number of children only affects the employee's share of long-term care insurance. The employer's share stays the same.

The calculation updates automatically with every input. All values are based on the current 2026 German social security figures.

Total employer cost

0,00 €

per month

0,00 € per year

Frequently asked questions

Everything about employer costs and non-wage labour costs in Germany

Non-wage labour costs (Lohnnebenkosten) amount to roughly 20-22% of gross salary. They consist of the employer's share of pension insurance (9.3%), health insurance (7.3% plus supplementary contribution), long-term care insurance (1.8%), unemployment insurance (1.3%) and the levies U1, U2 and the insolvency levy (together roughly 2.4%). With a gross salary of 3,500 euros, that adds around 750 euros of non-wage costs per month.

  • U1 levy (continued pay): Finances the reimbursement of continued pay during sickness. The rate varies by health insurer (roughly 0.9-4.1%).
  • U2 levy (maternity protection): Finances the maternity pay allowance and continued pay during maternity protection (roughly 0.24-0.79%).
  • Insolvency levy (Insolvenzgeldumlage): Protects employees' wage claims if the employer becomes insolvent (0.06% in 2026).

This calculator uses a flat combined levy rate of roughly 2.4%.

The contribution assessment ceilings (Beitragsbemessungsgrenzen) cap the income subject to contributions:
  • Pension and unemployment insurance: 8,450 euros/month (101,400 euros/year)
  • Health and long-term care insurance: 5,812.50 euros/month (69,750 euros/year)

Income above these ceilings is contribution-free. This means that for very high salaries the percentage markup for non-wage labour costs decreases.

The total cost (personnel cost) of an employee is calculated as follows:
  • Employee's gross salary
  • + employer share of pension insurance (9.3%)
  • + employer share of health insurance (7.3% + half of the supplementary contribution)
  • + employer share of long-term care insurance (1.8%)
  • + employer share of unemployment insurance (1.3%)
  • + levies U1, U2 and the insolvency levy

On top of that there may be further costs such as occupational pensions, statutory accident insurance or voluntary benefits, which are not included in this calculator.

No, the childless surcharge of 0.6% for long-term care insurance is borne exclusively by the employee. The employer always pays the base rate of 1.8% regardless. The number of children therefore has no effect on the employer costs in this calculation, only on the employee's share.

This calculator is for information purposes only. The calculated values are approximations and may differ from the actual costs due to individual factors (e.g. statutory accident insurance, occupational pensions). For binding information, please consult your tax advisor.