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gracemarkGlobal Workforce Solutions

Employer Social Contributions

Employer social contributions are the mandatory taxes and benefit contributions an employer must pay on top of an employee's gross salary, funding social security, health insurance, pension, unemployment, and other statutory programs. Rates vary from ~10% to 40%+ depending on country.

Employer contributions are the single biggest source of surprise in international hiring budgets. A $60,000 gross salary in Brazil can carry $18,000+ in employer contributions; in Colombia, ~$16,000. Any responsible cost estimate for a foreign hire must add employer contributions plus mandatory bonuses (13th, 14th) plus vacation accrual on top of gross salary.

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