We are setting up a retail company with a foreign parent company.
We need to be able to demonstrate that in the UK, France and Germany there are additional costs OTHER than the hourly wage. Is there an average “rule of thumb” that we can apply to show this or does anyone know the costs for NI, etc etc..
Help appreciated!!
Liam Dolan
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3 Responses
Notional On-Costs
We use a Notional 15% on-costs to account for superannuation (5%) and NI contributions (10% dependant on banding). This is very much a notional cost when you consider the loss in quality of service, overtime and/or agency costs, etc.
A simple rule
It probably varies between 50% and 150% depending on the type of work and the employer’s on-costs so I just add 100% to the person’s gross salary.
I use a simple 5% rule
I have helped numerous voluntary agencies with business plans & fund raising strategies etc. Many need staff to run a project etc and have no previous experience of recruitment and selection and incidentals such as NI, Income Taxe etc. I usually advise them to fill in the application form and add 5% of gross salary. To date, this has been acceptable by National Lottery, European Funding, SRB and other government funding initiatives.
Thanks,
Brian Goredema-Braid
Outlook Associates