We have prepared a calculator for you that performs two functions. Firstly shows the cost of the employee including taxes and variable costs.
Secondly shows what rate we should be invoicing at of our clients to make employing an employee cost-effective. The calculator takes into account the employee's sick days and internal time.
We encourage you to test different scenarios.
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ESTIMATE OF STAFF COSTS
This section contains the basic components of salary and working time. Below is a description of items that may be of concern.
Number of working days per year - On average there are 230 days in a calendar year. If an employee only works for us for half a year we enter half, i.e. 115 days.
Number of working hours per day - The standard working time in Norway is 7.5 hours. As with the number of days, when we have a part-time employee we enter 3.75 hours.
Feriepenger - The minimum feriepenger rate is 10.2%. The rate is 12% for 5 weeks of holidays. An employee over 60 years of age is entitled to a rate of 12.5%.
Arbeidsgiveravgift - Podstawowa stawka AGA wynosi 14,1. W zależności od regionu Norwegii stawki mogą być niższe https://www.skatteetaten.no/satser/arbeidsgiveravgift/.
OTP – Minimalne obowiązkowe ubezpieczenie emerytalne wynosi 2%. Niektóre firmy natomiast stosują stawkę 3-5%.
Other direct and indirect employment costs
In this section we fill in the costs we have to incur additionally for hiring a new employee on an annual basis. If any of the items are out of date for your company then leave them blank.
Insurance (e.g. yrkeskade) - In many industries, this is compulsory insurance and a cost that the employer always has to bear.
Premises costs - zatrudniając nowa osobę możemy potrzebować dodatkowe stanowisko pracy,co zwiększy koszt najmu, zużycia prądu itd.
Cost of equipment (computer, phone, iPad, etc.) - the costs we have to incur in relation to equipping the workplace for the person employed.
Learning (leader time spent on implementation) - In a situation where an internal person from the company has to spend time training a new person, we should take this into account in our calculations. We assume here that the trainer could at the same time work with clients and generate a profit for the company. To simplify the calculation, we can give the number of hours * rate per hour of the trainer * 1.3 to get the cost including employee taxes.
Courses, training - In many industries, we have to send employees to the required training every year.
Tools - all the other tools we have to acquire in connection with hiring a new person. It is worth noting that some of the tools we have to acquire only in the first year of work, so this value should be averaged out.
Accounting - employing another person generates an additional accounting cost in the form of tasks such as preparing payments and related matters, sick pay, etc.
Auto - We enter car positions here when it is necessary to employ another person in the company. This is often the case, for example, in electrical or plumbing companies, where the employee is a one-person 'team'.
PRZYCHÓD Z PRACY PRACOWNIKA
Company hourly rate for services - we enter the average rate we invoice clients for the hours our employee has worked.
Company income per employee hour / Optimum annual income – pozycje te pokazują nam, ile zarabiamy na pracowniku za jedna godzinę i w skali roku.
Calculation of possible loss of income due to illness/internal work (internal)
Number of sick days - In case of illness, the first 16 working days are covered by the employer. We count the working days during the first 16 days, so it is usually 11- 12 days. If an employee falls ill twice a year for 2 weeks, the employer covers 20-24 working days. It is also worth remembering that every employee is entitled to egenmelding (3-day sick leave without a doctor's certificate) 4 times a year.
Internal work (intern) during the day - if an employee has time during the day that we cannot invoice to a customer, it is worth taking this into account in our calculations. This could be, for example, in-store purchases of goods for which the customer will not pay, or repairing our own mistakes.
Employee income - This item shows how much we were able to invoice the client for the hours that our employee actually worked.
Employee cost including non-productive hours - This indicator shows how much one hour of work costs us in real terms. We can take this as an indication of how much we should invoice our client, just to cover any costs associated with the employee.
Summary
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The calculator is a tool to test different scenarios and raise awareness of the real costs. However, every company's situation is different, so we encourage you to contact your accountant's office in order to work out an accurate calculation of the cost-effectiveness of your employment, or to make a professional budget.
