Hiring your first employee: the costs beyond salary

When you plan your first hire, the salary is only the start. The real monthly cost is noticeably higher, and it’s worth knowing the figure before you make an offer.

Employer contributions come first. In most countries the employer pays social security or payroll tax on top of the gross salary, and often a pension contribution too.

Then there’s the setup: registering as an employer, running payroll, and in many places taking out employer’s liability insurance.

Add the everyday costs: a laptop, software licences, training, and paid holiday and sick days when the work still needs covering.

Before you advertise the role, ask your accountant for the full monthly cost, then check that your cash forecast can carry it for at least six months.