This table shows what an employer pays in statutory contributions on top of gross salary in 25 countries, expressed as a percentage of salary. The figures come from the statutory dataset behind our country guides, the same numbers we use to run payroll. Sorted from most expensive to least.
| Country | Employer statutory cost (% of salary) | Biggest single line | Guide |
|---|---|---|---|
| Brazil | 55-70% | INSS social security (20%) | Brazil guide |
| Peru | 30-40% | Gratificaciones, two annual bonuses (16.67%) | Peru guide |
| Italy | 30-35% | INPS social security (24%) | Italy guide |
| Colombia | 30-35% | Pension, AFP (12%) | Colombia guide |
| Mexico | 25-35% | IMSS social security (20%) | Mexico guide |
| Netherlands | 23-34% | Employer social security (23.38%) | Netherlands guide |
| Argentina | 26-30% | Pension, SIPA (10.17%) | Argentina guide |
| India | 20-25% | EPF provident fund (12%) | India guide |
| Germany | 22-23% | Pension insurance (9.3%) | Germany guide |
| United Kingdom | 18-23% | Employer National Insurance (15%) | UK guide |
| Nepal | 20% | Provident fund (10%) | Nepal guide |
| Singapore | 17% | CPF, Central Provident Fund (17%) | Singapore guide |
| Kenya | 12-18% | NSSF Tier I (6%) | Kenya guide |
| Switzerland | 12-17% | AHV/IV/EO old age and disability (5.3%) | Switzerland guide |
| United Arab Emirates | 12.5-15% | GPSSA pension, Emirati nationals only (15%) | UAE guide |
| Nigeria | 12-15% | Pension (10%) | Nigeria guide |
| Ghana | 13% | SSNIT social security (13%) | Ghana guide |
| Canada | 10-15% | CPP/QPP pension (5.95%) | Canada guide |
| Philippines | 10-15% | SSS social security (10%) | Philippines guide |
| Rwanda | 9-16% | RSSB medical (7.5%) | Rwanda guide |
| Pakistan | 11-14% | ESSI provincial social security (6%) | Pakistan guide |
| Indonesia | 11-13% | BPJS Ketenagakerjaan employment fund (7.74%) | Indonesia guide |
| Uganda | 10% | NSSF social security (10%) | Uganda guide |
| Chile | 4-5% | Unemployment insurance (2.4%) | Chile guide |
| South Africa | 3-5% | UIF, SDL, and COIDA (1% each) | South Africa guide |
What the spread tells you
The gap is roughly 15x. Brazil adds 55-70% on top of every salary once you count social security, the FGTS severance fund, the mandatory 13th salary, and the vacation bonus. South Africa and Chile add under 5%. A $60,000 engineer costs roughly $95,000 fully loaded in Brazil and about $62,500 in South Africa. Same salary, wildly different budget line.
Latin America clusters at the top, but not uniformly. Peru, Colombia, Mexico, and Argentina all land between 25% and 40%, driven by mandatory bonuses and severance funds that accrue every month. Chile is the regional outlier at 4-5% because employees fund most of their own pension and health contributions.
Low headline rates can hide structural costs. The UAE shows 12.5-15%, but that pension only applies to Emirati nationals. For expat hires, the real cost is the end-of-service gratuity that accrues at 21-30 days of salary per year. Switzerland looks moderate at 12-17%, but the salaries themselves are among the highest in the world.
Asia and Africa are where the percentages get friendly. India at 20-25% is the high end. Indonesia, Pakistan, the Philippines, Ghana, and Uganda all sit between 10% and 15%, which is part of why so many US startups build their first international team in these corridors.
Figures come from our compliance dataset as of August 2026. Statutory rates change, and several countries have salary caps or industry-specific rates the headline percentage doesn't show. Check the per-country guide, and confirm with your accountant before you budget.
FAQ
Which country has the highest employer payroll costs? Brazil, at roughly 55-70% of gross salary. The stack includes 20% social security (INSS), an 8% monthly deposit into the FGTS severance fund, a mandatory 13th salary, a vacation bonus worth a third of a month's pay, and training-fund levies. See the Brazil guide for the full breakdown.
Which country has the lowest employer payroll costs? South Africa, at roughly 3-5%. Employers pay 1% each to the unemployment fund (UIF), the skills development levy (SDL), and the workers' compensation fund (COIDA). Chile is close behind at 4-5%. Details in the South Africa guide and Chile guide.
Do these percentages apply to contractors too? No. Statutory employer contributions apply to employees. Contractors invoice you and handle their own taxes and social contributions, which is why the fully loaded cost of a contractor is usually just the invoice. The tradeoff is misclassification risk, which each country guide covers.
Why is the cost shown as a range for most countries? Because real rates vary by salary level, industry, region, and caps. Mexico's IMSS rate depends on salary bands, Switzerland's pension rate depends on the employee's age, and Kenya's NSSF has tiered caps. The range is what most employers actually pay; the guide for each country explains what moves you within it.