What will personnel cost in 2025? All costs at a glance – The Happy Financial

An employee costs more than just a salary.

Hiring a (first) employee seems clear at first: you agree on a salary and you pay it. You not only pay the gross salary, but also premiums, pension, insurance and sometimes additional costs under a collective labor agreement. This article lists everything, including concrete calculation examples and tips to keep control of your wage costs.

Gross salary and minimum wage

The gross salary forms the basis of your wage costs. From July 1, 2025 the statutory minimum wage is €14.40 per hour. That means:

• 36 hours per week: € 2,246 gross per month.
• 40 hours per week: € 2,496 gross per month.

The minimum wage has risen considerably in recent years. For comparison: in 2020 the monthly amount for 36 hours was still around € 1,680. This means that as an employer you now spend almost 35% more on an employee with minimum wage. This trend continues, partly due to the tight labor market and inflation corrections.

Read more: This is the minimum wage in 2025

Employer’s contributions and social security contributions

In addition to your salary, you pay mandatory premiums. The following percentages apply for 2025:

• WW bonuses: 2.74% for permanent contract, 7.74% for flexible contract.
• WIA/WAO bonuses: 8.47%.
• Employer’s ZVW contribution: 6.51% (on a maximum of €76,864 per year).

Together, the employer’s costs for a permanent contract are good for this 17–18% of gross salary. With a flexible contract this increases to more than 100% 22%.

Example (36 hours, minimum wage, permanent contract):

• WW: €61
• WIA/hen: €190
• ZVW: €146
• Total employer premiums: €397 per month

That seems clear, but on an annual basis you are almost there €5,000 extra per employee.

Tip: do you have a lot of flexible workers? Keep in mind that the higher unemployment insurance premium makes a significant difference. Sometimes it pays off financially to give a permanent contract more quickly.

Pension contribution in 2025

By Future Pensions Act (Wtp) provides a new way of pension accrual. For you as an employer, the core remains the same: you pay part of the premium.

• Employer contribution: average 10–15% of salary.
• At minimum wage (36 hours): approx. €225–340 per month.
• With average salary (€ 3,400): approx. € 340–510 per month.

Not every employer is obliged to arrange a pension, but many sectors have a mandatory membership of a fund. A pension plan is expensive, but crucial to remain attractive in a tight labor market.

Tip: check whether your sector is covered by a mandatory pension fund. Not offering a pension plan may seem cheaper in the short term, but in the long term it often costs you personnel.

Absenteeism and continued payment of wages

Absenteeism is the most underestimated cost item. As an employer you have to deal with a sick employee up to 2 years continue to pay at least 70% of the salary. In addition, there are the costs of occupational health and safety service, reintegration and replacement.

• 1 day of illness: average €275.
• 6 weeks of illness with a salary of € 2,500: more than € 4,300.
• 1 year of illness: €30,000–40,000.

It is not without reason that many employers conclude one absenteeism insurance off. The premium is on average between 1.5–3% of the wage bill. This covers (part of) the risk, but you must budget the premium.

Tip: More and more companies are investing in prevention, such as vitality programs or flexible working hours. An employee who is healthy and motivated significantly reduces the risk of long-term absenteeism.

Insurance for personnel

In addition to absenteeism insurance, there are other insurance policies that are smart to take out:

• Liability insurance for companies (AVB): from € 200 per year. It is not mandatory, but virtually indispensable as soon as employees have contact with customers or machines.
• Accident insurance: approx. €50–100 per employee per year. This pays out in the event of permanent injury or death due to an accident.
• Additional insurance: consider collective health insurance or additional disability insurance.

Tip: Insurance is not only a cost, but also a way to create peace in your company. If something happens, you are not responsible for all financial damage.

Collective labor agreement and employment conditions

Many employers are covered by a collective labor agreement. This means that you not only follow the legal rules, but also have to comply with additional agreements.

Possible additional costs:

• Higher minimum wages than legally established.
• Extra vacation days (sometimes 25 instead of 20).
• Travel allowance (€0.23 per km in 2025).
• Training budgets (often €500–1,000 per employee per year).

A collective labor agreement can reduce your total costs Increase 10–20%.

Background: collective labor agreements are intended to guarantee fairer employment conditions and reduce differences between sectors. In practice, this means that employers must carefully investigate in advance which collective labor agreement applies.

Sample calculations of wage costs for 2025

Employee minimum wage (36 hours, permanent contract)

Total wage costs: approx. € 2,963 per month

Employee average salary (€ 3,400, permanent contract)

Total wage costs: approx. € 4,480 per month

With a flexible contract, employer costs are approximately 5% higher. With an average salary, that difference can amount to more than €200 extra per month.

Tips to keep a grip on personnel costs

It is logical that after seeing all these amounts you think: couldn’t this be smarter? Fortunately, yes. A few tips that many employers apply:

1. Make a wage cost calculation per year before you hire someone. This way you know what you can wear.
2. Use subsidies such as wage cost benefit (LKV) or practical learning. These can save you thousands of euros per year.
3. Invest in training: an employee who continues to grow stays longer and avoids turnover costs.
4. Consider hybrid compensation: offer secondary employment conditions such as flexible working hours or a training budget, instead of just a salary increase.
5. Prevent absenteeism through preventive policy: a healthy workplace pays for itself.

Would you like more tips to keep control of your personnel costs? You can read it in this article Personnel costs: what are they and how do you keep control of them?

Checklist: this is what you need to pay attention to

Salary and minimum wage (36 or 40 hours, sector)

Employer’s charges: 17–22% extra on top of gross salary

Pension contribution: often 10–15% of salary

Absenteeism: up to 2 years of continued payment of wages + insurance

Insurance: AVB, accidents, absenteeism insurance

Collective labor agreement agreements: extra costs due to wages, holidays, training

Subsidy options: LKV, training subsidies

Finally

Staff costs considerably more than just the agreed salary. With all employer contributions, pension and insurance, the difference between gross salary and total wage costs is up to 30–40%. By planning smartly, using subsidies and investing in sustainable employability, you make costs manageable and get more value from your team.

Read more? Minimum wage increase in 2025: will employees also benefit net?.