The Employer Contribution represents the mandatory statutory costs an employer is required to pay on behalf of an employee, in addition to their gross salary. It does not include the salary itself or other associated fees.
These contributions are calculated as a percentage of the employee's annual gross salary and vary by country, based on local statutory requirements. Each country has its own payroll taxation rules and employer obligations, which is why the contribution rate differs depending on where your employee lives and works.
Employer Contributions typically include:
Employer Portion of Payroll Taxes: Mandatory tax contributions required by the local government, calculated based on the employee's gross salary.
Insurance & Social Security Expenses: This includes contributions towards social security, unemployment insurance, pension funds, third-party liability insurance, work injury insurance, and any other legally required coverage.
Other Payroll-Related Costs: Any additional statutory costs associated with employment in the employee's country of residence.
At Thera, the Employer Contribution is automatically calculated and applied to ensure full compliance with local labor laws and statutory requirements in every country we operate in.