German Employer Cost Calculator 2026
A German gross salary costs the employer considerably more. See every employer share and levy and the true cost of a hire.
| Gross salary | €4,000.00 |
|---|---|
| Health insurance | €350.00 |
| Care insurance | €72.00 |
| Pension insurance | €372.00 |
| Unemployment insurance | €52.00 |
| U1 levy (sick pay) | €96.00 |
| U2 levy (maternity) | €17.60 |
| Insolvency levy U3 (0.15%) | €6.00 |
| Accident insurance (BG) | €43.20 |
| Total employer cost | €5,008.80 |
- Employer shares 2026 up to the contribution ceilings (health/care €5,812.50, pension/unemployment €8,450). Excludes capital-forming benefits and company pensions.
Employer shares in 2026
The employer pays 9.3% pension, 1.3% unemployment, 7.3% health insurance plus half the supplementary rate, and 1.8% care insurance, 1.3% in Saxony. On €4,000 gross that is €846 a month.
Levies and accident insurance
On top come the U1 sick-pay levy, only for firms with up to 30 staff, the U2 maternity levy and the 0.15% U3 insolvency levy. Statutory accident insurance costs about 1% of payroll on average, depending on the sector. All in, €4,000 gross costs around €5,009.
Why employees care
In a negotiation, each euro of raise costs the employer about €1.20 to €1.25. What reaches you is shown by the Germany salary calculator.
Employer cost at typical salaries
Frequently asked questions
Who pays the U1 levy?
Only employers with at most 30 staff. In return the health insurer reimburses part of the sick pay. The rate depends on the insurer and the reimbursement tier chosen.
Do the ceilings apply to high salaries?
Yes. Above €5,812.50 for health and care and €8,450 for pension and unemployment insurance, no further contributions are due.
What is not included?
Capital-forming benefits, company pensions, benefits in kind and sector levies such as SOKA-Bau in construction.
Sources: SGB IV, SGB V, SGB XI, Section 360 SGB III (insolvency levy 0.15%), DGUV average rate 2025.