Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
What a raise really costs
A raise increases employer social contributions too, so a 5% raise on a €60,000 salary in a country with 21% on-costs costs about €3,630 a year, not €3,000. Where contributions are capped, raises above the cap cost less in contributions.
What the employee receives
Income tax is progressive, so the employee keeps less of the raise than of their existing salary. HireCost shows the change in take-home pay next to the change in cost.
Frequently asked questions
Why is the net raise smaller?
Taxes and contributions apply to the extra pay.
Do contribution caps matter?
Yes. In countries such as Germany and the US, contributions stop above certain earnings, so raises at high salaries cost less.
Is this per year?
Yes, with a monthly figure shown.