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How Much Do I Pay for an Employee With Companio Work?

All employees, including Estonian ones, will be incorporated into the Companio Work system for management and administration purposes.

During the first month, you will receive two invoices. We will use a Brazilian developer as an example:

a. The first invoice, which will be paid only on the first month, and includes:

Registration fee: This is a fee that you only pay once when you register as an employee. It’s a single payment of €290 for the registration process. Once paid, you won’t need to pay this fee again.
Monthly fee: Our monthly fee varies depending on the employee’s country of residence. For example, the monthly fee would be €490 for an employee residing in Brazil.
Gross salary: €2000
Social taxes, unemployment, and other social benefits: €796
Deposit: This deposit serves as a safeguard for any unforeseen issues or delays in the payment of the employee's salary. It functions similarly to a rental or security deposit. The deposit amount corresponds to the employee's complete salary, including gross salary and social taxes (€2796 in this case). However, it's important to note that the deposit will be refunded if no unexpected complications arise during the employment period.

b. The regular monthly invoice, encompassing the gross salary, social taxes, and monthly fee.

Gross salary of the employee: €2000
Social taxes, unemployment, and other social benefits: €796
Monthly fee: €490.

So, in this case, the total amount of the first invoice for this employee would be €6,371, and for the second one, it would be €3,286.

Then the second and subsequent invoices you will receive just the regular monthly invoice, that includes only the following:

Gross salary of the employee.
Social taxes, unemployment, and other social benefits.
Monthly fee.

Why do we request the gross salary instead of the net salary?

Many factors determine the final net salary, including the country of residence (and even the region within the country in some cases), the individual's marital status, children, and other factors depending on local legislation. Therefore, it is complicated to accurately calculate the net salary of an employee.

That's why we ask for the gross salary instead of the net salary. If you want to know the estimated net salary for a specific gross amount, you can message us, and we can calculate a quote.

Please note that the amount displayed is an estimate, and you could expect slight variations of up to 5% (but usually much less). That's because the taxes to be paid for the salary of employees depend on multiple factors, including their tax residence, marital status, family situation, or time of employment.

Once we have sent that quote, you can reject it if you disagree. In that case, you must ask those employees to register as freelancers in their country and invoice your company.

Updated on: 20/09/2023

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