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Country comparison

Brazil or Germany: which costs the employer more

Brazil costs the employer more: 44.1% on top of the salary, against 21.3% in Germany.

Each country uses its own currency, so we compare the percentage. We publish no exchange rate and convert nothing.

Employer cost on a mid-level salary in each country's own currency. The percentage is what the employer adds to the gross salary.
BrazilGermany
Salary usedR$180,000€60,000
Statutory contributionsR$50,040€12,780
Mandatory extra pay1 months0 months
Total employer costR$259,440€72,780
Added on top of the salary44.1%21.3%
Statutory paid leave30 days20 days
Public holidays109
Minimum employer notice4 weeks4 weeks

Where the difference actually comes from

Brazil: The employer INSS contribution and RAT are uncapped. Unlike the employee side there is no ceiling, so the burden does not fall on a senior salary.

Germany: Because the health and care ceiling (77,400 euro) sits below the pension and unemployment ceiling (101,400 euro), the marginal employer rate steps down twice as pay rises, and reaches zero above 101,400 euro.

The formula behind both columns

total employer cost = gross salary + sum over each statutory contribution of rate x max(0, min(salary, ceiling) - band floor) (zero if the contribution applies only below a wage the salary exceeds) + gross salary x (mandatory extra months / 12) + gross salary x mandatory severance accrual rate

Ceilings are the reason this ordering can reverse at a higher salary. Run both countries through the calculator at the salary you actually intend to pay before you treat either number as settled.

Related

Written by Kaz, independent publisher. No commercial relationship with the providers named unless it is listed on the disclosure page.

Page last updated 2026-08-30. Sources: statutory bodies only, listed per figure. Rates last verified 2026-08-21. This is not legal, tax or payroll advice and we do not file anyone's payroll.

Every formula on this site is written out in full on Method. Ordering is by computed cost, never by what a provider pays us.

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