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Country comparison

Brazil or Spain: which costs the employer more

Spain costs the employer more: 47.3% on top of the salary, against 44.1% in Brazil.

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.
BrazilSpain
Salary usedR$180,000€60,000
Statutory contributionsR$50,040€18,390
Mandatory extra pay1 months2 months
Total employer costR$259,440€88,390
Added on top of the salary44.1%47.3%
Statutory paid leave30 days30 days
Public holidays1014
Minimum employer notice4 weeks2.14 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.

Spain: All general-scheme employer contributions share one monthly ceiling of 5,101.20 euro, shown here annualised, so employer cost above that level is zero.

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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