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Raise cost calculator

Quick answer: 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.

  • OECD Taxing Wages 2026 · PwC Tax Summaries · World Bank
  • Updated
  • Reviewed by Alex · How we calculate

Where do these numbers come from?

Checked Oct 23, 2026. OECD Taxing Wages 2026 puts Germany’s 2025 average wage at €66,700 with employer social security at 20.86% of gross. €66,700 + 20.86% (€13,917) = €80,617, the total this calculator shows. Our automated tests repeat this comparison against OECD’s published net pay at 100% and 167% of the average wage for all 38 OECD countries.

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Sources: OECD Taxing Wages 2026, 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. LoadedCost 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.