The cost of a hire goes beyond the payslip
A first-year hiring budget should distinguish ongoing employment costs from the one-off cost of bringing someone into the business.
By CashOrbits · Published 3 November 2026 · Reviewed 3 November 2026
Build the ongoing monthly cost
Start with gross salary, employer-paid benefits and the employer contributions that apply in your jurisdiction. Avoid adding employee deductions a second time: they usually come out of gross pay rather than sitting on top of it.
List the one-off items
Recruitment fees, visa processing where applicable, equipment, checks, training and onboarding time can materially change the first-year budget. Use quotes or your own actual costs instead of generic market figures.
Make the arithmetic explicit
A monthly salary of 12,000 plus 1,500 in benefits is 162,000 a year before employer contributions. Add recruitment of 5,000 and setup costs of 8,000 for a first-year total of 175,000 if the entered contribution rate is zero. Zero is a modelling input, not a claim that no local contribution applies.
Budget for the working arrangement
Include cover for leave, insurance, end-of-service accrual and equipment replacement where relevant. Verify statutory amounts with official local sources. Compare the first-year cost with expected contribution and available cash, not just revenue.
Sources & further reading
Official consumer or small-business resource. The worked examples are CashOrbits illustrations, not market quotes. Source reviewed 3 November 2026.
Use this as general education. Your contract, jurisdiction and circumstances may require additional advice. Read our editorial policy.