Your benefits of being a freelancer

There are many reasons why many large and small companies rely on contract work. Take a look at the following cost breakdown and decide for yourself.


Costs and type of costs of an employer for an employee

· Pension insurance - 9.35%

· Statutory health insurance - 7.3%

· Unemployment insurance - 1.5%

· Nursing care insurance - 1.175%

· Statutory accident insurance - 1.6%

If you add the U1-U3 levies plus the BG contributions, the employer's contribution amounts to ~ 25% in addition to the employee's gross salary.

 

In addition, the following costs may be incurred by the employer

· License costs for software

· Work clothes

· Contributions to professional associations

· Travel and travel expense reimbursements

· Continued payment of wages for holidays and sick days

· holiday pay

· Christmas bonus

· Profit sharing

· Capital accumulation benefits

· Surcharges for overtime, night work or work on Sundays and public holidays

· Training and further education costs

This results in an additional 10% or more employer contribution. In total, the employer must therefore pay at least 35% (factor 1.35) in addition to the employee's actual wage costs.


example calculation


Let's assume that an experienced designer earns a gross salary of €5,600. He earns an additional €750 on average each month from his overtime work and also receives holiday pay and a Christmas bonus, each of which is 100% of his gross salary.

 

5600€ x 12 750€ x 12 5600€ 5600€ = 87,400 € annual salary for employees

i.e. the employer has to bear the following costs annually: 87,400€ x factor 1.35 = 117,990 €

 

If you break the amount down to 1596 hours / year, with an average 38-hour week, that makes an hourly rate of 74 €/hour.

Enjoy the benefits of a freelancer at the same price:

  • increased operational flexibility
  • smaller risk
  • less administrative effort
  • no software licenses, extra workstation, etc.
  • independence from collective agreements
  • No protection against dismissal for employees
  • No contributions to the professional association
  • No entitlement to vacation, parental leave, continued payment of wages in case of illness, etc.
  • Flexibility, commitment, resilience and motivation are considerably higher among freelancers
  • unlimited cooperation through the GmbH company form - a legal entity cannot be accused of "bogus self-employment"