RoyGroundUp

FREE TOOL · SMALL TEAMS

True cost of a hire

Salary is only part of it. See the real monthly and first-year cost of a new hire, with employer contributions for Singapore, Malaysia, the UK, the US and Australia, plus what it does to your runway.

Pay

Running costs

One-off costs

Getting up to speed

Can you afford it? (optional)

An estimate for planning, not payroll or tax advice. Rates change; check yours with your payroll provider.

THE REAL COST

Hiring this hire

S$7,183a month, every month. S$89,490 in the first year with one-off costs, or 1.36× the base salary.
First year
S$89,490
Per working hour
S$49
Employer contributions
S$12,290

Where the money goes in year one

  • SalaryS$66,000
  • BonusS$5,500
  • Employer CPFS$12,155
  • Skills Development LevyS$135
  • Benefits & insuranceS$1,440
  • Software & toolsS$960
  • EquipmentS$2,500
  • TrainingS$500
  • RecruitmentS$300
S$8,250hidden cost while they get up to speed: 3 months at 50% productivity.
S$11,971revenue a month the role needs to bring in to pay for itself, at a 60% gross margin.

Employer CPF 17% (employee aged 55 or under) on wages up to S$8,000 a month, bonus included up to the S$102,000 yearly ceiling, plus the Skills Development Levy (0.25%, max S$11.25 a month). Rates from 1 Jan 2026.

What a new hire really costs

Budget 1.2 to 1.4 times the salary

Employer contributions, benefits, tools and equipment usually add 20–40% on top of base pay in the first year. Recruitment fees can add another 15–25% of a year’s salary if you use an agency.

Count the ramp-up

Most people take three to six months to become fully productive, and someone on your team spends time training them. A clear onboarding plan shortens that. Try the onboarding planner.

Check your runway first

A hire is a monthly commitment, not a one-off. If runway drops below six months, line up the revenue or funding before you make the offer, or start with a contract or part-time role.