# How much does employee cost per day?



## ckc123 (19 Feb 2007)

If I am paying an employee minimum wage, what is this person actually costing me per day?

Thanks.


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## ClubMan (19 Feb 2007)

€8.30 per hour for the number of hours in the day plus any additional costs such as employer PRSI I guess?


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## amgd28 (19 Feb 2007)

You already have the direct costs of 8.30 plus the employer's PRSI. Also add indirect costs of office space, office supplies and equipment, provision of PRSA scheme, and other issues some people don't think about prior to employing someone (time taken to train and manage for one).
Bear in mind, it can be difficult to fire someone in Ireland, especially if they actually know the level of legislative protection they have.
Please ensure you provide an employee contract (stating issues such as rates of pay, dismissable offences, probationary period etc etc) as in the absence of one, you don't have much to stand on if you want to rid yourself of the employee and they challenge it You can put anything you want in an employee contract, and will help your case in the event of an unfair dismissal case.
Sorry to dwell on the downside, but I've seen people taken for a ride by poor employees and have suffurred for not being able to do anything except pay them off.
On the other hand, your employee could earn you lots of extra money by helping your business grow. 
Depending on the work you want done, you may also have the opportunity to subcontract the work cheaper or at a comparable price than you can employ someone directly to do it


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## ClubMan (19 Feb 2007)

amgd28 said:


> Sorry to dwell on the downside


What downside? As an employee that all sounds good to me!


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## monkeyboy (19 Feb 2007)

You also have to add in costs of paid holiday and the inevitable sick leave.

yes add a % of your overheads as apportioned to the individual. 
more staff brings, to a point , your fixed over heads per head down.

ir rent of one office with one staff. two staff halves this o/h /head and so on. Where as other o/hs go up with extra staff ie elec, IT, possibly


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## dublinsense (27 Feb 2007)

Dont forget the crippling insurance costs that we have here in ireland.


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## Bob_tg (6 Mar 2007)

Usual ratio is wage x 1.2 to 1.4, depending on the overheads.


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## BrenG (6 Mar 2007)

In a start up business a couple of years ago we were advise to initially hire employees on a temporary/part time temporary full time basis. This gave us much more flexibility and employees were only paid per hour worked. Again we made a couple of mistakes and had to get rid of 2 of the employees after a couple of months. This created no problems. I'm not sure of how long this situation could be continued as I sold on share of business to partner during year 2.


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## z107 (6 Mar 2007)

Remember to add in compliance costs. (P30, P35, P60 returns as well as issuing payslips etc)
New reports are also coming on stream from the CSO this year.




> What downside? As an employee that all sounds good to me!



What happens when companies can no longer afford to hire people in Ireland?


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