What supergross is
Supergross is the employer’s full monthly cost of one employee: gross salary plus three insurance contributions paid at the employer’s own expense. They are not deducted from the salary and do not change take-home pay. The difference between gross and net has its own page.
The calculator covers the monthly salary only. Bonuses, sick pay, holiday pay and other payments are not in the model.
From the employee’s pay per month, ₼
Employer cost per month, ₼
What the employer pays in the private sector
- State social insurance (Article 14.4 of the Law on Social Insurance): 22% on the first 200 ₼, 15% on the part from 200 ₼ to 8,000 ₼ (44 ₼ + 15% of the part above 200 ₼), 11% on the part above 8,000 ₼.
- Compulsory medical insurance: 2% on the part up to 2,500 ₼, 0.5% on the part above.
- Unemployment insurance: 0.5% of the payroll fund.
| Deduction | Private, non-oil | State and oil and gas |
|---|---|---|
| Social insurance | up to 200 ₼: 22%; 200 ₼ to 8,000 ₼: 44 ₼ + 15% of the part above 200 ₼; above 8,000 ₼: 1,214 ₼ + 11% of the part above 8,000 ₼ | 22% |
| Unemployment insurance | 0.5% | 0.5% |
| Medical insurance | up to 2,500 ₼: 2% of this part; above 2,500 ₼: 0.5% of this part | up to 8,000 ₼: 2% of this part; above 8,000 ₼: 0.5% of this part |
How the state and oil-and-gas sector differs
In the state and oil-and-gas sector the employer pays a flat 22% for social insurance (Article 14.3), and medical insurance is 2% on the part up to 8,000 ₼ and 0.5% above. The same 1,000 ₼ gross costs the employer 1,245.00 ₼ here and 1,189.00 ₼ in the private sector.
These criteria decide which sector an employer belongs to:
Which sector is my employer in?
- State: public legal entities set up by the state, budget organisations, bodies funded from the state budget or state funds, and companies in which the state directly or indirectly owns 51% or more.
- Oil and gas: SOCAR and the companies in its group, contractors and operating companies under production-sharing and main pipeline agreements, and their subcontractors that earned more than 50% of last year's revenue from them.
- Private non-oil: every other company and individual taxpayer.
The first two groups share one scale: choose “State and oil & gas” in the calculator. The criteria are set by Cabinet of Ministers Decision No 56 of 18 February 2019. Text of the decision
The share on top of gross changes with pay
In the private sector the share on top of gross falls as pay rises: 21% at 400 ₼, 18.9% at 1,000 ₼, 17% at 5,000 ₼, 15.7% at 10,000 ₼. The cause is the banded rates: social insurance drops on the part above 8,000 ₼, and medical insurance falls from 2% to 0.5% on the part above 2,500 ₼.
In the state and oil-and-gas sector the share is nearly constant: 24.5% at 1,000 ₼.
| Gross salary | Employer's contributions | Full cost | On top of gross |
|---|---|---|---|
| 500.00 ₼ | 101.50 ₼ | 601.50 ₼ | 20.3% |
| 1,000.00 ₼ | 189.00 ₼ | 1,189.00 ₼ | 18.9% |
| 2,500.00 ₼ | 451.50 ₼ | 2,951.50 ₼ | 18.1% |
| 5,000.00 ₼ | 851.50 ₼ | 5,851.50 ₼ | 17% |
| 10,000.00 ₼ | 1,571.50 ₼ | 11,571.50 ₼ | 15.7% |
The employer’s cost keeps rising across the 2,500 ₼ threshold, while the employee’s take-home pay falls at that point. See the 2,500 ₼ threshold.
When the contributions are paid
Social insurance is calculated per month and paid with the salary, no later than the 15th of the following month (Article 14.6 of the Law on Social Insurance). Unemployment insurance is paid with the salary within the same time (Article 10.3 of the Law on Unemployment Insurance).
Employers operating in the territories freed from occupation get part of the employer’s social insurance refunded from the state budget after reporting. The calculator does not include it.
Questions and answers
What does supergross mean?
Gross salary plus the insurance contributions the employer pays on top of it. At a gross salary of 1,000 ₼ in the private sector it is 1,189.00 ₼.
How much more than the salary does the employer pay?
In the private sector, 18.9% more at 1,000 ₼ and 17% more at 5,000 ₼. In the state and oil-and-gas sector, 24.5% more at 1,000 ₼.
How do I find the employer’s cost from a take-home figure?
First find gross from net, then add the employer’s contributions. The net-to-gross calculator shows both.