Contractor rate equivalent to an employee
contractor_rate_equivalentUse this when the user asks what day or hour rate a contractor would need to cost the same as an employee in a country, or wants to set a contractor rate against the full cost of employment (e.g. "what daily rate equals an 80k employee in Germany?"). The employee's annual cost (gross salary plus statutory employer charges, plus an Employer of Record fee if the user gives one) is divided by working days, by default 260 weekdays minus the country's statutory paid leave and public holidays, both adjustable. Costs only: it does not say whether a contractor arrangement is lawful or how to classify a worker. Data snapshot 2026-10-22. Cost comparison, not legal or tax advice.
Input Schema
| Name | Required | Description | Default |
|---|---|---|---|
| salary | No | Gross salary, a year unless salary_period is "month". Omit to use the country's example salary. | |
| country | Yes | ISO 3166-1 alpha-2 code ("DE") or country name ("Germany") | |
| assumptions | No | Override an adjustable assumption the country declares, e.g. {"basic_share_of_gross": 0.6}. See `assumptions` in an employer_cost answer. | |
| working_days | No | Working days a year, replacing the default calculation | |
| hours_per_day | No | Hours per working day | |
| salary_period | No | Whether the salary is a year (default) or a month. Pass a monthly salary as the user gives it, with "month": the statutory number of monthly payments of the country (13th, 14th month) is applied, see salary_basis in the answer. | year |
| paid_leave_days | No | Paid leave days a year. Omit to use the country's statutory minimum. | |
| public_holidays | No | Public holidays falling on weekdays. Omit to use the number recorded for the country. | |
| salary_currency | No | Currency of `salary`: USD, or the local currency of the country | USD |
| eor_fee_usd_month | No | An EOR fee to add to the employee cost, in USD per employee per month, as the user gives it | |
| payments_per_year | No | With salary_period "month" only: the total number of monthly salaries the contract pays in a year, statutory ones included (e.g. 14). Omit to use the statutory number of the country. |
Output Schema
| Name | Required | Description | Default |
|---|---|---|---|
| meta | Yes | ||
| salary | Yes | ||
| caveats | Yes | ||
| country | Yes | ||
| summary | Yes | ||
| annual_cost | Yes | ||
| salary_basis | No | ||
| working_days | Yes | ||
| employer_cost | Yes | ||
| hours_per_day | Yes | ||
| equivalent_rate | Yes |