Glossary · Costs

Fully loaded cost

Fully loaded cost is the total an employer pays for a worker, not just the salary. It adds payroll taxes, paid leave, health insurance, retirement contributions, and other benefits, and sometimes equipment, software, and office space. Comparing fully loaded costs is the only fair way to compare hiring options.

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What it means in practice

In the U.S., the Bureau of Labor Statistics publishes what private employers spend on wages and on benefits per hour worked. Our salary calculator uses those figures to turn a BLS median salary into a fully loaded annual cost for 13 roles.

On the offshore side, compare that figure with the full monthly price of the hire, not a base wage. Rekruuto's price is one flat monthly figure: $1,800 a month for most roles, with recruiting, vetting, and pay included.

Recruiting fees, management time, and turnover are real costs too. A trial period and a replacement promise limit the cost of a wrong hire.

  • Employer cost multiplier

    An employer cost multiplier is the ratio of total compensation to wages: how many dollars an employer spends for each dollar of pay once benefits and payroll taxes are added.

  • Labor arbitrage

    Labor arbitrage is the cost advantage a company gains by having work done where wages and living costs are lower, while selling in a higher-cost market.

  • Direct hire

    A direct hire is a person your company employs itself, on its own payroll, from the first day.

  • 13th-month pay

    13th-month pay is a mandatory annual benefit in the Philippines, equal to at least one-twelfth of an employee's basic salary earned during the calendar year.

Read next

Hire a full-time professional from the Philippines

Every Rekruuto hire is a full-time professional based in the Philippines who works your hours. Most roles are $1,800 a month, software developers start at $2,500 a month, and an AI Implementation Specialist is $2,500 a month. Candidates pass top 2% vetting, hiring takes 14 days, and every hire starts with a 1-week trial with a replacement or refund.

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