What is total cost of employment (TCE)?

The total cost of employment (TCE) is the sum of the gross salary of the employee, plus employer related tax obligations, statutory contributions, and other optional costs (eg., Private Healthcare plans).

For example, in Portugal, besides paying 23.75% of the gross salary to social security along with other mandatory contributions, employers also need to provide labour accident insurance, bi-annual work medicine appointments, and 40 hours of training per year for full-time employees with open-ended contracts. All these elements, plus the gross salary, make up TCE for employees in Portugal.