Service Costs

CONCEPT CALCULATIONS INITIAL COSTS (IC) YEAR 1 EXPENSES YEAR 2 EXPENSES YEAR 3 EXPENSES YEAR 4 EXPENSES YEAR 5 EXPENSES
RECRUITMENT 50% of salary 40.000 €
INITIAL TRAINING 50% of salary 40.000 €
SALARY/YEAR 80.000 € 92.250 € 96.068 € 100.105 € 104.378 €
SALARY INCREASE/YEAR 3% 3% 3% 3%
BASE SALARY 5.357 € 5.518 € 5.683 € 5.854 € 6.030 €
BONUSES 1.0% of sales 5.000 € 15.000 € 16.500 € 18.150 € 19.965 €
EXTRA PAYMENTS Includes 2 extra payments per year 10.714 € 11.036 € 11.367 € 11.708 € 12.059 €
COMMON CONTINGENCIES 23.6% of gross salary 18.880 € 21.771 € 22.672 € 23.625 € 24.633 €
UNEMPLOYMENT 5.5% of gross salary 4.400 € 5.074 € 5.284 € 5.506 € 5.741 €
WAGE GUARANTEE FUND (FOGASA) 0.2% of gross salary 160 € 185 € 192 € 200 € 209 €
VOCATIONAL TRAINING 0.6% of gross salary 480 € 554 € 576 € 601 € 626 €
EXTRA PAYROLL COSTS 23.920 € 27.583 € 28.724 € 29.931 € 31.209 €
COMPANY CAR 12 × lease 500 € 6.000 € 6.000 € 6.000 € 6.000 € 6.000 €
MOBILE 12 months × 100 € 1.200 € 1.236 € 1.273 € 1.311 € 1.351 €
OFFICE RENT 20 m² × 25 € 500 € 515 € 530 € 546 € 563 €
EQUIPMENT, DESK AND PC 7,500 € / 5 years 1.551 € 1.551 € 1.551 € 1.551 € 1.551 €
AMORTIZATION OF IC 80,000 € / 5 years 14.890 € 14.890 € 14.890 € 14.890 € 14.890 €
PRIVATE HEALTH INSURANCE If the company offers private health insurance.
PENSION PLAN Additional contributions to private pension plans.
OTHER BENEFITS May include meal vouchers, transport, childcare, etc.
ADMINISTRATIVE COSTS Include payroll management, insurance and other administrative expenses.
FIXED COSTS 80.000 € 128.061 € 144.025 € 149.036 € 154.334 € 159.941 €
ANNUAL WORKING HOURS AND COST/H 1.776h 72,11h 81,09h 83,92h 86,90h 90,06h
SEVERANCE PAY (IPD) 33 days of salary/year, maximum 24 monthly payments. 21.409 € 44.308 € 68.825 € 95.100 €
FIXED COSTS W/ IPD 165.434 € 193.344 € 223.159 € 255.042 €
ANNUAL WORKING HOURS AND COST/H W/ IPD 1.776h 93,15 € 108,86 € 125,65 € 143,60 €
ANNUAL SALES 1.500.000 € 1.650.000 € 1.815.000 € 1.996.500 €
FIXED COSTS AS A SHARE OF SALES Assumes a major ~3× jump in year 2, then about 10%/year 26% 11,03% 11,72% 12,30% 12,77%

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