A new report from trusted global employment and payroll platform Boundless has confirmed that the United Kingdom and Ireland offer some of the most competitive employment cost structures in Europe, especially for companies seeking to access highly skilled talent without incurring the high overheads seen across much of continental Europe.
The annual Boundless 2025 report covers 36 European countries, including both EU and non-EU nations, offers a richer, comprehensive view analysing employment costs, net pay, and cost efficiency across diverse economies. It analyses what employers actually pay beyond gross salary, what employees take home after tax, and how efficiently employer spend translates into net pay across three salary levels (€32k, €60k, €150k).
By comparing cost-to-net pay ratios, tax burden splits, and local purchasing power, the report equips HR and finance leaders with actionable insights to optimise global hiring strategies in an increasingly borderless workforce. The insights come amidst global geopolitical uncertainty in 2025 in regards to US tariffs with many companies trying to assess how to expand their workforce in the world’s largest market in Europe.
On the report Boundless CEO and cofounder Dee Coakley said, “Too often, companies fixate on gross salary without understanding the true cost of employment or what their people actually take home. This report is a wake-up call — smart hiring means looking beneath the surface. In today’s global talent market, knowing where your money goes is a strategic advantage.”
UK and Ireland Combine Low Employer Costs with Strong Net Pay – A Rare Strategic Advantage
According to the 2025 Boundless Annual Understanding Employment Costs both the UK (€66,643) and Ireland (€66,690) sit well below the European average for total employment costs at the €60,000 salary level. Despite being major global hubs in finance, technology, and innovation, their employer-side contributions remain remarkably affordable.
In tandem, net pay for employees remains high: UK workers retain €46,245, while Irish professionals net €43,420 — significantly more than their peers in Germany (€39,679), France (€39,500), or Italy (€36,405). This dual efficiency presents a rare opportunity for businesses: attract top-tier talent while maintaining lean operational budgets.
UK and Ireland Outperform France, Germany and Italy on Cost Efficiency and Take-Home Pay
The Boundless report compares the Cost-to-Net Pay Ratio across Europe — a critical indicator of how efficiently employer spend translates to employee compensation. The UK boasts a leading cost-to-net pay ratio of just 1.44, meaning for every €1 an employee takes home, the employer spends only €1.44. By comparison, employers in France (2.41) and Italy (2.43) must spend more than €2.40 to deliver the same €1 in net pay — a result of significantly higher mandatory contributions and much lower employee take-home pay.
Remote-Ready, Talent-Rich and Financially Sound – Ireland and UK Shine in Post-Brexit Europe
With the continued rise of distributed workforces and global hiring, the Boundless data reinforces the strategic positioning of the UK and Ireland. Both nations offer robust digital infrastructure, large English-speaking talent pools, and now, clear financial advantages in terms of employment cost predictability and employee satisfaction.
As businesses grapple with inflationary pressures and a competitive hiring landscape, HR leaders are urged to reassess employment footprints through a cost-and-value lens. This latest research positions the UK and Ireland not only as cultural and commercial centres but as cost-efficient gateways to European talent.
Other Insights From The Report:
United Kingdom and Ireland offer rare cost-to-talent efficiency
The UK (€66,643) and Ireland (€66,690) combine low employer contributions with high net pay (€46,245 and €43,420 respectively).
“This dual efficiency presents a rare opportunity: attract top-tier talent while maintaining lean operational budgets.”
France and Italy are the costliest places to hire in Europe
With employment costs reaching €95,303 and €88,326, and cost-to-net pay ratios above 2.4, these markets are expensive at all salary levels.
“For every euro an employee takes home in France or Italy, employers spend more than €2.40 – the highest ratios in our study.”
Denmark breaks the Nordic mould with ultra-low employer costs
Employers pay just €61,628 in total costs for a €60,000 salary — among the lowest in Europe.
“Despite its reputation for high taxes, Denmark shifts the burden to employees — making it a surprise win for employer-side efficiency.”
Switzerland delivers premium salaries with moderate overhead
Despite a high cost of living, net pay remains strong (€50,900), and employer contributions are lean relative to peers.
“Even in one of the world’s most expensive countries, the Swiss system is remarkably efficient in terms of what employers pay versus what employees keep.”
Malta is a remote-ready, cost-efficient Mediterranean hub
With employer costs of just €62,691 and net pay of €45,600, Malta’s structure is highly attractive to distributed teams.
“Malta’s affordability and Mediterranean appeal make it a magnet for remote-first companies building distributed teams.”
Eastern Europe delivers rock-bottom costs and growing talent
Romania (€61,357), Lithuania (€62,346), and Albania (€63,580) offer exceptionally low employment costs for employers expanding nearshore.
“These countries enable global businesses to access skilled talent at a fraction of the cost seen in Western Europe.”
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