What is the conversion factor?

What is the conversion factor? This article describes how to process the conversion factor in L1NDA.

It is highly important to fill out all contract data correctly in L1NDA. It requires a start- and enddate, amount of hours, days, salary and the conversion factor. This article explains what the conversion factor actually is.

The conversion factor is the most common factor used to calculate the total costs of an employee.

The following sum is used: conversion factor x salary before tax = total employer costs.

The conversion factor consists of: 

  • Salary before tax

  • Reserves for holidays, public holidays, temporary (short) leave etc. 

  • 'Werkgeverslasten' such as social contributions, pension etc. 

  • CAO contributions 

  • Other costs such as Arbo, transition compensations. 

The conversion factor is slightly different for each company. Please contact your accountant in order to ensure you're using the correct conversion factor!

This article explains how you can edit a contract. 

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