Free tool · 2026/27 rates
UK employer cost calculator
Work out what an employee really costs: salary plus employer National Insurance, workplace pension and any benefits, using the rates for the tax year from 6 April 2026.
Total cost to employer
£52,163
£7,163 on top of salary (15.9% of salary)
- Gross salary
- £45,000
- Employer National Insurance
- £6,000
- Employer pension contribution
- £1,163
- Employer NI: 15% of salary above £5,000 a year.
- Rates for the 2026/27 tax year (category A employee, England, Wales and Northern Ireland pay). Guidance only, not a quote.
How it works
What the calculator includes
| Cost | 2026/27 rule | Source |
|---|---|---|
| Employer National Insurance | 15% of earnings above £5,000 a year (£417 a month) | GOV.UK rates and thresholds |
| Employment Allowance | Up to £10,500 a year off your total employer NI bill, if eligible | GOV.UK |
| Workplace pension | At least 3% employer contribution on qualifying earnings between £6,240 and £50,270, for staff earning over £10,000 | The Pensions Regulator |
| National Living Wage | £12.71 an hour for workers aged 21 and over, from 1 April 2026 | GOV.UK |
The calculator assumes a category A employee (most employees over 21), paid evenly through the year. It doesn't include the Apprenticeship Levy (only for pay bills over £3 million), employer's liability insurance, recruitment costs or statutory payments such as sick pay, which vary by situation. Some employers get NI relief for workers under 21, apprentices under 25 and certain veterans; see employer National Insurance for 2026/27.
Employment Allowance applies once to your whole payroll, not per employee. If you hire through our employer of record service, the employer costs are ours to pay, and we recharge them transparently on your invoice.
FAQ
Employer cost FAQs
How much does an employee cost on top of salary in the UK?
At minimum, employer National Insurance of 15% on earnings above £5,000 a year and a 3% employer pension contribution on qualifying earnings. On a £30,000 salary that's £3,750 NI and £712.80 pension, so £34,462.80 in total before any benefits.
What is the employer NI rate for 2026/27?
15% on earnings above the secondary threshold of £5,000 a year (£96 a week, £417 a month), for category A employees.
Do I have to pay pension contributions for every employee?
You must automatically enrol workers aged 22 to State Pension age who earn over £10,000 a year and pay at least 3% of their qualifying earnings. Others can ask to join. See auto-enrolment duties.
Is this calculator a quote?
No. It's a guide to statutory employer costs. For an employer of record or payroll quote, contact us.