Employer Cost Calculator
What a hire really costs.
The full cost of employing someone in the UK for the 2026/27 tax year: salary, employer National Insurance and workplace pension, less Employment Allowance if your business can claim it. Annual and monthly figures with every line shown. Nothing leaves your browser.
Want the employee's side? See their take-home pay.
Compare
Common
salaries
One employee, 3% employer pension on qualifying earnings. Before Employment Allowance and without salary sacrifice.
| Salary | Employer NI | Employer pension | Total a year | A month | Above salary |
|---|---|---|---|---|---|
| £25,000 | £3,000 | £563 | £28,563 | £2,380 | +14.3% |
| £30,000 | £3,750 | £713 | £34,463 | £2,872 | +14.9% |
| £40,000 | £5,250 | £1,013 | £46,263 | £3,855 | +15.7% |
| £50,000 | £6,750 | £1,313 | £58,063 | £4,839 | +16.1% |
| £75,000 | £10,500 | £1,321 | £86,821 | £7,235 | +15.8% |
Sources
Rates
used
Tax year 2026/27, 6 April 2026 to 5 April 2027. Each figure was checked against GOV.UK on 27 October 2026. Figures are annual; payroll works per pay period, so payslips can differ by a few pence.
- Employer Class 1 National Insurance15% above the Secondary Thresholdgov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
- Secondary Threshold£5,000 a year (£417 a month, £96 a week)gov.uk/government/publications/rates-and-allowances-national-insurance-contributions/rates-and-allowances-national-insurance-contributions
- Under-21 / apprentice-under-25 upper threshold£50,270 a year (0% employer NI below it)gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
- Employment AllowanceUp to £10,500 per employer per tax yeargov.uk/claim-employment-allowance
- Employment Allowance eligibilitySingle-director, connected-company and public-sector rulesgov.uk/claim-employment-allowance/eligibility
- Auto-enrolment qualifying earnings£6,240 to £50,270; earnings trigger £10,000gov.uk/government/publications/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-202627/review-of-the-automatic-enrolment-earnings-trigger-and-qualifying-earnings-band-for-202627
- Auto-enrolment minimum employer contribution3% of qualifying earnings (8% total)gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay
- Apprenticeship Levy0.5% of pay bill, less a £15,000 allowancegov.uk/guidance/pay-apprenticeship-levy
- Salary sacrificeCash pay must not fall below the National Minimum Wagegov.uk/guidance/salary-sacrifice-and-the-effects-on-paye
FAQ
Common
questions
How the 2026/27 employer costs are worked out. General information, not financial advice. Benefits in kind, bonuses, holiday cover and recruitment costs are not included.
- Q1
How much does it cost to employ someone on £30,000?
About £34,463 a year, or £2,872 a month, in 2026/27. That is the £30,000 salary plus £3,750 employer National Insurance (15% of the £25,000 above the £5,000 Secondary Threshold) and £713 minimum auto-enrolment pension (3% of the £23,760 between £6,240 and £30,000). The total is 14.9% above salary, before any Employment Allowance.
- Q2
What is the employer National Insurance rate for 2026/27?
15% on earnings above the Secondary Threshold of £5,000 a year (£417 a month, £96 a week). For employees under 21, and apprentices under 25, the employer rate is 0% on earnings up to £50,270 a year and 15% above that.
- Q3
How does Employment Allowance work?
It takes up to £10,500 off your employer Class 1 National Insurance bill each tax year. The £10,500 is per business, not per employee, and it is set against employer NI each payroll run until it is used up. Two employees on £30,000 create £7,500 of employer NI, which the allowance covers in full. You can't claim if your only employee paid above the Secondary Threshold is a sole director, and only one company in a connected group can claim.
- Q4
How much pension does an employer have to pay?
At least 3% of qualifying earnings for staff enrolled under automatic enrolment, with 8% in total once the employee's share is added. For 2026/27 qualifying earnings are pay between £6,240 and £50,270, and staff earning over £10,000 a year must be enrolled automatically (age rules also apply). Many employers pay on full salary instead; switch the setting to see the difference.
- Q5
Does salary sacrifice save the employer money?
Yes, when the sacrifice goes into a pension or another benefit that stays outside National Insurance. Pay subject to NI falls, so each £1,000 sacrificed saves £150 of employer NI while pay stays above £5,000. The sacrificed amount is still a cost to you, because it is paid into the pension or benefit. Cash pay after the sacrifice must not fall below the National Minimum Wage.
- Q6
Do small businesses pay the Apprenticeship Levy?
No. The levy is 0.5% of your annual pay bill less a £15,000 allowance, so it only costs anything once the pay bill passes £3 million. Connected companies share one allowance. The calculator flags it if the salaries you enter go over £3 million.
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