Total employer cost calculator
Budgeting a vacancy? Enter the gross salary and see the employer National Insurance, pension and benefits on top, per month and per year.
- The figures behind it · Employer National Insurance
- 15 % above £5,000
- Auto-enrolment pension (employer)
- 3 %
- Employment Allowance
- £10,500 a year
What sits on top of the gross
The payslip shows the employee's deductions; the employer pays more again.
- Employer National Insurance
- 15 % of all earnings above the £5,000 secondary threshold in 2026/27. Small employers can offset up to £10,500 a year through the Employment Allowance.
- Pension and benefits
- The 3 % auto-enrolment minimum on qualifying earnings, plus whatever the contract adds: private medical, bonuses, car. Enter the total as a percentage.
- Not included
- Apprenticeship Levy (0.5 % above a £3 million pay bill), recruitment, equipment and training. Use the cost per hire calculator for the hiring side.
HMRC: rates and thresholds for employers 2026 to 2027
Rule set 2026/27, last checked on October 12, 2026.
The result is an estimate based on the statutory rules. Your contract, collective agreement or tax code may change the figures. It is not tax or legal advice.
Frequently asked questions
How much does a £30,000 employee cost?
- About £33,750 a year before pension: £30,000 salary plus £3,750 employer National Insurance (15 % of £25,000). With 3 % pension on the whole salary, as the calculator applies it, about £34,650; on qualifying earnings only it would be £34,470.
Is holiday pay an extra cost?
- For salaried staff it is inside the gross salary. For hourly workers budget 12.07 % on top of worked hours, which is the statutory 5.6 weeks of leave.
Does the Employment Allowance apply to me?
- Most employers can, since the £100,000 limit on the previous year's employer NI was removed in April 2025; the main exclusion is a company whose only employee paid above the threshold is also a director. It reduces the yearly employer NI by up to £10,500. The calculator shows the cost before the allowance.
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