Care sector
Cost of employing care workers UK (2026/27)
Care workers in England, Scotland, Wales and Northern Ireland are predominantly paid between the National Living Wage and approximately £14–£15 per hour. In 2026/27, employer NI applies at 15% on all earnings above £5,000 — and with care roles typically earning £22,000–£28,000 per year, a larger share of salary falls in the NIable band than before the April 2025 threshold change. At £25,000 salary, employer NI is £3,000 per year and minimum pension is approximately £563, giving a total employer cost of approximately £28,563 before any overheads. For domiciliary care providers with large numbers of part-time workers, NI applies on each employee individually — hours are not pooled.
UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2026/27 tax year.
Sample total cost
£28,563
£2,380 per month on £25,000 salary
Employer NI
£3,000
15% above £5,000 secondary threshold (2026/27)
Pension + overheads
£563
Baseline employer pension plus configured overheads
Key assumptions — UK 2026/27
Employer NI: 15% on earnings above the £5,000 secondary threshold
Employer pension: minimum 3% on qualifying earnings £6,240–£50,270
Employment Allowance: up to £10,500 off the NI bill for eligible employers
Worked examples: £30k salary → £34,464/yr · £35k → £40,363/yr · £50k → £58,063/yr
What this page helps you check
- Care assistant / support worker: typically £24,785–£26,000 (NLW to experienced level).
- Senior care worker / team leader: £26,000–£32,000.
- Care coordinator / registered manager: £28,000–£45,000.
- Employer NI on £25,000: approximately £3,000/year (15% above £5,000).
- Minimum pension on £25,000: approximately £563/year (3% of qualifying earnings).
- NI threshold is NOT pro-rated for part-time hours — applies in full per employee.
UK assumptions used
Employer NI
15% above £5,000 secondary threshold for 2026/27.
Auto-enrolment pension
Minimum employer contribution 3% on qualifying earnings.
Employment Allowance
Up to £10,500 relief in 2026/27 for eligible employers.
Frequently asked questions
Does the employer NI threshold apply per employee or per organisation?
The £5,000 secondary threshold applies per employee, individually. A domiciliary care provider with 20 part-time workers cannot pool their hours or earnings to benefit from a single threshold — each worker's NI is calculated individually. This means even low-hour part-time care workers generate employer NI once their annual pay exceeds £5,000.
How much does a care worker cost an employer per year?
A care assistant earning £25,000 costs an employer approximately £28,563 per year before overheads — £25,000 salary, approximately £3,000 employer NI and approximately £563 minimum pension. With mileage, training and coordination costs typical in domiciliary care, total per-employee cost is often £30,000–£32,000 per year.
Is Employment Allowance available to care providers?
Most care employers with more than one employee qualify for Employment Allowance, which offsets up to £10,500 of annual employer NI in 2026/27. For smaller domiciliary care businesses with three to five employees, this can significantly reduce net NI payable. Single-director companies with no other employees cannot claim.
UK coverage only. Last reviewed: 18 August 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.
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