Education sector

Cost of employing education staff UK (2026/27)

Education sector employers face higher-than-average pension costs because most staff in state schools belong to the Teachers' Pension Scheme (employer contribution ~28.6%) or the Local Government Pension Scheme (employer contribution typically 18–23%), not the auto-enrolment 3% minimum. A teacher on £40,000 generates an employer pension contribution of approximately £11,440 per year under TPS — compared with £1,013 under auto-enrolment. For support staff and TAs on LGPS, the pension cost is also significantly above the statutory minimum.

UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2026/27 tax year.

Sample total cost

£40,363

£3,364 per month on £35,000 salary

Employer NI

£4,500

15% above £5,000 secondary threshold (2026/27)

Pension + overheads

£863

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

Teachers (MPS): £31,650–£43,607. TPS employer pension ~28.6% adds £9,050–£12,472/yr.
Teaching assistants (LGPS): £19,000–£28,000. LGPS employer contribution adds ~20% above salary.
School business managers: £28,000–£45,000. LGPS or auto-enrolment depending on contract.
Independent school staff may use auto-enrolment — lower pension cost but market salaries often higher.
Employer NI on all roles: 15% above £5,000 threshold.

Use the live tools

Calculate teacher employer cost Cost of hiring a teaching assistant Cost of employing by salary Employer NI by salary Auto-enrolment pension calculator

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.

Official UK references

HMRC rates and thresholds Employment Allowance Pensions Regulator guidance Our methodology Our source list

Frequently asked questions

How much does it cost to employ a teacher including pension?

A teacher on the Main Pay Scale midpoint of £40,000 costs approximately £51,440–£53,000 per year as an employer — salary plus employer NI of £5,250 plus TPS pension contribution of approximately £11,440 (28.6%). This is substantially higher than the auto-enrolment minimum of £1,013. Independent schools using auto-enrolment have lower pension costs but typically pay market salaries above the national pay scales.

Do teaching assistants belong to a pension scheme?

Most teaching assistants employed by state schools or local authorities are eligible for the Local Government Pension Scheme (LGPS). Employer contribution rates are set locally but typically range from 18% to 23% of salary. For a TA on £22,000, this adds approximately £3,960–£5,060 per year in pension costs above the standard auto-enrolment minimum of approximately £478.

UK coverage only. Last reviewed: 06 April 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.