Healthcare sector
Cost of employing healthcare workers UK (2026/27)
Healthcare employers face above-average pension costs through the NHS Pension Scheme, where employer contributions are approximately 23.7% of pensionable pay. For a Band 5 nurse at £35,000, employer pension adds approximately £8,295 per year — compared with £873 under auto-enrolment. Private healthcare employers using auto-enrolment have lower statutory pension costs but typically pay above NHS rates to compete for staff. At £38,000, the total NHS employer cost including NI (£4,950) and NHS pension (£9,006) is approximately £51,956 per year.
UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2026/27 tax year.
Sample total cost
£43,903
£3,659 per month on £38,000 salary
Employer NI
£4,950
15% above £5,000 secondary threshold (2026/27)
Pension + overheads
£953
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
- Band 2 (HCA, porter): £23,615–£25,674. NHS pension adds ~£5,597–£6,085/yr.
- Band 3 (senior HCA, admin): £24,071–£25,674.
- Band 5 (RN, ODP, radiographer): £29,970–£36,483. NHS pension adds ~£7,103–£8,646.
- Band 6 (specialist): £37,338–£44,962. NHS pension adds ~£8,849–£10,656.
- Private sector: typically auto-enrolment (3%) with market premium on salary.
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
What is the NHS Pension Scheme employer contribution rate?
From 2023/24, the NHS Pension Scheme employer contribution rate is 23.7% of pensionable pay. This compares to the auto-enrolment minimum of 3% on qualifying earnings. For a Band 5 nurse at £33,000, the employer NHS pension cost is approximately £7,821 per year — roughly 9× the auto-enrolment minimum. This is the single biggest above-salary cost for NHS employers and must be included in any accurate headcount budget.
Do private healthcare employers pay NHS pension rates?
Only NHS employers and bodies with NHS contracts participate in the NHS Pension Scheme. Private healthcare employers use auto-enrolment at a minimum employer contribution of 3% on qualifying earnings (£6,240–£50,270). This reduces statutory pension cost significantly but private sector employers usually pay market salaries above NHS pay scales to attract clinical staff.
UK coverage only. Last reviewed: 05 July 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.
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