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.

Use the live tools

Calculate healthcare employer cost Cost of hiring a nurse 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

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