Full-time · 40 hrs/wk

Cost of employing someone 40 hours a week (2025/26)

At 40 hours per week on the National Living Wage (£12.21/hour), annual salary is approximately £25,397. Employer NI on £20,397 above the secondary threshold adds approximately £3,060 per year. Minimum pension on qualifying earnings adds approximately £576 per year. Total statutory employer cost: approximately £29,033 per year — around 14.3% above the headline wage.

UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2025/26 tax year.

Sample total cost

£29,031

£2,419 per month on £25,397 salary

Employer NI

£3,060

15% above £5,000 secondary threshold (2025/26)

Pension + overheads

£575

Baseline employer pension plus configured overheads

Key assumptions — UK 2025/26

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

Hours per week: 40 hrs (approximately 2,080 hours per year).
Annual salary at NLW (£12.21/hr): approximately £25,397.
Employer NI (15% above £5,000): approximately £3,060/year.
Minimum employer pension (3% qualifying earnings): approximately £575/year.
Total statutory employer cost: approximately £29,032/year before overheads.
The employer NI secondary threshold (£5,000/year) is not pro-rated — it applies in full regardless of contracted hours.

Use the live tools

Calculate exact employer cost Part-time employee cost overview 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 2025/26.

Auto-enrolment pension

Minimum employer contribution 3% on qualifying earnings.

Employment Allowance

Up to £10,500 relief in 2025/26 for eligible employers.

Official UK references

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

Frequently asked questions

Do employers pay NI on 40-hour part-time workers?

Yes, if annual earnings exceed the £5,000 secondary threshold. At 40 hours per week on the National Living Wage, annual salary is approximately £25,397, which is above the threshold. Employer NI at 15% applies on earnings above £5,000, regardless of whether the employee is part-time or full-time. The threshold is not pro-rated for contracted hours.

Does auto-enrolment apply to part-time employees?

Auto-enrolment triggers when a worker earns more than £10,000 per year and is aged 22–66. Part-time workers earning below £10,000 per year do not need to be automatically enrolled but can opt in, in which case the employer must still make contributions. Workers earning between £6,240 and £10,000 can opt in and the employer must contribute at the minimum rate on qualifying earnings.

Is it cheaper to employ someone part-time than full-time per hour?

The gross wage cost per hour is identical for part-time and full-time staff on the same hourly rate. However, the employer NI secondary threshold (£5,000/year) is not reduced for part-time hours. This means the NI cost as a percentage of gross salary is higher for lower-paid part-time workers than for higher-earning full-time staff. For very low-hour workers earning below £5,000/year, there is no employer NI at all.

What is the National Living Wage from April 2025?

The National Living Wage for workers aged 21 and over is £12.21 per hour from April 2025, rising from £11.44 per hour in 2024/25. The National Minimum Wage for workers aged 18–20 is £10.00 per hour.

UK coverage only. Last reviewed: 04 April 2026. Estimates use 2025/26 assumptions and are for planning, not legal or tax advice.