UK employer costs · 2026/27

Cost of hiring someone UK (2026/27)

Browse employer costs by job role, industry sector, hours worked or scenario. Every page uses 2026/27 employer NI rates (15% above £5,000), minimum auto-enrolment pension (3%) and current National Living Wage figures (£12.71/hr). Use the full calculator to model any specific situation.

Cost of hiring by job role

Cost of employing by industry sector

Logistics & transport

£22k–£45k →

Cost of employing by hours worked (at NLW)

16 hrs/wk · NLW ≈ £10,158/yr 20 hrs/wk · NLW ≈ £12,698/yr 24 hrs/wk · NLW ≈ £15,237/yr 30 hrs/wk · NLW ≈ £19,046/yr 37.5 hrs/wk (full-time) · NLW ≈ £24,785/yr 40 hrs/wk · NLW ≈ £25,397/yr

Employment scenario comparisons

Contractor vs employee

Day-rate vs PAYE total cost comparison

Full-time vs part-time

NI threshold effect on hours split

Sole director NI

No Employment Allowance — optimal salary

First employee cost

What hiring your first person actually costs

Minimum wage employer cost

NLW total cost including NI and pension

Cost by salary or hourly rate

Cost by annual salary Cost at NLW (£12.71/hr) Cost at £13/hr Cost at £15/hr Cost at £20/hr Employer NI by salary

Payroll software

Once costs are modelled, you will need payroll software to run the actual pay.

Xero Payroll →QuickBooks Payroll →Sage Payroll →Employment Hero → Compare payroll software

UK only. 2026/27 rates. All figures are estimates for planning. Methodology.

Written and reviewed by James Whitfield and the editorial team.

Every figure is checked against current HMRC and GOV.UK guidance and reviewed for the 2026/27 tax year. We explain the numbers in plain English with worked examples. Editorial standards · About us