Employing someone on a £46,000 salary costs £53,343 per year (£4,445 per month) once you add employer NI at 15% and minimum auto-enrolment pension. That is £7,343 above the headline salary — a 16.0% uplift employers need to budget for before the first payslip.
£4,445 per month total employer cost.
£512 per month employer NI (£6,150 per year).
£7,343 per year above salary (16.0%).
| Item | Annual | Monthly |
|---|---|---|
| Salary | £46,000 | £3,833 |
| Employer NI (15% above £5,000) | £6,150 | £512 |
| Employer pension (3% minimum) | £1,193 | £99 |
| Total employer cost | £53,343 | £4,445 |
Employer NI for 2025/26 is charged at 15% on earnings above the £5,000 secondary threshold. The first £5,000 of salary is exempt.
| Earnings band | Rate | NI due |
|---|---|---|
| Up to £5,000 | 0% | £0 |
| £5,001 to £46,000 | 15% | £6,150 |
| Total NI (2025/26) | £6,150 |
Employment Allowance reduces the annual employer NI bill by up to £10,500 for eligible businesses and charities. Solo-director companies are excluded.
Without allowance: £6,150 employer NI per year.
With full £10,500 allowance applied: £0 NI due after offset.
From 6 April 2025, employer NI increased from 13.8% to 15% and the secondary threshold fell from £9,100 to £5,000. Both changes increase cost simultaneously — a higher rate applied to a wider NIable base.
2024/25 NI on this salary: £5,092 (13.8% above £9,100).
2025/26 NI on this salary: £6,150 (15% above £5,000).
Increase: £1,058 (20.8% more than 2024/25).
The figures above use 3% employer pension and no Employment Allowance. Use the full calculator to model different pension rates, overhead costs, and allowance scenarios.
Tax year 2025/26. Employer NI calculated at 15% on earnings above the £5,000 secondary threshold per HMRC rates and thresholds guidance. Auto-enrolment pension at employer minimum 3% on qualifying earnings between £6,240 and £50,270 per The Pensions Regulator guidance. Employment Allowance eligibility must be confirmed with HMRC or your accountant — this page shows both with and without scenarios. Overhead costs are excluded from this page — use the full calculator to include them.
Estimates only — not financial or legal advice. Sources: HMRC · The Pensions Regulator