Employee cost

Employee cost calculator UK (2025/26)

The true cost of an employee is not just their salary. UK employers must also pay employer NI — 15% on earnings above the £5,000 secondary threshold from April 2025 — plus a minimum 3% pension contribution under auto-enrolment. This employee cost calculator models those three components for any salary and shows monthly and annual totals. For total workforce cost planning, include per-employee overhead assumptions.

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

Sample total cost

£43,363

£3,614 per month on £35,000 salary

Employer NI

£4,500

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

Pension + overheads

£3,863

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

Use the live tools

Calculate true cost per employee 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

What is the true cost of an employee UK?
The statutory minimum cost of an employee in the UK is salary plus employer NI (15% above £5,000 for 2025/26) plus minimum employer pension (3% of qualifying earnings). A £35,000 employee costs approximately £40,363/year before overheads.
How much does an employee cost on top of their salary in the UK?
Typically 15–20% above gross salary. At £30,000: roughly £4,464 extra in NI and pension. At £50,000: roughly £8,063 extra. Overheads (equipment, software, workspace) add a further £2,000–£5,000 for most roles.
Does this include employer pension costs?
Yes. The calculator includes minimum employer pension at 3% of qualifying earnings (£6,240 to £50,270 band). You can adjust the pension rate to match your actual employer contribution policy.

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