Calculator intent

Employer cost calculator UK

This employer cost calculator UK page is designed for salary budgeting, offer approvals and headcount planning. It focuses on practical employer-side payroll cost rather than employee take-home pay.

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

Run employer cost calculation 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

How is employer NI handled in this calculator?
Employer NI is calculated at 15% on earnings above £5,000 for 2025/26, with optional Employment Allowance offset where selected.
Does this include pension cost?
Yes. Minimum employer pension is modelled at 3% of qualifying earnings (£6,240 to £50,270), with adjustable contribution rate input.

UK coverage only. Last reviewed: 05 April 2026. Estimates use 2025/26 assumptions and are for planning, not legal or tax advice.