Cost per employee

Employer cost per employee UK (2025/26)

The employer cost per employee in the UK is always higher than the headline salary. At the UK median full-time salary of approximately £37,430 (ONS ASHE 2024), an employer pays around £4,864 in employer NI (15% above the £5,000 secondary threshold) and £942 in minimum pension (3% on qualifying earnings), bringing the statutory cost per employee to approximately £43,236 per year. This page shows cost per employee at common UK salary levels so you can benchmark and plan headcount budgets for 2025/26.

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

UK median full-time salary 2024/25: approximately £37,430 (ONS ASHE 2024).
Employer NI on £37,430: approximately £4,864/year at 15% above £5,000.
Employer pension on £37,430: approximately £942/year at 3% of qualifying earnings.
Total statutory employer cost at median salary: approximately £43,236/year.
Employment Allowance can offset up to £10,500 NI for eligible smaller employers.

Use the live tools

Calculate employer 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 average employer cost per employee in the UK?

At the UK median full-time salary of approximately £37,430 (ONS ASHE 2024), the total employer cost per employee is approximately £43,236 per year — £37,430 salary plus £4,864 employer NI and £942 employer pension. Adding typical workplace overheads of £3,000 per employee brings the figure to approximately £46,236.

How much does employer NI cost per employee in 2025/26?

Employer NI per employee depends on salary. At £25,000 it is £3,000/year. At £35,000 it is £4,500/year. At £50,000 it is £6,750/year. The rate is 15% on all earnings above the £5,000 secondary threshold, with no upper cap.

What overhead costs should I add to per-employee budget?

Beyond NI and pension, common per-employee overheads include desk space or remote work allowance (£1,000–£3,000/year), IT equipment and software licences (£500–£1,500/year), training budget, and any benefits such as health insurance or enhanced pension. For planning purposes, £2,000–£5,000 per head is a common overhead assumption for UK office-based roles.

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