Employer costs UK

Employer costs UK (2025/26) — what you pay on top of salary

In the UK, an employer's cost is always higher than the stated salary. For 2025/26, you must add employer NI at 15% on earnings above £5,000, a minimum 3% pension contribution under auto-enrolment, and any per-employee overhead costs. For a £35,000 salary, the statutory employer costs (NI + pension) add £5,363 per year — taking total employer spend to at least £40,363 before overheads. Use the full employer cost calculator to model your specific payroll.

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 your employer costs 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 are the statutory employer costs in the UK for 2025/26?
The two statutory employer costs are: employer NI (15% on earnings above £5,000) and employer pension (minimum 3% of qualifying earnings between £6,240 and £50,270 under auto-enrolment). Both are mandatory on top of gross salary for most employees.
How much do employer costs add on top of salary?
Typically 12–18% above gross salary for standard salaries. At £35,000: employer NI £4,500 + pension £863 = £5,363 extra (15.3% above salary). At £50,000: employer NI £6,750 + pension £1,313 = £8,063 extra (16.1% above salary).
What is Employment Allowance and how does it reduce employer costs?
Employment Allowance lets eligible employers offset up to £10,500 of their annual employer NI bill. For a small business with total employer NI below £10,500, this can eliminate the entire NI liability. Single-director companies with no other employees cannot claim.

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