Salary cost

Employer salary cost calculator UK (2025/26)

An employer's salary cost is always higher than the stated gross salary. For 2025/26, you must add employer NI at 15% on earnings above £5,000 and a minimum 3% employer pension contribution under auto-enrolment. This employer salary cost calculator UK page shows the true annual and monthly cost for any salary, with a side-by-side 2024/25 comparison and optional Employment Allowance and overhead modelling. Use the calculator below for any specific figure.

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

Employer NI is 15% on earnings above £5,000 — no upper earnings cap.
Employer pension minimum is 3% of qualifying earnings between £6,240 and £50,270.
A £35,000 salary costs approximately £39,500/year — £40,363 with £3k overheads.
A £50,000 salary costs approximately £58,063/year including NI, pension and £3k overheads.
Employment Allowance (up to £10,500) can reduce net NI for eligible employers.

Use the live tools

Open employer salary cost calculator 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 does employer salary cost include?

Employer salary cost includes gross salary, employer NI (15% on earnings above £5,000 for 2025/26), and minimum employer pension (3% of qualifying earnings under auto-enrolment). It does not automatically include recruitment fees, training or equipment — add an overhead figure in the full calculator for a total picture.

How do I calculate employer salary cost UK?

Formula: gross salary + (salary − £5,000) × 15% + (min(salary, £50,270) − £6,240) × 3%. For £35,000: £35,000 + £4,500 NI + £863 pension = £40,363. Use the calculator above for any salary.

What is the employer salary cost for £30,000?

For a £30,000 salary in 2025/26, the employer cost before overheads is approximately £34,464: £30,000 salary + £3,750 employer NI + £714 pension. With a standard overhead assumption of £3,000, total rises to approximately £37,464.

Does Employment Allowance reduce employer salary cost?

Yes. Eligible employers can claim up to £10,500 of Employment Allowance per year, reducing their employer NI bill. This can materially lower the net employer salary cost for smaller businesses. Single-director companies with no other employees cannot claim.

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