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Total employer cost calculator UK (2025/26)

Use the total employer cost calculator to convert a headline salary into the true UK employer budget number for 2025/26. It combines gross salary, employer NI at 15% on earnings above £5,000, employer pension at 3% of qualifying earnings, and optional per-head overhead assumptions. Use the result for offer approvals, headcount plans and finance sign-off.

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

Open full employer total 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 total employer cost include?
Total employer cost includes gross salary, employer NI, employer pension, and any per-employee overhead assumptions such as equipment or software.
Is this UK-specific?
Yes. This page and calculator use UK 2025/26 assumptions, including employer NI at 15% above the £5,000 secondary threshold and auto-enrolment pension minimums.
What is the total employer cost for a £35,000 salary?
For a £35,000 salary in 2025/26, total employer cost is approximately £39,500 per year — £35,000 salary plus £4,500 employer NI (15% above £5,000) plus £863 employer pension (3% of qualifying earnings). With a £3,000 overhead assumption, total rises to approximately £42,500.
How do I calculate total employer cost?
Formula: total employer cost = gross salary + (gross salary − £5,000) × 15% + (min(salary, £50,270) − £6,240) × 3% + overheads. For a £35,000 salary: £35,000 + £4,500 NI + £863 pension = £40,363 before overheads.

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