Employee perspective

How much do I cost my employer? (UK, 2025/26)

Your gross salary is not what your employer pays for you. On top of your salary, your employer pays employer NI — 15% on earnings above £5,000 in 2025/26 — and a minimum 3% pension contribution. If you earn £35,000, your employer's total cost is approximately £40,363 per year. If you earn £50,000, it is approximately £58,063. Use the calculator below to see the exact figure for any salary.

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

£25,000 salary → you cost your employer approx £29,214/year.
£35,000 salary → you cost your employer approx £40,363/year.
£50,000 salary → you cost your employer approx £58,063/year.
£75,000 salary → you cost your employer approx £87,063/year.
None of this is deducted from your pay — it is an additional cost on top.

Use the live tools

See your true cost to your employer 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 much more do I cost my employer than my salary?

Typically 13–18% above your gross salary. At £35,000: your employer pays ~£4,500 in NI and ~£863 in minimum pension on top of your salary — so you cost them roughly £40,363/year before any overheads or benefits.

Does my employer pay NI on my full salary?

No — only on earnings above the £5,000 secondary threshold. At £35,000, NI is charged on £30,000 × 15% = £4,500. The first £5,000 of your salary is exempt from employer NI.

Is employer NI taken from my pay?

No. Employer NI is paid by your employer on top of your gross salary. It is entirely separate from your own employee NI, which is deducted from your take-home pay at 8% between £12,570 and £50,270.

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