PAYE employer cost

PAYE cost to employer calculator (UK, 2025/26)

The PAYE employer cost includes employer NI — charged at 15% on earnings above £5,000 for 2025/26 — plus the employer's minimum auto-enrolment pension contribution of 3% on qualifying earnings. The calculator below gives monthly and annual totals, Employment Allowance modelling, and a comparison against 2024/25 figures for any UK 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

Employer NI for 2025/26: 15% on earnings above the £5,000 secondary threshold.
Minimum employer pension: 3% on qualifying earnings (£6,240–£50,270 band).
Employment Allowance reduces employer NI bill by up to £10,500 for eligible employers.
PAYE employer cost for £35,000 salary: approx £5,363/year above salary (NI + pension).

Use the live tools

Open PAYE employer 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 is included in PAYE employer costs?

PAYE employer costs are employer NI (Class 1, secondary contributions) and employer pension under auto-enrolment. In 2025/26, employer NI is 15% above the £5,000 secondary threshold. Employer pension minimum is 3% of qualifying earnings between £6,240 and £50,270. Both are paid by the employer on top of gross salary.

Is this a PAYE calculator for employers?

Yes. This page provides the employer-side PAYE cost model: employer NI and pension obligations. For employee take-home pay after income tax and employee NI, use AfterTaxSalary.co.uk.

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