Salary cost
Salary calculator for employers (UK, 2026/27)
When an employer sees a salary figure, the actual cost is higher — employer NI at 15% above £5,000, pension at 3% of qualifying earnings, and any workspace or equipment overheads on top. This salary calculator for employers converts a gross salary into a full annual and monthly employer cost for 2026/27, so offer approvals, headcount budgets and cost-per-hire estimates use a consistent number.
UK scope: England, Scotland, Wales and Northern Ireland employer payroll planning for the 2026/27 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 (2026/27)
Pension + overheads
£3,863
Baseline employer pension plus configured overheads
Key assumptions — UK 2026/27
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
- A £30,000 salary costs approximately £34,464/year total — 15% above headline.
- A £40,000 salary costs approximately £45,813/year (with £3,000 overheads).
- A £60,000 salary costs approximately £68,563/year total.
- Adjust pension rate and overhead assumptions for your specific payroll policy.
UK assumptions used
Employer NI
15% above £5,000 secondary threshold for 2026/27.
Auto-enrolment pension
Minimum employer contribution 3% on qualifying earnings.
Employment Allowance
Up to £10,500 relief in 2026/27 for eligible employers.
Frequently asked questions
Why does a salary cost more than the stated figure?
UK employers pay employer NI on top of gross salary — 15% of earnings above £5,000 in 2026/27 — plus a minimum 3% employer pension contribution. A £35,000 salary typically costs around £40,363/year total before additional overheads.
What is included in a full employer salary cost?
Gross salary, employer NI (15% above £5,000), employer pension (3% minimum on qualifying earnings), and any overhead costs such as equipment, software or workspace. Use the full employer cost calculator to model all four components.
How do I use this as a pay calculator for employers?
Enter gross salary, choose your pension rate and overhead assumptions, and apply Employment Allowance if eligible. The calculator shows annual and monthly totals, a cost breakdown chart, and comparison against 2024/25 NI assumptions.
UK coverage only. Last reviewed: 05 July 2026. Estimates use 2026/27 assumptions and are for planning, not legal or tax advice.
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