Salary cost

Salary calculator for employers (UK, 2025/26)

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 2025/26, 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 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

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.

Use the live tools

Open salary calculator for employers 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

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 2025/26 — 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 April 2026. Estimates use 2025/26 assumptions and are for planning, not legal or tax advice.