Team cost planner · UK 2025/26

Team Payroll Cost Planner

Model your total employer costs for multiple employees. Add each team member's salary, adjust pension and overhead assumptions, and see total payroll burden — including employer NI at 15%, Employment Allowance offset, and auto-enrolment pension — all live-updated as you type.

# Employee / role Salary (£/yr) Pension % Overheads (£) Employer NI Pension cost Total cost

Team cost summary

Employees
0
team members
Total salaries
£0
£0/month
Employer NI
£0
£0/month
Pension contributions
£0
£0/month
Overheads
£0
£0/month
Total employer cost
£0
£0/month
UK 2025/26 calculation assumptions
Employer NI: 15% on earnings above the £5,000 secondary threshold (Class 1, 2025/26)
Employer pension: minimum 3% on qualifying earnings between £6,240 and £50,270 per year
Employment Allowance: up to £10,500 off total employer NI bill for eligible businesses (not sole director)
Overheads: optional per-employee cost (equipment, software, workspace, etc.) — set your own figure

How to use this planner

Enter each employee's annual salary, pension contribution rate, and any per-employee overheads. The planner calculates the correct employer NI for each individual (15% on earnings above £5,000) and minimum statutory pension on qualifying earnings. Employer NI is then summed across the team, and if Employment Allowance is ticked, up to £10,500 is offset from the total NI bill.

Use the presets to load a typical team profile quickly, then adjust individual rows to match your actual headcount and salaries. The summary panel updates live as you type.

What's included in total employer cost?

Component Rate / basis Example (£35,000 salary)
Gross salaryAs contracted£35,000
Employer NI15% on earnings above £5,000£4,500
Employer pension3% on £6,240–£50,270£863
OverheadsYour estimate£0–£5,000+
Total per employee≈ £40,363

Employment Allowance can reduce the employer NI bill by up to £10,500 for eligible employers (limited companies with more than one employee where the sole director is not the only employee, and most other businesses with a total NI bill under £100,000 in the previous tax year).

Frequently asked questions

How is employer NI calculated for a team?
Employer NI is calculated individually for each employee at 15% on their earnings above the secondary threshold of £5,000 per year. The per-employee NI amounts are then summed to give total team NI. Employment Allowance (up to £10,500) is then deducted from the total NI bill — it is a single team-level offset, not per-employee.
Can I claim Employment Allowance for my whole team?
Employment Allowance is a single annual credit of up to £10,500 that reduces your total employer NI bill across all employees. You cannot claim it per employee. Most businesses with at least one employee who is not also the sole director qualify. The previous year's total employer NI bill must also have been under £100,000. Sole directors with no other employees cannot claim.
Does every employee need to be auto-enrolled in a pension?
Auto-enrolment applies to employees aged 22–66 who earn more than £10,000 per year. Eligible employees must be enrolled and the employer must contribute at least 3% of qualifying earnings (between £6,240 and £50,270). Employees earning between £6,240 and £10,000, or outside the 22–66 age bracket, can opt in, in which case the employer contribution obligation also applies.
What overheads should I include?
Common per-employee overheads include: equipment and software licences (£500–£2,000/year), office space allocation (£1,500–£5,000/year in many UK cities), employer liability insurance, recruitment costs amortised over tenure, and training. For a desk-based worker, £2,000–£4,000 per year is a reasonable baseline; remote workers tend to be lower; on-site or specialist roles can be higher.
Does the planner include holiday pay?
Holiday pay is embedded in the salary figure — a full-time employee is entitled to at least 28 days' paid leave (including bank holidays) per year, which is already factored into the annual salary cost. The planner shows employer NI and pension on gross annual salary, which inherently includes the cost of paid leave. It does not separately model statutory sick pay or parental leave costs.

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