UK Employer Cost Calculator
Calculate the true cost of employing someone in the UK. See how much employer National Insurance (15%) and pension contributions add to the salary cost.
Employee Salary
Enter the gross salary for 2025/26
Total Employer Cost
What it actually costs to employ someone
Employer National Insurance Rates 2025/26
Employers start paying NI on earnings above this amount per employee.
This rate increased from 13.8% to 15% in April 2025.
Employer Cost Examples
| Gross Salary | Employer NI | Pension (3%) | Total Cost |
|---|---|---|---|
| £25,000 | £3,000 | £750 | £28,750 |
| £30,000 | £3,750 | £900 | £34,650 |
| £40,000 | £5,250 | £1,200 | £46,450 |
| £50,000 | £6,750 | £1,500 | £58,250 |
| £60,000 | £8,250 | £1,800 | £70,050 |
| £80,000 | £11,250 | £2,400 | £93,650 |
| £100,000 | £14,250 | £3,000 | £117,250 |
Based on minimum auto-enrollment pension contribution of 3%. Actual costs may vary with higher pension contributions.
Popular Employer Cost Calculations
Quick access to employer costs for common UK salaries
Click any salary to see the full employer cost breakdown
Understanding Employer Costs
What is Employer National Insurance?
Employer National Insurance is a tax paid by employers on top of employee salaries. For 2025/26, employers pay 15% on all earnings above £5,000 per employee per year. This is separate from the employee's own NI contributions.
Auto-Enrollment Pension
Since 2019, employers must contribute a minimum of 3% to eligible employees' pension schemes under auto-enrollment rules. Many employers offer higher contributions as part of their benefits package. Employees must contribute a minimum of 5%, making the total minimum 8%.
Employment Allowance
Small businesses may be eligible for the Employment Allowance, which reduces their employer NI bill by up to £10,500 per year. This is available to employers with NI liabilities under £100,000 in the previous tax year.
Apprenticeship Levy
Large employers with an annual pay bill over £3 million must also pay the Apprenticeship Levy at 0.5% of their total pay bill. This is not included in the calculator above as it applies at company level rather than per employee.