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2025/26 Tax Year

£110,000 Salary - UK Employer Cost

To employ someone on a £110,000 salary in the UK, the total cost to the employer is £129,050 per year. That's +17.3% on top of the gross salary.

Gross Salary
£110,000
employee pay
Total Employer Cost
£129,050
per year
Employer NI
£15,750
15% rate
Employer Pension
£3,300
3% minimum

£110,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£110,000.00£9,166.67
Employer National Insurance (15%)+£15,750.00+£1,312.50
Employer Pension (3%)+£3,300.00+£275.00
Total Employer Cost£129,050.00£10,754.17

Employer Cost vs Employee Take Home

What the Employer Pays

£129,050

total cost per year

Gross Salary£110,000
Employer NI£15,750
Employer Pension£3,300

What the Employee Gets

£72,357

take home pay per year

Gross Salary£110,000
Income Tax-£33,432
Employee NI-£4,211

The employer pays £56,693 more than what the employee takes home (78% difference)

Adjust Pension Contribution

Employee Salary

Enter the gross salary for 2025/26

£
3%
3% (minimum)15%

Total Employer Cost

What it actually costs to employ someone

£129,050
per year
+17.3% overhead
Gross Salary£110,000
Employer NI (15%)+£15,750
Employer Pension (3%)+£3,300
Total Cost£129,050
£10,754
per month
£496
per working day

Understanding £110,000 Employer Costs

When hiring an employee on a £110,000 salary in the UK for 2025/26, the total cost to the employer is £129,050. This includes the gross salary plus employer National Insurance contributions and pension contributions.

Employer National Insurance is charged at 15% on all earnings above £5,000 per year. For a £110,000 salary, this amounts to £15,750 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £3,300 to the annual cost. Many employers offer higher pension contributions as part of their benefits package.

Compare this to the employee's perspective: see the £110,000 take-home pay calculation.