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2025/26 Tax Year

£140,000 Salary - UK Employer Cost

To employ someone on a £140,000 salary in the UK, the total cost to the employer is £164,450 per year. That's +17.5% on top of the gross salary.

Gross Salary
£140,000
employee pay
Total Employer Cost
£164,450
per year
Employer NI
£20,250
15% rate
Employer Pension
£4,200
3% minimum

£140,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£140,000.00£11,666.67
Employer National Insurance (15%)+£20,250.00+£1,687.50
Employer Pension (3%)+£4,200.00+£350.00
Total Employer Cost£164,450.00£13,704.17

Employer Cost vs Employee Take Home

What the Employer Pays

£164,450

total cost per year

Gross Salary£140,000
Employer NI£20,250
Employer Pension£4,200

What the Employee Gets

£85,986

take home pay per year

Gross Salary£140,000
Income Tax-£49,203
Employee NI-£4,811

The employer pays £78,464 more than what the employee takes home (91% 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

£164,450
per year
+17.5% overhead
Gross Salary£140,000
Employer NI (15%)+£20,250
Employer Pension (3%)+£4,200
Total Cost£164,450
£13,704
per month
£633
per working day

Understanding £140,000 Employer Costs

When hiring an employee on a £140,000 salary in the UK for 2025/26, the total cost to the employer is £164,450. 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 £140,000 salary, this amounts to £20,250 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £4,200 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 £140,000 take-home pay calculation.