£150,000 Salary - UK Employer Cost
To employ someone on a £150,000 salary in the UK, the total cost to the employer is £176,250 per year. That's +17.5% on top of the gross salary.
£150,000 Employment Cost Breakdown
| Description | Yearly | Monthly |
|---|---|---|
| Gross Salary | £150,000.00 | £12,500.00 |
| Employer National Insurance (15%) | +£21,750.00 | +£1,812.50 |
| Employer Pension (3%) | +£4,500.00 | +£375.00 |
| Total Employer Cost | £176,250.00 | £14,687.50 |
Employer Cost vs Employee Take Home
What the Employer Pays
total cost per year
What the Employee Gets
take home pay per year
The employer pays £84,964 more than what the employee takes home (93% difference)
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Employee Salary
Enter the gross salary for 2025/26
Total Employer Cost
What it actually costs to employ someone
Compare Employer Costs
Understanding £150,000 Employer Costs
When hiring an employee on a £150,000 salary in the UK for 2025/26, the total cost to the employer is £176,250. 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 £150,000 salary, this amounts to £21,750 per year.
The minimum employer pension contribution under auto-enrollment is 3%, which adds £4,500 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 £150,000 take-home pay calculation.