£25,000 Salary - UK Employer Cost
To employ someone on a £25,000 salary in the UK, the total cost to the employer is £28,750 per year. That's +15.0% on top of the gross salary.
£25,000 Employment Cost Breakdown
| Description | Yearly | Monthly |
|---|---|---|
| Gross Salary | £25,000.00 | £2,083.33 |
| Employer National Insurance (15%) | +£3,000.00 | +£250.00 |
| Employer Pension (3%) | +£750.00 | +£62.50 |
| Total Employer Cost | £28,750.00 | £2,395.83 |
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 £7,230 more than what the employee takes home (34% difference)
Adjust Pension Contribution
Employee Salary
Enter the gross salary for 2025/26
Total Employer Cost
What it actually costs to employ someone
Understanding £25,000 Employer Costs
When hiring an employee on a £25,000 salary in the UK for 2025/26, the total cost to the employer is £28,750. 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 £25,000 salary, this amounts to £3,000 per year.
The minimum employer pension contribution under auto-enrollment is 3%, which adds £750 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 £25,000 take-home pay calculation.