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2025/26 Tax Year

£28,000 Salary - UK Employer Cost

To employ someone on a £28,000 salary in the UK, the total cost to the employer is £32,290 per year. That's +15.3% on top of the gross salary.

Gross Salary
£28,000
employee pay
Total Employer Cost
£32,290
per year
Employer NI
£3,450
15% rate
Employer Pension
£840
3% minimum

£28,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£28,000.00£2,333.33
Employer National Insurance (15%)+£3,450.00+£287.50
Employer Pension (3%)+£840.00+£70.00
Total Employer Cost£32,290.00£2,690.83

Employer Cost vs Employee Take Home

What the Employer Pays

£32,290

total cost per year

Gross Salary£28,000
Employer NI£3,450
Employer Pension£840

What the Employee Gets

£23,680

take home pay per year

Gross Salary£28,000
Income Tax-£3,086
Employee NI-£1,234

The employer pays £8,610 more than what the employee takes home (36% 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

£32,290
per year
+15.3% overhead
Gross Salary£28,000
Employer NI (15%)+£3,450
Employer Pension (3%)+£840
Total Cost£32,290
£2,691
per month
£124
per working day

Understanding £28,000 Employer Costs

When hiring an employee on a £28,000 salary in the UK for 2025/26, the total cost to the employer is £32,290. 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 £28,000 salary, this amounts to £3,450 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £840 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 £28,000 take-home pay calculation.