Skip to main content
2025/26 Tax Year

£32,000 Salary - UK Employer Cost

To employ someone on a £32,000 salary in the UK, the total cost to the employer is £37,010 per year. That's +15.7% on top of the gross salary.

Gross Salary
£32,000
employee pay
Total Employer Cost
£37,010
per year
Employer NI
£4,050
15% rate
Employer Pension
£960
3% minimum

£32,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£32,000.00£2,666.67
Employer National Insurance (15%)+£4,050.00+£337.50
Employer Pension (3%)+£960.00+£80.00
Total Employer Cost£37,010.00£3,084.17

Employer Cost vs Employee Take Home

What the Employer Pays

£37,010

total cost per year

Gross Salary£32,000
Employer NI£4,050
Employer Pension£960

What the Employee Gets

£26,560

take home pay per year

Gross Salary£32,000
Income Tax-£3,886
Employee NI-£1,554

The employer pays £10,450 more than what the employee takes home (39% 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

£37,010
per year
+15.7% overhead
Gross Salary£32,000
Employer NI (15%)+£4,050
Employer Pension (3%)+£960
Total Cost£37,010
£3,084
per month
£142
per working day

Understanding £32,000 Employer Costs

When hiring an employee on a £32,000 salary in the UK for 2025/26, the total cost to the employer is £37,010. 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 £32,000 salary, this amounts to £4,050 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £960 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 £32,000 take-home pay calculation.