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2025/26 Tax Year

£35,000 Salary - UK Employer Cost

To employ someone on a £35,000 salary in the UK, the total cost to the employer is £40,550 per year. That's +15.9% on top of the gross salary.

Gross Salary
£35,000
employee pay
Total Employer Cost
£40,550
per year
Employer NI
£4,500
15% rate
Employer Pension
£1,050
3% minimum

£35,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£35,000.00£2,916.67
Employer National Insurance (15%)+£4,500.00+£375.00
Employer Pension (3%)+£1,050.00+£87.50
Total Employer Cost£40,550.00£3,379.17

Employer Cost vs Employee Take Home

What the Employer Pays

£40,550

total cost per year

Gross Salary£35,000
Employer NI£4,500
Employer Pension£1,050

What the Employee Gets

£28,720

take home pay per year

Gross Salary£35,000
Income Tax-£4,486
Employee NI-£1,794

The employer pays £11,830 more than what the employee takes home (41% 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

£40,550
per year
+15.9% overhead
Gross Salary£35,000
Employer NI (15%)+£4,500
Employer Pension (3%)+£1,050
Total Cost£40,550
£3,379
per month
£156
per working day

Understanding £35,000 Employer Costs

When hiring an employee on a £35,000 salary in the UK for 2025/26, the total cost to the employer is £40,550. 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 £35,000 salary, this amounts to £4,500 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £1,050 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 £35,000 take-home pay calculation.