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2025/26 Tax Year

£45,000 Salary - UK Employer Cost

To employ someone on a £45,000 salary in the UK, the total cost to the employer is £52,350 per year. That's +16.3% on top of the gross salary.

Gross Salary
£45,000
employee pay
Total Employer Cost
£52,350
per year
Employer NI
£6,000
15% rate
Employer Pension
£1,350
3% minimum

£45,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£45,000.00£3,750.00
Employer National Insurance (15%)+£6,000.00+£500.00
Employer Pension (3%)+£1,350.00+£112.50
Total Employer Cost£52,350.00£4,362.50

Employer Cost vs Employee Take Home

What the Employer Pays

£52,350

total cost per year

Gross Salary£45,000
Employer NI£6,000
Employer Pension£1,350

What the Employee Gets

£35,920

take home pay per year

Gross Salary£45,000
Income Tax-£6,486
Employee NI-£2,594

The employer pays £16,430 more than what the employee takes home (46% 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

£52,350
per year
+16.3% overhead
Gross Salary£45,000
Employer NI (15%)+£6,000
Employer Pension (3%)+£1,350
Total Cost£52,350
£4,363
per month
£201
per working day

Understanding £45,000 Employer Costs

When hiring an employee on a £45,000 salary in the UK for 2025/26, the total cost to the employer is £52,350. 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 £45,000 salary, this amounts to £6,000 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £1,350 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 £45,000 take-home pay calculation.