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2025/26 Tax Year

£50,000 Salary - UK Employer Cost

To employ someone on a £50,000 salary in the UK, the total cost to the employer is £58,250 per year. That's +16.5% on top of the gross salary.

Gross Salary
£50,000
employee pay
Total Employer Cost
£58,250
per year
Employer NI
£6,750
15% rate
Employer Pension
£1,500
3% minimum

£50,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£50,000.00£4,166.67
Employer National Insurance (15%)+£6,750.00+£562.50
Employer Pension (3%)+£1,500.00+£125.00
Total Employer Cost£58,250.00£4,854.17

Employer Cost vs Employee Take Home

What the Employer Pays

£58,250

total cost per year

Gross Salary£50,000
Employer NI£6,750
Employer Pension£1,500

What the Employee Gets

£39,520

take home pay per year

Gross Salary£50,000
Income Tax-£7,486
Employee NI-£2,994

The employer pays £18,730 more than what the employee takes home (47% 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

£58,250
per year
+16.5% overhead
Gross Salary£50,000
Employer NI (15%)+£6,750
Employer Pension (3%)+£1,500
Total Cost£58,250
£4,854
per month
£224
per working day

Understanding £50,000 Employer Costs

When hiring an employee on a £50,000 salary in the UK for 2025/26, the total cost to the employer is £58,250. 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 £50,000 salary, this amounts to £6,750 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £1,500 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 £50,000 take-home pay calculation.