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2025/26 Tax Year

£63,000 Salary - UK Employer Cost

To employ someone on a £63,000 salary in the UK, the total cost to the employer is £73,590 per year. That's +16.8% on top of the gross salary.

Gross Salary
£63,000
employee pay
Total Employer Cost
£73,590
per year
Employer NI
£8,700
15% rate
Employer Pension
£1,890
3% minimum

£63,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£63,000.00£5,250.00
Employer National Insurance (15%)+£8,700.00+£725.00
Employer Pension (3%)+£1,890.00+£157.50
Total Employer Cost£73,590.00£6,132.50

Employer Cost vs Employee Take Home

What the Employer Pays

£73,590

total cost per year

Gross Salary£63,000
Employer NI£8,700
Employer Pension£1,890

What the Employee Gets

£47,097

take home pay per year

Gross Salary£63,000
Income Tax-£12,632
Employee NI-£3,271

The employer pays £26,493 more than what the employee takes home (56% 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

£73,590
per year
+16.8% overhead
Gross Salary£63,000
Employer NI (15%)+£8,700
Employer Pension (3%)+£1,890
Total Cost£73,590
£6,133
per month
£283
per working day

Understanding £63,000 Employer Costs

When hiring an employee on a £63,000 salary in the UK for 2025/26, the total cost to the employer is £73,590. 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 £63,000 salary, this amounts to £8,700 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £1,890 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 £63,000 take-home pay calculation.