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2025/26 Tax Year

£68,000 Salary - UK Employer Cost

To employ someone on a £68,000 salary in the UK, the total cost to the employer is £79,490 per year. That's +16.9% on top of the gross salary.

Gross Salary
£68,000
employee pay
Total Employer Cost
£79,490
per year
Employer NI
£9,450
15% rate
Employer Pension
£2,040
3% minimum

£68,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£68,000.00£5,666.67
Employer National Insurance (15%)+£9,450.00+£787.50
Employer Pension (3%)+£2,040.00+£170.00
Total Employer Cost£79,490.00£6,624.17

Employer Cost vs Employee Take Home

What the Employer Pays

£79,490

total cost per year

Gross Salary£68,000
Employer NI£9,450
Employer Pension£2,040

What the Employee Gets

£49,997

take home pay per year

Gross Salary£68,000
Income Tax-£14,632
Employee NI-£3,371

The employer pays £29,493 more than what the employee takes home (59% 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

£79,490
per year
+16.9% overhead
Gross Salary£68,000
Employer NI (15%)+£9,450
Employer Pension (3%)+£2,040
Total Cost£79,490
£6,624
per month
£306
per working day

Understanding £68,000 Employer Costs

When hiring an employee on a £68,000 salary in the UK for 2025/26, the total cost to the employer is £79,490. 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 £68,000 salary, this amounts to £9,450 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £2,040 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 £68,000 take-home pay calculation.