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2025/26 Tax Year

£70,000 Salary - UK Employer Cost

To employ someone on a £70,000 salary in the UK, the total cost to the employer is £81,850 per year. That's +16.9% on top of the gross salary.

Gross Salary
£70,000
employee pay
Total Employer Cost
£81,850
per year
Employer NI
£9,750
15% rate
Employer Pension
£2,100
3% minimum

£70,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£70,000.00£5,833.33
Employer National Insurance (15%)+£9,750.00+£812.50
Employer Pension (3%)+£2,100.00+£175.00
Total Employer Cost£81,850.00£6,820.83

Employer Cost vs Employee Take Home

What the Employer Pays

£81,850

total cost per year

Gross Salary£70,000
Employer NI£9,750
Employer Pension£2,100

What the Employee Gets

£51,157

take home pay per year

Gross Salary£70,000
Income Tax-£15,432
Employee NI-£3,411

The employer pays £30,693 more than what the employee takes home (60% 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

£81,850
per year
+16.9% overhead
Gross Salary£70,000
Employer NI (15%)+£9,750
Employer Pension (3%)+£2,100
Total Cost£81,850
£6,821
per month
£315
per working day

Understanding £70,000 Employer Costs

When hiring an employee on a £70,000 salary in the UK for 2025/26, the total cost to the employer is £81,850. 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 £70,000 salary, this amounts to £9,750 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £2,100 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 £70,000 take-home pay calculation.