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2025/26 Tax Year

£80,000 Salary - UK Employer Cost

To employ someone on a £80,000 salary in the UK, the total cost to the employer is £93,650 per year. That's +17.1% on top of the gross salary.

Gross Salary
£80,000
employee pay
Total Employer Cost
£93,650
per year
Employer NI
£11,250
15% rate
Employer Pension
£2,400
3% minimum

£80,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£80,000.00£6,666.67
Employer National Insurance (15%)+£11,250.00+£937.50
Employer Pension (3%)+£2,400.00+£200.00
Total Employer Cost£93,650.00£7,804.17

Employer Cost vs Employee Take Home

What the Employer Pays

£93,650

total cost per year

Gross Salary£80,000
Employer NI£11,250
Employer Pension£2,400

What the Employee Gets

£56,957

take home pay per year

Gross Salary£80,000
Income Tax-£19,432
Employee NI-£3,611

The employer pays £36,693 more than what the employee takes home (64% 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

£93,650
per year
+17.1% overhead
Gross Salary£80,000
Employer NI (15%)+£11,250
Employer Pension (3%)+£2,400
Total Cost£93,650
£7,804
per month
£360
per working day

Understanding £80,000 Employer Costs

When hiring an employee on a £80,000 salary in the UK for 2025/26, the total cost to the employer is £93,650. 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 £80,000 salary, this amounts to £11,250 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £2,400 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 £80,000 take-home pay calculation.