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2025/26 Tax Year

£90,000 Salary - UK Employer Cost

To employ someone on a £90,000 salary in the UK, the total cost to the employer is £105,450 per year. That's +17.2% on top of the gross salary.

Gross Salary
£90,000
employee pay
Total Employer Cost
£105,450
per year
Employer NI
£12,750
15% rate
Employer Pension
£2,700
3% minimum

£90,000 Employment Cost Breakdown

DescriptionYearlyMonthly
Gross Salary£90,000.00£7,500.00
Employer National Insurance (15%)+£12,750.00+£1,062.50
Employer Pension (3%)+£2,700.00+£225.00
Total Employer Cost£105,450.00£8,787.50

Employer Cost vs Employee Take Home

What the Employer Pays

£105,450

total cost per year

Gross Salary£90,000
Employer NI£12,750
Employer Pension£2,700

What the Employee Gets

£62,757

take home pay per year

Gross Salary£90,000
Income Tax-£23,432
Employee NI-£3,811

The employer pays £42,693 more than what the employee takes home (68% 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

£105,450
per year
+17.2% overhead
Gross Salary£90,000
Employer NI (15%)+£12,750
Employer Pension (3%)+£2,700
Total Cost£105,450
£8,788
per month
£406
per working day

Understanding £90,000 Employer Costs

When hiring an employee on a £90,000 salary in the UK for 2025/26, the total cost to the employer is £105,450. 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 £90,000 salary, this amounts to £12,750 per year.

The minimum employer pension contribution under auto-enrollment is 3%, which adds £2,700 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 £90,000 take-home pay calculation.