Cost of Hiring an Employee Calculator
A salary is not what an employee costs you. Add employer National Insurance and workplace pension to see the true annual figure.
What employers really pay in 2026/27
On top of gross salary, employers pay 15% National Insurance on earnings above £5,000 a year, plus a minimum 3% pension contribution on qualifying earnings between £6,240 and £50,270. Eligible employers can offset up to £10,500 of NI with the Employment Allowance — though it is shared across your whole payroll, and companies whose only employee is the director cannot claim it.
Add software, equipment, training and cover, and the real cost climbs further. Our payroll team runs the full numbers before you commit to a hire.
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Frequently asked questions
Beyond gross salary you pay 15% employer National Insurance above u00a35,000 and at least 3% auto-enrolment pension on qualifying earnings u2014 the calculator totals the true annual cost.
Eligible employers can offset up to u00a310,500 of employer NI per year. Toggle it on to see your cost with the allowance applied.
Auto-enrolment minimums apply to qualifying earnings between u00a36,240 and u00a350,270 for 2026/27.