Employee cost calculator UK
A salary is only part of what an employee costs. Add employer National Insurance, pension and other costs to see the real figure.
How this is calculated
Employer National Insurance is 15% of pay above £5,000 a year in 2026/27.
The Employment Allowance, if you can claim it, takes up to £10,500 a year off the total employer NI bill.
Under automatic enrolment the minimum employer contribution is 3% of qualifying earnings, the slice of pay between £6,240 and £50,270. Many employers pay on full salary instead.
Rates used · 2026/27
| Employer NI | 15% above £5,000 a year |
| Employment Allowance | £10,500 a year |
| Qualifying earnings | £6,240 to £50,270 |
| Minimum employer pension | 3% of qualifying earnings |
Last checked July 2026. Source: HMRC and gov.uk.
Worked example
A £30,000 salary costs £3,750 in employer National Insurance (15% of £25,000) and £713 in pension at 3% of qualifying earnings, so £34,463 a year in total, 14.9% on top of the salary.
Common questions
How much does an employee really cost?
Salary plus employer National Insurance, pension and any other costs. On a typical salary that adds 15% or more before benefits and equipment.
Who can claim the Employment Allowance?
Most employers, though not companies whose only paid employee is a director. It is claimed through payroll software.
Do I have to offer a pension?
Yes, eligible workers must be enrolled automatically, with at least 3% from the employer on qualifying earnings.
Is the apprenticeship levy included?
No. It only applies once the total pay bill passes £3 million a year.