Employee Cost Calculator

On top of gross salary, every employer pays employer National Insurance and a minimum workplace pension contribution. For a typical employee in 2026/27 that adds roughly 15–20% to the salary figure — this calculator shows the exact amount for any salary, which is what the role really costs your business each year.

In 2026/27, employers pay National Insurance at 15% on each employee’s earnings above £5,000 a year. Eligible employers can claim the Employment Allowance, which knocks up to £10,500 off the total employer NI bill — but it isn’t available to companies where the only employee earning above the threshold is a director, which is why the toggle is off by default.

Under auto-enrolment, employers must contribute at least 3% of an employee’s qualifying earnings — the slice of pay between £6,240 and £50,270 — with total contributions (employer plus employee) of at least 8%. Many employers choose to contribute more, or to calculate the pension on full salary rather than the qualifying band; the calculator lets you model both.

This calculator covers the recurring statutory costs: salary, employer NI and pension. It doesn’t include recruitment fees, training, equipment and software, office space, cover for holiday and sickness, benefits such as private healthcare, or the Apprenticeship Levy (payable by employers with annual pay bills over £3 million). Budgeting rules of thumb often put the all-in cost well above the figure shown here.

No. This tool gives an estimate based on standard HMRC rates and auto-enrolment minimums. It doesn’t account for salary sacrifice arrangements, apprentice or under-21 NI categories, benefits in kind, or your company’s specific circumstances. Always confirm the numbers with your accountant or payroll provider before making hiring decisions.