Employer cost calculator
Work out what an employee costs a year: their salary, employer National Insurance and pension.
2026 to 2027 rates from HMRC, checked 13 November 2026.
Result
A £30,000.00 salary costs the employer £34,462.80 a year.
a year, 2026 to 2027
| Pay | £30,000.00 |
|---|---|
| Employer National Insurance | £3,750.00 |
| Employer pension | £712.80 |
| A month in total | £2,871.90 |
On top of the salary, that is 14.9% more.
Show the workings
| Step | Sum | Answer |
|---|---|---|
| Employer National Insurance | £25,000.00 above £5,000.00 × 15% | £3,750.00 |
| Qualifying earnings | £30,000.00 between £6,240.00 and £50,270.00 | £23,760.00 |
| Employer pension | £23,760.00 × 3% | £712.80 |
| Total cost | £30,000.00 + £3,750.00 + £712.80 | £34,462.80 |
What this leaves out or assumes
- National Insurance category A, worked out over the whole year. Lower rates apply to some under-21s, apprentices under 25 and veterans.
- Eligible employers can take up to £10,500.00 a year off their total employer National Insurance with the Employment Allowance. It is not taken off here, as it covers the whole payroll.
- Leaves out the Apprenticeship Levy, which only employers with a large pay bill pay, and other costs such as equipment and training.
Where the figures come from
- Employer National Insurance secondary threshold: £5,000 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Employer National Insurance above the secondary threshold (category A): 15%. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Employment Allowance: £10,500 a year. Source: HMRC: Rates and thresholds for employers 2026 to 2027. Checked 13 November 2026.
- Lower limit of qualifying earnings for automatic enrolment pensions: £6,240 a year. Source: GOV.UK: Workplace pensions, what you, your employer and the government pay. Checked 13 November 2026.
- Upper limit of qualifying earnings for automatic enrolment pensions: £50,270 a year. Source: GOV.UK: Workplace pensions, what you, your employer and the government pay. Checked 13 November 2026.
- Minimum employer contribution to an automatic enrolment pension: 3%. Source: GOV.UK: Workplace pensions, what you, your employer and the government pay. Checked 13 November 2026.
What an employer pays on top of salary
- Employer National Insurance: 15% of pay above £5,000 a year. Eligible employers can take up to £10,500 a year off their total bill with the Employment Allowance.
- Pension: at least 3% of qualifying earnings for staff in an automatic enrolment scheme.
| Salary | Employer NI | Pension | Total cost |
|---|---|---|---|
| £15,000 | £1,500.00 | £262.80 | £16,762.80 |
| £25,000 | £3,000.00 | £562.80 | £28,562.80 |
| £30,000 | £3,750.00 | £712.80 | £34,462.80 |
| £40,000 | £5,250.00 | £1,012.80 | £46,262.80 |
| £50,000 | £6,750.00 | £1,312.80 | £58,062.80 |
| £75,000 | £10,500.00 | £1,320.90 | £86,820.90 |
Before any Employment Allowance. Sources: HMRC rates and thresholds for employers and GOV.UK workplace pensions.
Lower National Insurance for some employees
Employers pay no National Insurance on pay up to £50,270 for employees under 21, apprentices under 25 and some veterans. This calculator uses the standard category A. HMRC lists every category.