Find out the true total cost of hiring an employee — salary, employer NI contributions, pension and more. Essential for SMEs.
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Gross Salary
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Employer NI
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Pension
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Total Annual Cost
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Monthly Cost
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UK 2026: Employer NI rate is 15% on earnings above £5,000 per year. Minimum auto-enrolment employer pension is 3% of qualifying earnings.
FAQs
The true cost includes gross salary + employer National Insurance contributions + employer pension + any benefits (health insurance, company car, etc.). Typically 1.2x–1.3x the gross salary.
The employer National Insurance rate is 15% on salaries above the secondary threshold of £5,000 per year (from April 2025, announced in the Autumn 2024 Budget).