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True Cost of an Employee

What does it really cost to employ someone in the UK?

Employee Details
£
£
£
Total Annual Cost to Employer
£0
0% more than salary
Base salary£0
Employer NI (15%)£0
Employer pension£0
Apprenticeship levy (0.5%)£0
Holiday pay (28 days)included
Benefits£0
Recruitment (amortised)£0
An employee's true cost is typically 30-40% more than their salary. Factor this into your hiring budgets.

What This Calculator Does

This calculator shows the true cost of employing someone in the UK, including Employer National Insurance, pension contributions, and other statutory costs on top of the gross salary. It is designed for business owners, hiring managers, and HR professionals.

How the Calculation Works

It adds Employer NI (13.8% above the secondary threshold), minimum auto-enrolment pension (3%), and optional costs like training budget and benefits to the gross salary to show total employment cost.

Common Scenarios

An employee on £40,000 costs roughly £47,200 after Employer NI and pension contributions. The Employment Allowance (£10,500 for 2025/26) can offset some Employer NI costs for small businesses.

Related Calculators

You might also find these useful: Employer Ni, Pension, Contractor Vs Permanent. Or use our main salary calculator for a complete take-home pay breakdown.