Skip to main content
Introducing NHR Intelligence — smarter workforce insights, built into the platform.Learn More
NHR Solution
Login
Free calculator

Employee Cost Calculator

Work out the full annual cost of an employee: salary plus employer National Insurance, pension and other costs.

Employee Cost Calculator

The true annual cost of an employee to the business: salary plus employer National Insurance, pension and other costs.

£41,563Total annual cost · 18.8% above salary
Gross salary£35,000Employer NI (15%)+£4,500.00Employer pension+£862.80Other costs+£1,200Total cost£41,563Monthly cost£3,464
Uses 2025/26 employer NI at 15% above the £5,000 secondary threshold, and pension on qualifying earnings above £6,240. Employment Allowance may reduce NI for eligible employers.
How this is calculated
Employer NI is 15% of salary above the £5,000 secondary threshold. Pension is 3% of qualifying earnings above £6,240. Adding other costs: £35,000 + £4,500.00 + £862.80 + £1,200 = £41,563.
These calculators use 2025/26 UK rates for England and Northern Ireland and are provided for guidance only. They are not tax, legal or financial advice — check figures against HMRC guidance or your accountant before acting on them. Scotland operates different income tax bands.
How it works

About The Employee Cost Calculator

An employee costs more than their salary. The employer also pays National Insurance — 15% on earnings above the £5,000 secondary threshold in 2025/26 — and pension contributions, with an auto-enrolment minimum of 3% of qualifying earnings above £6,240.

Add equipment, training, benefits and software licences to see the full figure. Eligible employers can claim the Employment Allowance, which reduces the employer NI bill; the calculator does not apply it.

FAQ

Questions, Answered

Employer National Insurance, employer pension contributions and other costs such as equipment and training. The calculator shows the total and the uplift over salary.

15% on earnings above the £5,000 secondary threshold, the 2025/26 rate.

Under auto-enrolment, employers must contribute at least 3% of qualifying earnings.

No. The result is the cost before any Employment Allowance, which eligible employers can use to reduce their NI bill.

More free tools

Other HR Calculators

Bradford Factor CalculatorScore absence patterns with the S² × D formula.Holiday Entitlement CalculatorStatutory paid holiday in days or hours, pro-rated.Take-Home Pay CalculatorSalary after income tax, NI and pension.Hourly Rate CalculatorConvert an annual salary to an hourly rate.Notice Period CalculatorStatutory minimum notice by length of service.Overtime Pay CalculatorPay at time-and-a-half, double time and more.Payroll Cost CalculatorAnnual and monthly payroll cost for a team.

See NHR Solution In Action

A short walkthrough with someone who knows the product. Bring your own process and we will show you how it maps.

Smart Tools for Smarter Businesses