Employer Cost Calculator 2026/27
See the full cost of employing someone: salary, 15% employer National Insurance and minimum pension contributions, and what the employee takes home.
2026/27 rates · verified 11 October 2026
Auto-enrolment minimum is 3% on qualifying earnings (£6,240 to £50,270).
What employers pay on top of salary
Employer National Insurance is 15% on earnings above £5,000 a year (£417 a month). Eligible employers can reduce their bill by up to £10,500 a year with the Employment Allowance.
Workplace pension: under auto-enrolment, employers pay at least 3% of qualifying earnings for eligible workers. Lower employer NI rates apply for under-21s, apprentices under 25 and veterans on earnings up to £50,270.
The Apprenticeship Levy (0.5% of pay bill) only applies to employers with a pay bill over £3 million, using a £15,000 allowance.
Frequently asked questions
How much does an employee cost on top of salary?
Roughly 15% employer NI on pay above £5,000 plus at least 3% pension on qualifying earnings. For a £35,000 employee that's £4,500 NI plus about £863 pension.
What is the employer NI threshold for 2026/27?
£5,000 a year (£96 a week, £417 a month), with a rate of 15%.
What is the Employment Allowance?
Up to £10,500 a year off your employer National Insurance bill. Companies where the only employee paid above the secondary threshold is a director can't claim it.
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All rates, thresholds and dates on this page come from official sources, including GOV.UK, HM Revenue and Customs, the Scottish Government, Revenue Scotland and the Welsh Government. Last verified 11 October 2026.