Employer Cost Calculator
True cost of an employee incl. employer NIRuns in your browser
| Per year | Per month | |
|---|---|---|
| Salary | £30,000.00 | £2,500.00 |
| Employer NI (15% over £5,000) | £3,750.00 | £312.50 |
| Employer pension | £712.80 | £59.40 |
| Total cost | £34,462.80 | £2,871.90 |
Doesn't include the Apprenticeship Levy (0.5% of a pay bill over £3 million), benefits in kind, recruitment, equipment or holiday cover. The Employment Allowance can't be claimed by companies whose only employee is a director.
These are estimates based on 2026/27 rates and the inputs you give. Your actual position can differ (other income, benefits in kind, tax code changes, scheme rules). This is not financial or tax advice.
How it works
Worked example
Input: £30,000 salary, 3% employer pension on qualifying earnings.
- Employer NI: 15% × (£30,000 − £5,000) = £3,750.
- Pension: 3% × £23,760 = £712.80.
Result: £34,462.80 a year in total.
How to use
- 1Enter the salary.
- 2Enter the employer pension percentage and basis.
- 3Tick under-21 / apprentice relief or the Employment Allowance if they apply.
- 4See the full annual and monthly cost.
FAQ
What is employer National Insurance in 2026/27?
15% on earnings above £5,000 a year (£96 a week). For employees under 21 and apprentices under 25 it's 0% up to £50,270.
What is the Employment Allowance?
Up to £10,500 a year off an eligible employer's NI bill. Companies where the only employee is a director can't claim it.