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Employment cost calculator
United Kingdom

See what it actually costs to employ someone in United Kingdom. Enter a gross salary and get the full statutory breakdown, line by line — statutory rates from our country guides, checked July 2026.

Step 1

Enter the salary

GBP

Enter what you'd pay before any statutory deductions — we compute the rest.

Statutory baseline, checked July 2026. Estimates, not tax or legal advice. Full United Kingdom hiring guide →
&Step 2 · Result
Enter a salary to begin

Your employer cost, employee deductions, and estimated net all appear here.

Employer contributions
Line itemRateEst. amount (enter a salary)
Employer National Insurance (Class 1 secondary)15% above £5,000
Employment Allowance (employer-level offset, not per-employee)Up to £10,500/year per employer (or shared across a connected group) offsets total Class 1 employer NI liability; the £100,000 prior-year NI cap was removed from 6 April 2025. Excludes companies whose only paid employee is a director. Employer-level annual figure, not a per-employee cost line.
Workplace pension — employer minimum (auto-enrolment)3% of £6,240–£50,270
Apprenticeship Levy0.5% of total pay bill, only above a £3,000,000 annual pay bill — excluded from the default per-employee estimate (SMB ruling)
Employee statutory deductions
Line itemRateEst. amount (enter a salary)
Employee National Insurance (Class 1 primary)8% / 2% by band
Workplace pension — employee minimum (auto-enrolment)5% of £6,240–£50,270
Income tax bands
Income bandRate
Up to £12,5700%
£12,571 – £50,27020%
£50,271 – £125,14040%
Over £125,14045%

England, Wales, and Northern Ireland (rUK) bands shown. Scotland sets its own income tax rates and bands, which differ from the table above — Scottish employees should not use these figures.

Frequently asked questions

What does an employer pay on top of gross salary in United Kingdom?

In the United Kingdom these costs are threshold-based, not a flat percentage of gross pay. Employer National Insurance is 15% on earnings above £5,000 a year, and the workplace pension adds 3% of earnings between £6,240 and £50,270. At a typical salary that works out to roughly 15% to 16% of gross on top of the salary. The share is lower at low salaries, because the first £5,000 is National-Insurance-free. A large employer may also owe the 0.5% Apprenticeship Levy above a £3,000,000 pay bill. See the itemized breakdown above for each line.

What statutory deductions come out of an employee's pay in United Kingdom?

Employee deductions in the United Kingdom are also threshold-based, so they aren't a flat percentage of gross pay. Employee National Insurance is nil up to £12,570, then 8% up to £50,270, and 2% above that. The workplace pension takes 5% of earnings between £6,240 and £50,270. Income tax is separate — see the bands below. See the itemized breakdown above for each line.

Does United Kingdom use a progressive income tax system?

Yes — income tax in United Kingdom is progressive across 4 bands, from 0% to 45%. The calculator above applies these bands to your salary automatically.

Where do these United Kingdom figures come from?

Statutory baseline, checked July 2026 — from the statutory data in our country guides. These are estimates, not tax or legal advice. For an exact quote, book a demo with our team.

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