How much does an employee really cost?

Salary is only the start. Add 15 percent employer National Insurance and pension contributions to see the true annual and monthly cost of a hire in 2026/27.

Notes

Employer NI is 15 percent of salary above £5,000. Pension is calculated here on full salary; many schemes use qualifying earnings, which costs slightly less. The Employment Allowance removes up to £10,500 of employer NI per business per year, so apply it to one hire only when budgeting. Recruiting, software and statutory pay exposure (see the statutory pay guide) come on top – as does running the payroll itself.