Employer cost calculator
What does a member of staff really cost your business? Enter the gross salary and see the true cost including employer's NI and pension contributions.
Using 2025/26 UK tax rates
The headline salary before any deductions
Minimum auto-enrolment is 3%. Many employers contribute more.
How employer costs are calculated (2025/26)
When you hire someone on a £30,000 salary, the actual cost to your business is significantly higher. Two mandatory costs sit on top of every salary: employer's National Insurance contributions and workplace pension contributions.
Employer's NI is charged at 15% on all earnings above £5,000 per year (the secondary threshold for 2025/26). There is no upper limit — you pay 15% on everything above that threshold. On a £30,000 salary, that's 15% of £25,000 = £3,750 per year.
Workplace pension auto-enrolment requires a minimum 3% employer contribution on qualifying earnings between £6,240 and £50,270. On a £30,000 salary, that's 3% of £23,760 = £713 per year at the minimum rate.
Together, a £30,000 employee costs approximately £34,463 — over 14% more than the headline salary. This is before you factor in recruitment, equipment, training, or any other employment costs.
Track your staffing costs automatically
CFO Pal pulls your payroll data from Xero, QuickBooks, or Sage and shows you exactly what each department costs — with budget tracking and alerts when you go over.
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