Payslp · Business Hub

Employee cost calculator

A salary is only part of what an employee costs. Add employer National Insurance, pension and overheads to see the true cost of hiring in 2026/27.

2026/27 · employer NI 15% above £5,000 · pension 3%

Gross annual salary

Employer pension

3% statutory minimum.

Pension basis

Other annual overheads (optional)

Equipment, software, workspace, training etc.

What goes into employee cost (2026/27)

Employer NI: 15% on earnings above the £5,000 secondary threshold (no upper cap).
Pension: the statutory minimum employer contribution is 3% of qualifying earnings — the slice of salary between £6,240 and £50,270. Some schemes use full salary instead.
Employment Allowance: eligible employers can offset up to £10,500 of their total employer NI bill across the year — so for a first employee, much of the NI may be covered.
Add overheads — equipment, software, workspace — for the genuine all-in cost.

Estimate of gross employer cost before any Employment Allowance offset. Pension assumes a standard auto-enrolment scheme. Not tax or payroll advice. Payslp Business Hub.