Fill in the figures, then click Work out the cost.
Result
The numbers
| Item | Per year |
|---|
What to do
| Step | What it means |
|---|
What it does, and what it leaves to you
- Covers: employer Class 1 National Insurance for 2024/25, 2025/26 and 2026/27, Employment Allowance, the automatic-enrolment minimum pension, the under-21 and apprentice relief, and your own extras.
- Gives: yearly, monthly and first-year cost, the on-cost percentage, the change from the 2024/25 NIC rules, and the salary a total budget can fund.
- Not decided: the apprenticeship levy, Employment Allowance eligibility, benefits in kind, part-year hiring, devolved differences, and anything that changed after this was written.
Common questions
How much does it cost to employ someone in the UK?
Salary plus employer National Insurance (15% above 5,000 a year from April 2025), a workplace pension (minimum 3% of qualifying earnings), and extras such as equipment, training and recruitment. On a 35,000 salary the running cost is typically around 20% above salary.
What is employer National Insurance in 2025/26?
15% of an employee's pay above 5,000 a year (417 a month). It was 13.8% above 9,100 before 6 April 2025.
What is the Employment Allowance?
A reduction in employer NIC, 10,500 a year from April 2025, claimed through payroll. It applies to the whole business, not each hire, and is not available to a company whose only paid employee is a director.
Do I have to pay a pension?
If the employee is aged 22 to State Pension age and earns over 10,000 a year, you must enrol them and pay at least 3% of qualifying earnings (the slice of pay between 6,240 and 50,270).
Is there a break for apprentices and under-21s?
Yes. Employer NIC is zero on earnings up to 50,270 a year for employees under 21 and for apprentices under 25 on an approved framework.
Is my data uploaded anywhere?
No. Everything is calculated in your browser and nothing is sent.