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UK employer planning

UK cost of hiring calculator

Estimate the first-year cost of hiring someone in the UK, including salary, employer National Insurance, employer pension contributions and common setup costs.

Employer National Insurance is estimated at 15% above the £5,000 secondary threshold. Employment Allowance can reduce a qualifying employer's annual Class 1 NIC bill by up to £10,500.

Estimated first-year employer cost

£55,850.00

£4,654.17 a month on average

Gross salary
£45,000.00
Employer National Insurance
£6,000.00
Employer pension
£1,350.00
Recruitment cost
£1,500.00
Onboarding / training
£750.00
Equipment / setup
£1,250.00

This is a planning estimate. It does not yet include the apprenticeship levy, benefits in kind, holiday accrual, payroll software, insurance, office overheads or any sector-specific employment costs.

What this calculator is for

Use it when you are budgeting for a new hire, reviewing a salary offer, planning recruitment or comparing the cost of different roles. It is deliberately focused on employer cost rather than employee take-home pay.

Why the result is higher than salary

The gross salary is only part of the bill. Employers also pay secondary Class 1 National Insurance and, in many cases, pension contributions. Hiring often adds recruitment, onboarding and equipment costs too.

Important limits

This is a planning estimate rather than payroll advice. It does not yet include the apprenticeship levy, holiday pay accrual, benefits in kind, insurance, software subscriptions, office overheads or sector-specific employment rules.

Employer National Insurance thresholds and the Employment Allowance cap follow HMRC's 2026/27 employer rates and thresholds and Employment Allowance guidance.