What It Really Costs to Employ Someone
Pay is only part of it. See National Insurance, pension, holiday, kit and the cost of each hour actually worked. Free and indicative, using GOV.UK data as at September 2026.
Enter the role
The pay, the hours and the days a week, and who it's for.
Add the extra costs
Pension, recruitment, equipment, software and training, the costs that are easy to forget.
See the real cost
A year, a month, an hour actually worked, and the sales needed to cover it.
Indicative only, not advice. This tool shows what employing someone could cost on the figures you enter. It does not tell you whether to hire, and must not be relied upon. Speak to us before making any decision.
The role
Employer National Insurance
Pension
Automatic means enrolled if they earn £10,000 a year or more. Worked on earnings between £6,240 and £50,270.
The other costs
Your business
Working it out
Indicative only, not advice, and not to be relied upon. See how it is worked out below.
What it costs, line by line
| A year |
|---|
The hours you actually get
Why it costs more than the salary
Rates and rules used
Rates from GOV.UK for the 2026/27 tax year, as at September 2026.
Important: this calculator is indicative only. It is not advice and must not be relied upon, and it does not tell you whether to employ someone or how much to pay them. It is indicative only, using rates on GOV.UK for 2026/27 as at September 2026, and assumes the figures you enter stay the same for the year. It does not include statutory sick pay paid, maternity or paternity pay, overtime, holiday pay on overtime, redundancy, insurance such as employers' liability, or any cost of a payroll service. Statutory sick pay is now paid from the first day off sick. Employment law and the rates change, so speak to us before you decide.
About the cost of employing calculator
This free calculator shows what it really costs to employ someone in the UK, not just their salary. It adds employer National Insurance after the Employment Allowance, workplace pension, software, training, recruitment and equipment.
It then works out the cost for each hour actually worked, once paid holiday and sick days are taken off, and the extra sales needed to cover the cost at your gross margin. It also checks the pay against the National Living Wage.
Results are indicative only, use September 2026 data and are not to be relied upon. They do not tell you whether to hire or what to pay.
Rates the calculator uses
| Rule | Rate |
|---|---|
| Employer National Insurance | 15% over £5,000 |
| Employment Allowance | £10,500 |
| National Living Wage, aged 21 and over | £12.71 |
| Minimum wage, aged 18 to 20 | £10.85 |
| Under 18 and apprentices | £8.00 |
| Employer pension minimum | 3% |
| Paid holiday | 5.6 weeks |
| Statutory sick pay | £123.25 a week |
GOV.UK rates as at September 2026, for England and Northern Ireland.
Questions people ask
How much does it cost to employ someone in the UK?
On top of salary, an employer usually pays 15% National Insurance on pay over £5,000 a year, less any Employment Allowance, at least 3% pension on qualifying earnings, plus costs like recruitment, equipment, software and training. Paid holiday means you pay for 52 weeks but get about 46 weeks of work.
What is the Employment Allowance for 2026/27?
It reduces employer National Insurance by up to £10,500 a year for the whole business. A company where a director is the only person paid cannot claim it.
What is the National Living Wage from April 2026?
£12.71 an hour for workers aged 21 and over, £10.85 for 18 to 20 year olds and £8.00 for under 18s and apprentices.
When does statutory sick pay start?
From April 2026 statutory sick pay is paid from the first day off sick, at £123.25 a week or 80% of average earnings if that is lower.
Do I have to put a new employee in a pension?
Workers aged 22 to State Pension age earning over £10,000 a year must be automatically enrolled, with an employer contribution of at least 3% of qualifying earnings between £6,240 and £50,270.
See also all our calculators, or book a free call.
Indicative only, not advice. This calculator uses September 2026 data and is not to be relied upon. Speak to us before making any decision.