Last Updated on November 10, 2026
A £30,000 salary does not cost £30,000. Most first-time employers budget for the wage and get caught by what sits on top of it.
This calculator adds employer National Insurance and the employer pension payment to a yearly salary, using the 2026 to 2027 rates. You get a yearly and a monthly cost.
No email, no sign-up. It runs in your browser and nothing you type is sent anywhere.
What the calculator assumes
- One employee, paid the same amount all year, on the standard National Insurance category.
- Employer National Insurance is 15% of pay above £5,000 a year.
- For under 21s and apprentices under 25, the employer pays nothing until pay passes £50,270 a year.
- The minimum employer pension payment is 3% of qualifying earnings, which is pay between £6,240 and £50,270 a year.
- The Employment Allowance is one pot of £10,500 for the whole business. If you tick the box, the calculator takes all of it off this one employee.
- It leaves out the employee’s own tax, benefits in kind, the Apprenticeship Levy, sick pay and holiday cover.
The 2026 to 2027 rates used
| Item | Rate | Source |
|---|---|---|
| Employer National Insurance | 15% above £5,000 a year | GOV.UK: rates and thresholds for employers |
| Employment Allowance | Up to £10,500 a year | Same GOV.UK page |
| Pension qualifying earnings | £6,240 to £50,270 | GOV.UK: automatic enrolment review 2026/27 |
| Pension earnings trigger | £10,000 a year | Same review |
A worked example
Take a £30,000 salary with the minimum pension and no Employment Allowance.
- National Insurance: £30,000 minus £5,000 is £25,000. 15% of that is £3,750.
- Pension: £30,000 minus £6,240 is £23,760. 3% of that is £712.80.
- Total: £34,462.80 a year, or £2,871.90 a month.
That is £4,462.80 on top of the salary, before any kit, software or training.
Check the hire pays for itself
A hire is a fixed cost. Before you commit, check how many sales it takes to cover it with the break-even calculator, and what each sale really earns with the profit margin calculator.
Paid holiday is part of the cost too. The holiday entitlement calculator shows the legal minimum. For what the 2026 Budget changes from April 2027, see our Budget page.
Questions people ask
How much does an employee cost on top of their salary?
On a £30,000 salary in 2026 to 2027, employer National Insurance and the minimum pension add £4,462.80 a year, about 15% on top. The share rises as pay rises.
Do all employers get the Employment Allowance?
No. Most small employers can claim it, but a company where the only paid employee is a single director cannot. Check the rules on GOV.UK before you rely on it.
Do I have to pay into a pension for every employee?
You must enrol staff aged 22 up to State Pension age who earn over £10,000 a year. Others can ask to join. The minimum employer payment is 3% of qualifying earnings.
This is an estimate to help you plan. It is not payroll, tax or legal advice. Your payroll software or accountant gives the exact figure.
