UK Employer Cost Calculator 2026/27

2026/27

Enter annual salary, cash bonus, employer pension and other annual costs to estimate employer National Insurance and the complete entered employment budget.

Rates reviewed 14 August 2026. Methodology

Published and source-checked by Mehmood Rajoka, founder and publisher. Review our editorial policy.

Scope: Annual budgeting estimate for one employee using supported NI categories. It excludes Employment Allowance, Apprenticeship Levy, Class 1A benefits, director methods, special-location and veteran reliefs, and payroll-period rounding.

Example result

Total annual employment cost

£46,450.00

Average monthly budget

£3,870.83

Total of the employment pay and employer costs entered above; it is not an employee take-home figure.

Gross Employment Pay

£40,000.00

Employer NI

£5,250.00

On-Cost Uplift

16.13%

above gross pay

Entered Employment Cost BreakdownView details

Salary: £40,000.00Tax £40,000.00
Cash bonus: £0.00Tax £0.00
Employer NI — category A: 15%£35,000.00Tax £5,250.00
Employer pension: Entered£1,200.00Tax £1,200.00
Other employer costs: Entered£0.00Tax £0.00
Total employment cost: £40,000.00Tax £46,450.00

Entered Employment Cost Breakdown

Cost	Rate	Basis	Annual Cost
Salary		£40,000.00	£40,000.00
Cash bonus		£0.00	£0.00
Employer NI — category A	15%	£35,000.00	£5,250.00
Employer pension	Entered	£1,200.00	£1,200.00
Other employer costs	Entered	£0.00	£0.00
Total employment cost		£40,000.00	£46,450.00

Employer NI in plain English

Category A uses an annualised employer NI threshold of £5,000.00. The 15% rate applies to £35,000.00 above that threshold, producing £5,250.00 of employer NI before any Employment Allowance.

Official sources

Rates and thresholds are checked against the following primary sources. Review dates are shown on the relevant guide or methodology page.

Last reviewed: 14 August 2026

Scope and limitations

Read our calculation methodology

Disclaimer: This calculator provides estimates only and does not constitute tax, financial, or legal advice. Always consult a qualified professional for your specific circumstances. View methodology