Cost to employ calculator 2026/27

For employers

What does a new hire really cost?

Start with salary. We will show the employer costs around it.

2026/27 tax year

Annual gross salary Annual bonus Employer pension rateDefault: 3% of qualifying earnings

Add benefits and hiring costs

Keep ongoing costs and one-off setup costs separate.

Other annual costsFor example, health cover or trainingOne-off hiring costsFor example, recruitment and equipment

Estimated ongoing cost

£58,063

a year (about £4,839 a month)

Salary and bonus£50,000

Employer National Insurance£6,750

Employer pension£1,313

Other annual costs£0

First year with one-off costs£58,063

Planning estimate only. Tax, National Insurance and pension rules can change. Actual payroll and benefit costs may differ, so this is not a quote or an exact budget.

Based on 2026/27 standard employer NI and a pension contribution on qualifying earnings. Employment Allowance is not deducted, as it applies to an eligible employer's overall NI bill. Holiday pay is not added again to a salaried role. Costs such as benefit tax and apprenticeship levy are not included.

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What makes up the cost?

Start with annual salary and any bonus. The estimate adds standard employer National Insurance for 2026/27 and a pension contribution on qualifying earnings. You can also add benefits, training and one-off hiring costs.

Employment Allowance is not deducted because eligibility and the amount available depend on the employer as a whole. This is a planning estimate, not a payroll calculation or quote. Rates and thresholds can change.