Staff Cost Calculator
Find out the true cost of employing someone in the UK — beyond just the headline salary.
Staff Cost Calculator
True cost of employment including NI, pension, and on-costs
Gross salary before tax
Minimum is 3% under auto-enrolment
What does it really cost to employ someone in the UK?
Most employers underestimate the true cost of hiring. On top of a £30,000 salary, you typically pay an extra 20–30% in employer-side costs.
Employer on-costs breakdown
- Employer National Insurance — 13.8% on earnings above the £9,100 Secondary Threshold (2024/25)
- Auto-enrolment pension — Minimum 3% employer contribution on qualifying earnings
- Recruitment costs — Agencies typically charge 15–25% of salary; budget around 10%
- Training & onboarding — Average 2% of salary in the first year
- Holiday pay — Already included in salary; statutory minimum is 28 days including bank holidays
Employer NI rates 2024/25
The Secondary Threshold is £9,100/year. Employers pay 13.8% on all earnings above this. The Employment Allowance allows eligible employers to reduce their NI bill by up to £5,000/year.