of qualifying earnings, £6,240 to £50,270
Total cost of employing
£46,262.80a year
A month
£3,855.23
On top of salary
15.7%
Employer National Insurance £5,250.00 (15% of pay over £5,000) plus pension £1,012.80 (3% of £33,760 qualifying earnings). The employee takes home £32,319.60.
Employer cost at common salaries
| Salary | Employer NI | Pension (3%) | Total cost | On top |
|---|---|---|---|---|
| £25,000 | £3,000.00 | £562.80 | £28,562.80 | 14.3% |
| £30,000 | £3,750.00 | £712.80 | £34,462.80 | 14.9% |
| £40,000 | £5,250.00 | £1,012.80 | £46,262.80 | 15.7% |
| £60,000 | £8,250.00 | £1,320.90 | £69,570.90 | 16.0% |
| £100,000 | £14,250.00 | £1,320.90 | £115,570.90 | 15.6% |
Before the Employment Allowance; no benefits, bonuses or training.
Quick answers
How much does a £40,000 employee cost?
£46,262.80 a year in 2026/27: the salary, £5,250 employer National Insurance and £1,012.80 minimum pension. That is 15.7% on top of the salary.
How is employer National Insurance worked out?
15% of everything you pay the employee above £5,000 a year. It is paid by you, not taken from their pay.
Does this include the Employment Allowance?
No. Eligible employers can take up to £10,500 a year off their total employer National Insurance bill. This page shows the cost of one employee before that.
Sources: HMRC rates and thresholds for employers 2026 to 2027 (checked 31 Oct 2026); DWP, automatic enrolment earnings trigger and qualifying earnings band 2026/27 (checked 1 Nov 2026).