# Employee cost in the UK

> Enter the gross salary and see what an employer pays in the UK on top of it in 2026.

Interactive calculator: https://www.nyrut.com/en/employee-cost-calculator/uk

## What an employer pays in the UK

On top of gross pay, the employer pays about 15% in contributions, some of them only up to a cap.

- **Employer National Insurance**: 15% above £5,000 a year

Employer National Insurance 2026/27: 15% above £5,000 a year. It doesn't subtract the Employment Allowance (up to £10,500 a year per employer) or the auto-enrolment pension contribution (3% minimum).

## An example

- **Gross salary**: £40,000 a year
- **Employer contributions**: £5,250
- **Total cost to the employer**: £45,250 a year · £3,771 a month

## What the payslip doesn't show

- Recruiting and onboarding time.
- Equipment, licences and space.
- Training and benefits.
- Paid leave and sick days.

## FAQ

**How much does an employee cost in the UK?**
With a gross salary of £40,000, about £45,250 a year: 13.13% on top of gross pay.

**Is there a contribution cap in the UK?**
Yes: Employer National Insurance above £5,000.

## Sources (checked 2026-10-15)

- [the UK: official rates and caps](https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027)

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