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Employer Cost Calculator — UK Tax Calculator

UK Tax Calculator

Employer Cost Calculatorfocused tool2026/27 · Take-home & tax
Income

Employer Cost Calculator

See the true cost to employ someone — gross salary plus employer National Insurance, employer pension, and the apprenticeship levy estimate.

Employer cost · cost to employ you
Total cost to employer

£82,200/yr

+17.4% above your gross salary
Your gross salary is £70,000. The rest covers employer National Insurance, employer pension, and an estimated apprenticeship levy.
Cost breakdown

Gross Salary

Your contractual gross salary

£70,000

85.2% of total

Employer NI

15% × earnings above £5,000 (Class 1 secondary)

£9,750

11.9% of total

Employer Pension

Employer's % contribution on top of your pay

£2,100

2.6% of total

Apprenticeship Levyif applicable

0.5% × salary (if employer's pay bill > £3M)

£350

0.4% of total
What-if: cost of a pay rise

£5,000

True cost to employer

£5,925

Salary efficiency

84.4%

of cost reaches your salary
A £5,000 pay rise costs your employer £5,925 once the additional employer NI is included.
Salary sacrifice saves employer NI

£525/yr saved

On a salary-sacrifice pension, your employer's NI bill drops by £525/yr. Many employers share this saving as extra pension contributions — worth asking yours.

Common questions

Quick answers for the 2025/26 tax year. For guidance only — not financial advice.