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UK salary and employer cost calculator for 2026/27

The cost of employing someone in the UK is their gross salary plus employer National Insurance, 15% of pay above £5,000 a year in 2026/27, plus the employer's workplace pension contribution.

See take-home pay and the full cost of an employee in 2026/27, with income tax, employee and employer NI, student loan and pension, for rUK or Scotland.

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2026/27 tax year (6 April 2026 to 5 April 2027): HMRC rates and thresholds for employers (updated 1 September 2026), the Scottish rate resolution of 19 February 2026, and the Budget of 28 October 2026, which confirmed them. Reviewed 30 October 2026.

An annual estimate for a category A employee on a steady salary with a 1257L tax code. NI is really worked out each pay period, salary sacrifice and other taxable benefits are not modelled, and Employment Allowance and the Apprenticeship Levy are claimed for the whole business, not per employee, so they are shown separately. Pension contributions are treated as a net pay arrangement, taken before income tax.

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Take-home pay a month£2,297.43
Take-home pay a year£27,569.20
Total employer cost a year£40,362.80
Employer NI a year£4,500.00

Assumes tax code 1257L (S1257L in Scotland), salary as the only income, NI category A and no salary sacrifice. Payroll works NI out per pay period; for a steady salary the annual figure here is the same.

Pension contributions are treated as a net pay arrangement: they come off pay before income tax, but not before NI or student loan repayments. Under relief at source, take-home pay differs.

Salary and employer cost, 2026/27

ItemAnnualMonthly
Gross salary£35,000.00£2,916.67
Income tax£4,198.40£349.87
Employee National Insurance£1,794.40£149.53
Employee pension (5%)£1,438.00£119.83
Take-home pay£27,569.20£2,297.43
Employer National Insurance (15% above £5,000)£4,500.00£375.00
Employer pension (3%)£862.80£71.90
Total employer cost£40,362.80£3,363.57

Income tax bands (rUK, 2026/27)

BandRateTaxable income in bandTax
Personal allowance0%£12,570.00£0.00
Basic20%£20,992.00£4,198.40

Company-level items (not included in the per-employee cost)

ItemRule
Employment AllowanceEligible employers can cut their total employer NI bill by up to £10,500 a year, not per employee. A company whose only employee paid above £5,000 is a sole director cannot claim it; connected companies share one allowance.
Apprenticeship Levy0.5% of the annual pay bill minus a £15,000 allowance, so only employers with a pay bill over £3 million pay it. Connected companies share one allowance.
Tax year: 2026/27 (England, Wales and Northern Ireland)
Personal allowance: £12,570.00
Taxable income: £20,992.00
Pension basis: qualifying earnings £6,240 to £50,270 (£28,760.00)
Gross salary: £35,000.00 a year, £2,916.67 a month
Income tax: £4,198.40 a year, £349.87 a month
Employee National Insurance: £1,794.40 a year, £149.53 a month
Employee pension (5%): £1,438.00 a year, £119.83 a month
Take-home pay: £27,569.20 a year, £2,297.43 a month
Employer National Insurance (15% above £5,000): £4,500.00 a year, £375.00 a month
Employer pension (3%): £862.80 a year, £71.90 a month
Total employer cost: £40,362.80 a year, £3,363.57 a month
Not per employee: Employment Allowance (up to £10,500 a year off the employer's NI bill, if eligible) and the Apprenticeship Levy (0.5% of the pay bill less a £15,000 allowance).

Examples

Employer cost of £35,000

Employer NI = (35,000 − 5,000) × 15% = £4,500. Minimum employer pension = (35,000 − 6,240) × 3% = £862.80. Total cost £40,362.80 before any Employment Allowance.

Employer cost of £60,000

Employer NI = (60,000 − 5,000) × 15% = £8,250. Pension on qualifying earnings = (50,270 − 6,240) × 3% = £1,320.90. Total £69,570.90.

Take-home pay on £30,000 in England

Income tax (30,000 − 12,570) × 20% = £3,486. Employee NI (30,000 − 12,570) × 8% = £1,394.40. Take-home £25,119.60 a year with no pension or student loan.

The same £30,000 in Scotland

Scottish income tax is £3,451.07 (19%, 20% and 21% bands), and NI is the same £1,394.40, so take-home is £25,154.53.

Over £100,000

On £110,000 the Personal Allowance falls by £1 for every £2 over £100,000, to £7,570. Income tax in England is £33,432 and employee NI £4,210.60.

Plan 2 student loan

On £60,000: (60,000 − 29,385) × 9% = £2,755.35 a year.

How to use it

  1. Enter the annual gross salary and choose England, Wales and Northern Ireland, or Scotland.
  2. Pick a student loan plan if the employee has one.
  3. Set the employee and employer pension percentages and whether they apply to qualifying earnings or the full salary.
  4. Read the employee's deductions and take-home pay, and the employer NI, pension and total cost, then copy, download or print them.

Questions

How much is employer National Insurance in 2026/27?
15% of each employee's earnings above the secondary threshold of £5,000 a year (£417 a month). For employees under 21 and apprentices under 25 the rate is 0% up to £50,270.
How much National Insurance does the employee pay?
8% on earnings between £12,570 and £50,270 a year, and 2% above £50,270.
What are the income tax bands for 2026/27?
In England, Wales and Northern Ireland: a £12,570 Personal Allowance, then 20% on the next £37,700, 40% up to £125,140 and 45% above. The allowance is reduced by £1 for every £2 of income over £100,000.
How is Scottish income tax different?
Scotland has six bands on taxable income: 19% up to £3,967, 20% to £16,956, 21% to £31,092, 42% to £62,430, 45% to £125,140 and 48% above. The Personal Allowance and National Insurance are the same as in the rest of the UK.
What are the student loan thresholds?
Plan 1 £26,900, Plan 2 £29,385, Plan 4 (Scotland) £33,795 and Plan 5 £25,000, each repaid at 9% above the threshold. A Postgraduate Loan is repaid at 6% above £21,000, on top of any other plan.
What is the minimum workplace pension contribution?
For auto-enrolment, 8% of qualifying earnings in total, of which the employer pays at least 3%. Qualifying earnings are pay between £6,240 and £50,270 a year, and employees earning over £10,000 must be enrolled.
Does it include Employment Allowance or the Apprenticeship Levy?
No, because both apply to the whole business. Employment Allowance cuts an eligible employer's NI bill by up to £10,500 a year; a company whose only paid employee is a director cannot claim it. The Apprenticeship Levy is 0.5% of the pay bill less a £15,000 allowance, so only employers with a pay bill over £3 million pay it.
Is my data sent anywhere?
No. The calculation runs entirely in your browser and nothing is uploaded.

Sources

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