Rule-based calculation · 2026/27
What a salary really costs
A payslip shows what the employee receives. The employer also pays National Insurance and a pension contribution on top, from the statutory rates for 2026/27. Enter a budget instead to see the largest salary it can carry.
Total employment cost · 2026/27
£40,550 a year
£35,000 salary plus £5,550 on top, an on-cost of 15.9%
Employer National Insurance is £4,500 and the employer pension £1,050.
The cost, line by line
| Item | A year | A month | How it is worked out |
|---|---|---|---|
| Gross salary | £35,000.00 | £2,916.67 | As entered. |
| Employer National Insurance | £4,500.00 | £375.00 | 15% of earnings above the secondary threshold of £5,000, before any Employment Allowance. |
| Employer pension | £1,050.00 | £87.50 | 3% of gross salary as entered. The automatic-enrolment minimum is 3% of qualifying earnings between £6,240 and £50,270, which is less than 3% of the whole salary. |
| Total | £40,550.00 | £3,379.17 | Everything above. |
What this does not cover
The Employment Allowance, which reduces employer National Insurance for eligible employers; the Apprenticeship Levy; National Insurance categories other than A; benefits in kind; and salary sacrifice. Enter any of those you know as other costs.
Check the rules
Every rate and threshold is recorded in the registry with the page it was taken from on 2026-09-03.
- Employer National Insurance
- https://www.gov.uk/guidance/rates-and-thresholds-for-employers-2026-to-2027
- Pension minimums
- https://www.gov.uk/workplace-pensions/what-you-your-employer-and-the-government-pay
- Qualifying earnings
- https://www.thepensionsregulator.gov.uk/en/employers/new-employers/im-an-employer-who-has-to-provide-a-pension/declare-your-compliance/ongoing-duties-for-employers/earnings-thresholds
- Tax year
- 2026/27, 2026-04-06 to 2027-04-05