Employer true employment cost calculator 2026/27
Add salary, bonus, employer National Insurance, workplace pension and benefits to estimate the real monthly and annual hiring cost.
How the Employment cost estimate works
The employer-cost tool adds gross cash pay, employer National Insurance, the selected pension basis and entered benefits. Any Employment Allowance is entered as a remaining employer-wide amount allocated to this illustration.
Rules checked
Read the checking method
What the result includes
- Employer NI at the 2026/27 rate and threshold
- Qualifying-earnings or full-pay pension basis
- A separately visible Employment Allowance offset
What to have ready
- Contractual salary and bonus
- Scheme pension basis and employer rate
- Confirmed Employment Allowance eligibility and remaining balance
Questions about Employment cost
Does each employee receive £10,500 of Employment Allowance?
No. It is one annual allowance for an eligible employer and is used across its employer Class 1 NI bill until exhausted.
What costs are still outside the result?
Recruitment, equipment, training, leave cover, Apprenticeship Levy and role-specific benefits may all add cost beyond the entries shown.
About this estimate
Employment Allowance eligibility, pension certification, salary sacrifice, apprenticeships, directors and benefits can change employer costs.