UK Employer Payroll Cost Calculator — 2026/27
Estimate the cost of employing someone in 2026/27: gross salary, employer National Insurance and selected pension contributions, alongside employee take-home pay. Payroll outsourcing costs are separate from these employment costs. To budget for a payroll provider, compare our employer payroll outsourcing fees. This illustration assumes regular annual pay and tax code 1257L; Scottish tax, student loans and other unsupported circumstances need a separate review.
- Income Tax (PAYE)
- £3,486.00
- Employee National Insurance
- £1,394.40
- Employee Pension (5%)
- £1,188.00
- Gross Salary
- £30,000.00
- Employer NI (after Allowance)
- £0.00
- Employer NI before Allowance
- £3,750.00
- Employer Pension (3%)
- £712.80
This employment-cost estimate excludes payroll outsourcing fees and other overheads. Request a written employer payroll quote for your headcount and pay frequency; a named specialist will respond within one working day.
Who is this payroll estimate for?
UK employers can use this illustration when considering a salary offer, planning a staffing budget or comparing the employer cost of different gross salaries. An employee can also use the take-home view as a starting point for a pay discussion. The result is indicative, not a payslip, an HMRC submission or a minimum wage check.
What is included in the estimate?
The employee view separates PAYE income tax, employee National Insurance and a simplified pension deduction. Pension tax relief is not calculated: with pensions switched on, the result is not a scheme-specific take-home figure. The employer view adds gross salary, employer National Insurance and the selected employer pension contribution. Monthly and weekly figures are annual equivalents, not a calculation for a specific period with cumulative history.
Employment Allowance is an employer-level relief, subject to eligibility. This tool can illustrate the offset against this salary, but it cannot tell you how much allowance remains after other staff have been paid. Leave the toggle off when modelling an additional employee if your business has already used the allowance.
Which assumptions should you check?
- The tax code is fixed to 1257L, with regular annual pay and 2026/27 thresholds.
- Scottish income tax bands, student loans, salary sacrifice and K-codes are outside this illustration. Do not rely on it for high-earner taper or additional-rate calculations.
- The simplified pension deduction does not calculate tax relief. Your scheme's contribution basis and tax-relief method require a separate calculation.
- Irregular bonuses, starter/leaver dates, statutory payments, director National Insurance rules and prior-year-to-date earnings need a separate payroll review.
- Employer cost excludes bureau fees, benefits, insurance, recruitment and other overheads.
Check the current figure on GOV.UK income tax guidance, Employment Allowance eligibility and The Pensions Regulator employer guidance before relying on a payroll budget.
How much does it cost to outsource payroll? That is a separate service fee, not the employment-cost total above. Compare published payroll outsourcing costs and inclusions for employers, then request a written quote for your headcount and pay frequency. For a checked pay run, discuss managed payroll with a named specialist.
Payroll calculator questions
What does the employer payroll calculator estimate?
The employer payroll calculator estimates annual employee take-home pay after PAYE, employee National Insurance and the selected pension contribution. It also shows gross salary plus employer National Insurance and the selected employer pension contribution, with monthly and weekly equivalents.
Does Employment Allowance reduce employee deductions?
Employment Allowance does not reduce employee deductions. The toggle only offsets employer National Insurance in this indicative model. Eligibility must be checked, and the allowance is shared across the employer's payroll, not available separately for each employee. Do not add together several estimates with the full allowance switched on.
Which tax situations are outside this calculator?
The payroll calculator’s simplified illustration is fixed to tax code 1257L and assumes regular annual pay. Do not use it for Scottish income tax bands, student loans, salary sacrifice, K-codes or high-earner taper and additional-rate calculations. Pension tax relief is not calculated, so the pension-on result is not a scheme-specific take-home figure. These situations need a payroll review.
Does total employer cost include payroll bureau fees?
The payroll calculator excludes bureau fees. Its estimate covers the selected salary, employer National Insurance and pension costs, not payroll bureau fees, benefits, recruitment costs or other employment overheads. See our employer pricing page for processing charges and ask for a written quote for your actual scope.