Free tool·ExternalOS·2026/27

The true cost of hire.

Enter a salary and get the full annual cost of employing that person: employer NI above the £5,000 secondary threshold, the Employment Allowance, pension auto-enrolment, holiday accrual, and a National Minimum Wage compliance check.

Calculate the cost
How it works

When you offer a candidate £30,000, the real annual cost to your business runs roughly 12% to 18% higher once Class 1 employer National Insurance, pension auto-enrolment and holiday accrual are added. Get it wrong at the offer stage and the gap lands at month end.

This tool runs the four layers HMRC and The Pensions Regulator actually require, then sense checks the wage against the National Living Wage and National Minimum Wage age bands. April 2026 rates throughout, with the Employment Allowance applied where you qualify.

The hire

Tell us about the role.

The headline figure on the offer letter. Pre-tax. We handle the rest.

Salaried employees get fixed weeks. Hourly or casual workers accrue holiday at 12.07% of hours worked.

Drives the National Minimum Wage and National Living Wage compliance check.

Eligible workers (aged 22 to State Pension age, earning over £10,000) must be auto-enrolled. Employer minimum contribution is 3% of qualifying earnings.

Most small employers can reduce employer NI by up to £10,500 a year. Available if total employer NI was under £100k in the previous tax year and you have at least one director or qualifying employee.

The true cost

What the hire actually costs.

Annual employer cost
£0

-Above gross salary
-Per month
-Per working day

Compliance checks

Pairs with the Employment Law Kit

Hiring for real?

The free calculator gives you the true cost. The UK Employment Law Kit gives you the eleven letters and the payroll cost workbook behind it, current to the Acas Code. Paid once, yours to keep.

See the Employment Law Kit, £49 All five packs

Calculator uses April 2026 UK rates: Employer NI 15% above £5,000 Secondary Threshold, Employment Allowance £10,500, NLW (21+) £12.21, NMW 18 to 20 £10.00, NMW under 18 or apprentice £7.55, qualifying pension earnings £6,240 to £50,270, holiday accrual at 5.6 weeks (12.07% method for irregular hours). Educational tool, not payroll software. For statutory filing, use HMRC Basic PAYE Tools or a payroll provider.