True cost of an employee

The salary is never the cost. Add employer National Insurance, the auto-enrolment pension and 12.07% holiday accrual to find out what a hire actually costs you - per year and per hour.

The role

Adds a true hourly cost and a minimum-wage check.

Under-21s carry no employer NI up to £50,270.

What it really costs

The full breakdown is one step away

See employer NI, pension and holiday accrual line by line, plus the true hourly cost and a minimum-wage check. Enter your details below.

Unlock the full cost breakdown

Employer NI, pension and holiday accrual line by line, plus the true hourly cost. Your result appears instantly.

What sits on top of a salary

15% of pay above £5,000 a year. Zero-rated to £50,270 for under-21s and apprentices under 25.

Minimum 3% employer contribution on qualifying earnings - the slice between £6,240 and £50,270.

12.07% of hours worked, the statutory accrual rate for irregular-hours and part-year workers.

Common questions

What is the true cost of an employee in the UK?

Typically 25% to 30% more than their salary. On top of gross pay an employer pays Class 1 secondary National Insurance at 15% above the £5,000 annual secondary threshold, a minimum 3% auto-enrolment pension contribution on qualifying earnings, and accrues holiday pay worth 12.07% of hours worked.

How much employer National Insurance do I pay?

Employer NI is 15% of earnings above the secondary threshold of £96 a week, or £5,000 a year. It is zero-rated up to the Upper Secondary Threshold of £50,270 for employees under 21 and for apprentices under 25, which makes younger hires materially cheaper.

What are qualifying earnings for auto-enrolment?

Qualifying earnings are the slice of pay between £6,240 and £50,270 a year. The statutory minimum employer contribution is 3% of that band, not 3% of total pay - so on a £30,000 salary the minimum is 3% of £23,760, which is £712.80.

Why is holiday pay counted as a cost?

Because paid leave is time you pay for but get no work from. Whether you treat it as a 12.07% accrual on hours worked, as the Working Time Regulations require for irregular-hours staff, or bake it into a salary, it is a real part of what the role costs.

Does this include the Employment Allowance?

No. Eligible employers can claim the Employment Allowance against their total employer NI bill, which reduces the NI figure at business level rather than per employee. This calculator shows the unrelieved per-employee cost.

See this cost on every shift, before you roster it

Zynthio HR and rotas apply exactly these on-costs to your real staff, so the wage percentage you forecast is the one you actually pay - not the one that ignores NI, pension and holiday.