Business Finance Tools · Hull & East Yorkshire
What Does It Really Cost to Hire Someone in the UK?
Most businesses budget for a new hire's salary — and stop there. But salary is often only 80–85% of what it actually costs to employ someone. On top of pay, employers must cover employer National Insurance and, for most staff, a workplace pension contribution — plus whatever else the role needs, from kit and training to a DBS check.
Our free employment cost calculator adds all of that up in seconds, so you know the real annual and monthly cost before you make an offer — whether you're a Hull retailer taking on your first employee or an East Yorkshire manufacturer growing the team.
Enter pay & hours
Annual salary or hourly rate, hours per week, and the employee's age band.
We check the numbers
National Minimum Wage compliance, employer NI, pension, and any other on-costs you add.
See the true cost
Your total annual and monthly cost to employ this person, broken down and charted.
Employment Cost Calculator
See the true cost of hiring someone — salary plus employer National Insurance, workplace pension contributions and any other on-costs — checked against the current National Minimum Wage for their age group. Figures use 2026/27 UK rates.
Employee details
The full-time salary for this role, before tax. We pro-rate it automatically based on hours per week, below.
Gross pay per hour, before tax.
Used to pro-rate a full-time salary for part-time hours, check pay against the minimum wage, and convert hourly pay to an annual figure.
Under 19, or 19+ and in their first year — uses the apprentice rate instead of the age-band rate.
Employer on-costs
Auto-enrolment applies to eligible staff aged 22 to State Pension age earning over £10,000/year.
3% is the current auto-enrolment minimum, on qualifying earnings between £6,240 and £50,270.
Up to £10,500/year off your total employer NI bill — shared across your whole payroll, not just this hire. Turn on only if you have headroom left.
Recruitment, training, equipment, uniform, DBS checks, benefits, and similar.
Cost build-up over the year
Employment Cost Calculator: Frequently Asked Questions
What is included in an employment cost calculator?
A good employment cost calculator adds up everything an employer has to pay to take someone on, not just their salary. That means gross pay, employer National Insurance contributions, workplace pension contributions, and any other costs specific to the role — recruitment, training, equipment, or benefits. Ours also checks the pay against the National Minimum Wage for the employee's age.
How much does it actually cost to employ someone in the UK?
As a rough guide, employer on-costs typically add 15–20% on top of gross salary once National Insurance and a standard 3% pension contribution are included — more if the role comes with other costs like training or equipment. For example, a £28,000 salary can cost closer to £32,000 once NI and pension are added. The exact figure depends on the employee's age, pay, and pension arrangement, which is exactly what this calculator works out.
How is employer National Insurance calculated on a new hire?
For 2026/27, employers pay Class 1 secondary National Insurance at 15% on earnings above £5,000 a year. Most employees under 21 and apprentices under 25 benefit from 0% employer NI up to £50,270, which can make a real difference to the true cost of hiring younger staff.
Do I have to pay a workplace pension for every employee?
You must automatically enrol eligible staff — generally those aged 22 to State Pension age earning over £10,000 a year — into a workplace pension, and pay at least 3% of their qualifying earnings (between £6,240 and £50,270) as an employer contribution. Staff outside that criteria can usually still opt in if they ask to.
What is the Employment Allowance and do I qualify?
The Employment Allowance lets eligible employers reduce their employer National Insurance bill by up to £10,500 a year. It applies across your whole payroll, not per employee, so if you're already claiming it elsewhere, the saving on a new hire may be smaller than it first appears. Most small businesses with employer NI liabilities under £100,000 in the previous tax year qualify — check your eligibility on gov.uk.
How do I know I'm paying at least the National Minimum Wage?
The minimum hourly rate depends on age: £12.71 for 21 and over (the National Living Wage), £10.85 for 18–20 year olds, and £8.00 for under-18s and apprentices, from 1 April 2026. Our calculator converts any salary or hourly rate into an effective hourly figure and flags it immediately if it falls short.
Does the calculator account for apprentices and under-21s?
Yes. Selecting an apprentice or an under-21 age band automatically applies the correct minimum wage rate and the 0% employer NI relief they're entitled to up to £50,270 a year, so the true-cost figure reflects the saving.
Is this employment cost calculator free to use?
Yes — it's a free tool from Rule 29, provided to help Hull and East Yorkshire businesses plan hiring decisions with confidence. It's for guidance only, based on 2026/27 rates; for advice tailored to your specific payroll, get in touch with our team.
Want a precise number for your payroll? This calculator gives a strong estimate, but every payroll has its own quirks — multiple pension schemes, salary sacrifice, existing Employment Allowance usage, benefits in kind. Talk to Rule 29 for tailored payroll and employer cost advice.