Employer on-costs for 2026/27
Employer NI
15%
above £5,000 a year
Minimum pension
3%
of qualifying earnings
Employment Allowance
£10,500
off your annual NI bill
Cut the hidden cost: admin time
Beyond pay, every employee generates HR admin — contracts, leave, documents and checks. Outsourced HR and payroll is normally priced per employee per month, so you can compare it directly against the hours it takes you now.
Frequently asked questions
How much does an employee cost on top of salary?
For most UK employees, employer National Insurance and the minimum pension add roughly 14% to 16% to salary. Benefits, equipment, training and recruitment come on top.
What is the employer National Insurance rate for 2026/27?
Employers pay 15% on earnings above the £5,000 secondary threshold. For employees under 21 and apprentices under 25, the rate is 0% on earnings up to £50,270.
What is the Employment Allowance?
Eligible employers can reduce their total employer National Insurance bill by up to £10,500 a year. Companies where the only employee paid above the threshold is a single director can’t claim it.
What is the minimum employer pension contribution?
Under auto-enrolment the employer must pay at least 3% of qualifying earnings — earnings between £6,240 and £50,270 — with total contributions of at least 8%. It applies to workers aged 22 to State Pension age earning over £10,000.
What extra costs apply to a sponsored worker?
On top of normal employment costs, sponsors pay £525 for the certificate of sponsorship and the Immigration Skills Charge of £480 or £1,320 a year, and may choose to cover visa and health surcharge fees.
Official sources
- Rates and thresholds for employers 2026 to 2027
- Employment Allowance: eligibility
- Workplace pensions: what you, your employer and the government pay
- Pay Apprenticeship Levy
Rules and fees checked September 2026. Immigration rules change often — this tool gives general information, not legal or immigration advice. For advice on an individual case, speak to a regulated immigration adviser or one of the firms listed here.