1. What is the Employer Salary Calculator?

This calculator helps UK employers determine the total cost of employing someone, including gross salary, employer National Insurance contributions, and employer pension contributions.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Gross Pay — The employee's annual salary before deductions
• Employer NI — Employer National Insurance contributions
• Employer Pension — Employer pension contributions under auto-enrollment

Explanation: This calculation shows the true cost to the employer beyond just the employee's take-home pay.

3. Importance of Calculating Total Employer Cost

Details: Understanding total employment costs is essential for budgeting, financial planning, and determining the true cost of hiring new staff.

4. Using the Calculator

Tips: Enter the gross annual salary, estimated employer NI contributions, and employer pension contributions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: How do I calculate Employer NI contributions?
A: Employer NI is typically 13.8% of earnings above £9,100 per year (2023/24 threshold). Use HMRC's calculator for precise amounts.

Q2: What's the minimum employer pension contribution?
A: Currently 3% of qualifying earnings under auto-enrollment, but many employers contribute more.

Q3: Are there other employment costs not included here?
A: Yes, this doesn't include benefits, bonuses, training costs, equipment, or other overheads.

Q4: Does this calculator work for contractors?
A: No, this is for PAYE employees. Contractor costs would be calculated differently.

Q5: How often should I recalculate these costs?
A: Annually, as NI thresholds and rates often change in the Spring Budget.