Calculate employee net pay, income tax, National Insurance, pension deductions, and employer NIC costs. Updated for 2026/27.
This calculator estimates the total employer cost of hiring a UK employee, including gross salary, employer National Insurance contributions, and pension auto-enrolment contributions. It also shows the employee's net take-home pay.
Note: Based on 2026/27 HMRC rates. Employer NICs apply at 13.8% on earnings above £9,100/year. Minimum auto-enrolment pension is 3% employer / 5% employee on qualifying earnings.
Employer NIC is 15% on earnings above £5,000 from April 2025. Employment Allowance (£10,500) reduces the employer NIC bill for eligible businesses. Auto-enrolment minimum pension is 8% total (3% employer + 5% employee).
From April 2025, the employer NIC rate increased from 13.8% to 15%, and the secondary threshold dropped from £9,100 to £5,000. This significantly increases the cost of employment for many businesses.
Employers must auto-enrol eligible workers into a workplace pension. The minimum total contribution is 8% of qualifying earnings (3% employer, 5% employee). Workers can opt out after enrolment.
Employers must report payroll information to HMRC on or before each payday using RTI. Payroll software handles this automatically. Late or incorrect submissions can result in penalties.