How much does a £30,000 employee cost? (2026-27)

A £30,000 employee costs the employer £34,462.8 per year in the 2026-27 tax year (with minimum 3% pension). This includes £3,750 in employer NI and £712.8 in pension contributions — 14.9% above the gross salary. The cost per hour is £17.67.

At a glance

An employee on a £30,000 gross salary costs your business significantly more than their headline pay:

3% pension	5% pension	8% pension
Employer NI	£3,750	£3,750	£3,750
Pension	£712.8	£1,188	£1,900.8
Total cost	£34,462.8	£34,938	£35,650.8
Above salary	14.9%	16.5%	18.8%
Cost per hour	£17.67	£17.92	£18.28

At £30,000, this is close to the UK median salary of £34,963. The on-costs are typical for a mid-range hire.

Employer National Insurance: £3,750

Employer NI is charged at 15% on all earnings above the Secondary Threshold of £5,000:

• Earnings above threshold: £30,000 - £5,000 = £25,000
• Employer NI: £25,000 x 15% = £3,750
• Monthly employer NI: £312.5

This is an effective rate of 12.5% on the gross salary. Unlike employee NI, there is no upper earnings limit for employer NI — it's a flat 15% on everything above £5,000.

Pension auto-enrollment: £712.8

UK employers must auto-enroll eligible workers into a workplace pension. The minimum employer contribution is 3% of qualifying earnings.

Qualifying earnings are the portion of salary between £6,240 and £50,270:

• Qualifying earnings: £30,000 - £6,240 = £23,760
• 3% contribution: £23,760 x 3% = £712.8/year (£59.4/month)

At 5%, this would be £1,188/year. At 8%, it would be £1,900.8/year.

Monthly and hourly cost

Period	Salary	+ NI	+ Pension	Total cost
Annual	£30,000	£3,750	£712.8	£34,462.8
Monthly	£2,500	£312.5	£59.4	£2,871.9
Weekly	£576.92	£72.12	£13.71	£662.75

Based on 1,950 working hours per year (37.5 hours/week), the cost per hour is £17.67. This is the figure to use when pricing projects or comparing against contractor day rates.

What the employee actually receives

While you pay £34,462.8 in total, the employee's take-home pay (after income tax and employee NI) is:

• Take-home pay: £25,119.6/year (£2,093.3/month)
• Income tax: £3,486
• Employee NI: £1,394.4

The gap between what you pay (£34,462.8) and what the employee receives (£25,119.6) is £9,343.2 — you pay 37% more than the employee takes home. The difference goes to income tax, employee NI, employer NI, and pension.

See full £30,000 take-home pay breakdown

Frequently asked questions

How much does a £30,000 employee cost the employer?

With the minimum 3% pension, a £30,000 employee costs £34,462.8/year (£2,871.9/month). This is 14.9% above the gross salary.

How much employer NI do I pay on a £30,000 salary?

Employer NI on £30,000 is £3,750/year (£312.5/month). That's 15% on earnings above the £5,000 Secondary Threshold.

What is the cost per hour for a £30,000 employee?

Based on 1,950 working hours per year, the total cost per hour is £17.67. The gross salary alone works out to £15.38/hour, but employer on-costs add £2.29/hour.

Can I reduce employer costs?

Yes. Salary sacrifice arrangements reduce both the employee's tax and your employer NI. For example, pension contributions via salary sacrifice save 15% in employer NI on the sacrificed amount. You can also claim the Employment Allowance (£10,500 off employer NI) if eligible.

Where can I see the full NI breakdown?

See the detailed NI calculation for £30,000 including employee NI, employer NI, and self-employed NI comparison.