- Gross salary, usually paid monthly.
- Employer costs of about 16.5% at a £55,000 salary: £9,096 a year, of which the largest is employer National Insurance (Class 1).
- An EOR fee, if you hire without your own entity. The providers in our United Kingdom guide publish starting prices of US$459–699 per employee per month.
Mandatory employer costs at a £55,000 salary (mid-level professional). Employee contributions and income tax come out of gross pay and aren't included.
| Employer cost | Rate or amount | At £55,000 |
|---|---|---|
| Employer National Insurance (Class 1) | 15% of gross above £5,000 | £7,500 |
| Workplace pension (auto-enrolment minimum) | 3% of gross, between £6,240 and £50,270 | £1,321 |
| Apprenticeship Levy | 0.5% of gross | £275 |
| Total employer costs | 16.5% of salary | £9,096 |
Contribution ceilings mean employer costs can be a smaller share of higher salaries. Figures exclude the EOR fee.
| Annual salary | Employer costs | Total before EOR fee |
|---|---|---|
| £35,000 (junior / support) | £5,538 (15.8%) | £40,538 |
| £55,000 (mid-level professional) | £9,096 (16.5%) | £64,096 |
| £80,000 (senior professional) | £12,971 (16.2%) | £92,971 |
| £120,000 (lead / manager) | £19,171 (16.0%) | £139,171 |
- Employer National Insurance: 15% above £5,000 / year
- Auto-enrolment pension: Employer min. 3% of band
- Salary payments per year: 12
- National Living Wage (21+): £12.71 / hour
- Paid annual leave: 5.6 weeks (28 days)
- Maximum working week: 48 hours (opt-out allowed)
- Private medical insurance (optional) (£1,000 / year): Common benefit for professional roles; taxable as a benefit in kind.
- Employee National Insurance and income tax are deducted from gross pay under PAYE and are not employer costs.
- The pension figure is the legal minimum on the qualifying earnings band. Competitive employers often contribute 5–8% of full salary.
- The Employment Allowance (which reduces employer NI for many small businesses) is unlikely to benefit an EOR arrangement.
- Statutory sick pay, statutory maternity pay and similar payments are partly or fully funded by the employer.
Without your own entity in the UK, an Employer of Record can employ your hire for a monthly fee. The alternative is setting up your own UK Ltd. See the comparison in our United Kingdom guide and EOR vs local entity.
How much does it cost to employ someone in the UK?
At a £55,000 salary, employer costs add about £9,096 a year (16.5%), for a total of about £64,096 before any EOR fee.
How much is an EOR in the UK?
The providers in our United Kingdom guide publish starting prices of US$459–699 per employee per month, on top of salary and employer costs. See the EOR pricing tracker.
Can I hire in the UK without a local entity?
Yes, through an Employer of Record, which becomes the legal employer and runs payroll and contributions. See EOR in the UK.
- 1Rates and thresholds for employers 2026 to 2027
HM Revenue & Customs (GOV.UK)
National Insurance rates and thresholds, pension and statutory payment rates.
- 2Automatic enrolment earnings thresholds 2026–27
The Pensions Regulator
Qualifying earnings band (£6,240–£50,270) and the £10,000 trigger.
- 3