Salary calculator

How the Salary Calculator Works

Our calculator uses standard calculations based on UK employment practices.

For Employees

The calculator uses the following parameters:

  • Work hours per week: 37.5 hours (typical full-time in the UK)
  • Workdays per year: 260 days (52 weeks × 5 days)
  • Workweeks per year: 52 weeks
  • Work hours per year: 1,950 hours (37.5 × 52 weeks)

Calculations are based on gross salary before overtime, other allowances, holiday pay, and taxes.

For Employers

Total cost for an employee is higher than the base salary due to:

  • Employer's National Insurance: 13.8% on earnings above the Secondary Threshold (£175/week for 2024/25)
  • Holiday Pay: Statutory minimum 5.6 weeks (28 days) paid leave per year for full-time employees
  • Workplace Pension: Minimum 3% employer contribution on qualifying earnings (auto-enrolment)

Example

An employee with an annual salary of £60,000 has the following total cost for the employer:

  • Base Salary: £60,000
  • Employer's NI (13.8% on earnings above £9,100): £7,024
  • Workplace Pension (3% of qualifying earnings): approx. £1,527
  • Total Annual Cost: approx. £68,551

Other Costs

Note: the calculator does not include other potential costs such as:

  • Apprenticeship Levy (0.5% of pay bill for employers with pay bill over £3 million)
  • Insurance (employers' liability insurance is compulsory)
  • Benefits in kind (company car, private medical, etc.)
  • Other allowances and benefits