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This employer-focused payroll calculator estimates an employee’s payslip deductions and the full payroll cost of employing them. The headline employer figure adds employer National Insurance and workplace pension contributions to gross pay.
Unlike a take-home pay calculator, it shows both sides of payroll. It uses verified UK rates for 2026/27 and keeps employee deductions separate from costs paid by the employer.
Last reviewed · Tax year 2026/27· Rate set: payroll-2026-27
Estimated net pay — annual
£23,931.60
Total employer cost — annual
£34,462.80
Estimate only. This does not replace payroll software, HMRC Basic PAYE Tools or an RTI payroll submission.
Estimated net pay is gross pay after PAYE income tax, employee National Insurance, employee pension contributions and any selected student or Postgraduate Loan deductions. Total employer cost is gross pay plus employer National Insurance and the employer pension contribution; employee deductions are not subtracted from that cost.
Use the Annual, Monthly and Weekly controls to compare equivalent presentations. Income tax and student loans are annual estimates divided for display. National Insurance and qualifying earnings use the exact threshold for the pay frequency entered, then convert to annual equivalents.
Gross pay is annualised for PAYE income tax and loan calculations. The standard Personal Allowance is reduced by £1 for every £2 of income above £100,000 and reaches zero at £125,140. Scottish employment income uses Scotland’s six bands; England, Wales and Northern Ireland use the main UK bands.
Annual pay of £30,000, NI category A, with no pension or student loan.
Estimated annual net pay is £25,119.60 and total employer cost is £33,750.
Annual pay of £60,000 in England, NI category A, with minimum auto-enrolment contributions.
The pension estimate is £2,201.50 from the employee and £1,320.90 from the employer.
An employee under 21 earns £40,000 annually and is correctly assigned NI category M.
The employer cost can be lower than for category A, provided the employee genuinely qualifies for category M.
The result depends on the following. If any of them do not match your situation, treat the figure as indicative only.
The calculator uses one centrally versioned payroll-2026-27 dataset, reviewed against the cited GOV.UK publications on 20 September 2026. The calculation engine is pure TypeScript: the interface supplies inputs and verified rates, while the engine returns annual, monthly and weekly breakdowns without a network request.
England, Wales and Northern Ireland use 20%, 40% and 45% employment-income bands after the effective allowance. Scotland uses the published starter, basic, intermediate, higher, advanced and top bands. Employee and employer National Insurance are calculated independently for the selected category.
PAYE and employee National Insurance are separate deductions with different thresholds. A selected student loan takes 9% above its plan threshold; a Postgraduate Loan can apply alongside one undergraduate plan at 6% above its own threshold.
The normal employer NI rate is 15% above the Secondary Threshold. Qualifying Freeport, Investment Zone, apprentice, under-21 and veteran categories use a higher upper secondary threshold before the 15% charge begins.
The auto-enrolment option uses the common statutory minimum split of 5% employee and 3% employer on qualifying earnings from £6,240 to £50,270 a year, where the £10,000 earnings trigger is met. Custom percentages use the same qualifying-earnings basis.
For payroll purposes, start with gross pay and add employer National Insurance and the employer pension contribution. Other real employment costs such as benefits, equipment, recruitment, training and insurance are outside this calculator.
For most employees it is 15% of pay above the Secondary Threshold. Certain categories for qualifying younger employees, apprentices, veterans, Freeports and Investment Zones have a higher upper secondary threshold before employer NI begins.
The normal employer Class 1 National Insurance rate used here is 15%. The threshold at which it starts depends on the employee’s NI category.
Yes. Choose no pension, the usual minimum of 5% employee and 3% employer on qualifying earnings, or custom employee and employer percentages on the same qualifying-earnings basis.
Actual payroll can reflect a specific tax code, cumulative prior pay and tax, payroll rounding, irregular bonuses, benefits, statutory payments, salary sacrifice and other adjustments not modelled here.
Not automatically in this result. The £10,500 Employment Allowance is a business-level relief subject to eligibility and the employer’s overall liability, so allocating it to one employee could mislead.
Yes. Scottish taxpayers pay separate rates on employment income, including starter, basic, intermediate, higher, advanced and top bands. National Insurance remains UK-wide.
Please note: Results are estimates for general information only and are not financial, tax or legal advice. Figures depend on the assumptions listed on each page and on your personal circumstances.
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