Free tool
UK employer cost calculator
Work out what one UK employee costs you in a year, with employer National Insurance and pension worked out for you. Then set the figure beside a virtual assistant’s hourly rate.
What it works out
- Employer National Insurance and pension
- Your own assumptions, shown and editable
- Cost for each working hour after paid holiday
- A virtual assistant at any role and level
Last reviewed 9 November 2026. Rates read from GOV.UK.
The full picture
What an employee costs beyond their salary
A salary is only part of what an employee costs. Employer National Insurance and the workplace pension come on top, and so do equipment and the time someone spends managing them. The calculator below adds these up from your own figures and shows the result for each working hour.
Step 1
Work out what one employee costs
Start with the example values, then replace them with your own.
Cost of one UK employee, set beside a virtual assistant
Pounds by default. Every box starts with an example value, marked as such. Change any of them. This tool runs in your browser: what you type is not sent to us or anyone else unless you choose to send an enquiry.
Estimated cost for one year
The same sums
Cost to employer at five salaries
The table uses the example assumptions in the calculator, so you can read an answer without running it. £27,000 is close to the lowest full time salary that meets the National Living Wage for workers aged 21 and over at 40 hours a week: £12.71 times 2,080 hours is £26,437.
| Salary | Employer National Insurance | Employer pension | Assumed costs | Total a year | Each working hour |
|---|---|---|---|---|---|
| £27,000 | £3,300 | £623 | £4,950 | £35,873 | £19.33 |
| £28,000 (the example) | £3,450 | £653 | £5,000 | £37,103 | £19.99 |
| £35,000 | £4,500 | £863 | £5,350 | £45,713 | £24.63 |
| £45,000 | £6,000 | £1,163 | £5,850 | £58,013 | £31.26 |
| £60,000 | £8,250 | £1,321 | £6,600 | £76,171 | £41.04 |
Scroll to see all columns.
Assumed costs are equipment and software of £1,200, management time of £2,400 and recruitment at 5% of salary a year. Working hours are 1,856 a year at 40 hours a week.
Method
How the figures are worked out
Method and sources
- What it does
- Adds employer National Insurance and employer pension to the salary you enter, adds three costs we have assumed, then divides the total by the working hours left after statutory holiday. It sets that against a virtual assistant's hourly rate times hours.
- Inputs
- Salary and weekly hours, equipment and software, an agency fee and the years the person stays, management hours, and the assistant's role, level and hours. Every one can be changed.
- Rates and rules
- Employer National Insurance is 15% of pay above £5,000 a year for 2026 to 2027 (GOV.UK, rates and thresholds for employers 2026 to 2027, read 9 November 2026). The same page gives the Employment Allowance as £10,500, which this tool does not apply, and the National Living Wage as £12.71 an hour from 1 April 2026 for workers aged 21 and over. The minimum employer pension is 3% of earnings between £6,240 and £50,270 (GOV.UK, workplace pensions, read 8 November 2026). Holiday is 5.6 weeks, which is 28 days for a five day week (GOV.UK, holiday entitlement, read 8 November 2026). 52 weeks less 5.6 is 46.4, so 40 hours a week gives 1,856 working hours.
- Our assumptions
- Not sourced, so change them: £1,200 a year for equipment and software; an agency fee of 15% of salary spread over three years; management time of 2 hours a week for 48 weeks at £25 an hour.
- Virtual assistant rates
- Our published hourly rate for the role and level (see pricing), times the hours. Part time is 80 hours a month and full time is 160. We confirm the exact price in writing before you commit.
- Left out
- Employment Allowance, sick pay, bonuses, benefits, training, notice pay and any pension above the minimum.
- Last reviewed
- 9 November 2026, by the Pro Virtual Assist team. Next review in April 2027, or sooner if GOV.UK changes a figure.
Estimate, not tax or legal advice. Ask an accountant or payroll provider to check your own figures.
Compare
Employee or virtual assistant?
An employee suits work that needs someone in your office, or a core role that will grow with you. A virtual assistant suits work that can be done remotely for a set number of hours a month. The two figures above are not like for like, so read them as a starting point.
See the virtual assistant or employee comparison, price a role in the virtual assistant cost calculator, read the pricing page, or look at a full time virtual assistant.
Questions
Questions we are asked most
Cannot see yours? Ask us on a discovery call and we will answer it properly.
How much does it cost to employ someone in the UK?
On a £28,000 salary the example sums come to about £37,103 a year. That is the salary, £3,450 of employer National Insurance, £653 of employer pension and £5,000 of assumed costs for equipment, management time and recruitment. Your figure depends on the salary and assumptions you enter.
What is employer National Insurance?
It is a tax the employer pays on top of an employee's salary. For 2026 to 2027 the rate is 15% of pay above £5,000 a year, according to GOV.UK, read on 9 November 2026. The calculator works it out from the salary you enter.
Does the Employment Allowance apply to me?
It may reduce the employer National Insurance your business pays. GOV.UK gives the amount as £10,500 for 2026 to 2027, with conditions on who can claim it. This calculator does not apply it. Check the GOV.UK guidance or ask your accountant before you rely on it.
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