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True Cost of Hire Calculator
Discover the actual financial commitment of hiring a new team member beyond the basic annual salary.
Employer Guide 2026/27
Hiring Costs — FAQ
Understand the real financial commitment of adding a new member to your team.
Beyond salary, you must pay Employer National Insurance (15% from April 2026) and a minimum of 3% for Employer Pension contributions.
Agency fees typically range from 15% to 25% of the new employee's first-year annual salary.
Don't forget hardware (laptops), software licenses, training, and the time spent by managers on interviewing and onboarding.
From April 2025, the secondary threshold (where NI starts) was lowered and the rate increased to 15%. This significantly increases employer costs for lower-paid workers.
