How much does it cost to employ someone?

Spoiler alert, it's not just salary and you're done.

Essential payroll costs for a £50k gross salary:

🤑 Salary: £4,176/month | £50,000/year

💸 National Insurance: £563/month | £6,750/year

👵 3% employer pension on qualifying earnings: £109/month | £1,313/year

🟰 Cost to employer for payroll-related costs: £4,839/month £58,063/year

Other costs to factor in:

💻 equipment

👌 if it's your first hire, you'll need to get employer liability insurance

💲 adding the employee to your payroll software

🤖 adding the employee to your tech-stack, including M365/email/Slack - this can really add up

🩻 if you have private medical insurance, add this but also don't forget 15% Class 1A NI on the total annual premium

So your £50k salary is now really looking like well over £60k per year in real terms. 

The moral of this story is to always budget for this. And to find better payroll pics. Funnily enough, there aren't that many fun ones (👀 AI?!)

costs of employing someone