Employee Cost Calculator

More than their salary. In the UK you add employer National Insurance and pension contributions; in the US, employer FICA, federal and state unemployment taxes and benefits such as health insurance. Add equipment, software and training and the total is often 15–30% above salary — the calculator shows your exact figure.

The total yearly cost divided by the hours the person actually works — after taking out paid holidays, sick days and training. It's the number to use when pricing work or deciding whether to hire.

For the 2026/27 tax year employers pay 15% on each employee's earnings above £5,000 a year. Eligible employers can claim the Employment Allowance (up to £10,500 a year) to reduce their total bill.

Employers pay 6.2% Social Security on wages up to the yearly wage base ($184,500 in 2026) and 1.45% Medicare on all wages, plus federal unemployment tax (usually 0.6% on the first $7,000) and state unemployment tax, which varies by state.

It's an estimate built on current rates, which are shown and dated under the calculator. Payroll rules have exceptions (for example under-21s and apprentices in the UK), so check with your payroll provider before making decisions.