Employee Cost to Employ Calculator
Estimate annual employer cost, cost per paid hour and cost per effective hour using your own assumptions.
A QUICK WALKTHROUGH
How to use this tool
- Annual gross salary (your currency)
- Employer social insurance / National Insurance rate (%)
- Employer pension contribution rate (%)
- Other percentage-based employer costs (%)
- Other fixed annual employer costs (same currency)
- Contracted hours per week
- Contracted working days per week
- Annual paid working days before leave and absence deductions
- Annual leave days
- Public holiday days
- Other absence days
- Non-productive paid time (%)
Formula and scope
Planning estimate only. Total annual cost = salary + salary × (employer social insurance/NI rate + pension rate + other percentage costs) / 100 + fixed annual costs. Paid hours = annual paid working days × contracted hours per week / working days per week. Effective hours = (annual paid working days − annual leave − public holidays − other absence) × contracted hours per week / working days per week × (1 − non-productive time / 100). Enter every assumption yourself; this tool supplies no default tax, contribution or legal rates. Currency is chosen by using one consistent unit for money inputs. Use the same currency unit for salary and fixed costs; no currency conversion is performed.
Inputs stay in this browser.
Inputs stay in this browser.
GOOD TO KNOW
Common questions
Does this calculate payroll taxes or statutory contributions?
No. All rates and costs are user-entered planning assumptions. It is not a payroll, tax, legal or accounting calculation.