Employer Cost & Take-Home Calculator
Gross-to-cost · Gross-to-net for the UK 2026/27 tax year.
£
Employer Cost
Gross salary → total cost of hire
Gross salary
Employee base pay
£125,000
£10,417/mo
Employer NI
15.0% × (salary − £5,000)
£18,000
£1,500/mo
Employer pension
3.0% × qualifying earnings
£1,321
£110/mo
Employer on-costs
NI + Pension
£19,321
£1,610/mo
TOTAL COST TO EMPLOYER
£144,321
£12,027/mo
On-cost uplift on gross salary: 15.5%
Employee Take-Home
Gross salary → net pay
Gross salary
Annual pay before deductions
£125,000
£10,417/mo
Employee pension
5.0% × qualifying earnings
−£2,202
−£183/mo
Income tax (PAYE)
PA-tapered banded calculation
−£41,564
−£3,464/mo
Employee NI
8% PT–UEL, 2% above
−£4,511
−£376/mo
Total deductions
Tax + NI + Pension
−£48,276
−£4,023/mo
ANNUAL TAKE-HOME PAY
£76,724
£6,394/mo
Net retained: 61.4% · Effective deduction rate: 38.6%