UK Salary Calculator

Our salary calculator will provide you with an illustration of the costs associated with each employee. You will see the costs to you as an employer, including tax, NI and pension contributions.

We offer you the chance to provide a gross or net salary for your calculations. However, we strongly recommend you agree a gross salary, rather than a net salary as, should a tax code change for any reason it will mean that you as the employer will have to bear any additional costs incurred as the gross amount would therefore need to increase to keep the net the same.

Calculator Terms Explained

Gross Pay

includes the Employee's Tax, National Insurance and pension contributions, if applicable. The figure can be used for employment contract purposes.

Net pay

is what the employee's take home after all deductions have been made.

Employer Total Cost

includes Employers National Insurance, Employer pension contributions and the employee's gross Pay. This figure allows employers to budget correctly for their employee/s.

Pension Contributions

should your employee be eligible for a workplace pension (Automatic Enrolment). The calculator is set at the current statutory minimum amounts.

National Minimum Wage

is set by the Government and is updated on an annual basis. Each employer is responsible for ensuring that they conform to the current minimum rates. Please see attached link for current thresholds https://www.gov.uk/national-minimum-wage-rates

Calculations are provided on the basis that it is the employee’s only job, they have a full current personal tax allowance and are based on the full current 2019/20 tax, NI and pension thresholds. For more details on thresholds see here.

Get In Touch

Please do contact PC Payroll & Legal directly if you require a precise salary calculation to match your specific employment situation covering working hours and pension auto-enrolment if relevant. Your employee’s salary will differ if they have more than one job.

Pensions

It is important to remember that from 1 October 2017 all UK employers are legally required under the Pensions Act 2008 to automatically enrol their workers into a qualifying pension scheme and to contribute to that pension. Your employee may wish to opt-out, but it is your responsibility to enrol all eligible employees. For pension rates see here.

Find Out More on Pensions

About PC Payroll & Legal

PC Payroll & Legal was established in 2011. We provide childcare searches for working families, recruitment for nannies and other household staff alongside a comprehensive payroll, pension and employment legal services.

Contact Details

Registered in England & Wales company No. 07656195