The complete cost of employing someone is more than gross salary. Employers should consider statutory costs, pension, benefits and administration.
Gross salary
Gross salary is the employee’s contractual pay before deductions. The figure should reflect the role, experience, location and agreed working pattern.
Employer National Insurance
Employer National Insurance may be payable in addition to salary. Rates and thresholds can change, so current professional guidance should be used for a precise calculation.
Workplace pension
Eligible employees may need to be enrolled into a qualifying workplace pension. Employer contributions and administrative responsibilities should be included in planning.
Other employment and service costs
Costs may include agreed benefits, statutory employment costs, insurance, equipment, professional advice and an EOR or payroll service fee where applicable.
This article provides general information only. It is not legal, tax, financial or immigration advice. Requirements depend on the facts of each engagement.