Before you take on a new member of staff you will want to consider their salary. There are three figures that you probably need to be aware of:
The gross salary - this is the amount that will go in the Contract of Employment and is made up of the net, or take-home, salary plus employee's tax and NI.
The net salary - we do not recommend making an agreement based on this figure, but your employee may find it helpful to know how much they will take home each pay period.
Your total costs - this sum is made up of the gross salary plus employer's NI. Please note it does not include pension contributions. The employer’s minimum contribution required by law is 3% of gross qualifying earnings. The employee's pension contributions will be deducted from their salary, provided a gross salary agreement has been made.
Please use our online calculators to help you with these figures: