What is the total cost of employment?

The total cost of employment is an important figure for domestic employers to consider when budgeting for staff. It represents the employer’s full outgoings related to an employee’s salary.

Salary is only one part of this cost. Employers must also budget for National Insurance contributions, pension payments, statutory entitlements such as holiday and sick pay, and the legal requirement for Employer’s Liability insurance.

You can use our Gross to Total Salary Calculator to estimate the total cost of employment from your employee’s gross wage. Simply enter the gross pay per week or month, and the calculator will show the total cost per week, month, and year.

Important information to note:

These calculations are for guidance only and not to be used to pay your employee.

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Please include the tax code letter. e.g. 1257L




**Please note, these calculations are for guidance only and should not be used to pay your employee**

All employees, including household staff, have a legal minimum holiday entitlement. Work out how much your employee is entitled too with our holiday calculator.

More to hiring than you initially thought?

Stafftax can help

Don’t worry, we’re here to help. Along with our Gross (take home pay calculator) to Total Salary Calculator, we also have a Holiday Calculator to guide you on the correct holiday your employee is entitled to. Plus, we offer comprehensive services in domestic staff payroll and pensions – we can even pay your employee and your HMRC liabilities on your behalf each month.

If you have any questions about your employer responsibilities, or would like to know how we can help you, please contact us.

FAQs

What does the Stafftax gross to total salary calculator show?
The Stafftax gross to total salary calculator shows what the employer’s total cost will be from a gross salary figure, taking into account employer National Insurance and pension contributions.

Are there additional costs for domestic employers beyond their gross salary?
Yes, you would also be responsible for paying employer National Insurance and pension contributions. The Stafftax gross to total salary calculator helps employers to calculate their employer total cost based on a gross salary.

Can I use the Salary Calculator if I do not know the employees tax code?
Yes. If you do not know their tax code, you can select the option to apply the standard tax code 1257L, or select another option provided that reflects your employees employment situation.

Which tax year and rates does the calculator use?
The calculator uses the tax, National Insurance and pension contribution rates for the current tax year in the UK.

You may also be interested in

Gross to Net Salary Calculator

Enter the gross wage per week or per month and you will see the net wage per week, per month, and per annum appear.

Holiday Calculator

Your employee has a legal minimum holiday entitlement. It is your responsibility  to state your employees holiday allowance in the contract of employment.

Rates & Thresholds

Please see the tables on this link for the latest Tax and National Insurance Rates & Thresholds.