Why this kills the salary illusion
NICs alone push true hire cost 9–11% above headline. Add pension (3%) and software (£600+) and you're 13–15% over before any meaningful benefits. AI agents incur zero NICs — ever.
UK Tax Reality · 2026
Cost of Employer National Insurance Contributions UK
UK employer National Insurance is 13.8% on earnings above £9,100 in 2026. On a £30,000 hire, that adds £2,884 per year — pure overhead before you've added pension, software or holiday cover.
Rate
13.8%
Threshold
£9,100
On £30k
£2,884/yr
On £50k
£5,644/yr
Frequently asked
Is there an Employment Allowance?+
Yes — small businesses can offset up to £5,000 of NICs annually. Beyond that, full rate applies.