Question
What does a UK employee actually cost beyond their salary?
A £40,000 UK salary costs roughly £46,263 a year before you have bought a laptop or paid a recruiter. Employer's National Insurance adds £5,250 and pension auto-enrolment adds £1,013, and neither figure appears anywhere in the offer letter.
The two costs everyone forgets
Employer's National Insurance is charged at 15% of earnings above the £5,000 secondary threshold for 2025/26. It is your cost, not the employee's, and it scales with salary.
Pension auto-enrolment adds an employer minimum of 3% on qualifying earnings between £6,240 and £50,270. Again yours, again invisible in the headline number.
And the ones after that
On top of the statutory costs sit the ones that vary by business: recruitment fees, which for a conventional agency commonly run 15 to 25% of first-year salary; equipment; software licences; office space if you have it; and the management time of running an employment relationship.
None of that makes UK hiring wrong. It just means the number in the budget is rarely the number that leaves the bank.
How to compare properly
The comparison worth making is total employer cost against total fee, not salary against fee. That is why the calculator on the Kadraa homepage itemises the UK side rather than showing a single number: the breakdown is the argument.
Figures here use the 2025/26 thresholds and are illustrative. Your own position depends on your circumstances.
The next 30 minutes
Bring a role. Leave with its price.
Tell us what the role would pay in the UK and we’ll give you an indicative monthly fee on the call. Typical time from brief to signed contract is 21 days. And if the model doesn’t fit what you need, we’ll say so on the call.
- 30 minutes, with a founder
- An indicative monthly figure for your role, on the call
- No obligation, no follow-up sequence