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Free tool · 2026/27 UK rates

What does that hire
actually cost you?

Salary is the number on the job ad. Employer National Insurance, pension, recruitment and management time are the numbers nobody mentions. Enter a salary below and see the real annual cost — then see what the same problem costs to solve with an agent instead.

Advertising, screening and interview time — typically around £3,000 in staff time and job board costs for a direct hire.

Ramp-up time, 1:1s, supervision, and the productivity dip while a new hire gets up to speed — commonly estimated at 15-25% of salary in the first year.

Base salary£30,000
Employer National Insurance (15% above £5,000)£3,750
Employer pension (3% of qualifying earnings)£713
Recruitment cost£3,000
Management & onboarding overhead£6,000
Actual annual cost
£43,463
1.45× the salary on the job ad · £3,622/month
A single AI agent build to handle the repetitive parts of this role starts at £1,500 one-off, or £750/month for an ongoing retainer covering multiple workflows — no NI, no pension, no ramp-up, no notice period.

Methodology

How this is calculated

This is a planning estimate, not payroll advice — it excludes employer's liability insurance, equipment, statutory sick pay beyond the first weeks, and any bonus or overtime structure specific to your business. Figures are based on 2026/27 HMRC employer NI rates and The Pensions Regulator's auto-enrolment minimums, plus commonly cited UK recruitment-industry cost-per-hire ranges.

Common questions

Hiring costs, explained

What is the true cost of hiring an employee in the UK?

It's the salary plus employer National Insurance (15% on earnings above £5,000 in 2026/27), a minimum 3% employer pension contribution on qualifying earnings, recruitment costs, and the management time a role takes up. For a typical £35,000 role this usually adds 35-45% on top of salary — often £47,000-£51,000 in total annual cost.

How much is employer National Insurance in 2026/27?

15% on an employee's earnings above the Secondary Threshold of £5,000 a year.

What's the minimum employer pension contribution?

At least 3% of qualifying earnings (the band between £6,240 and £50,270 a year) under UK auto-enrolment. Total minimum contributions, including the employee's share and tax relief, are 8%.

What's the average cost per hire in the UK?

Typically £3,000-£30,000 depending on seniority, sector and method, with recruitment agency fees commonly running 10-25% of first-year salary for permanent roles.

Is an AI agent actually cheaper than hiring?

For a task-shaped role — data entry, call handling, quote generation, scheduling — usually yes, once you account for NI, pension, recruitment and management time on the human side. It depends on the work: some roles genuinely need a person. A free 15-minute call is the fastest way to find out which applies to you.

SEE THE
REAL NUMBER
FOR YOUR
NEXT HIRE.

15 minutes. Tell us what you were about to hire for. We'll tell you honestly whether an agent can do it — and what it would actually cost, against what that hire would actually cost.

Book a free 15-min call →

No obligation. No hard sell. We'll be honest if it's not the right fit.