Employer of Record in the United Kingdom: what one employee really costs
United Kingdom, Europe. One software engineer at $60,000 gross per year, priced through 9 providers on 2026-09-02 exchange rates. Change the salary and headcount below.
- Employer on-cost
- +16.4%
- statutory charges on top of gross
- All-in per month
- $6,019 – $6,519
- salary + charges + published fee, cheapest to dearest listed provider
Hiring one software engineer in the United Kingdom at $60,000 gross a year costs about $820 a month in statutory employer charges (+16.4%), plus an EOR fee of $199 to $699 per month depending on the provider: $6,019 to $6,519 all-in, before deposits, FX margins and add-ons. Prices checked 2 Sept 2026.
Disclosure Some provider links on this page are affiliate links: if you become a customer after clicking, the provider may pay us a referral fee. It never changes the price you pay, and it never changes the numbers on this page, which come from official sources and are dated. How we are paid
Cost engine · preset to the United Kingdom
Price your own hire, line by line.
≈ GBP 44,500 gross / year · GBP at ECB reference rate, 2 Sept 2026
| Per employee | Rate | Per month |
|---|---|---|
| Gross salary | $5,000 | |
| Employer Class 1 National Insurance (secondary contributions) | 15% | $666 |
| Workplace pension, employer minimum (automatic enrolment) | 3% | $129 |
| Apprenticeship Levy | 0.50% | $25 |
| Employer on-cost | +16.4% | $820 |
| Cost of employment, before EOR fee | $5,820 |
$6,419/ month · 1 employee
- Fee / mo
- from $599
- Per year
- $77,024
- Fee share
- 9.3%
Checked 2 Sept 2026
Get a Deel quote$6,519/ month · 1 employee
- Fee / mo
- $699
- Per year
- $78,224
- Fee share
- 10.7%
Checked 2 Sept 2026
Get a Remote quote$6,319/ month · 1 employee
- Fee / mo
- from $499
- Per year
- $75,824
- Fee share
- 7.9%
Checked 2 Sept 2026
Get a Multiplier quoteEmployer charges from official sources; provider fees are list prices on the dates shown; deposits, FX margins and add-ons are not included. Not legal or tax advice. Methodology
9 providers, one scenario, all-in totals.
| Provider | EOR fee / employee / mo | All-in / mo, 1 hire | Deposit | Countries | Checked | Quote |
|---|---|---|---|---|---|---|
| RemoFirst EOR in 185+ countries from $199 per employee per month, no annual contract. | from $199 | $6,019 | Not stated on the pricing page | 185+ | 2 Sept 2026 | Get a quote from RemoFirst· $6,019/mo |
| Rivermate EOR in 180+ countries from $319 to $639 per employee per month. | from $319 | $6,139 | Not stated on the pricing page | 180+ | 2 Sept 2026 | Get a quote from Rivermate· $6,139/mo |
| Playroll EOR in 180+ countries from $399 per employee per month; deposit of one month's salary. | from $399 | $6,219 | Fully refundable security deposit equivalent to one month's salary when onboarding an employee (pricing page). | 180+ | 2 Sept 2026 | Get a quote from Playroll· $6,219/mo |
| Multiplier EOR from $459 (annual) or $499 (monthly) per employee, plus mandated add-ons. | from $499$459 billed annually | $6,319 | Not stated on the pricing page | 150+ | 2 Sept 2026 | Get a quote from Multiplier· $6,319/mo |
| Papaya Global EOR starting from $499 per employee per month, quote-based, 160+ countries. | from $499 | $6,319 | Not stated for EOR on the pricing page (the contractor block states 'No deposit required'). | 160+ | 2 Sept 2026 | Get a quote from Papaya Global· $6,319/mo |
| Deel EOR in 130+ countries, starting at $599 per employee per month. | from $599 | $6,419 | Not stated on the pricing page | 130+ | 2 Sept 2026 | Get a quote from Deel· $6,419/mo |
| Oyster EOR in 120+ countries at USD 699 per employee per month; refundable deposit. | $699 | $6,519 | Refundable deposit required for EOR team members 'to initiate the engagement and to ensure on-time payments' (pricing FAQ). | 120+ | 2 Sept 2026 | Get a quote from Oyster· $6,519/mo |
| Remote EOR in 90+ countries at $699 per employee per month, no deposit. | $699 | $6,519 | No deposit: 'We collect reserve payments in rare, high risk circumstances' (pricing FAQ). | 90+ | 2 Sept 2026 | Get a quote from Remote· $6,519/mo |
| Rippling EOR bundled with the Rippling platform; custom quote only. | Quote only | — | Not stated on the pricing page | — | 2 Sept 2026 | Get a quote from Rippling |
Same salary and statutory charges in every row; only the fee segment changes.
What the United Kingdom adds on top of the salary, and where each rate comes from.
Rates apply to the base named in each line; capped lines stop growing above the ceiling. Engine assumptions: Employing entity belongs to a group with a UK pay bill above GBP 3 million (Apprenticeship Levy 0.5% applies) = 1.
| Line | Employer rate | Base & ceiling | Source |
|---|---|---|---|
| Employer Class 1 National Insurance (secondary contributions)All employees aged 21 and over; charged on earnings above the secondary threshold of GBP 5,000 a year (GBP 417 a month), with no upper limit | 15% | Slice of gross salary between GBP 5,000 and no ceiling / yr Rate 15% for the 2026 to 2027 tax year (6 April 2026 to 5 April 2027). The GBP 10,500 Employment Allowance is shared across connected companies and is negligible per employee for a large provider. Under-21s and apprentices under 25 attract 0% up to GBP 50,270. | GOV.UK2026-09-05 |
| Workplace pension, employer minimum (automatic enrolment)Eligible jobholders aged 22 to State Pension age earning over GBP 10,000 a year; contributions on qualifying earnings between GBP 6,240 and GBP 50,270 (2026 to 2027 band) | 3% | Slice of gross salary between GBP 6,240 and GBP 50,270 / yr Statutory minimum 3% employer, 5% employee (8% total) on the qualifying earnings band. Employees can opt out, and many providers offer schemes above the minimum on request. | GOV.UK2026-09-05 |
| Apprenticeship LevyEmployers and connected companies with an annual pay bill above GBP 3 million; the GBP 15,000 allowance is shared across the group | 0.50% | Gross salary 0.5% of the pay bill that is subject to employer National Insurance. Providers pass it through because their UK pay bill is far above the threshold. | GOV.UK2026-09-05 |
| Unfair-dismissal protection after 6 months (from 1 January 2027) not in total | — | Not a payroll line but a termination-cost driver. The Employment Rights Act 2025 cuts the qualifying period for ordinary unfair dismissal from two years to six months for dismissals from 1 January 2027 and removes the cap on compensatory awards. Paternity and unpaid parental leave are day-one rights since 6 April 2026, and statutory sick pay is paid from the first day of illness with no lower earnings limit. | GOV.UK2026-09-05 |
| Employer on-cost at $60,000 | +16.4% | $9,836 a year, $820 a month |
EOR or your own entity
Fees scale with headcount. An entity does not.
A UK limited company can be registered at Companies House in a day for a nominal fee; the real work is PAYE registration, a workplace pension scheme with automatic-enrolment duties, employers' liability insurance and monthly RTI filings. Two levers favour an entity once the team grows: an own company with a pay bill under GBP 3 million pays no Apprenticeship Levy, and it keeps the Employment Allowance for itself. For one to five hires, or a first UK employee before an office exists, the provider route is faster and carries the pension and HMRC administration.
Fees grow with every hire; the charges line is owed under an entity too.
| Headcount | RemoFirst fees / yr | Papaya Global fees / yr | Statutory charges / yr |
|---|---|---|---|
| 1 | $2,388 | $5,988 | $9,836 |
| 3 | $7,164 | $17,964 | $29,509 |
| 5 | $11,940 | $29,940 | $49,182 |
| 10 | $23,880 | $59,880 | $98,364 |
| 20 | $47,760 | $119,760 | $196,727 |
Statutory charges are owed either way; the provider fee is the only line an entity removes, against the cost of incorporating and running local payroll.
Employment terms that move the cost
- Paid leave
- 20 days
- Public holidays
- 8
- 13th month
- Not mandatory
- Probation
- not fixed by law
- Notice
- Statutory minimum notice from the employer is one week after one month's service, then one week per full year of service from two years, up to 12 weeks; contracts usually set one to three months. Unfair-dismissal protection starts after two years of service until 31 December 2026 and after six months for dismissals from 1 January 2027.
- Reviewed
- 2026-09-05
Get a quote for the United Kingdom from the providers that publish a price.
Totals for 1 hire at $60,000. Ask each provider about deposits, FX margins and mandatory add-ons for the United Kingdom: those are the lines that move.
Disclosure Some provider links are affiliate links; they never change the numbers on this page. Details
Questions people ask before booking a demo
- How much do statutory employer contributions add to a salary in the UK?
- About 16% to 18%, almost all of it National Insurance. At this page's example of US$60,000, roughly GBP 44,500, the employer pays 15% National Insurance on everything above GBP 5,000 (about GBP 5,900), 3% pension on earnings between GBP 6,240 and GBP 50,270 (about GBP 1,150) and the 0.5% Apprenticeship Levy (about GBP 220): roughly GBP 7,300 a year, or 16.4%, before the provider's fee. The rate edges towards 18.5% as pay rises because National Insurance has no upper limit.
- Is there a ceiling on employer National Insurance?
- No. Employer Class 1 contributions run at 15% on all earnings above the GBP 5,000 secondary threshold with no upper earnings limit, so the employer's marginal cost on a GBP 120,000 salary is the same 15% as on GBP 40,000. Only the pension minimum stops growing, at GBP 50,270 of qualifying earnings, where the 3% employer contribution reaches about GBP 1,320 a year.
- Why does an EOR charge the Apprenticeship Levy when my company would not?
- The levy is 0.5% of the pay bill for employers, and groups of connected companies, whose UK pay bill exceeds GBP 3 million a year, with a single GBP 15,000 allowance per group. A large provider's UK entity is far above that line, so the 0.5% is a real cost it passes on. Employing directly through a small UK company keeps you under the threshold and out of the levy.
- What changes for UK dismissals in 2027 and what does it cost?
- From 1 January 2027 employees can claim ordinary unfair dismissal after six months of service instead of two years, and the cap on compensatory awards disappears. Until then, a fair process and notice pay are usually the only termination costs inside the first two years; afterwards, expect providers to insist on documented probation and performance processes, and price settlement risk on hires that run past six months.
- Does the UK require a 13th salary, bonus or long paid leave?
- No 13th salary or statutory bonus exists. Workers get 5.6 weeks of paid holiday a year, 28 days for a five-day week, and the eight bank holidays in England and Wales can be counted inside those 28 days. Statutory sick pay is due from the first day of illness since 6 April 2026. All of this is paid time inside the annual salary rather than an extra contribution.