Payroll Calculator UK

What Is a Payroll Calculator?

A payroll calculator helps you calculate employee gross pay, Income Tax, National Insurance, pension contributions and net pay. This payroll calculator UK is useful for employers, HR professionals and employees who want to understand payroll deductions.

How to Use the Payroll Calculator

Enter the annual salary, select payroll frequency, tax region, tax code, and enter employee pension and employer pension contributions. Click Calculate Payroll to see the full payroll breakdown.

How Payroll Is Calculated

Employer costs = Gross Salary + Employer NI + Employer Pension

Payroll Example

Payroll Deductions Explained

• Income Tax — deducted via PAYE based on tax code
• Employee National Insurance — 8% on earnings between £12,570 and £50,270, 2% above
• Employer National Insurance — 13.8% on earnings above £9,100 (2025/26)
• Employee Pension — deducted from gross salary
• Employer Pension — additional cost to employer

Income Tax (2025/26)

Band	England / Wales / NI	Scotland
Personal Allowance	0% up to £12,570	0% up to £12,570
Starter Rate	N/A	19% £12,571-£14,802
Basic Rate	20% £12,571-£37,700	20% £14,803-£26,998
Intermediate Rate	N/A	21% £26,999-£43,732
Higher Rate	40% £37,701-£125,140	42% £43,733-£125,140
Additional / Top Rate	45% over £125,140	48% over £125,140

National Insurance (2025/26)

• Employee NI: 8% on earnings between £12,570 and £50,270, 2% above
• Employer NI: 13.8% on earnings above £9,100

Workplace Pension (Auto-Enrolment)

• Minimum employee contribution: 5% (including tax relief)
• Minimum employer contribution: 3%
• Total minimum contribution: 8%
• Based on qualifying earnings (between £6,240 and £50,270)

Employer Cost Calculation

Employers should consider the total cost of employment:

• Gross salary — the employee's base pay
• Employer National Insurance — additional cost
• Employer Pension — additional cost
• Other benefits — health insurance, company car, etc.

Common Payroll Mistakes

• Using the wrong tax code — affects employee deductions.
• Not including employer NI — adds significant cost.
• Incorrect pension calculations — auto-enrolment has specific rules.
• Using the wrong tax region — Scotland has different rates.
• Forgetting student loans — if applicable, they must be deducted.

Important Assumptions and Limitations

• Tax year: 2025/26
• Personal Allowance: £12,570 (standard)
• Employer NI threshold: £9,100
• No student loans or other deductions are included
• Results are estimates, not exact payroll calculations

Frequently Asked Questions