What is the total cost of employing someone on a net salary?

The total cost is an important figure for domestic employers to understand when budgeting for staff, as it represents the employer’s full outgoings in relation to an employee’s salary.

Use our Net to Total Salary Calculator to estimate the total cost of employment based on what your employee wants to “take home.” Enter the net pay per week or month to see the total cost per week, month, and year.

Please note: where a net salary has been agreed, the employer is responsible for covering the employee’s pension contribution, in addition to their own. At Stafftax, we strongly recommend discussing and agreeing salaries in gross terms wherever possible.

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All employees, including household staff, have a legal minimum holiday entitlement. Work out how much your employee is entitled too with our holiday calculator.

More to hiring than you initially thought?

Stafftax can help

Don’t worry, we’re here to help. Along with our Net to Total Salary Calculator we also have a Holiday Calculator to guide you on the correct holiday your employee is entitled to. Plus, we offer comprehensive services in domestic staff payroll and pensions – we can even pay your employee and your HMRC liabilities on your behalf each month.

If you have any questions about your employer responsibilities, or would like to know how we can help you, please contact us.

FAQs

What is the Net to Total Salary Calculator?
The Stafftax Net to Total Salary Calculator helps you estimate the total cost of employment based on what figure your employee wishes to “take home” (known as their net salary).

Should I agree to a net or a gross salary with my employee?
Stafftax would always recommend that you agree to a gross salary arrangement with your employee to protect your costs. By agreeing a net salary, you are guaranteeing your employee will receive the same take home pay each pay period. This means you will be responsible for any deductions your employee would normally be liable for, such as their income tax, national insurance, and more.

Can I use the Salary Calculator if I do not know the employees tax code?
Yes. If you do not know their tax code, you can select the option to apply the standard tax code 1257L, or select another option provided that reflects your employees employment situation.

Which tax year and rates does the calculator use?
The calculator gives you the option to select the tax, National Insurance and pension contribution rates for the current UK tax year (2026/27), or the previous year (2025/26).

You may also be interested in

Gross to Net Salary Calculator

Enter the gross wage per week or per month and you will see the net wage per week, per month, and per annum appear.

Holiday Calculator

Your employee has a legal minimum holiday entitlement. It is your responsibility  to state your employees holiday allowance in the contract of employment.

Rates & Thresholds

Please see the tables on this link for the latest Tax and National Insurance Rates & Thresholds.