Basic Salary
This is the fundamental cost and the starting point of your calculation.
Sick Leave, Holiday Pay, and Other Absences
Employers need to account for the cost of paid leave, including sick leave, holiday pay, and other absences.
Employer's NI Contributions
Employers must pay National Insurance Contributions (NICs) on top of salaries. The rate depends on the employee's earnings but typically it's 15% for earnings above the secondary threshold.
Insurance and Liability
This includes any additional insurance costs the employer might incur due to adding an employee, such as liability insurance.
Employer's Pension Contributions
Under auto-enrolment, employers must contribute to their employees' pension schemes. The minimum contribution is usually around 3% of the employee's qualifying earnings.
Training and Development Costs
The cost of training and developing an employee can be significant, especially if specialised or ongoing training is required.
Benefits and Bonuses
This includes any health insurance, car allowances, bonuses, or other benefits. Each of these has a cost associated with it.
Administrative Costs
The administrative burden of managing payroll, HR functions, etc., also adds to the cost.
Equipment and Overheads
This includes the cost of providing a workspace, computer equipment, software licenses, and other necessary tools for the employee to perform their job.
Recruitment Costs
These include advertising job vacancies, agency fees, and the time spent by staff in interviewing and selecting candidates.
UK Employee Cost Calculator 2025/2026
Estimate the total cost of employing a worker in the UK for the 2025/26 tax year. Uses HMRC rates for employer National Insurance and shows a 2024/25 comparison for NI.
Total annual cost:
Total monthly cost:
This tool estimates employment costs for the 2025/26 tax year using HMRC published thresholds and rates. It is for information only and is not financial advice.
A practical guideline is to consider that the actual cost of employing someone is typically 1.5 to 1.95 times their salary! This estimate covers the comprehensive expenses of having the employee on board but does not include the costs associated with achieving targets and objectives aligned with your business plan.
| Under 18 | 18-20 | 21 and over | |
| Hourly Rate | £7.55 | £10.00 | £12.21 |
| Per Week (37.5 hours) | £283.13 | £375.00 | £457.88 |
| Per Month (approx) | £1,226.80 | £1,625.00 | £1,983.33 |
| Per Annum | £14,722.50 | £19,500.00 | £23,809.50 |
| Employer NI Contribution | £1,462.77 | £2,175.60 | £2,822.66 |
| Employer Pension Contribution (3%) | £441.68 | £585.00 | £714.29 |
| Total Salary Cost | £16,626.95 | £22,260.60 | £27,346.45 |
| Kimon Cost (37.5 hours per week) | £10,200.00 | £10,200.00 | £10,200.00 |
| Saving per annum, per national living wage employee | £6,426.95 | £12,060.60 | £17,146.45 |
| 39% | 54% | 63% |
But that's not all... there are other things to take into account.
| As an employee | with Kimon | |
|---|---|---|
| Basic Annual Salary | £23,809.50 | £10,200.00 |
| Hours Worked Per Week | 37.5 | 37.5 |
| Basic Salary Hourly Rate | £12.21 | £5.23 |
| Annual Bonus / Commissions | £0.00 | Included |
| Overtime | £0.00 | Included |
| Other Taxable Payments | £0.00 | Included |
| TOTAL TAXABLE INCOME | £23,809.50 | £0.00 |
| Employers Class 1A NICs | £2,822.66 | £0.00 |
| TOTAL SALARY COSTS | £26,632.16 | £10,200.00 |
| Company Car | £0.00 | £0.00 |
| Gym | £0.00 | £0.00 |
| Health Care | £350.00 | Included |
| Life Assurance | £250.00 | £0.00 |
| Pension | £714.29 | Included |
| Benefits total for NICs calculation | £1,314.29 | £0.00 |
| Employers Class 1A NICs | £197.14 | £0.00 |
| TOTAL OPTIONAL BENEFITS COST | £1,511.43 | £0.00 |
| TOTAL EMPLOYER'S NI | £3,019.80 | £0.00 |
| TOTAL PAYROLL COSTS | £27,940.93 | £10,200.00 |
| Software Licences | £500.00 | Included (Google Workspace only) |
| Training & Memberships | £500.00 | £0.00 |
| Mobile Phone | £0.00 | £0.00 |
| Computer & IT support | £500.00 | Included |
| Mileage | £0.00 | £0.00 |
| TOTAL EMPLOYEE COSTS | £1,500.00 | £0.00 |
| Share of general overheads (rent, rates, building maintenance, water, heat & light, telephone, insurance, etc) | £500.00 | Included |
| Consumables (stationery, toner, tea/coffe, toilet paper, etc) | £200.00 | Included |
| Administrative overheads (HR, payroll, secretarial, appraisals, etc) | £500.00 | Included |
| TOTAL OFFICE COSTS | £1,200.00 | £0.00 |
| Maternity/paternity leave | £0.00 | Included (if on managed teams) |
| Sick leave | £0.00 | Included (if on managed teams) |
| Jury service | £0.00 | £0.00 |
| Redundancy | £0.00 | Included (if on managed teams) |
| Unfair dismissal claims | £0.00 | £0.00 |
| OTHER COSTS | £0.00 | £0.00 |
| Weekdays in a year | 260 | 260 |
| Holidays (minimum is 28 days for full time employee in UK) | 28 | 0 (if on managed teams) |
| Formal training | ||
| Sick days | 5 | 0 (if on managed teams) |
| Wasted/unproductive time (allow 15 mins per working hour) | 56.75 | 0 (if on managed teams) |
| ACTIVE PRODUCTIVE WORKING DAYS PER YEAR | 170.25 | 260 (if on managed teams) |
| ACTUAL SALARY COST PER HOUR | £23.87 | £5.23 |
| ACTUAL COST PER DAY (total costs/working days) | £176.00 | £39.23 |
| ACTUAL COST PER YEAR INCLUDING BENEFITS AND OVERHEADS | £43,341.00 | £10,200.00 |
| Multiple of basic salary | 1.82 | 0 |
Entry level resource
Normally fresh out of education if employed in the UK, we ensure at least 3 years experience in a similar role.-
Data Entry Clerks
-
Admin Assistants
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Customer Service Reps
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Junior Bookkeeper
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Telemarketer
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Help Desk Technician
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Call Center Agent
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Virtual Assistants
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HR Assistant
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Marketing Assistant
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Transcriptionist
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Research Assistant
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Scheduler
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Proofreader
Experienced Resource
Normally have done another job if employed in the UK, we ensure at least 5 years experience in a similar role.-
Graphic Designers
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Content Writers
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Social Media Management
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Video Editing
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Web Designers
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Web Developers
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SEO Executives
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Digital Marketing Executives
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PPC Experts
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HR Management
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Senior Business Analysts
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Senior Bookkeepers
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Project Managers
Experienced Management Resource
Finding great senior management can be a challenge. We ensure at least 8 years experience in a similar role.-
Chief Financial Officers
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IT Directors
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HR Directors
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Marketing Directors
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Legal Counsel
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Project Directors
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Sales Directors
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Business Strategy Consultants
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PR Director
Cost Efficiency
Outsourcing can be more cost-effective than maintaining in-house teams. It reduces the need for dedicated internal staff and infrastructure, thus lowering overhead costs.
Focus on Core Business Activities
By outsourcing administration, your company can focus more on its core business activities without being sidetracked by mundane administration work.
Improved Service Quality
Outsourcing Administration work often leads to an improvement in the quality and efficiency of business services. We can enhance the overall employee experience, streamline HR processes, and provide more effective employee support and development programs.This professional level of service is difficult to achieve with in-house resources, especially for small to medium-sized businesses.
Scalability
Outsourcing offers scalability benefits. As your business grows or experiences fluctuations in staffing needs, we can easily adjust to these changes. This flexibility is particularly valuable for businesses undergoing rapid growth, downsizing, or seasonal variations, as it allows for efficient scaling of employee resource without the need to hire or lay off internal staff.
No Employer PAYE
Save on your Employer PAYE and pension contributions
UK Contract
Kimon is a UK based company so you are protected
No Long Commitment
Simply give us 30 days notice to end the work
Managed Operations
HR and Payroll, IT equipment and main software provided
Direct Reporting & Control
You drive them or we drive them, whichever is best for you
Cheap Doesn't Mean Poor Quality
We pay above average salaries to all our staff
Building a legacy of efficiency, one task at a time
Whether you're a business owner, manager, or simply someone looking to streamline administrative tasks, Kimon will inspire and elevate your operations.
| In-House Hire | Freelancing Sites | Kimon Services | |
|---|---|---|---|
| Time To Hire | 1 to 3 months | 2 to 3 weeks | Circa 14 Days |
| Pre-Vetted Candidates | No | No | Yes |
| Free Replacements | No | No | Yes |
| Can Work In Your Timezone | Yes | No | Yes |
| Dedicated Accountability | Yes | No | Yes |
| Culturally Fit Candidates | Yes | No | Yes |
| Failure Risk | Low | High | Low |
| Flexible Hire & Fire Process | No | Yes | Yes |
| Fee Free Termination | No | Yes | Yes |
| Salary Cost | High | Medium | Low |
| PAYE Employer Contributions | 15% of secondary threshold of salary | None | None |
| Employer Pension Contributions | 3% of salary minimum | None | None |
| Extra Overheads (IT, Workspace etc) | Yes | No | No |
We Already Work With The Best...
Meet the team behind it all
Our team is comprised of skilled administrative professionals, project coordinators, and process managers who share a common goal of delivering exceptional efficiency and support.
Michael Kitt
CEO & Co-Founder
Ali Memon
Co-Founder
Bhanupriya Rawat
Marketing Manager
Jessica Jayapalan
Business Head
Read More About Outsourcing
