Employer cost in United Kingdom at different salaries
| Salary level | Gross salary | Employer SSC | Total employer cost |
|---|---|---|---|
| 67% of AW | 37,508 GBP | 13.0% | 42,385 GBP |
| 100% of AW | 55,983 GBP | 13.7% | 63,630 GBP |
| 167% of AW | 93,491 GBP | 14.2% | 106,765 GBP |
Worked example
The OECD average wage in United Kingdom for 2025 is 55,983 GBP (about $82,329 in US-dollar purchasing power). On top of that salary the employer pays social security contributions of 13.7%, or 7,647 GBP. That brings the statutory total to 63,630 GBP a year (5,302 GBP a month), or 31 GBP per hour at 2,080 hours. In 2024 the rate at the average wage was 11.4%, so it rose. The rate rises to 14.2% at 167% of the average wage.
United Kingdom ranks #20 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).
Sources: OECD Taxing Wages 2025, comparative indicators (single worker, no children; average wage as defined by the OECD for each country) and OECD, Non-tax compulsory payments as an additional burden on labour income in 2025 (Tables 5 and 6) for mandatory pension and insurance payments that are not classed as taxes, such as Australian superannuation. Model estimates: voluntary benefits, local caps and sector-specific schemes are not included.
Related
Frequently asked questions
How much does an employee cost in United Kingdom?
At the OECD average wage of 55,983 GBP, about 63,630 GBP a year including 13.7% employer social security (2025).
What are employer social security contributions in United Kingdom?
About 13.7% of gross pay at the average wage, 13.0% at 67% and 14.2% at 167% of it (OECD model).