NHS salary on-costs calculator
Choose a band to see what an Agenda for Change post costs an NHS employer once employer National Insurance, pension and the Apprenticeship Levy are added to salary.
The post
Use this for your trust's own uplift for leave cover, training and overheads. We do not set a figure, because it differs between trusts. England only. Rates for 2026/27.
Cost to the trust
£40,906
a year, which is 27.5% on top of salary (£3,409 a month)
| Item | Per year | Per month |
|---|---|---|
| Salary (including London weighting) | £32,073 | £2,673 |
| Employer National Insurance | £4,060 | £338 |
| Employer pension, paid through payroll (14.38%) | £4,612 | £384 |
| Apprenticeship Levy (0.5%) | £160 | £13 |
| Total cost to the trust | £40,906 | £3,409 |
| Pension paid centrally by NHS England (9.4%)Not charged to the trust | £3,015 | £251 |
| Full cost to the NHS | £43,921 | £3,660 |
The full cost is 36.9% on top of salary.
Notes and assumptions
- England only. Employer National Insurance is 15% above £417 a month (category A).
- The Apprenticeship Levy is 0.5% of pay for employers with a pay bill over £3 million, which covers NHS trusts; the £15,000 allowance is used up at trust level, so it is not deducted here.
- Employment Allowance is not included: public authorities, which includes NHS trusts, cannot claim it.
- Not included unless you enter your own overhead rate: sick, annual leave and training cover, recruitment, equipment, premises, management time or agency fees.
What is included in NHS on-costs
- Employer National Insurance: 15% of pay above £417 a month.
- Employer pension: 23.78% of pensionable pay in total. 14.38% is collected from the trust through payroll and 9.4% is paid centrally by NHS England.
- Apprenticeship Levy: 0.5% of pay.
The pension is the biggest item. Because NHS England pays part of it, it is worth being clear which figure you need: the cost to the trust, or the full cost to the NHS. The calculator shows both.
On-costs by band, entry point, full time
Figures use the entry point of each band, 37.5 hours a week, no London weighting, and an employee in the NHS Pension Scheme.
| Band | Salary | Employer NI | Pension (payroll) | Levy | Cost to trust |
|---|---|---|---|---|---|
| Band 2 | £25,272 | £3,040 | £3,634 | £126 | £32,073 |
| Band 3 | £25,760 | £3,113 | £3,704 | £129 | £32,706 |
| Band 4 | £28,392 | £3,508 | £4,083 | £142 | £36,125 |
| Band 5 | £32,073 | £4,060 | £4,612 | £160 | £40,906 |
| Band 6 | £39,959 | £5,243 | £5,746 | £200 | £51,148 |
| Band 7 | £49,387 | £6,657 | £7,102 | £247 | £63,393 |
| Band 8a | £57,528 | £7,879 | £8,273 | £288 | £73,967 |
| Band 8b | £66,582 | £9,237 | £9,574 | £333 | £85,726 |
| Band 8c | £79,504 | £11,175 | £11,433 | £398 | £102,509 |
| Band 8d | £94,356 | £13,403 | £13,568 | £472 | £121,799 |
| Band 9 | £112,782 | £16,167 | £16,218 | £564 | £145,731 |
What is not included
This is the statutory cost of employing someone. It leaves out cover for annual leave, sickness and training, recruitment, equipment, premises and management time, which vary between trusts. If your finance team has a standard percentage for these, enter it in the overhead box and it is added to the total. Employment Allowance is left out because NHS trusts cannot claim it.
Working out take-home pay for the same post? Use the NHS take-home pay calculator, and see the pension contributions guide for what the employee pays.
Sources
NHS on-costs questions
What are NHS salary on-costs?
On-costs are what an NHS employer pays on top of an employee's salary. For Agenda for Change staff in England in 2026/27 they are employer National Insurance (15% of pay above £417 a month), employer pension contributions (23.78% in total) and the Apprenticeship Levy (0.5% of pay). For a Band 5 nurse on the entry point the trust pays about 27.54% on top of salary.
How much does the NHS pay in employer pension contributions?
The total employer rate is 23.78% of pensionable pay in England in 2026/27. The NHS Business Services Authority collects 14.38% from the trust through payroll, and NHS England pays the other 9.4% centrally, so the trust does not carry that part of the cost.
Do NHS trusts pay employer National Insurance?
Yes. Employer Class 1 National Insurance is 15% on each employee's earnings above £417 a month (£5,000 a year) for most staff. NHS trusts cannot claim the Employment Allowance, because public authorities are excluded from it.
Does the Apprenticeship Levy apply to the NHS?
Yes. The levy is 0.5% of the annual pay bill for employers whose pay bill is over £3 million, which covers NHS trusts. Employers get a £15,000 yearly allowance, but at trust level that is a tiny share of the bill, so the calculator charges the full 0.5% on each salary.
How do I work out the true cost of an NHS post?
Start with the salary including any London weighting and enhancements, then add employer National Insurance, the employer pension contribution and the Apprenticeship Levy. Then think about the costs this calculator leaves out: cover for annual leave, sickness and training, recruitment, equipment, premises and management time. Many trusts add a set percentage for those, so check your finance team's own on-cost rates.
Are on-costs the same in Scotland, Wales and Northern Ireland?
The calculator covers England only. Employer National Insurance and the Apprenticeship Levy are UK-wide, but the employer pension rate and how it is funded can differ between the four nations, so we have not applied the English figures elsewhere.