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Free tools › Employer on-costs by country

Employer on-costs: United Kingdom vs United States

Statutory employer on-costs in the UK and the US, side by side, with the primary source for every figure.

How do statutory employer costs compare between UK and US?

United Kingdom: 15% employer National Insurance above £5,000 a year, plus a 3% minimum pension contribution on the £6,240 to £50,270 band. United States: 7.65% employer FICA up to the Social Security wage base (US$184,500), then 1.45% above it, plus small federal unemployment tax and state-rated extras. On a local salary of 100,000 that is £15,571 (15.6%) in the UK versus US$7,692 (7.7%) in the US in fixed statutory costs.

United Kingdom vs United States, side by side

United KingdomUnited States
The rule15% employer National Insurance above £5,000 a year, plus a 3% minimum pension contribution on the £6,240 to £50,270 band.7.65% employer FICA up to the Social Security wage base (US$184,500), then 1.45% above it, plus small federal unemployment tax and state-rated extras.
On 60,000 (local)£9,571 (16.0%)US$4,632 (7.7%)
On 100,000 (local)£15,571 (15.6%)US$7,692 (7.7%)
On 150,000 (local)£23,071 (15.4%)US$11,517 (7.7%)
Key numbersEmployer NI: 15% above £5,000/year; Pension minimum: 3% of the £6,240-£50,270 band; Employment Allowance: Up to £10,500 off NI for eligible employersSocial Security: 6.2% up to US$184,500 (2026); Medicare: 1.45%, no cap (the 0.9% surtax is employee-only); FUTA: 0.6% of the first US$7,000 (max US$42)

United Kingdom

Employer NI runs at 15% on everything above a low £5,000 threshold, which makes it the heaviest headline rate of the six markets at typical salaries. Auto-enrolment adds a 3% employer minimum, but on the qualifying band only, not gross pay, a distinction plenty of cost models get wrong. The Employment Allowance refunds up to £10,500 for eligible smaller employers, and the 0.5% Apprenticeship Levy only bites above £3M of paybill.

  • Employer NI15% above £5,000/year
  • Pension minimum3% of the £6,240-£50,270 band
  • Employment AllowanceUp to £10,500 off NI for eligible employers
  • Apprenticeship Levy0.5%, paybills over £3M
  • Pension minimums are band-based: on a £100,000 salary the 3% applies to £44,030 of it, not the full amount.

Source: HMRC (2026-27 rates). Checked July 2026.

United States

The fixed federal load is FICA: 6.2% Social Security up to US$184,500 (2026) and 1.45% Medicare with no cap. The extra 0.9% Medicare tax above US$200,000 is employee-only, so it never belongs in an employer cost model. Net federal unemployment tax is US$42 a head. The variable load, state unemployment tax and workers compensation, differs by state and industry and usually outweighs FUTA many times over.

  • Social Security6.2% up to US$184,500 (2026)
  • Medicare1.45%, no cap (the 0.9% surtax is employee-only)
  • FUTA0.6% of the first US$7,000 (max US$42)
  • State-ratedSUTA + workers compensation, varies
  • Health cover is the elephant: not a payroll tax, but the ACA employer mandate applies at 50+ full-time staff and dwarfs FICA in practice.
  • BLS benefit shares are quoted against total compensation, not salary; misreading that double-counts.

Source: Social Security Administration / IRS (2026 wage base). Checked July 2026.

The maths: United Kingdom

Salary (local)ComponentsTotal
60,000Employer National Insurance £8,250; Pension auto-enrolment minimum £1,321£9,571 (16.0%)
100,000Employer National Insurance £14,250; Pension auto-enrolment minimum £1,321£15,571 (15.6%)
150,000Employer National Insurance £21,750; Pension auto-enrolment minimum £1,321£23,071 (15.4%)

Eligible employers deduct up to £10,500 Employment Allowance from the NI bill; the 0.5% Apprenticeship Levy applies above £3M of paybill.

The maths: United States

Salary (local)ComponentsTotal
60,000Social Security US$3,720; Medicare US$870; Federal unemployment tax, net US$42US$4,632 (7.7%)
100,000Social Security US$6,200; Medicare US$1,450; Federal unemployment tax, net US$42US$7,692 (7.7%)
150,000Social Security US$9,300; Medicare US$2,175; Federal unemployment tax, net US$42US$11,517 (7.7%)

Plus state unemployment tax and workers compensation, both state- and industry-rated, and health cover under the ACA mandate at 50+ staff.

Hiring in both markets?

Put a full number on each side with the true-cost calculators: True cost of an employee (UK) and True cost of an employee (US). The complete six-market picture is on the Employer on-costs by country page.

Sources

Every figure on this page comes from the government source for its market.

MarketSourceRule / effectiveVerified
United KingdomHMRC2026-27 ratesChecked July 2026
United StatesSocial Security Administration / IRS2026 wage baseChecked July 2026
Where Compono fits

Comparing entitlements is the easy half of hiring across markets. The hard half is whether the person you hire in Sydney, Singapore or Seattle will actually work out, and that risk looks the same in every jurisdiction. Compono matches candidates on how they work, not just what the CV claims, so the hires behind these numbers hold up wherever you make them.

See how it works

Common questions

What is the rule on employer on-costs in the UK?

15% employer National Insurance above £5,000 a year, plus a 3% minimum pension contribution on the £6,240 to £50,270 band. Employer NI runs at 15% on everything above a low £5,000 threshold, which makes it the heaviest headline rate of the six markets at typical salaries.

What is the rule on employer on-costs in the US?

7.65% employer FICA up to the Social Security wage base (US$184,500), then 1.45% above it, plus small federal unemployment tax and state-rated extras. The fixed federal load is FICA: 6.2% Social Security up to US$184,500 (2026) and 1.45% Medicare with no cap.

Where can I check the source figures?

The sources section below links the the UK and the US government pages every figure on this page was verified against in July 2026.

This page is general information, not legal advice. We check figures annually and update them on a best-efforts basis, but employment rules change and we cannot promise everything here is current or complete. Before you act on it, confirm the detail with GOV.UK, the US Department of Labor or your own adviser. Last reviewed July 2026.