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Global hiring costs

Employer cost of hiring in United Kingdom

Quick answer: 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. United Kingdom ranks #20 of 38 OECD countries for employer contributions at the average wage (OECD average: 16.6%).

Prefilled with the United Kingdom average wage. Enter any salary in GBP.

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Where do these numbers come from?

Checked Oct 23, 2026. OECD Taxing Wages 2026 puts Germany’s 2025 average wage at €66,700 with employer social security at 20.86% of gross. €66,700 + 20.86% (€13,917) = €80,617, the total this calculator shows. Our automated tests repeat this comparison against OECD’s published net pay at 100% and 167% of the average wage for all 38 OECD countries.

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Employer cost in United Kingdom at different salaries

Salary levelGross salaryEmployer SSCTotal employer cost
67% of AW37,508 GBP13.0%42,385 GBP
100% of AW55,983 GBP13.7%63,630 GBP
167% of AW93,491 GBP14.2%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 2026, 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.

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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).