What does it really cost to hire a permanent developer in the UK? Work it out in 30 seconds.
The salary is only part of it. Add employer National Insurance, pension and recruitment fees, using official 2026/27 rates and ONS salary data. Free, no sign-up.
Developer hiring cost calculator
Change it if you know what you'll pay.
Agencies commonly charge 15% to 25% of the first-year salary.
The legal minimum is 3% of earnings between £6,240 and £50,270.
Laptop, licences and tools.
Leave at £0 for a remote hire.
First-year cost
£80,405
Salary is 71% of what this hire really costs in year one.
- From year two, a year
- £69,022
- Per month
- £5,752
- Per working day
- £298
- Salary
- £56,914
- Employer National Insurance
- £7,787
- Pension (employer)
- £1,321
- Recruitment fee
- £11,383
- Equipment and software
- £3,000
For comparison, a full-time software engineer from Exline Labs is £2,500 a month, with no recruitment fee, National Insurance or pension to pay.
Build your team and see the cost
2026/27 tax year. Salaries from the ONS Annual Survey of Hours and Earnings 2025. Estimates, not advice.
Where the numbers come from.
Every figure comes from an official UK source, so you can check it. Here's how we work out the cost of employing a software developer.
Salary
Junior is the 25th percentile, mid-level the median, senior the 75th percentile (£42,289, £56,914, £75,794 for the UK)
SourceONS Annual Survey of Hours and Earnings, 2025, programmers and software development professionals (SOC 2134), full-timeEmployer National Insurance
15% of salary above £5,000 a year
SourceHMRC, 2026/27Employment Allowance
Up to £10,500 off your total employer National Insurance bill
SourceHMRC, 2026/27Pension
Your contribution (at least 3%) on earnings between £6,240 and £50,270
SourceAutomatic enrolment rules, 2026/27 (MoneyHelper)Recruitment fee
Your fee % of the first-year salary
SourceMarket norm, not an official figureWorking days
232 days
Source260 weekdays minus 28 days' statutory holiday, including bank holidays
Last updated 15 October 2026. Tax figures change each April. ONS salary figures are updated each autumn.
What the calculator doesn't include.
These vary too much from business to business to estimate fairly. Add them if you know them.
- The Apprenticeship Levy. It only applies if your total pay bill is over £3 million a year.
- Bonuses, private health cover and other benefits.
- Salary rises after year one.
- Sick pay, parental leave and holiday cover. Since April 2026, Statutory Sick Pay is paid from the first day off sick.
- The time it takes to recruit, and to get a new developer up to speed.
- Your own time managing the hire.
Need a developer without the hiring costs?
A dedicated developer from Exline Labs joins your team for one monthly fee. There's no recruitment fee, and no National Insurance or pension for you to run. You start with a one-month trial.
See how dedicated developers workCommon questions about the cost of hiring a developer.
How much does it cost to hire a developer in the UK?
For a mid-level developer on the UK median salary of £56,914, expect about £69,022 a year once employer National Insurance, pension and £3,000 of equipment are added. With a 20% recruitment agency fee, the first year comes to about £80,405. Use the calculator for your own role, region and salary.
Has the cost of hiring a developer gone up?
Yes. Since April 2025, employers pay 15% National Insurance on pay above £5,000, up from 13.8% above £9,100. On a salary of £56,914, that's £7,787 a year instead of £6,598. The Employment Allowance also rose from £5,000 to £10,500, which cancels out some or all of the rise for many small employers.
What pension contribution do I have to pay?
At least 3% of your developer's earnings between £6,240 and £50,270 a year. On a salary of £56,914, the minimum is £1,321. Many employers pay more.
Where do the salary figures come from?
From the ONS Annual Survey of Hours and Earnings, the official source for UK pay. We use the full-time figures for programmers and software development professionals, the ONS group that covers software developers in the UK. Junior, mid-level and senior are the lower quarter, middle and upper quarter of pay. You can change the salary to match your own.
How often is the calculator updated?
Tax and pension figures each April, when the new tax year starts. Salary figures each autumn, when the ONS publishes new earnings data.
How much employer National Insurance do I pay on a developer's salary?
In 2026/27 you pay 15% on everything above £5,000 a year. On a salary of £56,914, that's £7,787. If the hire is under 21, or an apprentice under 25, you pay nothing on pay up to £50,270.
What is the Employment Allowance?
It takes up to £10,500 a year off your total employer National Insurance bill. Most businesses can claim it. A company whose only employee is its director can't, but hiring a developer usually changes that. Check with your accountant if you're not sure.
How much do recruitment agencies charge to hire a developer?
Agencies commonly charge 15% to 25% of the first-year salary. On £56,914, that's about £8,500 to £14,200. Hiring directly avoids the fee but takes more of your own time.
Does it work for contractors or freelancers?
No. It's for a permanent employee on your payroll. Contractors and freelancers usually invoice you a day rate, so you don't pay their employer National Insurance or pension in the same way.