When you budget for a hire, you probably think in salary. But the salary is only the visible part of what an employee costs. Once you add everything employers actually pay, the true figure is typically 25–40% higher — and that gap is exactly where the offshore saving lives.
Employer National Insurance
On top of salary, employers pay Class 1 NICs at 15% on earnings above £5,000 (from April 2025). On a £30,000 salary that's around £3,750 a year you pay on top — before the employee sees a penny of it.
Pension contributions
Auto-enrolment requires a minimum 3% employer contribution, and many employers pay more to stay competitive. That's another £900+ a year on a £30,000 salary.
Equipment, software and workspace
A laptop, monitor, phone, software licences, and a desk — whether that's office rent or a home-working allowance. Easily £1,000–£3,000 in year one and recurring costs after.
Recruitment and onboarding
Agency fees (often 15–20% of salary), advertising, your time interviewing, and the ramp-up period before a new hire is productive. A bad hire you have to replace doubles it.
Holiday, sick pay and cover
28 days of paid holiday, statutory sick pay, and the cost of covering the work when they're away. You're paying for roughly 5.6 weeks a year when no work happens.
The fully-loaded number
Add it up and a £30,000 salary becomes £37,000–£40,000+ in real annual cost. A dedicated offshore professional doing the same role is all-inclusive — one fixed monthly fee, no NI, no pension, no equipment, no recruitment churn. That's why the saving lands at 50–70%, not the 20% the headline salaries might suggest.
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