Updated August 2026
Payroll service costs in the UK
Typical outsourced payroll pricing per employee, plus the setup and auto-enrolment costs firms add.
Typical cost
£4 – £12 per payslip, plus a small monthly base fee
Price ranges by scenario
| Scenario | Typical fee |
|---|---|
| Base fee (any size) | £15 – £40 / month |
| Per employee, monthly pay | £4 – £8 each |
| Per employee, weekly pay | £6 – £12 each |
| Auto-enrolment administration | £1 – £3 per employee |
What moves the price
- Pay frequency — weekly payroll costs materially more than monthly.
- Starters, leavers and variable hours each month.
- Statutory pay handling: sick, maternity, holiday accrual.
- CIS returns for construction businesses.
Common questions
Is payroll included in a monthly accounting package?
Often for one or two directors. Additional employees are usually charged per payslip.
Who is liable for a payroll mistake?
You remain responsible to HMRC as the employer, which is why professional indemnity insurance at your provider matters.
Figures are indicative market ranges gathered from UK practice pricing and are not a quote. Always confirm scope and fees in an engagement letter.