Updated August 2026
Payroll service costs in the UK
Typical outsourced payroll pricing per employee, plus the setup and auto-enrolment costs firms add.
Illustrative estimate
£4 – £12 per payslip, plus a small monthly base fee
Price ranges by scenario
| Scenario | Illustrative 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.
These estimates have not been validated against a documented current sample of practice quotes. They are not measured UK market rates or an offer from a firm. Obtain an itemised quote and confirm scope and fees in an engagement letter.