To compare UK vs South Africa hiring costs fairly, add up the full yearly cost on both sides. For a UK hire, that means salary plus employer National Insurance, pension, recruitment, equipment, desk space and onboarding. For a remote hire in South Africa through an employer of record, it means the yearly fee and setup fee, plus the costs you still carry yourself.
When you do this line by line, the gap is often wide. But it is not the same for every role or every business. This guide gives you a simple method, worked numbers for five common roles, the costs people forget, and a worksheet you can copy.
Why salary alone gives you the wrong answer
Most people compare two salaries and stop. That misses a lot. A UK employer pays more than the salary on the payslip. You also pay tax and pension on top. Then there are one-off costs to find the person and get them started.
The same is true the other way. A remote hire has costs that do not show in a monthly fee. Your time to manage them is one. The hours you share in the working day is another. So a fair test looks at both sides in full.
If you want the bigger picture on cutting costs first, read Flink's guide on how to reduce business costs without losing quality. This article is only about one question: what does a hire really cost in each place?
How to work out the true cost of a UK hire
Start with the costs the law sets. Then add the ones only you can know.
Step 1: Employer National Insurance
For the 2026 to 2027 tax year, employers pay Class 1 National Insurance at 15%* on earnings above the secondary threshold. That threshold is £5,000* a year, or £417 a month (GOV.UK rates and thresholds for employers 2026 to 2027). The 15% rate for most staff (category letter A) is shown on the GOV.UK National Insurance rates page.
So the sum for a normal adult employee is simple. Take the yearly salary. Take away £5,000. Multiply what is left by 15%.
Some staff cost less. There are lower rates for some groups, such as workers under 21 and apprentices under 25. The examples here use category A, which covers most staff.
Step 2: Employment Allowance
Employment Allowance lets eligible employers cut their yearly National Insurance bill by up to £10,500* (GOV.UK Employment Allowance). Most businesses and charities can claim. You cannot claim if you do more than half your work in the public sector. A company whose only employee is its sole director cannot claim either (GOV.UK eligibility rules).
Here is why it matters for your sum. The allowance is a fixed amount per business, not per person. If your current staff already use up the full £10,500, a new UK hire adds their full National Insurance cost. If you have some allowance left, part of the new cost may be covered. Check your own payroll before you decide.
Step 3: Minimum pension
Under automatic enrolment, most employers must pay at least 3%* of an employee's qualifying earnings into a workplace pension (GOV.UK workplace pensions). Qualifying earnings for 2026 to 2027 are earnings between £6,240* and £50,270* a year (The Pensions Regulator earnings thresholds).
So the minimum sum is: salary (up to £50,270), take away £6,240, then multiply by 3%. Many employers pay more than the minimum. If you do, use your real rate.
Step 4: The costs only you know
These change from one business to the next, so enter your own numbers:
- Recruitment. Agency fee, job board adverts, or the hours your team spends on hiring.
- Equipment. Laptop, screen, headset, phone and software licences.
- Desk space. Your office cost per desk, if the person comes in.
- Onboarding. Training time, and the weeks before the new person is fully up to speed.
Do not skip recruitment. A hire that goes wrong can cost far more than the fee. Flink's post on the real cost of hiring fast and firing late shows how.
Worked example: a UK PA on £36,000
Here is the full sum for one role, so you can check the method.
- Salary: £36,000
- Employer National Insurance: (£36,000 minus £5,000) x 15% = £31,000 x 15% = £4,650
- Minimum pension: (£36,000 minus £6,240) x 3% = £29,760 x 3% = £892.80
- Total before one-off costs: £36,000 + £4,650 + £892.80 = £41,542.80
That is £5,542.80 a year on top of the salary before you pay a penny for recruitment, a laptop or a desk. It also assumes the Employment Allowance is already used up by your other staff.
UK vs South Africa: five roles side by side
The table below uses the same method for five roles at 2 to 5 years' experience. The UK salary is the typical UK salary shown in Flink's savings calculator. The Flink figure is the indicative yearly cost of the same role hired in South Africa through Flink.
All Flink figures are indicative, from Flink's savings calculator (September 2026); a once-off setup fee also applies. Your exact quote depends on the role.
| Role (2 to 5 years) | UK salary | Employer NI (15% over £5,000) | Minimum pension (3% of £6,240 to £50,270) | UK yearly total before one-off costs | Flink indicative yearly cost | Difference per year |
|---|---|---|---|---|---|---|
| General Admin | £31,200 | £3,930.00 | £748.80 | £35,878.80 | £19,364 | £16,514.80 |
| PA / VA | £36,000 | £4,650.00 | £892.80 | £41,542.80 | £23,250 | £18,292.80 |
| Executive Assistant | £45,600 | £6,090.00 | £1,180.80 | £52,870.80 | £28,431 | £24,439.80 |
| Bookkeeper | £36,000 | £4,650.00 | £892.80 | £41,542.80 | £24,545 | £16,997.80 |
| Customer Support (Non IT) | £31,200 | £3,930.00 | £748.80 | £35,878.80 | £21,955 | £13,923.80 |
UK rows use the 2026 to 2027 rules*: employer National Insurance at 15% above £5,000, and a 3% minimum pension on qualifying earnings. They assume no Employment Allowance is left.
How to read this table
The difference column is not a promise. It leaves out several things on purpose.
On the UK side, it leaves out recruitment, equipment, desk space and onboarding. Those would make the UK cost higher. On the Flink side, it leaves out the once-off setup fee and your own management time. The results vary by role and by experience level.
So treat the table as a starting point. Put your own numbers into the worksheet further down. That is the only way to get an answer that fits your business.
For a wider look at the same question, Flink's earlier post on how much UK companies can save with global vs UK talent is a useful read.
The costs people forget, on both sides
A fair comparison counts the costs that do not show on an invoice. Some of these hit the UK side. Some hit the remote side. Be honest about both.
Management time
Every new hire needs your time. They need clear tasks and regular feedback. A remote hire often needs more written instructions at the start. If you are not used to managing people you cannot see, plan for that. Put a rough number of hours per week in your sum and value them at your own rate.
Time zone overlap
South Africa is on SAST (UTC+2). It is 1 hour ahead of the UK in summer and 2 hours ahead in winter. So a South African team member can work the full UK day by starting and finishing an hour or two later than usual. That is a big plus compared with time zones in Asia or the Americas. Still, check that the hours you need are clear in the contract.
Holiday and sick pay
UK workers on a five-day week get at least 28 days of paid holiday a year, which is 5.6 weeks (GOV.UK holiday entitlement). You pay for that time, and you may need cover. Statutory Sick Pay is £123.25* a week or 80% of average weekly earnings, whichever is lower (GOV.UK Statutory Sick Pay). Many firms pay more.
Remote staff in South Africa also get leave under local law. Ask your provider how leave and sick days are handled, and whether cover is part of the service.
Notice periods
In the UK, an employee must get at least the notice in their contract or the legal minimum, whichever is longer (GOV.UK dismissal notice periods). That is a cost to plan for if a hire does not work out. For a remote hire through an employer of record, ask what notice applies and who pays during it.
Equipment
A UK office hire needs a desk, a chair, a laptop and more. A remote hire still needs a working laptop and a good internet link. With Flink, the once-off setup fee covers equipment, and Flink handles IT and VoIP setup. With other options, you may have to buy and ship kit yourself.
Currency
South African salaries are paid in rand. If your fee is set in pounds, you may be shielded from swings in the exchange rate. If it moves with the rand, your cost can go up or down. Ask your provider how the price is set, and how often it is reviewed.
Software and licences
This one is often the same on both sides. A team member needs the same email, CRM and tools wherever they sit. Count it on both sides, or leave it out of both.
What an employer of record fee usually includes
An employer of record (EOR) is a company that legally employs someone for you in another country. You direct the daily work. The EOR holds the contract and runs payroll there. If this is new to you, Flink's guide on what an employer of record is and when UK businesses need one explains it in full.
In general terms, an EOR fee usually covers these things:
- a local employment contract that follows local law
- monthly payroll, local tax and statutory deductions
- benefits and leave admin in that country
- local HR paperwork and compliance
It usually does not cover these things:
- managing the person's daily work (that stays with you)
- your own software licences and tools
- bonuses or pay rises you choose to give
- travel if you want to meet in person
Every provider is different, so ask for a written list. With Flink, recruitment is part of the service too. Flink finds the person, vets them and then employs them in South Africa. Many providers only do one of those jobs.
Your total cost worksheet
Copy this table into a spreadsheet. Fill in one column for a UK hire and one for a remote hire in South Africa. Use yearly figures. For one-off costs, you can spread them over the number of years you expect the person to stay.
| Cost line | UK hire (£ per year) | South African remote hire (£ per year) | Notes |
|---|---|---|---|
| Salary or provider yearly fee | Flink gives an indicative figure per role | ||
| Employer National Insurance | Not paid in the UK | 15% above £5,000* | |
| Employment Allowance used | Not relevant | Only if you have some left | |
| Minimum pension | Not paid in the UK | 3% of £6,240 to £50,270* | |
| Recruitment or agency fee | Include your own hours | ||
| Setup fee | Usually none | Flink charges a once-off fee | |
| Equipment | Laptop, headset, screen | ||
| Desk space | Usually none | Per desk cost | |
| Onboarding and training | Time to full speed | ||
| Management time | Hours per week x your rate | ||
| Holiday and sick cover | Temp cover, overtime | ||
| Software and licences | Often the same both sides | ||
| Currency buffer | Not relevant | Only if the price moves with the rand | |
| Total per year |
Example (hypothetical): filling in the worksheet
Say you run a small firm and need a PA. You take the UK total of £41,542.80 from the table above. You add £5,000 for an agency fee, £1,200 for a laptop and headset, and £3,000 for a desk. Your UK first-year cost is now £50,742.80.
On the remote side, you start with the indicative Flink figure of £23,250. You add the once-off setup fee from your quote. Then you add, say, two extra hours a week of your time for the first three months. Now you can compare two real totals. The numbers here are made up, so use your own.
Where Flink fits
Flink Remotely helps UK businesses hire skilled remote employees in South Africa. We recruit the person, then employ them in South Africa as the employer of record. We handle the contract, payroll and benefits there. You manage their daily work, just like any other team member.
This tends to suit roles that can be done well online, such as admin, PA support, bookkeeping, customer support, marketing and some tech roles. It suits businesses that want a full-time person who joins their team, not a freelancer who works for many clients. If you are weighing those options, our guide on growing your business without doubling your overheads goes further.
Candidates are vetted through video interviews, psychometric tests and reference checks. There is no upfront cost to engage Flink. A once-off setup fee covers sourcing, onboarding, equipment and testing, and we handle IT and VoIP setup. Many clients onboard their new hire within a few weeks.
One client, One Thousand Trades Group, hired a digital designer through Flink. Their COO said our "dual role as both an employer of record and recruitment partner has given us the confidence to grow our team globally while remaining compliant and efficient."
It is not the right fit for every role. If the job needs someone on site, handling stock or meeting UK customers face to face, a UK hire makes more sense. If you cannot give time to manage and train a new person, any hire will struggle, remote or not.
Before you decide, compare the full yearly cost, what the fee includes, the notice terms and the hours of overlap. We are happy to build a personalised, itemised comparison for your role. You can book a call with Flink to talk it through. Every business saves a different amount, so we will not guess before we know your numbers.
Is cost the only reason to look at South Africa?
No. Cost-effective South African talent is part of the story, but it is not the whole of it. English is widely used in South African business, and the time zone fits the UK day. That makes it easier for a remote hire to feel like part of your team.
The aim is not to find the cheapest person. It is to get the right skills at a cost your business can carry. Flink's post on why remote hiring does not mean cheap, it means smart makes the same point. For small firms with tight budgets, Flink's guide to business growth strategies for small businesses on a limited budget shows where a hire fits among other options.
If you are ready to look at the steps, Flink's guide on how to hire remote employees in South Africa as a UK business walks through the process from start to finish.
What this means for you
A fair cost comparison takes about half an hour. Work out the full UK cost with employer National Insurance and pension. Add the one-off costs only you know. Then set it next to a real, itemised quote for a remote hire, including the setup fee and your own time.
The numbers in this guide show that the gap can be large for common office roles. But the right answer for you depends on the role and on how you like to work. Use the worksheet with your own numbers, then decide.
Frequently asked questions
How much does a UK employee cost on top of their salary?
At minimum, you pay employer National Insurance at 15% on pay above £5,000 a year, and at least 3% pension on qualifying earnings*. For a £36,000 salary, that adds £5,542.80 a year. Recruitment, equipment and desk costs come on top.
Do I pay UK National Insurance on a remote hire in South Africa?
If the person is employed in South Africa by an employer of record, they are not on your UK payroll. The employer of record deals with local tax and payroll there. Your own case may differ, so take professional advice if you are unsure.
Does Employment Allowance make a UK hire cheaper?
It can, but only if you have some of the £10,500* allowance left after your current staff. If your payroll already uses it all, a new hire adds their full employer National Insurance.
Will every business save the same amount with a South African hire?
No. The saving depends on the role, the experience level, your UK salary costs and how much time you spend managing. That is why Flink gives a personalised, itemised comparison and not a single percentage.
What is included in Flink's setup fee?
Flink's once-off setup fee covers sourcing, onboarding, equipment and testing. Ask for a written quote for your role so you can add it to the worksheet.
Ready to test your own numbers? Compare the cost of your next hire with Flink's savings calculator.
Correct at the time of writing (September 2026). Rates and rules change, so check the linked source.
Sources
- Rates and thresholds for employers 2026 to 2027, GOV.UK, (accessed 29 September 2026)
- National Insurance rates and category letters, GOV.UK, (accessed 29 September 2026)
- Employment Allowance: what you'll get, GOV.UK, (accessed 29 September 2026)
- Employment Allowance: check if you're eligible, GOV.UK, (accessed 29 September 2026)
- Workplace pensions: what you, your employer and the government pay, GOV.UK, (accessed 29 September 2026)
- Automatic enrolment earnings thresholds, The Pensions Regulator, (accessed 29 September 2026)
- Holiday entitlement, GOV.UK, (accessed 29 September 2026)
- Statutory Sick Pay: employer guide, GOV.UK, (accessed 29 September 2026)
- Dismissal: notice periods, GOV.UK, (accessed 29 September 2026)
- Flink Remotely homepage and savings calculator, Flink Remotely, (accessed 29 September 2026)
See what your next hire would cost. Flink helps UK businesses hire skilled remote employees in South Africa, with recruitment, contracts and payroll handled for you.
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