Price calculator assumptions

How Our Price Calculator Assumptions Are Worked Out

Practical comparison

What the calculator is designed to show

Our price calculator is not intended to be a formal payroll calculation, employment quote or financial advice. Instead, it gives a realistic estimate of the costs that often sit behind an employed admin or PA-style role.

Those costs can include salary, holiday, Employer National Insurance, pension contributions, sickness, equipment, software, training, management time and recruitment.

The figures are based on a mixture of publicly available UK employment guidance, current statutory rates and practical business assumptions.

More than salary

Why we compare against more than basic pay

When a business hires an employee, the cost is not limited to their hourly wage or salary.

An employer may also need to account for:

  • Paid annual leave
  • Employer National Insurance
  • Workplace pension contributions
  • Sickness absence
  • Equipment and IT setup
  • Software licences
  • Workspace or remote working costs
  • Training and mandatory training
  • Employment admin
  • Recruitment, onboarding and management time

That is why our calculator compares VA support against the broader cost of employing a comparable admin or PA-level employee, rather than against basic pay alone.

Current assumptions

The assumptions we currently use

Cost areaCalculator assumption
Comparable admin/PA hourly rate£16 per hour
Weeks per month4.33
Holiday uplift12.07%
Employer National Insurance15% above the secondary threshold
Employer NI secondary threshold£5,000 per year
Employer pension contribution3%
Pension qualifying earnings range£6,240 to £50,270
Sick leave allowance4%
Equipment allowance£100 per month
Software allowance£100 per month
Office/remote working allowance£100 per month
Training, mandatory training and employment admin18%
Management/recruitment allowance12%

Cost breakdown

How the main employment assumptions are applied

Comparable admin/PA hourly rate

We currently use £16 per hour as the comparison rate for a comparable admin or PA-level employee. This is intentionally higher than the National Living Wage because the comparison is not based on entry-level minimum wage work.

Holiday allowance

Almost all UK workers are legally entitled to 5.6 weeks’ paid holiday per year. Our calculator uses a 12.07% holiday uplift to reflect the additional cost of paid leave.

Employer National Insurance

The calculator uses 15% Employer National Insurance above the annual secondary threshold. We do not add employee income tax as an extra employer cost.

Workplace pension contributions

The calculator includes a 3% employer pension contribution, based on qualifying earnings between £6,240 and £50,270 per year.

Sick leave allowance

The calculator uses a 4% sick leave allowance. This is a practical allowance for the business impact of sickness absence, not a precise Statutory Sick Pay calculation.

Equipment, software and working costs

We include £100 per month each for equipment, software and office or remote working costs. These are practical business assumptions rather than statutory figures.

Training and management

The hidden time behind employment

Training, mandatory training and employment admin

The calculator includes an 18% allowance for training, mandatory training and employment admin. This may include onboarding, systems training, process training, data protection training, health and safety awareness, policy updates, payroll administration, employment record keeping, performance check-ins and internal management time.

Management and recruitment allowance

The calculator includes a 12% allowance for management and recruitment. This reflects the practical time and cost involved in writing job descriptions, advertising roles, reviewing applications, interviewing, onboarding, managing workload, supervising work, handling performance conversations and replacing staff if someone leaves.

VA calculation

How VA support is calculated

Our calculator looks at the number of hours entered and recommends the best-value Langham VA support option.

It does not simply push someone into the next largest package. If a smaller package plus a few additional hours is better value, the calculator will use that.

Example: 5 hours per week × 4.33 weeks = 21.65 hours per month.

Instead of automatically recommending a 30-hour package, the calculator can recommend a 20-hour package plus the additional time needed. This keeps the estimate more realistic and avoids inflating the VA support cost.

What is not included

Some costs are deliberately left out

The calculator does not include every possible employment cost. This keeps the calculator conservative and easier to understand.

  • Employer liability insurance
  • Payroll software subscriptions
  • Accountancy fees
  • HR consultancy
  • Workplace benefits
  • Bonuses
  • Redundancy costs
  • Employee relations risk
  • Long-term absence cover
  • Productivity loss beyond the sickness allowance

Important note

An estimate, not financial advice

Actual employment costs vary depending on role, salary, hours, contract terms, location, benefits, pension scheme, sickness policy, equipment requirements and the amount of management support needed.

The purpose of the calculator is to help business owners make a clearer comparison between flexible VA support and the broader cost of employing someone directly.

Source links

Useful public guidance

These links are provided so you can review the public guidance behind the statutory elements of the calculator.

Want to compare your own support needs?

Use the pricing page or book a discovery call to talk through the type of support that would make the biggest difference.