Payroll · United Kingdom

Sage Payroll pricing: what it actually costs per employee at 5, 10, 25 and 50

At 10 employees, the cheapest plan Sage Payroll publishes is Payroll Essentials: £24 a month — £2.40 per employee per month, base fee included.

  • Price statusPublished formula or tiers
  • Prices read onchecked 2026-09-07
  • Last recorded changenone recorded since we started checking
See official pricing

No vendor we hold publishes a cheaper monthly total at this headcount.

On its cheapest published plan, Sage Payroll costs £24 a month for 10 employees, which is £2.40 per employee per month.

What the vendor publishes

Source: Sage Payroll pricing page. checked 2026-09-07
PlanBase / monthPer employee / monthEligibility as publishedWhat the vendor states
Payroll Essentials£12—Up to 150 employees. First 5 included in the base fee. Per-employee rate falls in published bands"£12.00 per month", includes 5 employees; additional employees £2.40 (6-10), £1.70 (11-25), £1.40 (26-150) each. "These prices exclude VAT." Standard price recorded; promo is "90% off for 3 months".
Payroll Standard£23—Up to 150 employees. First 5 included in the base fee. Per-employee rate falls in published bands"£23.00 per month" (Most Popular), includes 5 employees; additional £4.40 (6-10), £3.70 (11-25), £3.40 (26-150) each. Ex VAT. Standard price recorded; promo is "90% off for 3 months".
Payroll Premium£34—Up to 150 employees. First 5 included in the base fee. Per-employee rate falls in published bands"£34.00 per month", includes 5 employees; additional £6.40 (6-10), £5.70 (11-25), £5.40 (26-150) each. Ex VAT. Standard price recorded; promo is "90% off for 3 months".

Per employee monthly (tiered by band, not a flat rate): not stated in the vendor's published documentation (checked 2026-09-07).

What that works out at per employee

Vendors quote a per-employee fee and a base fee separately. What you actually pay per employee is both of them divided by your headcount, so the smaller your team, the further the real figure sits above the advertised one. This table is Sage Payroll's published prices put through that division.

Effective cost per employee per month, by headcount. Computed from the published base fee and per-employee fee — not a figure the vendor publishes. “n/a” means the plan is not available at that headcount. Contractor-only plans are excluded — they do not run employee payroll. checked 2026-09-07
Plan15102550100250
Payroll Essentials£12.00£2.40£2.40£1.98£1.69£1.54n/a
Payroll Standard£23.00£4.60£4.50£4.02£3.71£3.56n/a
Payroll Premium£34.00£6.80£6.60£6.06£5.73£5.57n/a

Columns are employee counts. Scroll sideways on a phone.

monthly total = base fee + (per-employee fee x headcount) effective PEPM = monthly total / headcount annual total = monthly total x 12 + setup fee three-year cost = annual total x 3

No other adjustment is applied. We do not add estimated tax-filing fees, discounts, or promotional pricing. The full method is at Method.

Where the base fee stops mattering

On Payroll Essentials, the £12 base fee is 100% of the monthly bill at 5 employees and 14% at 50. That is the whole of why the effective figure falls as a team grows: the fee does not change, the number of people carrying it does.

Against Xero — the cheapest published alternative at 10 employees — the ordering turns over at 114 employees: below that Sage Payroll has the lower monthly total, from there Xero does. That is arithmetic on two published prices, not a recommendation; the comparison shows both at every headcount.

Who this suits, and who it does not

Where each figure comes from

Every figure above is either a number Sage Payroll publishes or a gap it leaves. Field by field: what we hold, which of the vendor's own pages it was read from, the day it was read, and the vendor's wording where we have it. Nothing in this table comes from a third party, and no blank is filled with an estimate.

Show the source of every figure on this page (19 fields)
Default source: https://www.sage.com/en-gb/sage-business-cloud/payroll/pricing/. checked 2026-09-07
PlanFieldWhat we holdRead fromRead onThe vendor's wording
—Free trial30 daysthe pricing page2026-09-07
Payroll EssentialsMonthly base fee£12the pricing page2026-09-07
Payroll EssentialsPer-employee feePublished as headcount bands, belowthe pricing page2026-09-07
Payroll EssentialsPer-employee fee by headcount band6–10: £2.40; 11–25: £1.70; 26–150: £1.40the pricing page2026-09-07
Payroll EssentialsEligibilityUp to 150 employees. First 5 included in the base fee. Per-employee rate falls in published bandsthe pricing page2026-09-07
Payroll EssentialsDirect depositIncludedthe pricing page2026-09-07"Salary payments" — listed for all three plans
Payroll EssentialsConditions on the price—the pricing page2026-09-07"£12.00 per month", includes 5 employees; additional employees £2.40 (6-10), £1.70 (11-25), £1.40 (26-150) each. "These prices exclude VAT." Standard price recorded; promo is "90% off for 3 months".
Payroll StandardMonthly base fee£23the pricing page2026-09-07
Payroll StandardPer-employee feePublished as headcount bands, belowthe pricing page2026-09-07
Payroll StandardPer-employee fee by headcount band6–10: £4.40; 11–25: £3.70; 26–150: £3.40the pricing page2026-09-07
Payroll StandardEligibilityUp to 150 employees. First 5 included in the base fee. Per-employee rate falls in published bandsthe pricing page2026-09-07
Payroll StandardDirect depositIncludedthe pricing page2026-09-07"Salary payments" — listed for all three plans
Payroll StandardConditions on the price—the pricing page2026-09-07"£23.00 per month" (Most Popular), includes 5 employees; additional £4.40 (6-10), £3.70 (11-25), £3.40 (26-150) each. Ex VAT. Standard price recorded; promo is "90% off for 3 months".
Payroll PremiumMonthly base fee£34the pricing page2026-09-07
Payroll PremiumPer-employee feePublished as headcount bands, belowthe pricing page2026-09-07
Payroll PremiumPer-employee fee by headcount band6–10: £6.40; 11–25: £5.70; 26–150: £5.40the pricing page2026-09-07
Payroll PremiumEligibilityUp to 150 employees. First 5 included in the base fee. Per-employee rate falls in published bandsthe pricing page2026-09-07
Payroll PremiumDirect depositIncludedthe pricing page2026-09-07"Salary payments" — listed for all three plans
Payroll PremiumConditions on the price—the pricing page2026-09-07"£34.00 per month", includes 5 employees; additional £6.40 (6-10), £5.70 (11-25), £5.40 (26-150) each. Ex VAT. Standard price recorded; promo is "90% off for 3 months".

The same record, for every vendor, is the sources column of plans.csv on the data page.

Where to check this yourself

Go to Sage Payroll and open its pricing page. Everything above comes from https://www.sage.com/en-gb/sage-business-cloud/payroll/pricing/, read on 2026-09-07.

Related

Written by Kaz, independent publisher.

Page last updated: 2026-10-03. Sources: vendor pricing pages only. Figures checked between 2026-08-20 and 2026-10-03. I have not used these products. Nothing here is a personal test result.

Ranking method and formulas: Method. Listing position on this site is not for sale.

Corrections: contact form.