What's changing?

We’ve introduced a new pricing and billing model for Sage Payroll customers in the UK, transitioning to a per-employee-per-month basis.

This pricing model introduces a scalable, flexible way to manage your payroll expenses as your business evolves.

You only pay for the resources you use and this allows you to configure your own HR and Payroll package to suit your needs.

View Payroll Pricing Quick Reference Table (opens in a new window) >

How it works 

The new pricing applies to all new Sage Payroll UK customers who need to increase the number of employees they pay for.

Cost per-employee-per-month:

• 1 - 10 employees £2
• 11 - 25 employees £1.30
• 26 - 150 employees £1.00

Estimating your costs

Each tier's pricing is structured to scale with the number of employees. We've developed a simple method to quickly calculate your monthly and annual payroll costs under the new model.

1. Choose your tier: Essentials, Standard, or Premium.
2. Count your employees: Determine the total number of employees for the month.
3. Use our quick reference table to find your cost based on the chosen tier and employee count.
   View Payroll Pricing Quick Reference Table (opens in a new window) >

Example calculation:
A company with 77 employees looking to subscribe to the Standard tier would pay £245.50 per month, which would total £2,946.00 for the annual cost.

Next steps

If you are an existing Sage Payroll customer, migration to the new billing model is not automatic. However, if you want to move to the new pricing structure, you can in the following scenarios: 

• You want to change to pay for the exact number of employees you have
• You want to add a Sage HR module to your subscription
• You make any changes that affect your billing from Manage Business Account

If you need help to manage your subscription, visit our Manage Subscription guide >

 NOTE: If you make any changes to your subscription, you move to the new billing model. You cannot then change back to tiered pricing.