Spoiler: yes. But it’s worth looking at the numbers properly rather than just taking that on faith.
If you’ve reached the point where there’s more work than you can handle, you’ve probably started thinking about getting some help. For most people, the first thought is hiring an employee. It feels like the obvious next step.
Before you go down that route, it’s worth understanding what an employee actually costs. Not just the salary, but everything that comes with it.
The National Living Wage is currently £12.21 an hour, which works out at roughly £23,500 a year for a full-time role. That’s usually where people stop when they think about cost, but it’s only the starting point.
As of April 2025, employer National Insurance sits at 15% on earnings above £5,000. On a £23,500 salary, that adds roughly £2,700 a year. You’re also required to contribute to a workplace pension, typically at least 3%, which adds another £500 or so. At this point, you’re already at around £26,000 a year before considering anything else.
Employees are also entitled to 28 days of paid holiday each year. That’s time you’re paying for but not getting work in return. There’s also sick pay to factor in. From April 2026, Statutory Sick Pay is payable from day one, and more employees will qualify. On average, employees take around nine sick days a year. Individually these costs might not seem significant, but they all contribute to the overall picture.
Before you even get to any of that, you need to hire someone. The CIPD estimates the average cost per hire in the UK at just over £6,000. Even if you handle it yourself, there are still advertising costs and a considerable amount of your own time spent reviewing applications, interviewing, and onboarding.
Once you’ve found the right person, there’s the cost of getting them set up. A basic equipment setup can easily run into four figures. On top of that, there are software licences, training, and the time it takes for someone to get up to speed. Most new hires take several months to become fully productive, but you’re paying full salary from day one.
When you put all of this together, a £23,500 salary can realistically cost somewhere between £35,000 and £45,000 in the first year. That’s not an exaggeration, it’s simply how the numbers stack up once everything is included.
It’s also worth saying that this isn’t always a direct like-for-like comparison. Most small businesses don’t need a full-time role filled straight away. They need flexible support that grows with them, which is where the difference really starts to show.
A virtual assistant will usually charge more per hour than minimum wage, and that’s the part people tend to focus on. But the comparison changes when you look at the full picture.
With a VA, you only pay for the time you actually use. There are no employer National Insurance contributions, no pension obligations, no holiday pay, and no sick pay. You don’t have recruitment costs, equipment costs, or long-term commitments. If your workload increases, you can scale up. If things are quieter, you can scale back. You’re not tied into a fixed cost throughout the year.
A VA isn’t the right solution for every situation. If you need someone physically present or handling face-to-face work, then hiring an employee makes sense. But for admin support, inbox management, brochure website work, and email marketing, the kind of work that keeps a small business running day to day, a VA is often the more cost-effective option once you look beyond the hourly rate.
If you’re weighing up your options, it’s worth looking beyond the salary figure. That’s only part of the story.
If you want to talk through what this could look like for your business, feel free to get in touch. No pressure, just a straightforward conversation.