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How Much Does HR Software Cost in 2026? (UK Pricing Guide)

Olivia Grant

Written By:

Olivia Grant

Head of Research & Insights

Clara Wenslow

Reviewed By:

Clara Wenslow

Finance & Business Services Editor

10 providers compared
13 fact checks verified
Prices verified Sep 2026
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Table of Contents

HR software vendors don’t make pricing easy. Some quote per employee, others charge flat monthly fees, and a few won’t reveal a number until you sit through a demo. We’ve cut through the noise by checking the pricing of 9 major UK providers against their own websites – here’s what you’ll actually pay.

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Key Takeaways
  • Published rates start at £3 - People HR from £3, Sage HR £5 and BambooHR from £8.10 per employee per month.
  • Flat fees get cheaper per head - Breathe HR charges £99/month for 21-50 staff, about £1.98 each at 50.
  • 3 platforms won’t publish a price - HiBob, Moorepay and Rippling quote on request, so allow time for demos.
  • Add-ons move the bill - Sage HR timesheets and performance modules are £2.50 each per employee per month.

HR Software Pricing at a Glance

Skip ahead to the numbers if you want: our HR software cost calculator takes team size, primary need, payroll requirement and budget, and returns the three closest provider matches with verified monthly costs.

HR software in the UK costs between £3 and £10 per user per month for the SME tier (1 to 250 employees) in 2026, with most modern providers pricing per-employee rather than per-feature. Sage HR sits at the low end at around £5.00 per user, and BambooHR starts at £8.10 per employee/month in the UK (plan-level prices are quoted). Higher tiers with performance management, recruitment and analytics cost more per user (People HR’s Elite+ is from £9.50, for example). Check whether a quoted price includes VAT: Breathe quotes prices excluding VAT, while Sage’s price simulator shows them including it.

Implementation and setup fees vary. Breathe HR charges none, and BambooHR does not list a setup fee (implementation support comes with its Elite plan’s premium services). Annual billing is usually cheaper than monthly (Breathe HR takes around 15% off on its lower tiers). Add-ons for payroll integration, e-signature and benefits administration are usually charged separately. Companies above 250 staff move into enterprise HCM pricing (Workday, SAP SuccessFactors) which is opaque and tender-based.

UK HR software costs between £3 and £10 per employee per month for published-price platforms. Flat-fee options like Breathe HR start at £24/month regardless of headcount.

Good to Know

Use our Staff Turnover Cost Calculator to see how much employee churn is really costing you. Open calculator ➔

ProviderPricing ModelStarting PriceFree TrialMin. Employees
People HRPer employee£3/employee/mo14 daysNone
Employment HeroPer employeeFrom £4/employee/moNot disclosed10 users (billing minimum)
Sage HRPer employee (modular)£5.00/employee/mo30 daysNone
CharlieHRFlat rate (1-4 staff)£21/month flat7 daysNone
BambooHRPer employeeFrom £8.10 (plan prices quoted)NoneNone
RipplingQuote-onlyQuote-basedNot disclosedNone
Breathe HRFlat fee (tiered)£24/mo (up to 10 staff)14 daysNone
MoorepayQuote-basedQuote onlyNot disclosedTypically 50+
HiBobQuote-basedQuote onlyNoneNo fixed minimum

Provider prices checked September 2026. BambooHR now publishes UK rates; HiBob, Moorepay and Rippling quote on request. For detailed feature comparisons, see our Best HR Software UK guide.

If you’re weighing up these two, our Rippling vs BambooHR comparison lays out the key differences.

How HR Software Pricing Actually Works

Most UK HR platforms charge per employee per month, but three distinct pricing models exist – and the one you choose affects your total cost more than the headline price.

Per-Employee Pricing (Most Common)

Most of the providers we cover charge a fee per employee per month. This model scales linearly – add 10 staff, your bill goes up by 10× the per-head rate. It works well for growing businesses because you only pay for active headcount.

The catch: costs can creep up with add-on modules. Sage HR starts at £5.00/employee for core HR, but adding Performance Management, Timesheets, and Recruitment modules can push the effective rate past £10/employee. Similarly, CharlieHR‘s £21/month flat Core rate (1–4 staff, £5/month for the first six months) rises with the Recruit add-on (from £55/mo) or the Charlie Grow add-on (from £200/mo, formerly called Advice).

Who uses this model: Employment Hero, Sage HR, People HR, CharlieHR, BambooHR, Rippling

Flat-Fee / Tiered Pricing

Breathe HR is the only major UK provider using pure tiered pricing. You pay a fixed monthly fee based on a headcount band:

  • Micro (1–10 employees): £24/month
  • Starter (11–20 employees): £44/month
  • Regular (21–50 employees): £99/month
  • Pro (51–100 employees): £175/month
  • Premium (101–150 employees): £419/month
  • Plus (151–200 employees): £579/month

This model rewards growing teams – if you have 48 employees, you pay the same as someone with 21. The per-head cost drops dramatically as you approach the top of each band. For a 50-person team, Breathe works out at £1.98/employee – far cheaper than any per-employee platform.

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Quote-Based Pricing

HiBob and Moorepay don’t publish prices at all. Moorepay mainly targets larger organisations (50+ employees), while HiBob now quotes for teams from 1-49 employees upward. Both negotiate pricing based on headcount, contract length, and which modules you need.

Quote-based pricing isn’t inherently more expensive – it often includes volume discounts that published-price platforms don’t offer. But it makes budgeting harder upfront and limits your ability to comparison-shop without investing time in demos.

What You’ll Actually Pay (By Business Size)

A 10-person business can expect £24–£70/month for basic HR software. A 50-person company typically spends £99–£500/month depending on features.

Company SizeBasic HR
(Leave, Docs, Database)
Standard
(+ Performance, Timesheets)
Full Suite
(+ Payroll, Recruitment)
10 employees£24–£50/mo
Breathe £24, People HR £30, EH ~£40
£47–£100/mo
Sage £50+, CharlieHR £47
£100–£200/mo
EH bundled, Rippling (quote)
25 employees£75–£110/mo
People HR £75, EH ~£100
£125–£250/mo
Sage £125+, BambooHR £200 flat
£250–£500/mo
Rippling, Moorepay (quote)
50 employees£99–£220/mo
Breathe £99, People HR £150
£250–£500/mo
Sage £250+, BambooHR £405
£500–£1,000+/mo
HiBob, Rippling, Moorepay
200 employees£579–£880/mo
Breathe £579, People HR £600
£880–£2,000/mo
BambooHR, Sage full suite
£2,000–£4,000+/mo
HiBob, Rippling enterprise

Estimates based on provider pricing checked in September 2026. Actual costs vary by contract length, payment frequency (annual vs monthly), and feature selections. Compare HR software features or get a tailored quote below.

The True Cost: Hidden Fees & Add-Ons

The advertised per-user price is rarely the full cost. Implementation, payroll add-ons, and premium support can add materially to your first-year bill.

Implementation & Setup Fees

Budget platforms like Breathe HR and CharlieHR have zero setup costs – you sign up, add employees, and start using the system within hours. Enterprise-grade platforms are different:

  • BambooHR: No setup fee listed; guided implementation comes with the Elite plan’s premium services
  • HiBob: Custom onboarding included in annual contracts
  • Rippling: Implementation is quoted and depends on the integrations you choose (IT device management, global payroll, etc.)
  • Moorepay: Implementation fees are bundled into annual contracts but can extend the commitment

Payroll Add-On Costs (The Big One)

Many HR platforms advertise a low base price but charge separately for payroll. If you need integrated payroll (RTI-compliant HMRC submissions), factor in these additional costs:

  • Sage HR + Sage Payroll: Sage Payroll is a separate product with its own price. Sage HR’s core plan alone is £5 per employee/month (£6 including VAT), so budget for both
  • People HR: £3–£5/employee/month for the payroll module on top of the £3 base
  • CharlieHR: Integrates with third-party payroll only (additional subscription needed)
  • Employment Hero: UK payroll runs in the same platform (Core Payroll is £3 per employee/month, minimum £20/month), so it is one of the few all-in-one options

Other Costs to Watch

  • Data migration: Moving from spreadsheets or a legacy system often incurs a one-off charge(quoted case by case)
  • Training: On-site or bespoke training sessions are rarely free for enterprise platforms
  • Premium support: Faster SLAs and dedicated account managers usually cost extra
  • Breathe HR add-ons: Rota (£11/mo), Expenses (£14/mo), Recruitment (£16/mo), or Learn (£15/mo) are extra per feature
Good to Know

Always request a total first-year cost including setup, migration, training, and all modules you’ll actually need. The cheapest per-user rate often belongs to the platform with the most expensive add-ons.

How to Reduce Your HR Software Costs

The most effective cost-saving strategies are paying annually (Breathe HR takes 10–15% off), starting with core modules only, and choosing platforms where payroll is included rather than bolted on.

1. Pay Annually, Not Monthly

Many providers discount annual billing. Breathe HR gives around 15% off on Micro-Pro plans (10% on Premium and Plus). On a £175/month Pro plan (51–100 employees), that’s roughly £315/year saved for paying upfront.

2. Start With Core HR, Expand Later

Modular platforms like Sage HR let you start with basic leave management and document storage, then add performance reviews or recruitment when you actually need them. Don’t pay for features your team won’t use in the first 6 months.

3. Bundle HR + Payroll Where Possible

Running HR and payroll on separate platforms means two subscriptions, double the data entry, and higher error risk. See our HR and payroll software comparison for all bundled options. Employment Hero and Moorepay both offer integrated HR + payroll bundles that can cost less than two separate tools.

4. Use Free Tiers for Micro Teams

If you have fewer than 5 employees, you may not need to pay at all. Our small business HR software guide covers the best options for teams under 50. CharlieHR has a 7-day free trial and takes 75% off its first six months for teams of one to four, and Zoho People has a free plan for up to 5 users. These are limited (no payroll, basic reporting), but they’ll save you the subscription fee of a paid platform (CharlieHR’s Core plan, for example, is £21/month for 1–4 staff).

5. Negotiate Multi-Year Contracts

For quote-based providers (HiBob, Moorepay, BambooHR), committing to 2-3 years can unlock a better rate. Just make sure you’ve tested the platform thoroughly before signing – early exit fees can wipe out any savings.

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The fastest way to find the right price for your business is to compare tailored quotes. Tell us about your team and we’ll connect you with providers who match your size and requirements.

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Construction firms should also compare employee HR with site attendance, subcontractor administration and job costing. Our HR software for construction guide explains which requirements to include in your quote and what to test in a supplier demo.

Our Methodology

Provider pricing was re-checked against each provider’s own website in September 2026. We re-check every 90 days.

We checked each provider’s public pricing page. Where a provider doesn’t publish UK prices (HiBob, Moorepay and Rippling), we say so rather than estimate. BambooHR publishes a ‘from’ price only, so its plan-level prices are quoted on request.

Our cost-by-business-size estimates account for the most common feature requirements at each tier. “Basic” assumes core HR only. “Standard” adds performance management and time tracking. If time and attendance is your primary need, a standalone T&A system may cost less than a full HR platform. “Full Suite” includes payroll, recruitment, and employee benefits.

Last verified: September 2026. Pricing and features may change. Read our individual reviews for the latest: Employment Hero | Breathe HR | Sage HR | BambooHR | HiBob | Moorepay | Rippling | CharlieHR | People HR

Olivia Grant

Olivia Grant

Head of Research & Insights

Olivia covers workforce management and people technology for UK businesses, including HR software, time and attendance systems, business mobile contracts, and digital marketing services. With over 8 years in market analysis and digital communications, she translates complex HR tech and procurement decisions into clear, actionable advice.

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Clara Wenslow

Reviewed by

Clara Wenslow

Finance & Business Services Editor

FAQs

Yes, but only a few. Zoho People has a free plan for up to 5 users. CharlieHR has no free plan, but offers a 7-day free trial and 75% off its first six months for teams of one to four. However, free versions lack payroll integration, advanced reporting, and priority support. They are suitable for micro-businesses who only need basic leave tracking and document storage.

Often, yes. Unified systems like Employment Hero and Moorepay can price the bundle below the cost of buying separate HR and payroll subscriptions. You also save on admin time by eliminating duplicate data entry between two systems.

Breathe HR at £24/month is the cheapest option for a 10-person team. People HR at £30/month (£3 x 10) is the cheapest per-employee option. Both cover core HR needs but lack integrated payroll.

For basic HR (leave, documents, employee database): budget £3-£5/employee/month. For a full suite with payroll, performance management, and recruitment: budget £8-£15/employee/month. Check whether setup, migration or training fees apply on top.

Yes. Annual billing is usually cheaper than monthly (Breathe HR takes about 15% off on its lower tiers). Multi-year contracts can unlock a better rate on quote-based platforms like HiBob. CharlieHR offers a 75% discount for the first 6 months for teams of one to four. Always ask – some providers have unadvertised pricing flexibility.

Per-employee pricing (used by most providers) charges a fixed rate per active employee per month – your bill grows linearly with headcount. Flat-fee pricing (used by Breathe HR) charges a fixed monthly amount within a headcount band, so your per-head cost drops as you add staff within that tier.

Between £24 and £200 per month, depending on provider. Breathe HR’s flat Micro tier costs £24 for up to 10 employees, and Sage HR costs about £50 for 10 staff (£5 per employee, excluding VAT). Breathe HR charges no setup fee, and BambooHR does not list one.

BambooHR’s UK pricing page says plans start at £8.10 per employee per month for companies with more than 25 employees. Companies with 25 employees or fewer pay a monthly flat rate starting at £200. Plan-level prices are quoted, and no setup fee is listed.

Zoho People has a free plan for up to 5 users. CharlieHR offers a 7-day free trial rather than a free plan. Beyond that, most major UK providers charge per employee or by team-size band. Free options typically lack absence-scoring depth and structured GDPR Subject Access Request workflow.

Almost never. UK HR software usually integrates with separate RTI-compliant payroll engines (Sage Payroll, BrightPay, Staffology, Xero). People HR and Employment Hero are the main exceptions that offer UK payroll in the same platform, while Sage HR connects to Sage Payroll, which is a separate product.

Sage HR at approximately £5.00 per user per month is currently the lowest published per-user pricing among UK-friendly mainstream options. People HR Starter at £3 per user is technically cheaper but cuts performance review features.

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