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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
10 fact checks verified
Prices verified Feb 2026
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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 verifying prices directly with all 10 major UK providers – here’s what you’ll actually pay.

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Per-employee pricing is predictable but watch for module creep. Flat-fee (Breathe) gets cheaper per head as you grow. Quote-based (HiBob, Moorepay) often includes discounts but requires sales conversations. Always compare total monthly cost, not just the per-user headline rate.

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 £4 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, BambooHR’s UK pricing is quote-only at approximately £5 to £10 per employee, and BrightHR’s Core plan works out to roughly £3.33 per user based on its five-employee minimum (£16.67 monthly). Higher tiers with performance management, recruitment and analytics add £5 to £15 per user. Implementation and setup fees range from zero (BrightHR, Breathe HR) to over £1,000 for BambooHR’s UK onboarding. Annual contracts typically discount 10 to 15 per cent versus monthly billing. 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 ➔

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ProviderPricing ModelStarting PriceFree TrialMin. Employees
People HRPer employee£3/employee/moNot disclosedNone
Employment HeroPer employeeFrom £4/employee/moNot disclosedNone
Sage HRPer employee (modular)£5.00/employee/mo30 daysNone
CharlieHRPer employee (core only)£5/employee/mo7 daysNone (free tier available)
BambooHRPer employee£5–£7/employee/mo (est.)NoneNone
RipplingPer user + platform fee£7/user/mo + platform feeNot disclosedNone
BrightHRPer employee£16.67/employee/moNot disclosedNone
Breathe HRFlat fee (tiered)£24/mo (up to 10 staff)30 daysNone
MoorepayQuote-basedQuote onlyNot disclosedTypically 50+
HiBobQuote-basedQuote onlyNoneTypically 50+

Prices verified February 2026. BambooHR pricing is estimated from industry reports — they don’t publish UK rates. 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)

Seven of the ten providers we reviewed 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 £5 core rate jumps when you add HR Essentials (£55/mo) or Premium (£99/mo) add-ons.

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

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 11. 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. Both target larger organisations (typically 50+ employees) and 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 £22–£70/month for basic HR software. A 50-person company typically spends £89–£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
£44–£100/mo
Sage £44+, CharlieHR £50+
£100–£200/mo
EH bundled, Rippling £70+
25 employees£75–£110/mo
People HR £75, EH ~£100
£110–£250/mo
Sage £110+, BambooHR ~£150
£250–£500/mo
Rippling, Moorepay (quote)
50 employees£99–£220/mo
Breathe £99, People HR £150
£220–£500/mo
Sage £220+, BambooHR ~£300
£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 verified pricing as of February 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.

Featured Provider
Try Employment Hero — Free for Up to 5 Employees
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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 20–50% 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: Estimated setup fee of £1,000+ for guided implementation
  • HiBob: Custom onboarding included in annual contracts, but expect 4–8 weeks of implementation time
  • Rippling: £500–£5,000 depending on integrations (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: Estimated £6+/employee/month for the combined bundle
  • 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: Built-in UK payroll included in higher tiers — one of few all-in-one options

Other Costs to Watch

  • Data migration: Moving from spreadsheets or a legacy system often incurs a one-off charge (£200–£2,000)
  • Training: On-site or bespoke training sessions are rarely free for enterprise platforms
  • Premium support: Faster SLAs and dedicated account managers typically cost 10–20% extra
  • Contract lock-in: BrightHR often requires 3–5 year contracts. Early exit penalties can cost thousands
  • 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 (10–20% discount), starting with core modules only, and choosing platforms where payroll is included rather than bolted on.

1. Pay Annually, Not Monthly

Most providers offer 10–20% discounts for 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 typically 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 offers a free tier with basic HR features, and Zoho People has a free plan for up to 5 users. These are limited (no payroll, basic reporting), but they’ll save you £250–£600/year over a paid platform.

5. Negotiate Multi-Year Contracts

For quote-based providers (HiBob, Moorepay, BambooHR), committing to 2–3 years often unlocks 15–25% discounts. Just make sure you’ve tested the platform thoroughly before signing — early exit fees can wipe out any savings.

Featured Provider
Try Sage HR — Voted Best HR Software 2024
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Our Methodology

All pricing was verified directly from provider websites and sales teams in February 2026. We re-check every 90 days.

We verified pricing by checking each provider’s public pricing page, signing up for free trials where available, and requesting quotes from sales teams for platforms that don’t publish rates. Where providers don’t disclose UK pricing (BambooHR), we’ve used estimated ranges from verified industry sources and labelled them accordingly.

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: February 2026. Pricing and features may change. Read our individual reviews for the latest: Employment Hero | Breathe HR | Sage HR | BambooHR | HiBob | Moorepay | Rippling | BrightHR | 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.

LinkedIn Profile →
Clara Wenslow

Reviewed by

Clara Wenslow

Finance & Business Services Editor

FAQs

Can I get free HR software in the UK?

Yes. CharlieHR offers a free tier for small teams, and Zoho People has a free plan for up to 5 users. 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.

Is it cheaper to bundle HR and payroll?

Almost always, yes. Unified systems like Employment Hero and Moorepay discount the bundled price compared to buying separate HR and payroll subscriptions. You also save on admin time by eliminating duplicate data entry between two systems.

What is the cheapest HR software for a 10-person team?

Breathe HR at £22/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.

How much should I budget for HR software per employee?

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. Add 20% for first-year setup costs.

Do HR software providers offer discounts?

Yes. Annual billing typically saves 10-20% over monthly. Multi-year contracts (2-3 years) can save 15-25% on quote-based platforms like HiBob. CharlieHR offers a 75% discount for the first 6 months for small teams. Always ask — most providers have unadvertised pricing flexibility.

What is the difference between per-employee and flat-fee pricing?

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.

How much does HR software cost for a 10-person UK company?

Between £40 and £100 per month, depending on provider. BrightHR Core lands at around £33-£50 for 10 staff, Sage HR around £44, and Breathe HR around £80. Setup fees vary from zero (BrightHR, Breathe HR) to over £1,000 for BambooHR’s UK onboarding.

Why is BambooHR pricing quote-only in the UK?

BambooHR uses regional sales teams to quote based on company size, integrations and contract length. Expect approximately £5 to £10 per employee per month, plus a one-off setup fee around £1,000.

Are there free HR software options for UK small business?

CharlieHR offers a Free Forever tier for up to 10 users. Beyond that, all major UK providers charge per-employee. Free options typically lack absence-scoring depth and structured GDPR Subject Access Request workflow.

Do HR software prices include UK payroll?

Almost never. UK HR software usually integrates with separate RTI-compliant payroll engines (Sage Payroll, BrightPay, Staffology, Xero). Sage HR, People HR and Employment Hero are the main exceptions that bundle native UK payroll.

What's the cheapest HR software for UK SMEs in 2026?

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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