HR software pricing, explained properly
Almost every quote leads with a per-employee headline. What decides the real cost is the three things underneath it: the seat minimum, the fixed term, and whether the price can be reviewed at renewal. The number that matters is the total you commit to over the term.
Per seat
The headline rate. Ask whether it is per employee on the payroll or per active user, and get it in writing.
Minimum
Many products bill a floor headcount. Below it, your real per-head cost is higher than the headline.
24, 36 or 60mo
The fixed-term lengths commonly offered. Multiply the monthly figure by this to see the real commitment.
General guidance describing how HR software is commonly priced in the UK, not a statement about any particular supplier. Confirm current terms directly with any provider before buying.
What a 36-month term really costs
Worked examples on a 36-month term at illustrative rates of £15 and £25 per employee per month, next to the same team on Leavely paying monthly for the same period. Substitute your own quoted rate: the point is the multiplication, not the rate.
| Team size | At £15–£25/mo | 36-month total | Leavely/month | Leavely, same 36 months |
|---|---|---|---|---|
| 5 people | £75–£125 | £2,700–£4,500 | £40 (billed monthly) | £1,440 |
| 10 people | £150–£250 | £5,400–£9,000 | £80 (billed monthly) | £2,880 |
| 25 people | £375–£625 | £13,500–£22,500 | £200 (billed monthly) | £7,200 |
The £15–£25 rates are illustrative round numbers to show how a per-seat price compounds over a term. They are not any supplier’s published prices, so use your own quote. Leavely totals assume you stay for the same 36 months. Leavely itself is a 12-month term, billed monthly.
HR software pricing FAQs
How much does HR software cost per employee in the UK?
It varies enormously by what is bundled in. Focused tools that do leave, absence and rotas tend to sit in the single figures per user per month. Leavely is £8. Suites that bundle employment-law advice, an employee assistance programme or payroll are typically priced well above that, and are usually quoted on a call rather than published. Always ask for the per-employee rate in writing.
What is a seat minimum, and does it matter?
A seat minimum is the smallest number of employees a supplier will bill you for, regardless of how many you actually have. If a product has a five-seat minimum and you have three staff, you pay for five. For very small teams this can quietly double the real per-head cost, so ask about it early. Leavely has no seat minimum, so you pay for the people you have.
Is HR software billed monthly the same as a monthly contract?
No, and this is the single most common misunderstanding. Billing frequency and contract length are different things: many products bill monthly while committing you to a fixed term, and terms of 24, 36 or 60 months are common. "Pay monthly" is a payment schedule; the term is the commitment. Leavely, for example, bills monthly on a 12-month term. Ask for both in writing.
What does a full term actually cost?
Multiply the per-employee rate by your billed headcount, then by the number of months in the term. On a 36-month term, a rate of £25 per employee per month for a 10-person team is a commitment of £9,000, before any renewal uplift. That total, not the monthly figure, is what you are actually signing for.
How does Leavely pricing compare?
Leavely is £8 per user per month on a 12-month term, billed monthly, with no setup fee and no seat minimum. A 10-person team pays £80/month, and you can export your data any time. The 12-month term applies to new customers who sign up from 23 September 2026. Existing customers keep their current terms.
One price, no setup fee, no minimum
£8 per user per month on a 12-month term, billed monthly, for the whole toolkit. No setup fee, and you can try it free first with no card needed.