Employer NI Calculator UK 2026–27
Enter a salary to see the employer National Insurance cost and total employment cost. For 2026–27 the employer NI rate is 15% above the secondary threshold of £5,000.
How employer National Insurance is calculated
Employer Class 1 National Insurance is a payroll tax paid by employers on top of an employee's gross salary. It is separate from the employee's own NI contributions and does not reduce take-home pay — it is an additional cost to the employer.
2026–27 rates
The employer NI rate for 2026–27 is 15%, unchanged from 2025–26. The secondary threshold also remains at £5,000 per year — the same level introduced at the Autumn Budget 2024 in April 2025. Both rate and threshold are frozen compared to the prior year.
For context: before April 2025 the rate was 13.8% and the threshold was £9,100. The Autumn Budget 2024 raised the rate to 15% and cut the threshold to £5,000, significantly increasing the employer NI cost — particularly for lower-paid and part-time roles.
Secondary threshold
No employer NI is due on the first £5,000 of an employee's annual earnings. Employer NI at 15% applies only to earnings above this threshold. The secondary threshold is lower than the primary threshold for employees (£12,570), so employer NI is due on some earnings that are NI-free for the employee.
Employment Allowance
Most employers with employer NI bills below £100,000 in the prior tax year can claim the Employment Allowance, which reduces their employer NI bill by up to £10,500. This effectively means eligible small businesses pay no employer NI on their first £70,000 of payroll at the 15% rate. This calculator does not apply the Employment Allowance — it shows the gross liability before any allowances.
Total cost of employment
The on-cost percentage shown is employer NI as a fraction of the gross salary. For most salaries it sits between 12% and 14% of gross pay. Understanding the on-cost helps employers budget accurately and helps employees understand their true worth to their employer: a £50,000 salary costs the employer approximately £56,750 in 2026–27.
Further reading
The employer NI secondary threshold dropped from £9,100 to £5,000 in April 2025, while the rate rose to 15% — a change that hits part-time and minimum-wage payrolls hardest.
Why small business owners are furious about the £5,000 threshold →Frequently asked questions
What is the employer NI rate for 2026–27?
For the 2026–27 tax year the employer Class 1 National Insurance rate is 15% on employee earnings above the secondary threshold of £5,000 per year (£96 per week). Both the rate and the threshold are unchanged from 2025–26.
What is the secondary threshold for employer NI?
The secondary threshold for 2026–27 is £5,000 per year. Employer NI is only due on the portion of an employee's earnings above this threshold. The threshold was reduced from £9,100 to £5,000 in April 2025 as part of Autumn Budget 2024 changes and remains at £5,000 in 2026–27.
Does employer NI come out of my pay?
No — employer NI is an additional cost paid by the employer on top of your salary. It does not reduce your take-home pay. However, it increases the total cost of employing you, which can affect how employers think about salary budgets and pay rises.
Is employer NI tax-deductible for the business?
Yes — employer National Insurance contributions are an allowable business expense and are fully deductible against corporation tax or income tax (for sole traders and partnerships). This reduces the effective net cost to the business.
What is the Employment Allowance?
The Employment Allowance allows eligible employers to reduce their employer NI bill by up to £10,500 per tax year in 2026–27. It applies to most small businesses but is not available to companies where the sole employee is also a director. The allowance is applied to the employer NI due each month until the full amount is used.
Related calculators
This calculator provides estimates only. Results are based on the 2026–27 tax year. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.