Employer NI Calculator UK 2025–26
Enter a salary to see the employer National Insurance cost and total employment cost. For 2025–26 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.
The 2025–26 rate change
From April 2025, the employer NI rate increased from 13.8% to 15%, and the secondary threshold — the earnings level above which employer NI is charged — was reduced from £9,100 to £5,000 per year. This means employers pay more NI on each employee, and the charge kicks in at a lower salary level than previously.
For a full-time employee on the UK median salary of around £35,000, the increase in employer NI cost is approximately £900 per year compared to 2024–25.
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 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 15% 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 £57,000 in 2025–26.
Frequently asked questions
What is the employer NI rate for 2025–26?
For the 2025–26 tax year the employer Class 1 National Insurance rate is 15% on employee earnings above the secondary threshold of £5,000 per year (£96.15 per week). This represents an increase from the previous 13.8% rate and lower secondary threshold.
What is the secondary threshold for employer NI?
The secondary threshold for 2025–26 is £5,000 per year. Employer NI is only due on the portion of an employee's earnings above this threshold. Earnings below £5,000 attract no employer NI, which particularly benefits part-time and low-paid workers.
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 2025–26. 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 2025–26 tax year. Credibrate is not a tax adviser. For personalised advice speak to a qualified accountant.