Employer NI Calculator 2026/27 - National Insurance UK

Free employer National Insurance calculator for the UK. Calculate employer NI contributions based on employee salary, understand the secondary threshold, current rates, and Employment Allowance eligibility. Updated for the 2025/26 and 2026/27 tax years.

Employer National Insurance is a payroll tax paid by UK employers on each employee's earnings above the secondary threshold. Use this calculator to see monthly and annual breakdowns of your employer NI liability.

Frequently Asked Questions

What is employer National Insurance?

Employer National Insurance (NI) is a tax that UK employers must pay on each employee's earnings above the secondary threshold. It is separate from the employee's own NI contributions and is a significant cost of employment.

What is the employer NI rate in the UK?

The employer NI rate is set by the government and applies to employee earnings above the secondary threshold. The rate is reviewed annually in the Budget.

What is the Employment Allowance?

The Employment Allowance lets eligible employers reduce their annual employer NI liability. It is available to businesses and charities whose employer NI bill in the previous tax year was below a set threshold.

When do employers pay NI for employees?

Employers pay NI contributions each time they run payroll, calculated on gross pay above the secondary threshold for that pay period.

Do employers pay NI on pension contributions?

Employers do not pay NI on their own pension contributions. However, salary sacrifice arrangements for pensions can reduce employer NI liability.

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Free Employer NI Calculator🇬🇧 UK
Employer National Insurance Calculator

Calculate employer National Insurance contributions. See monthly and annual breakdown of Class 1 secondary NICs for your employees.

UK employers pay Class 1 National Insurance at 15% on employee earnings above the £5,000 annual Secondary Threshold (2025/26). There is no upper limit. The Employment Allowance lets eligible employers reduce their liability by up to £10,500. GOV.UK NI rates →

15%
NI Rate
£5,000
Threshold
Calculate Employer NI
Enter the employee's annual salary to calculate your employer NI contributions

Gross annual salary before deductions

2025/26 Rates: Employer NICs are charged at 15% on all earnings above the secondary threshold of £5,000 per year. There is no upper limit.
Employer NI Contributions
Based on 2025/26 employer NI rates

Enter an annual salary to calculate employer NI

UK Tax & NI

What is employer National Insurance?

What is Employer National Insurance?

Employer National Insurance Contributions (NICs) are a tax that employers pay on top of an employee's salary. Unlike employee NICs which are deducted from the worker's pay, employer NICs are an additional cost to the business. For the 2025/26 tax year, the rate is 15% on all earnings above the secondary threshold of £5,000 per year. There is no upper limit, meaning the 15% rate applies to all earnings above the threshold.

What is the secondary threshold?

The secondary threshold is the point at which employer NICs become payable. For 2025/26, this is set at £5,000 per year (£96.15 per week or £416.67 per month). Employers do not pay NICs on the portion of an employee's earnings below this threshold. The threshold is reviewed and potentially adjusted each year in the government's Budget.

What is the Employment Allowance?

Eligible employers can claim the Employment Allowance, which reduces their annual employer NICs bill by up to £10,500 (2025/26). This is particularly beneficial for small businesses. However, companies where a director is the sole employee paying themselves above the secondary threshold are not eligible. The allowance is claimed through your payroll software.

How does employer NI affect hiring costs?

Employer NICs represent a significant additional cost of employment beyond the headline salary. For an employee earning £35,000, the employer NICs add approximately £4,500 to the total cost. This is why the true cost of an employee is always higher than their salary — and why understanding employer NICs is essential for budgeting and workforce planning.

Who qualifies for NI exemptions and reduced rates?

Certain categories of employees attract reduced or zero employer NICs. These include employees under 21 (zero rate up to £50,270), apprentices under 25 (zero rate up to £50,270), and employees working in freeport tax sites. Veterans in their first year of civilian employment also have a zero rate up to £50,270. These reliefs are applied automatically through compliant payroll software.

Common Questions

Employer NI FAQ

Is employer NI different from employee NI?

Yes. Employee NI is deducted from the employee's pay and reduces their take-home salary. Employer NI is an additional cost paid by the employer on top of the salary — it does not reduce the employee's pay. The rates and thresholds are also different: employer NI is 15% above £5,000, while employee NI is 8% between £12,570 and £50,270, then 2% above that.

Do I pay employer NI on pension contributions?

No. Employer pension contributions are exempt from employer NICs. This is one reason salary sacrifice pension arrangements are popular — when an employee sacrifices salary for an increased employer pension contribution, both the employee and employer save on National Insurance.

How is employer NI paid to HMRC?

Employer NICs are calculated and reported through your payroll. They are paid to HMRC along with employee NICs and PAYE income tax, usually monthly (or quarterly for small employers). Most payroll software calculates employer NICs automatically.

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