Employer NI Calculator
Calculate the employer National Insurance you'll pay on employee salaries. Updated with April 2025 rate changes.
Updated for 2025/26 tax year • 15% rate from £5,000
April 2025 Changes
Employer NI increased from 13.8% to 15%, and the threshold dropped from £9,100 to £5,000. This significantly increases employment costs.
Employee Details
Most small businesses qualify. Not available if your only employee is a director.
Employer NI Cost
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Get Started FreeUnderstanding Employer National Insurance
Employer NI is an additional cost on top of employee salaries. From April 2025:
- Rate: 15% (up from 13.8%)
- Threshold: £5,000/year (down from £9,100)
- Employment Allowance: £10,500 for eligible businesses
Employment Allowance
Most small businesses can claim up to £10,500 off their employer NI bill. You cannot claim if your only employee is a director, or if you're a public sector or service company.
The True Cost of Employment
When budgeting for employees, remember to add employer NI (15% above £5k), pension contributions (minimum 3%), and any benefits. A £35,000 salary actually costs over £40,000 in total.
Frequently Asked Questions
What is the employer NI rate for 2025/26?
From April 2025, the employer National Insurance rate is 15%. This is an increase from the previous rate of 13.8%. Employers pay this rate on employee earnings above the Secondary Threshold of £5,000 per year.
When do I need to pay employer National Insurance?
Employer NI is due each time you run payroll. Most businesses pay monthly, by the 22nd of the following month (or 19th if paying by post). HMRC collects employer NI together with employee NI and PAYE income tax through Real Time Information (RTI) submissions.
What is the Employment Allowance and am I eligible?
The Employment Allowance lets eligible employers reduce their annual employer NI bill by up to £10,500. Most small businesses qualify, but you cannot claim if your only employee is a director, or if you're a public sector body or domestic employer. You also cannot claim if your employer NI bill was £100,000 or more in the previous tax year.
How do I calculate employer NI contributions?
Calculate employer NI by taking the employee's annual salary, subtracting the Secondary Threshold (£5,000 for 2025/26), and multiplying the result by 15%. For example, on a £35,000 salary: (£35,000 - £5,000) × 15% = £4,500 per year in employer NI.
Do I pay employer NI on pension contributions?
No, employer pension contributions are exempt from employer NI. This is one reason why pension salary sacrifice schemes are popular - they reduce both the employer's and employee's NI liability while boosting pension savings.
What changed in April 2025 for employer National Insurance?
April 2025 brought significant increases to employer NI costs. The rate rose from 13.8% to 15%, and the Secondary Threshold (the point at which you start paying) dropped from £9,100 to £5,000 per year. The Employment Allowance increased to £10,500 to partially offset these changes for small businesses.