What is Employer National Insurance?

Employer National Insurance (NI) is a tax that UK employers must pay on their employees' earnings above a certain threshold. For the 2025/26 tax year, employers pay 15% on earnings above £5,000 per year (the Secondary Threshold).

What is the Employment Allowance?

The Employment Allowance allows eligible employers to reduce their annual National Insurance liability by up to £10,500. In 2025/26, the previous £100,000 turnover cap has been removed, meaning all eligible employers can now claim regardless of their NI bill.

Do I pay NI on employees under 21?

Employers don't pay NI on earnings up to £50,270 per year for employees under 21. You only pay the 15% rate on earnings above this Upper Secondary Threshold. This also applies to apprentices under 25.

How do I calculate employer NI for multiple employees?

Calculate NI for each employee individually based on their salary and age category. If you're eligible for the Employment Allowance, apply the £10,500 reduction to your total NI bill across all employees.

When do I need to pay employer NI?

Employer NI is due when you pay your employees. If you run payroll monthly, you must report and pay NI to HMRC by the 22nd of each month (or the 19th if paying by post).

What are the employer NI rates for 2025/26?

For 2025/26, the employer NI rate is 15% on earnings above the Secondary Threshold of £5,000 per year. This is an increase from the previous 13.8% rate.

Employer NI Calculator 2025/26 | 15% Rate | Employers Calculator 2025/26

How much employer National Insurance will you pay? Enter a salary and see your NI bill instantly at the 15% rate for 2025/26, including Employment Allowance savings.

Understanding Employer National Insurance in 2025/26

Employer National Insurance is one of the key costs that UK employers need to budget for when hiring staff. As an employer, you're responsible for paying NI contributions on your employees' earnings above the Secondary Threshold.

Key Changes for 2025/26

The 2025/26 tax year brought significant changes to employer NI rates:

Rate increase: The employer NI rate increased from 13.8% to 15%
Lower threshold: The Secondary Threshold dropped to £5,000 per year
Employment Allowance: Increased to £10,500 and the £100k eligibility cap was removed

How Employer NI is Calculated

Employer NI is calculated as a percentage of an employee's earnings above the Secondary Threshold. The basic formula is:

Employer NI = (Annual Salary - £5,000) × 15%

For example, an employee earning £30,000 per year would result in employer NI of: (£30,000 - £5,000) × 15% = £3,750 per year.

Reduced Rates for Young Workers

Employers benefit from reduced NI costs when hiring workers under 21, or apprentices under 25. For these employees, the threshold increases to £50,270, meaning no employer NI is due on earnings below this amount.

NI at Different Salary Levels

Annual Salary	Employer NI	With Employment Allowance	Effective Rate
£20,000	£2,250	£0	11.3%
£25,000	£3,000	£0	12.0%
£30,000	£3,750	£0	12.5%
£40,000	£5,250	£0	13.1%
£50,000	£6,750	£0	13.5%
£75,000	£10,500	£0	14.0%
£100,000	£14,250	£3,750	14.3%

Effective rate shows employer NI as a percentage of the full salary. Employers eligible for the Employment Allowance pay £0 until their total NI liability exceeds £10,500.

The Employment Allowance

The Employment Allowance is a valuable relief that can reduce your annual NI bill by up to £10,500. Most employers can claim this allowance, including businesses, charities, and community amateur sports clubs (CASCs).

Important: From 2025/26, the previous restriction that prevented employers with NI bills over £100,000 from claiming has been removed. This means all eligible employers can now benefit.

Related Costs to Consider

Employer NI is just one part of the total employment cost. Use our employee cost calculator to see the full picture including pension contributions. You can also reduce your NI liability through salary exchange arrangements — see our workplace pension calculator to model the savings.

Employer NI Calculator 2025/26