Employer NI Calculator 2025/26

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.

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.