UK Employer NI Rates 2026/27: 15% Rate, £5,000 Threshold & Calculator
Employer NI 2026/27: 15% on earnings above £5,000/year. Full rate tables, secondary threshold, Employment Allowance (£10,500), worked examples and free calculator.
What Changed with Employer NI in 2026/27?
The 2026/27 tax year continues the significant changes to employer National Insurance introduced in April 2025. The employer NI rate remains at 15%, and the Secondary Threshold — the point at which NI becomes payable — stays at £5,000 per year.
These changes mean that employers are paying more NI on a larger portion of each employee's earnings. For many businesses, this represents a substantial increase in employment costs that needs to be factored into budgets and hiring plans.
2026/27 Employer NI Rates at a Glance
| Parameter | 2024/25 (Old) | 2026/27 (Current) | Change |
|---|---|---|---|
| Employer NI rate | 13.8% | 15% | +1.2 percentage points |
| Secondary Threshold (annual) | £9,100 | £5,000 | -£4,100 |
| Secondary Threshold (monthly) | £758 | £417 | -£341 |
| Employment Allowance | £5,000 | £10,500 | +£5,500 |
| EA eligibility cap | £100,000 NI bill | No cap | Removed |
| Upper Secondary Threshold | £50,270 | £50,270 | No change |
How Employer NI Is Calculated
Employer NI is calculated on each employee's earnings above the Secondary Threshold. The formula is straightforward:
Employer NI = (Annual Salary - £5,000) × 15%
For example, for an employee earning £30,000 per year:
- Earnings above threshold: £30,000 - £5,000 = £25,000
- Employer NI: £25,000 × 15% = £3,750 per year
- Monthly: £312.50
- Weekly: £72.12
Use our employer NI calculator to get instant calculations for any salary level.
NI Costs at Different Salary Levels
| Annual Salary | 2024/25 NI (Old) | 2026/27 NI (New) | Increase |
|---|---|---|---|
| £15,000 | £814 | £1,500 | +£686 |
| £20,000 | £1,504 | £2,250 | +£746 |
| £25,000 | £2,194 | £3,000 | +£806 |
| £30,000 | £2,884 | £3,750 | +£866 |
| £40,000 | £4,264 | £5,250 | +£986 |
| £50,000 | £5,644 | £6,750 | +£1,106 |
| £75,000 | £9,094 | £10,500 | +£1,406 |
| £100,000 | £12,544 | £14,250 | +£1,706 |
Reduced Rates for Young Workers
Employers benefit from significantly reduced NI costs when hiring younger workers. For employees under 21, and apprentices under 25, the threshold before NI is due increases to the Upper Secondary Threshold of £50,270 per year.
This means no employer NI is payable on earnings below £50,270 for these groups. Only earnings above this amount are charged at the 15% rate. For most roles, this results in zero employer NI.
| Employee Category | NI-Free Threshold | NI on £30,000 Salary |
|---|---|---|
| Standard (21+) | £5,000 | £3,750 |
| Under 21 | £50,270 | £0 |
| Apprentice under 25 | £50,270 | £0 |
The Employment Allowance
The Employment Allowance is one of the most valuable reliefs available to UK employers. For 2026/27, it remains at £10,500. The £100,000 NI liability cap that previously restricted eligibility has been completely removed.
This means all eligible employers can claim, regardless of the size of their NI bill. The allowance is applied against your total employer NI liability for the year, effectively making the first £10,500 of NI free.
Who Can Claim?
- Most businesses with employees
- Charities
- Community amateur sports clubs (CASCs)
Who Cannot Claim?
- Companies with only one director and no other employees
- Public bodies and those carrying out functions of a public nature
- Employers who have exceeded the de minimis state aid limit
Impact on Businesses
Small Businesses (1-10 Employees)
Small employers are largely shielded by the increased Employment Allowance. A business with 5 employees earning £25,000 each would have a total NI bill of £15,000 — reduced to just £4,500 after the £10,500 allowance. Many small businesses with lower-paid staff will pay no employer NI at all.
Medium Businesses (10-50 Employees)
Medium-sized businesses feel the full impact of the rate increase, as the Employment Allowance covers a smaller proportion of their total NI bill. A business with 20 employees averaging £35,000 would see an annual increase of approximately £18,000.
Large Businesses (50+ Employees)
Larger employers face the biggest absolute cost increases. However, the removal of the £100,000 eligibility cap for Employment Allowance means many large businesses can now claim for the first time, partially offsetting the increase.
Tips for Managing the Increased Costs
- Claim Employment Allowance — if you haven't already, check whether your business is eligible for the £10,500 allowance
- Consider salary exchange for pensions — both employer and employee save NI when pension contributions are made through salary exchange. See our pension calculator for modelling savings
- Review your workforce structure — hiring under-21s or apprentices significantly reduces NI costs
- Budget accurately — use our employee cost calculator to understand the true cost of each role
- Review pay structures — consider whether benefits in kind or salary sacrifice arrangements could reduce the NI-able pay
Key Takeaways
- Employer NI now costs 15% on earnings above £5,000 per year
- The average employer pays £800-£1,700 more per employee than last year
- Employment Allowance of £10,500 shields many small businesses
- Hiring under-21s and apprentices remains highly tax-efficient
- Salary exchange for pensions can help offset the increased costs
Use our free employer NI calculator to see exactly how much you'll pay for any salary level in 2026/27.