Employer National Insurance Calculator
Calculate how much employer National Insurance you owe on your employees' salaries. See per-employee NI costs, Employment Allowance savings, and total employment costs for the 2025-26 or 2024-25 tax year.
Key Takeaway
Since April 2025, employers pay 15% NI on earnings above £5,000 — up from 13.8% on earnings above £9,100. The Employment Allowance increased to £10,500 to help smaller businesses.
Key Facts — 2025-26
Employer NI Rate
15%
Secondary Threshold
£5,000
Employment Allowance
£10,500
Effective From
April 2025
Per-Employee NI
£3,750.00
Effective rate: 12.50%
Total Employer NI
£3,750.00
Before Employment Allowance
EA Saving
£0.00
Not claimed
Total Employment Cost
£33,750
Salaries + net NI
| Item | Amount |
|---|---|
| Employee salary | £30,000.00 |
| Employer NI per employee | £3,750.00 |
| Number of employees | 1 |
| Total employer NI | £3,750.00 |
| Net Employer NI | £3,750.00 |
| Total cost per employee | £33,750.00 |
How Employer NI Works
Employer National Insurance is a payroll tax that employers pay on top of their employees' salaries. It is calculated on each employee's earnings above the secondary threshold. For the 2025-26 tax year, the threshold is £5,000 per year and the rate is 15%.
Unlike employee NI, there is no upper earnings limit for employer NI — the 15% rate applies to all earnings above the secondary threshold with no reduced rate for higher earners. This means the employer cost scales linearly with salary.
Employer NI is an additional cost to the business on top of the gross salary. It does not reduce the employee's take-home pay. However, it does affect the total cost of employment and is a significant factor in hiring and compensation decisions.
Employment Allowance
The Employment Allowance lets eligible employers reduce their annual employer NI liability by up to £10,500 (from April 2025, increased from £5,000). It is applied against your total employer NI bill across all employees.
To be eligible, your employer NI liability in the previous tax year must be below £100,000. Companies where the director is the sole employee cannot claim. Public bodies and businesses carrying out more than half their work for public authorities are also excluded.
The allowance is claimed through your payroll software and is offset against employer NI payments throughout the year. You do not need to apply separately — just indicate your eligibility when running payroll.
Worked Example
Scenario: A small business employs 5 people, each on a £30,000 salary. The business is eligible for Employment Allowance.
Step 1 — Per-employee NI: Each employee earns £25,000 above the £5,000 secondary threshold. Employer NI per employee: £25,000 × 15% = £3,750.
Step 2 — Total employer NI: 5 employees × £3,750 = £18,750.
Step 3 — Employment Allowance: The business can offset £10,500 against the total. Net employer NI: £18,750 − £10,500 = £8,250.
Total employment cost: Salaries (£150,000) + net employer NI (£8,250) = £158,250.
Frequently asked questions
How much employer NI do I pay per employee?
From April 2025, employers pay 15% National Insurance on each employee's earnings above the secondary threshold of £5,000 per year. For example, on a £30,000 salary the employer NI is (£30,000 − £5,000) × 15% = £3,750 per year.
What is the Employment Allowance?
The Employment Allowance lets eligible employers reduce their annual employer NI liability by up to £10,500 (from April 2025). It is available to businesses with an employer NI liability below £100,000 in the previous tax year. Single-director companies with no other employees are not eligible.
What changed for employer NI in April 2025?
From April 2025, the employer NI rate increased from 13.8% to 15%, and the secondary threshold dropped from £9,100 to £5,000. The Employment Allowance was increased from £5,000 to £10,500 to partially offset the higher costs for smaller businesses.
Who is eligible for the Employment Allowance?
Most employers are eligible for the Employment Allowance provided their employer NI liability in the previous tax year was below £100,000. Companies where the director is the sole employee are not eligible. Public bodies, businesses carrying out more than half their work as a public authority, and certain personal and managed service companies are also excluded.
Sources
Related Calculators
Last updated March 2026. Reflects 2025-26 tax year rates.