Employer NI calculator
Enter a salary and the number of staff on it. The calculator shows employer's National Insurance at 15%, the Employment Allowance if you can claim it, and the full cost to the business.
Employer's National Insurance, 2026/27
£0
£4,500 per employee before the allowance. Total cost of employment £35,000 for 1 employee.
- Salary
- £35,000
- Earnings above £5,000 secondary threshold
- £30,000
- Employer's NI at 15%
- £4,500
- Employment Allowance
- − £4,500
- Employer's NI payable
- £0
- Total cost to the businessSalary plus employer's NI
- £35,000
- Employee's own NI (for reference)Deducted from the employee's pay, per person
- £1,794
Employer pension contributions (minimum 3% of qualifying earnings under auto-enrolment) are not included. Apprentices under 25 and employees under 21 have a higher threshold.
Figures used, 2026/27
- Employer's NI 15% on earnings above £5,000 per employee
- Employment Allowance up to £10,500 a year where eligible
- Standard secondary threshold; under-21s, apprentices under 25 and veterans have higher thresholds
- Pension contributions and Class 1A on benefits not included
England, Wales and Northern Ireland. Rates reviewed . An estimate, not advice: your own position may differ.
How the calculator works
Employers pay Class 1 secondary National Insurance on each employee's earnings above the secondary threshold of 5,000 pounds a year. The rate is 15%. Both figures changed in April 2025 and are unchanged for 2026/27. There is no upper limit, so the charge keeps rising with salary.
The Employment Allowance lets eligible employers reduce their total employer's NI bill by up to 10,500 pounds a year. It is claimed through payroll software and applies to the business as a whole, not per employee. Companies whose only employee earning above the threshold is a director cannot claim it, which is why sole-director companies pay employer's NI on a 12,570 pound salary.
Employees under 21 and apprentices under 25 have a much higher secondary threshold (50,270 pounds), so employer's NI on their pay is usually nil. Veterans in their first year of civilian employment and employees in freeport or investment zone tax sites have similar reliefs. The calculator uses the standard threshold.
Employer's NI is a deductible expense for Corporation Tax, as is the salary itself. The true cost of a hire also includes the minimum 3% employer pension contribution under auto-enrolment, holiday pay, and any benefits.
Frequently asked questions
15% on earnings above 5,000 pounds a year per employee, the same as 2025/26. For an employee on 35,000 pounds that is 4,500 pounds a year before the Employment Allowance.
Most employers with at least one employee, or two directors, paid above the secondary threshold. Sole-director companies with no other staff cannot. Public bodies and businesses doing more than half their work in the public sector are also excluded. The allowance is 10,500 pounds for 2026/27.
Yes, on anything above 5,000 pounds, unless the Employment Allowance covers it. For a sole director on 12,570 pounds the employer's NI is 1,135.50 pounds a year, which is still usually cheaper than taking the same amount as dividends.
On cash bonuses, yes, through payroll. On most benefits in kind, such as a company car or private medical insurance, Class 1A National Insurance at 15% is due instead, reported on a P11D or through payrolling.
Salary sacrifice for pension contributions is the main route: the sacrificed pay is not subject to NI for either side. Employing people under 21 or apprentices under 25, and claiming the Employment Allowance if eligible, also help.
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