🇬🇧 2026/27 UK Rates · Instant · Free

Employer NI Calculator

Last updated: January 2026 · 2026/27 UK tax year

Find the true cost of employing someone in the UK. See employer National Insurance at 13.8% and compare it to the employee's actual take-home pay.

Employer National Insurance Contributions (Employer NI) are a tax paid by businesses on the wages they pay to their employees. Unlike employee NI, which is deducted from an employee's gross pay, Employer NI is an additional cost paid on top of the wage by the company. It does not reduce the employee's take-home pay directly, but it significantly affects the total cost of employment — which is why salary negotiation and budget planning should always include Employer NI in the true cost calculation.

From April 2025, following the changes announced in the October 2024 Budget, Employer NI rose from 13.8% to 15%, and the Secondary Threshold (the earnings point above which Employer NI applies) dropped from £9,100 to £5,000 per year. This means a worker on £30,000 now costs their employer approximately £3,750/year in NI contributions — up from £2,884 the year before. Use this calculator to calculate the true cost to the business of any salary, including Employer NI and the Apprenticeship Levy.

Employee details

Gross Salary

Pay Frequency

Claim Employment Allowance (£10,500)

Most small/medium employers qualify. Not available if you're a single-director company with no other employees.

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Enter a salary to see the employer NI cost breakdown.

How employer NI works in 2026/27.

Employer National Insurance is a separate taxthat employers pay on top of an employee's gross salary. It does notcome out of the employee's pay — it's an additional cost to the business.

2026/27 employer NI rates

Secondary Threshold£5,000/year (£417/month)No employer NI below this

Rate13.8%On all earnings above the threshold — no upper limit

Employment Allowance£10,500Offsets employer NI for eligible employers

Example: On a £35,000 salary, employer NI is 13.8% × (£35,000 − £5,000) = £4,140 per year. The true cost to employ that person is £39,140 — before pension contributions.

Why does this matter?

Budgeting: Employer NI is often 10–14% of the salary cost. Forgetting it can blow a hiring budget.
Contract negotiations: When comparing a permanent role vs. a contractor rate, factor in employer NI — a £50,000 salary costs ~£56,200+ to the employer.
Salary sacrifice: If employees sacrifice salary into pension, the employer saves NI on the sacrificed amount too. Some employers pass this saving back to employees.

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Employer NI questions answered.

Frequently asked questions

How much employer NI do I pay on a salary in 2026/27?

Employers pay 13.8% National Insurance on employee earnings above the Secondary Threshold of £5,000 per year (£417/month) in 2026/27. There is no upper limit — employer NI applies to all earnings above the threshold.

What is the Employment Allowance?

The Employment Allowance for 2026/27 is £10,500. It reduces your employer NI bill by up to £10,500 per year. Most small and medium employers qualify, but you cannot claim it if you're a single-director company with no other employees, or if your employer NI bill was £100,000+ in the previous tax year.

Is employer NI deducted from the employee's pay?

No. Employer NI is an additional cost on top of the employee's gross salary — it does not reduce the employee's take-home pay. It is a separate tax that the employer pays directly to HMRC.

How does employer NI affect contractor rates?

When comparing a contractor day rate to a permanent salary, remember the employer also pays 13.8% NI on top of the salary. A £50,000 salary actually costs the employer around £56,200 after employer NI (before Employment Allowance). Contractors should factor this in when setting rates.

Does employer NI apply to pension contributions?

No. Employer pension contributions are exempt from employer NI. This is one reason salary sacrifice pension arrangements are popular — they reduce the employer's NI bill as well as the employee's tax and NI.