Employer NI calculator.

Calculate UK employer National Insurance contributions at the new 15% rate (2025/26), with total employment cost, auto-enrolment pension, and Employment Allowance built in.

2025/26 employer NI — what changed.

The Autumn Budget 2024 pushed three numbers in the wrong direction for employers. The Employment Allowance doubled to soften the blow for small businesses.

  1. 01
    The April 2025 hit was big.Rate up to 15%, threshold down to £5,000. For most employers, NI per head jumped £700–£1,000 overnight.
  2. 02
    Employment Allowance offsets it.£10,500/year reduction if you qualify. Doubled to absorb the rate rise — small employers may net out neutral.
  3. 03
    Total cost > gross salary.Budget ~15–20% on top of gross for NI + pension. A £30k hire really costs ~£34–36k all-in.
  4. 04
    Salary sacrifice still works.Sacrificed salary avoids NI for both sides. Pension contributions are the classic, tax-efficient lever.

2025/26 rates at a glance.

Employer NI rate (above threshold)15%
Secondary threshold£5,000/yr
Employment Allowance£10,500/yr
Auto-enrolment pension (employer min)3%

Calculate employer NI.

The calculator updates live as you type. Add multiple employees to see totals across your payroll.

The salary input below uses this period.

Single-director companies with no other employees cannot claim the Employment Allowance.

Employer NI by salary level.

What employer NI looks like for common UK salary levels (2025/26 rates, pension at 3% included).

Minimum wage (21+, full-time) — £24,064 salaryNI £2,860 · Total £27,458
UK median salary — £34,963 salaryNI £4,494 · Total £40,319
Junior developer — £30,000 salaryNI £3,750 · Total £34,463
Mid-level developer — £45,000 salaryNI £6,000 · Total £52,163
Senior developer — £65,000 salaryNI £9,000 · Total £75,321
Lead developer — £80,000 salaryNI £11,250 · Total £92,571
Junior designer — £25,000 salaryNI £3,000 · Total £28,563
Senior designer — £50,000 salaryNI £6,750 · Total £58,063
Marketing manager — £40,000 salaryNI £5,250 · Total £46,263
Office manager — £32,000 salaryNI £4,050 · Total £36,823

The formula.

Pay NI on earnings above the threshold.

Employer NI is 15% on every pound an employee earns above £5,000. The first £5,000 is NI-free for employers.

Employer NI(Salary − £5,000) × 15%
Example: £30,000 salary(£30,000 − £5,000) × 15% = £3,750/yr
Monthly£312.50/month

Frequently asked questions.

How much is employer National Insurance in 2025/26?+

Employers pay 15% National Insurance on employee earnings above £5,000 per year (the Secondary Threshold). This rate increased from 13.8% in April 2025 following the Autumn Budget 2024.

What is the Employment Allowance?+

The Employment Allowance lets eligible employers reduce their NI bill by up to £10,500 per year. Most small and medium businesses qualify. You cannot claim if your sole employee is a director, or if your previous year’s employer NI liability was £100,000 or more.

How do I calculate employer NI contributions?+

Take the employee’s gross salary, subtract the Secondary Threshold (£5,000/year), then multiply by 15%. For example: £30,000 salary → (£30,000 - £5,000) × 15% = £3,750 employer NI per year.

Do employers pay NI on pension contributions?+

No. Employer pension contributions are not subject to employer National Insurance. This is one reason salary sacrifice pension schemes save employers money, as the sacrificed salary reduces the NI-liable amount.

What is the true cost of employing someone on £30,000?+

Beyond the £30,000 salary, employers pay approximately £3,750 in NI (15% on earnings above £5,000) and £714 minimum auto-enrolment pension (3% of qualifying earnings). Total: around £34,464, roughly 15% more than the gross salary.

When did employer NI increase to 15%?+

Employer NI increased from 13.8% to 15% on 6 April 2025. At the same time, the Secondary Threshold dropped from £9,100 to £5,000, and the Employment Allowance increased from £5,000 to £10,500.

More business calculators.

  1. Cost per hire calculator

    Total cost of hiring including recruitment, onboarding, and training.

  2. Freelance rate calculator

    Compare the true cost of hiring vs. freelancing for your team.

  3. Consulting rate calculator

    Set the right consulting rate based on costs and margin.

  4. All business tools

    The complete collection of free calculators for startups, SaaS, and freelancers.

Need custom payroll or HR tools?

I build custom web applications — calculators, internal payroll tools, and HR dashboards in Next.js. Whether you need a bespoke salary planner or a client-facing tool, I can help as your web development consultant.

Email me

Built by Taro Schenker — web developer, custom web applications, and SEO for small businesses.