Employer NI Calculator
Calculate employer National Insurance contributions for 2026/27. Enter employee salary and headcount to see your NI bill, Employment Allowance saving, and total cost of employment including estimated pension contributions.
This is an estimate only — always verify with a payroll specialist or HMRC.
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Frequently asked questions
What is the employer NI rate and threshold for 2026/27?
Employers pay Class 1 secondary National Insurance at 15% on each employee's earnings above the secondary threshold. For 2026/27 the secondary threshold is £5,000 per year (reduced from £9,100 in 2024/25). This means employers start paying NI on earnings above £5,000 — a significant increase in the NI burden compared to previous years. The 15% rate remains unchanged.
What is the Employment Allowance and who is eligible?
The Employment Allowance allows eligible businesses to reduce their employer NI bill by up to £10,500 per tax year (increased from £5,000 for 2026/27). Most businesses with employees are eligible, including charities and community amateur sports clubs. However, you cannot claim if your employer NI bill was £100,000 or more in the previous tax year, or if your only employee is a director (single-director companies). You claim it through your payroll software.
What is the true total cost of employing someone?
The total cost of employment goes beyond the headline salary. You must also budget for: employer National Insurance (15% on earnings above £5,000), employer pension contributions (minimum 3% under auto-enrolment on qualifying earnings), any statutory sick pay, maternity/paternity pay, and recruitment costs. For a £35,000 salary in 2026/27, the total employer cost is typically around £38,000–£40,000 once NI and pension are included.
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