Employer NI Calculator UK 2025

Calculate how much employer National Insurance you owe. See the NI cost per employee, Employment Allowance savings, and total payroll cost.

Employer National Insurance in the UK is an additional cost on top of every employee's salary. Here is what you need to know to budget accurately for your payroll in 2025/26.

You pay 13.8% employer NI on each employee's earnings above the secondary threshold of £5,000 per year (reduced from £9,100 following the October 2024 Budget). The Employment Allowance lets eligible businesses deduct up to £10,500 from their total employer NI bill each year. Single-director companies without other employees do not qualify.

The Office for Budget Responsibility estimated that employer NI changes in the Autumn 2024 Budget would raise an additional £25 billion per year by 2029/30 (OBR Economic and Fiscal Outlook, October 2024). This calculator shows the NI cost per employee, your Employment Allowance saving, and your total payroll cost including NI.

How to calculate employer NI

  1. Enter the employee's annual salary
  2. Add the number of employees on your payroll
  3. Select whether you are eligible for the Employment Allowance
  4. See the employer NI per employee and your total annual payroll cost

Written by the CalcStack team · Last updated March 2026

£

Frequently asked questions

How much is employer NI?▾
Employer NI is 13.8% on earnings above the Secondary Threshold of £9,100 per year per employee (2025/26). There is no upper limit — you pay 13.8% on all earnings above the threshold.
What is the Employment Allowance?▾
The Employment Allowance lets eligible employers reduce their NI bill by up to £5,000 per year. It is claimed through your payroll software and reduces your monthly NI payment until used up.
Who is eligible for Employment Allowance?▾
Most employers qualify, but you cannot claim if: your only employee is a director, your NI bill was over £100,000 in the previous year, you are a public body or local authority, or you do work for the public sector.
What is the true cost of an employee?▾
The true cost includes: gross salary + employer NI (13.8%) + employer pension (minimum 3%) + any other benefits. An employee on £30,000 salary costs approximately £33,685 before pension.
Do I pay employer NI on benefits in kind?▾
Yes. Employer NI (Class 1A) at 13.8% is payable on most benefits in kind, including company cars, private medical insurance, and gym memberships. This is paid annually via form P11D(b).
How is employer NI different from employee NI?▾
Employer NI is an additional cost on top of the salary — it does not reduce the employee take-home pay. Employee NI (8%) is deducted from the employee gross pay. Both are based on earnings but at different rates and thresholds.
Do I pay NI on pension contributions?▾
Employer pension contributions are not subject to employer NI. Salary sacrifice pension arrangements reduce both the employee salary and the employer NI liability, which is why many employers offer them.
What about NI for directors?▾
Directors NI is calculated differently — on an annual basis rather than per pay period. The annual NI calculation is done at year end, which can result in different monthly deductions compared to regular employees.
Can I reduce my employer NI costs?▾
Options include: salary sacrifice schemes (pension, cycle to work, EV), Employment Allowance, hiring apprentices (zero NI for under-25s up to £50,270), and the Veterans NI holiday for the first 12 months of employment.
When do I need to pay employer NI?▾
Employer NI is paid monthly to HMRC as part of your PAYE remittance, typically by the 22nd of the following month (or 19th if paying by post). Small employers may be able to pay quarterly.

Related calculators

Employee Cost CalculatorTake Home Pay CalculatorApprenticeship Levy Calculator

© 2026 CalcStack — a Flavoureak UK Ltd product. Based on 2025/26 HMRC rates. This is not financial or legal advice.