When did employer NI change to 15%?

From 6 April 2025 following Autumn Budget 2024. The secondary threshold also fell from £9,100 to £5,000/year.

What is the Employment Allowance in 2025/26?

£10,500 — eligible employers deduct this from their employer NI bill. You cannot claim if you are a sole director-employee.

How much extra does each employee cost after April 2025?

A worker on the National Living Wage costs around £683 more in employer NI per year compared to 2024/25.

Employment Law

Employer National Insurance Calculator 2025/26 — Budget 2024 Rates

The Autumn Budget 2024 raised the employer NI rate to 15% and cut the secondary threshold to £5,000/year from April 2025. Enter each employee's salary below to calculate your total liability and Employment Allowance saving.

🏢 Employer NI Calculator — 2025/26

Rate: 15% on earnings above £5,000/year. Employment Allowance: up to £10,500.

Calculation period

Employment Allowance eligible?

Employee 1 — salary (£)

Employee 2 — salary (£)

Employee 3 — salary (£)

Budget 2024 — What Changed for Employers

The Autumn Budget 2024 announced the most significant increase to employer National Insurance since 2011. From 6 April 2025:

Employer NI rate: Rose from 13.8% to 15%
Secondary threshold: Fell from £9,100/year to £5,000/year — meaning employers now pay NI on an additional £4,100 of each worker's salary
Employment Allowance: Rose from £5,000 to £10,500 — helping smaller employers offset some of the increase

The combined effect means a worker earning the National Living Wage of £23,809/year costs their employer approximately £683 more in NI in 2025/26 than in 2024/25.

Employment Allowance — Who Can Claim

The Employment Allowance allows eligible employers to reduce their employer NI liability by up to £10,500 per tax year. You cannot claim if: you are a company where the sole employee is also a director; your employer NI bill was £100,000 or more in the previous tax year; or you are a public authority. You claim through your payroll software by marking "Yes" to Employment Allowance on your Employer Payment Summary (EPS).

When did the employer NI rate change to 15%?+

From 6 April 2025, following the Autumn Budget 2024 announcement on 30 October 2024. The rate increased from 13.8% to 15% at the same time as the secondary threshold was cut from £9,100 to £5,000/year.

Does employer NI apply to pension contributions?+

No. Employer NI is charged on earnings, not on employer pension contributions. Pension contributions made by the employer are generally NI-exempt, which is one reason salary sacrifice pension schemes can save employers money — the contribution comes from salary before NI is calculated.

Is there employer NI on benefits in kind?+

Yes. Class 1A NI at 15% (from April 2025) is charged on most taxable benefits in kind provided to employees — such as company cars, private medical insurance, and non-trivial gifts. Class 1A is reported and paid annually via P11D and P11D(b), due by 19 July following the tax year end.