Employer National Insurance Calculator
Use this employer National Insurance calculator to work out the employer's Class 1 National Insurance cost of an employee's salary. Enter the annual gross salary, and the calculator shows the employer NICs per year and per month, and the total cost of employing that person, before and after the Employment Allowance.
Gross pay before tax and National Insurance.
Under-21s and younger apprentices attract a 0% employer rate up to £50,270.00 a year.
The allowance comes off the employer's total NIC bill for the year, so for a single employee it covers their NICs until the £10,500.00 is used up. Most employers can claim; a company whose only employee is a director cannot.
Qualifying earnings are the slice of the salary between £6,240.00 and £50,270.00 a year. Many employers pay more than the minimum — this shows the legal minimum only. Pension figures: 2026/27 rates — verified against GOV.UK.
Employer National Insurance cost
£3,750.00 per year
£312.50 per month
- Earnings above the threshold:
- £30,000.00 salary − £5,000.00 Secondary Threshold = £25,000.00.
- NICs before the Employment Allowance:
- £25,000.00 × 15% = £3,750.00 per year.
- Total cost of employing:
- £30,000.00 salary + £3,750.00 employer NICs = £33,750.00 per year (£2,812.50 per month), before pension contributions and any other employment costs.
Rates used: employer Class 1 rate 15% above the £5,000.00-a-year Secondary Threshold — 2026/27 rates — verified against GOV.UK.
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How is employer National Insurance calculated?
Employer (secondary) Class 1 National Insurance is charged at 15% on the part of an employee's pay above the Secondary Threshold of £5,000.00 a year — the first £5,000.00 of earnings attracts no employer NICs at all. So on a £30,000.00 salary the charge is (£30,000.00 − £5,000.00) × 15% = £25,000.00 × 15% = £3,750.00 a year. The charge is the employer's cost, on top of the salary — it is never deducted from the employee's pay.
What are the employer NI rates for 2026/27?
Employer NI rates are set for each tax year, and the figures in the table below are the 2026/27 rates this calculator uses — verified against GOV.UK on 7 November 2026. They were set by the April 2025 change, when the main rate rose to 15% and the Secondary Threshold fell to £5,000.00 a year, and they continue unchanged for 2026/27. Always check GOV.UK's employer National Insurance rates page before running payroll, because a Budget can change them from the next April.
| Rate or threshold | Amount (2026/27) |
|---|---|
| Employer Class 1 rate (main rate) | 15% of earnings above the threshold |
| Secondary Threshold | £5,000.00 per year (about £417 per month) |
| Under-21 / apprentice-under-25 rate | 0% on earnings up to £50,270.00 per year |
| Upper secondary threshold (under 21s, apprentices under 25) | £50,270.00 per year — the main rate applies above it |
| Employment Allowance | £10,500.00 per year off the employer NIC bill |
Rates: 2026/27 rates — verified against GOV.UK. Figures verified: 7 November 2026.
What is the Employment Allowance?
The Employment Allowance reduces an employer's National Insurance bill by up to £10,500.00 a year. It is claimed through payroll and applied against the employer's total Class 1 NICs until the £10,500.00 is used up — it can reduce the bill to zero, but never below it. Most employers can claim it. The main exclusion is a company whose only employee is a director, which cannot claim. In this calculator, ticking the allowance shows its effect on one employee: their NICs are covered until the allowance runs out.
Do employers pay National Insurance for under-21s and apprentices?
Not on most of their pay. For employees under 21, and for apprentices under 25, the employer rate is 0% on earnings up to the upper secondary threshold of £50,270.00 a year. Only earnings above that level attract the main 15% rate — so on a £60,000.00 salary for an under-21 employee, the charge is (£60,000.00 − £50,270.00) × 15% = £1,459.50 a year, compared with £8,250.00 for a standard employee at the same salary.
What is the total cost of employing someone?
More than the salary. The minimum true cost is the gross salary plus the employer's National Insurance on top — a £30,000.00 salary costs £33,750.00 once the £3,750.00 of employer NICs is added (before any Employment Allowance). On top of that, most employers must also contribute at least 3% of qualifying earnings to a workplace pension under auto-enrolment, and there may be further costs such as apprenticeship levy, insurance and equipment. This calculator covers the salary plus employer NICs — the two figures every employer faces on every hire — and you can switch on the pension option to add the auto-enrolment employer minimum on top.
Frequently asked questions
How much employer National Insurance do I pay on a £30,000 salary?
On a £30,000 salary the NICs are charged on the £25,000 above the £5,000 Secondary Threshold: £25,000 × 15% = £3,750 a year, which is £312.50 a month. If you claim the Employment Allowance, your bill is reduced by up to £10,500 across all your employees, so a single £30,000 employee's NICs would be fully covered by the allowance.
What is the Secondary Threshold?
The Secondary Threshold is the level of earnings above which an employer starts paying Class 1 National Insurance on an employee's pay. For 2026/27 it is £5,000 a year (£417 a month). Earnings at or below it attract no employer NICs; the 15% rate applies only to the part of the salary above the threshold, not to the whole salary.
Can a company whose only employee is a director claim the Employment Allowance?
No. A company where the sole employee is also a director cannot claim the Employment Allowance — the rule exists to stop the allowance being used purely to reduce the NICs on a director's own salary. Companies with at least one other employee on the payroll can generally claim.
Is employer National Insurance the same as employee National Insurance?
No — they are two separate charges on the same pay. The employee pays primary Class 1 contributions, deducted from their wages; the employer pays secondary Class 1 contributions on top of the wages, which is an extra cost of employing someone and never comes out of the employee's pay. This calculator covers only the employer's contributions.
When do employer NI rates change?
Employer National Insurance rates and thresholds are set by the government and normally change at the start of a tax year in April — most recently in April 2025, when the rate rose to 15% and the Secondary Threshold fell to £5,000 a year; those figures stayed the same for 2026/27. Always check the current figures on GOV.UK before running payroll, because a Budget can change them with effect from the next April.
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