Employer NI Calculator 2026/27
From April 2026, employer National Insurance is 15% on salary above £5,000 per employee per year, up from the previous £9,100 threshold. This calculator shows what each employee costs in NI, the impact of Employment Allowance (up to £10,500) and the true total cost of employment. Enter a salary below to see the full breakdown.
Figures verified against HMRC PAYE & NI rates on .
Written by James HartleyCIMA
Calculator
The gross annual salary of each employee (assumes all employees earn the same).
Enter the number of employees on this salary level.
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How Employer NI Calculator 2026/27 Works
Employer NI is calculated as: (Annual Salary - £5,000) × 15%. For example, on a £35,000 salary, employer NI = (£35,000 - £5,000) × 15% = £4,500 per year.
The 15% employer NI rate
The 15% employer NI rate introduced in April 2025 continues into 2026/27. The Secondary Threshold remains at £5,000 (down from the previous £9,100), meaning nearly all employees now trigger employer NI and the total burden is significantly higher than pre-2025 levels.
Employment Allowance
The Employment Allowance remains at £10,500 for 2026/27, partially offsetting the rate rise for smaller employers. Single-director companies with no other employees are not eligible.
Frequently Asked Questions
From April 2026, employer NI is charged at 15% on salary above the Secondary Threshold of £5,000 per year (down from £9,100 previously). This significant change means employers pay NI on a much larger portion of each employee's salary compared to previous years.
Employment Allowance lets eligible employers reduce their employer NI bill by up to £10,500 per year. Most employers qualify if their total employer NI liability was under £100,000 in the previous tax year. Sole directors who are the only employee cannot claim. The allowance is applied to employer NI contributions each month.
No. Employer NI is a cost paid by the employer on top of the employee's salary. It does not come out of the employee's pay packet. However, it does increase the total cost of employment, which is why high-salary jobs cost significantly more than just the stated salary.
For 2026/27, an employee on £35,000 costs approximately £39,750 to employ (salary + £4,750 employer NI). On £50,000, the total cost is around £57,000 (£50,000 + £6,750 employer NI). These figures assume no Employment Allowance. The true cost also includes employer pension contributions (minimum 3%), benefits, recruitment, and training.
No. The employer NI rate remains 15% on earnings above the secondary threshold of £5,000 per year. The Employment Allowance also remains at £10,500. These rates were set in April 2025 and are unchanged for 2026/27.
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Official Rates Used
This calculator uses official HMRC rates for 2026/27. View the current rates at GOV.UK:
Rates last verified:
Disclaimer: This calculator provides estimates based on standard HMRC rates for 2026/27. Results may vary based on individual circumstances. This is not financial advice. Always consult a qualified accountant or CIMA-qualified financial adviser for personal tax matters.