What is Employer National Insurance?
Employer National Insurance contributions are payments employers may be required to make on earnings paid to their employees.
These contributions are generally an additional employment cost rather than a deduction from an employee's stated gross salary.
Employer National Insurance is different from employee National Insurance, which may be deducted from an employee's earnings.
Employer National Insurance rates for 2026/27
The standard Class 1 employer National Insurance assumptions used by this calculator are:
Applied to earnings above the applicable Secondary Threshold.
Standard annualised earnings threshold for this estimate.
From 6 April 2026 to 5 April 2027.
| Annual earnings portion | Standard employer NI rate |
|---|---|
| Up to £5,000 | 0% |
| Above £5,000 | 15% |
How is Employer National Insurance calculated?
For a straightforward annualised estimate under the standard Class 1 employer rules, the calculator applies the rate only to earnings above the Secondary Threshold.
Employer NI = max(Annual earnings − £5,000, £0) × 15%
This formula assumes a full tax year and standard employer contribution treatment. Actual payroll calculations normally use pay-period thresholds and may differ.
Employer National Insurance worked examples
Example 1: £20,000 annual salary
- Annual gross salary: £20,000
- Secondary Threshold: £5,000
- Earnings subject to employer NI: £15,000
- Employer NI: £15,000 × 15%
Estimated employer NI: £2,250
Salary plus employer NI: £22,250
Example 2: £35,000 annual salary
- Annual gross salary: £35,000
- Secondary Threshold: £5,000
- Earnings subject to employer NI: £30,000
- Employer NI: £30,000 × 15%
Estimated employer NI: £4,500
Salary plus employer NI: £39,500
Example 3: £50,000 annual salary
- Annual gross salary: £50,000
- Secondary Threshold: £5,000
- Earnings subject to employer NI: £45,000
- Employer NI: £45,000 × 15%
Estimated employer NI: £6,750
Salary plus employer NI: £56,750
Example 4: £75,000 annual salary
- Annual gross salary: £75,000
- Secondary Threshold: £5,000
- Earnings subject to employer NI: £70,000
- Employer NI: £70,000 × 15%
Estimated employer NI: £10,500
Salary plus employer NI: £85,500
Employer NI vs Employee NI
Employer and employee National Insurance are separate contributions.
| Feature | Employer NI | Employee NI |
|---|---|---|
| Who pays? | Employer | Employee |
| Typical contribution type | Class 1 secondary | Class 1 primary |
| Effect on stated gross salary | Usually an additional employer cost | Generally deducted through payroll |
| Calculation rules | Employer thresholds and rates | Employee thresholds and rates |
To estimate employee deductions instead, use the UK National Insurance Calculator 2026/27 .
Does Employment Allowance reduce Employer NI?
Employment Allowance can reduce the annual employer Class 1 National Insurance liability of an eligible business.
Eligibility depends on the employer's circumstances and applicable exclusions. It is an employer-level relief rather than an automatic deduction from every employee's individual calculation.
This calculator does not deduct Employment Allowance from its result.
Employer National Insurance exemptions and special categories
Different employer National Insurance treatment may apply in certain situations.
- Qualifying employees under the age of 21.
- Certain apprentices under the age of 25.
- Qualifying veterans within the relevant relief period.
- Eligible Freeport or Investment Zone employment.
- Employees with alternative National Insurance categories.
- Certain payments and benefits subject to different NI rules.
Zero-rate employer contribution treatment may apply only up to specific upper secondary thresholds. Eligibility should be checked against official HMRC guidance.
Is Employer NI the total cost of employing someone?
No. Employer National Insurance is one component of the overall cost of employment.
Other potential costs include employer pension contributions, holiday pay, insurance, equipment, training, recruitment and employee benefits.
A simple starting point for estimating direct salary-related costs is:
Annual gross salary + estimated employer NI
This does not represent a complete employment cost or payroll liability.
How to use this Employer NI Calculator
- Enter the employee's annual gross earnings.
- Select Calculate.
- Review the estimated standard employer National Insurance.
- Check whether Employment Allowance or special NI categories apply.
- Confirm actual payroll contributions using HMRC guidance or payroll software.
Official HMRC guidance for Employer National Insurance
For official information about employer contribution rates, thresholds, reliefs and exemptions, consult:
- GOV.UK – National Insurance rates and category letters
- GOV.UK – Employment Allowance
- GOV.UK – Running payroll
Frequently asked questions
What is the Employer National Insurance rate in 2026/27?
The standard employer Class 1 National Insurance rate used in this calculator is 15%.
What is the Employer NI Secondary Threshold?
This annualised calculator uses a £5,000 Secondary Threshold for the 2026/27 tax year.
How much Employer NI is payable on £35,000?
Under the standard annualised calculation, estimated employer NI is £4,500 before any reliefs or special treatment.
Does Employer National Insurance come out of employee wages?
Employer NI is generally paid by the employer in addition to the employee's stated gross wages.
Does Employment Allowance apply automatically?
No. Employers must meet the relevant eligibility conditions and claim the allowance where applicable. This calculator does not apply it.
Do employers pay NI for workers under 21?
Qualifying employees under 21 may be subject to a zero employer Class 1 rate up to the relevant upper secondary threshold.
Does this calculator handle monthly payroll?
No. It provides an annualised estimate. Actual employer NI is generally calculated using the applicable payroll period and contribution category rules.
Is this an official HMRC calculator?
No. CalculatorsOnline is an independent website and is not affiliated with HMRC.
Related UK salary and payroll calculators
Important: This calculator provides a standard annualised employer Class 1 NI estimate for one employee. It does not account for Employment Allowance, special zero-rate categories, payroll-period calculations, director-specific rules, Class 1A or Class 1B contributions, or other special arrangements. Confirm actual liabilities using HMRC guidance and appropriate payroll software.
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