How much employer National Insurance is due on a £60,000 salary in 2026/27?

Full answer

For 2026/27, employers pay Class 1 secondary National Insurance at 15% on each employee's earnings above the secondary threshold of £5,000 a year. On a £60,000 salary the employer pays 15% of £55,000 (£60,000 minus £5,000), which is £8,250. This is a cost on top of the salary, separate from the employee's own 8% NI and Income Tax, and is not deducted from the employee's pay. Eligible employers can claim the Employment Allowance, which is £10,500 for 2026/27, to reduce their total employer NI bill across all employees -- a small business with only one or two staff at this salary level could use the allowance to wipe out most or all of the employer NI due, though the allowance is shared across the whole payroll and some single-director companies are excluded from claiming it. Employer NI is also due on most benefits in kind and on bonuses paid to the employee. Salary sacrifice arrangements, such as pension contributions or a company car scheme, reduce the employee's gross salary and therefore cut employer NI too, which is one reason many employers actively support pension salary sacrifice for staff at this pay level. Use the Employer NI calculator to work out the total cost of employing someone at any salary, including the Employment Allowance.

More answers

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