Answers · UK 2025/26
How much is Employer's National Insurance in the UK in 2026?
Employer's NI (Class 1 secondary) is 15% on employee earnings above £5,000/year per employee, from April 2025. The Employment Allowance for 2026/27 is £10,500, reducing the NI bill for eligible employers (most SMEs with a NI bill under £100,000).
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From April 2025, employers pay Class 1 secondary National Insurance at 15% on each employee's earnings above the Secondary Threshold of £5,000 per year (£416.67/month). This represented a significant increase from the previous rate of 13.8% on earnings above £9,100/year. The change substantially increased employment costs, particularly for businesses with many part-time or lower-paid workers. For a full-time employee earning £25,000/year, employer NI in 2026/27 is: 15% × (£25,000 − £5,000) = £3,000/year. For an employee earning £50,000: 15% × £45,000 = £6,750/year. The Employment Allowance of £10,500 is available to eligible employers — it reduces the total employer NI bill by up to £10,500 per year. Eligible employers include most businesses and charities where the total employer NI bill was under £100,000 in the previous tax year. Single-director companies with no other employees are not eligible. The EA is claimed through payroll software by setting the EA indicator to Yes for the tax year. Employers also pay NI on employee benefits in kind (via P11D or payroll) and on employee pension contributions above certain thresholds if not salary sacrificed. Salary sacrifice pension arrangements save employer NI as the salary subject to NI falls — a genuine tax efficiency that benefits both employer and employee.
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This answer is informational only and does not constitute financial, tax or legal advice. Figures are for the 2025/26 UK tax year. See our methodology and sources.