Answers · UK 2025/26
What is the employer NI rate for 2026/27?
Employers pay 15% NI on employee earnings above £5,000 per year (the secondary threshold, lowered from £9,100 in April 2025). Small employers with bills under £10,500 qualify for the Employment Allowance.
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From 6 April 2025, employers pay Class 1 secondary NI at 15% on each employee's earnings above the Secondary Threshold of £5,000 per year (£96.15 per week). This was a significant change: the rate rose from 13.8% and the threshold fell from £9,100 — increasing payroll costs by up to £2,165 per employee. The Employment Allowance, which offsets employer NI bills, increased to £10,500 per year to partially compensate smaller businesses. For an employee earning £35,000: employer NI = 15% × (£35,000 − £5,000) = 15% × £30,000 = £4,500 per year. This increased employer NI is one reason many businesses have accelerated salary sacrifice and benefits-in-kind arrangements — both of which reduce the NI base. Use the National Insurance calculator to model employer and employee contributions together.
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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.