Answers · UK 2025/26

What is the employer's National Insurance rate in 2026?

The employer's National Insurance rate for 2026/27 is 15% on earnings above the Secondary Threshold of £5,000/year (£416.67/month). This rate increased from 13.8% in April 2025. Class 1A NI on Benefits-in-Kind remains at 13.8%. Employment Allowance of £10,500 is available for eligible employers.

Last updated: 20 June 2026Last reviewed: 20 June 2026How we verify

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UK employer's National Insurance rates 2026/27. Class 1 Secondary (employer NI on cash earnings): 15% on employee earnings above the Secondary Threshold of £5,000/year (£416.67/month, £96.15/week). This was raised from 13.8% on 6 April 2025. Simultaneously, the Secondary Threshold was cut from £9,100/year to £5,000/year, meaning the NI kicks in much earlier. Combined, these changes increased average employer NI costs significantly. Class 1A NI: paid on taxable Benefits-in-Kind — rate remains 13.8% for 2026/27 (the increase to 15% only applies to Class 1 cash earnings). Reported on P11D and paid by 22 July after the tax year. Class 1B NI: paid on items covered by PAYE Settlement Agreements — also 13.8%. Employment Allowance: up to £10,500 per tax year for eligible employers (employer NI bill under £100,000 in the prior year; sole director companies with no other employees are excluded). Offset quarterly or in full at year-end. Apprenticeship Levy: 0.5% of total payroll above £3m (for large employers only). These costs are Corporation Tax deductible. Impact example: a 10-person team on average £35,000 salary. Total employer NI: 10 × (£35,000 − £5,000) × 15% = £45,000. With Employment Allowance of £10,500, net NI bill = £34,500.