What is the secondary threshold for employer National Insurance in 2026/27?

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The Secondary Threshold (ST) is the earnings level above which employers must pay Class 1 National Insurance Contributions. It applies per employee and is set annually by HMRC. **2026/27 Secondary Threshold** - Annual: £5,000 - Monthly: £416.67 - Weekly: £96.15 The ST was significantly reduced from £9,100 to £5,000 from 6 April 2025, substantially increasing the employer NIC cost for many businesses. **How it works** Employer NICs are charged at 15% on each employee's gross earnings above £5,000 per year. Earnings below £5,000 attract no employer NIC. **Worked Examples** *Part-time worker earning £8,000/year:* - Earnings above ST: £8,000 - £5,000 = £3,000 - Employer NIC: £3,000 x 15% = **£450/year** *Full-time worker earning £25,000/year:* - Earnings above ST: £25,000 - £5,000 = £20,000 - Employer NIC: £20,000 x 15% = **£3,000/year** **Contrast with employee NIC** Employees pay Class 1 NICs at 8% on earnings between £12,570 (Primary Threshold) and £50,270, and 2% above £50,270. The employee threshold is much higher, reflecting the intent that workers keep more of their lower-band earnings. **Employment Allowance offset** The Employment Allowance of £10,500 allows eligible employers to reduce their total employer NIC bill. A business with five employees each generating £2,000 in employer NICs (£10,000 total) would pay nothing after the allowance. **Secondary Threshold vs Upper Secondary Threshold** For certain groups -- employees under 21, apprentices under 25, and veterans in their first year of employment -- the Upper Secondary Threshold (UST) applies at a much higher level (£50,270), meaning employers pay 0% up to that point. This is a significant incentive for hiring younger workers.

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