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Payroll calculator

Employers National Insurance Calculator UK (2026/27)

Work out your employer's National Insurance on any salary: 15% above the £5,000 Secondary Threshold. See the Employment Allowance effect, the under-21 and apprentice relief, and the true cost of employing someone once NI and pension are added. Free, no signup.

Free, no signup2026/27 ratesVerify at gov.uk
The employee
Their annual pay before tax and National Insurance
£
Under-21s and apprentices under 25 carry 0% employer NI up to £50,270
Most smaller employers qualify; single-director companies with no other staff do not
Optional. Your share as a % of salary (auto-enrolment minimum is 3%)
%
Employer NI is on top of the salary, paid by you, not deducted from the employee.
Employer National Insurance
£3,750
a year · £313 a month
£33,750
true cost to employ, a year
12.5%
on-cost over salary
Cost breakdown
Gross salary£30,000.00
15% above £5,000On £25,000 above the Secondary Threshold£3,750.00
Employer NI payable£3,750.00
True cost of employingSalary + employer NI + pension£33,750.00
What it costs you
SalaryEmployer NI
Working out what the employee takes home too? Use the take-home pay calculator for their net salary after income tax and their own National Insurance.
2026/27 rates, UK-wide. Secondary Threshold £5,000, rate 15%, Employment Allowance £10,500. Verify current figures at gov.uk; general information, not tax advice.
Simon Chadwick
Simon Chadwick
Founder, Orbit Money
Method: gov.uk employer secondary Class 1 rates and thresholdsUpdated: 17 July 2026Sources: gov.uk/national-insurance-rates-letters, gov.uk rates and thresholds for employers, gov.uk/claim-employment-allowance

How employers National Insurance works

Employer National Insurance is a secondary Class 1 contribution you pay as the employer, on top of the wage, whenever you pay someone above the threshold. It is separate from the National Insurance the employee pays out of their own salary. For 2026/27 you pay 15% on every pound of an employee's earnings above the Secondary Threshold of £5,000 a year (£417 a month), with no upper limit. Higher earners cost you more, because there is no ceiling the way there is on the employee's own rate.

Employer secondary Class 1, 2026/27
EarningsBandRate
Up to £5,000Below the Secondary Threshold0%
Over £5,000Above the Secondary Threshold, no upper limit15%

Worked example: employer NI on a £30,000 salary

On a £30,000 salary you pay 15% on the £25,000 above the £5,000 Secondary Threshold, which is £3,750 a year, about £312.50 a month. Add a 3% auto-enrolment pension of £900 and the true cost of employing that person is around £34,650, roughly 15.5% on top of the headline wage. If you qualify for the Employment Allowance, the £3,750 of employer NI can be reduced to £0 for this employee, since the allowance covers up to £10,500 across your payroll.

The Employment Allowance

Eligible employers can cut their annual employer NI bill by up to £10,500 using the Employment Allowance. It applies across your whole payroll rather than per employee, so for one or two lower-paid staff it can remove the bill completely, then it gets shared as you take on more people. Most smaller businesses and charities qualify, but a limited company with a single director and no other employees cannot claim it. You claim through your payroll software or PAYE scheme.

Under-21s and apprentices under 25

You pay 0% employer NI on employees under 21, and on apprentices under 25, up to the Upper Secondary Threshold of £50,270 a year. Above that the standard 15% applies. It is a real saving on younger and apprentice staff, claimed by using the correct National Insurance category letter in payroll. Toggle the category in the calculator to see the difference on a given salary.

Under-21 and apprentice relief, 2026/27
EarningsBandRate
Up to £50,270Under-21s and apprentices under 250%
Over £50,270Above the Upper Secondary Threshold15%

How to use this calculator

  1. Enter the employee's annual gross salary.
  2. Pick their category: standard, under 21, or apprentice under 25.
  3. Set whether you qualify for the Employment Allowance.
  4. Add your employer pension percentage if you offer one, to see the full cost.
  5. Read the employer NI a year and a month, plus the true cost of employing them.

Frequently asked questions

Is employer National Insurance 15%?
Yes. From April 2025 the employer (secondary Class 1) National Insurance rate is 15% on all of an employee's earnings above the Secondary Threshold of £5,000 a year, with no upper limit. That rate stays at 15% for 2026/27. It sits on top of the salary, so it is a cost to you as the employer, separate from the National Insurance the employee pays out of their own wage.
Is employer NI charged on gross pay?
It is charged on gross pay above the Secondary Threshold, not on the whole wage. You take the employee's gross earnings, subtract the £5,000 a year threshold (£417 a month), and pay 15% on what is left. So on a £30,000 salary you pay 15% of £25,000, which is £3,750 a year. The first £5,000 carries no employer NI.
How do I calculate employers NI for 2026/27?
Take the employee's annual salary, subtract the £5,000 Secondary Threshold, and multiply by 15%. For a £35,000 salary that is (£35,000 − £5,000) × 15% = £4,500 a year, about £375 a month. If you employ someone under 21 or an apprentice under 25, you pay 0% up to £50,270 and 15% only above that. If you qualify, the Employment Allowance then knocks up to £10,500 off your total bill.
What is the Employment Allowance?
The Employment Allowance lets eligible employers reduce their annual employer NI bill by up to £10,500 for 2026/27. It is a per-business allowance across your whole payroll, not per employee, so for a single low-paid worker it can wipe the bill entirely. Most smaller employers qualify, but a limited company with a single director and no other staff on the payroll cannot claim it.
Do I pay employer NI for under-21s and apprentices?
Not up to £50,270. For employees under 21, and apprentices under 25, the employer NI rate is 0% on earnings up to the Upper Secondary Threshold of £50,270 a year. Above that you pay the standard 15%. It is a genuine saving on younger and apprentice staff, and you claim it by using the right National Insurance category letter in payroll.
What is the true cost of employing someone?
The true cost is the salary plus your employer National Insurance plus any employer pension contribution. On a £30,000 salary with employer NI of £3,750 and a 3% auto-enrolment pension of £900, the true cost is about £34,650 a year, roughly 15.5% on top of the headline wage. This calculator adds these up so you can see the full cost of a hire before you make it.

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Simon Chadwick
About the author
Simon Chadwick
Founder of Orbit Money

Simon is the founder of Orbit Money, a tool that helps people track subscriptions and recurring spend. He builds Orbit's free money calculators and writes about personal finance for UK and Australian readers.

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This tool is a guide, not tax or financial advice.