Employer NI Calculator UK 2025
Calculate how much employer National Insurance you owe. See the NI cost per employee, Employment Allowance savings, and total payroll cost.
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Frequently asked questions
How much is employer NI?▾
Employer NI is 13.8% on earnings above the Secondary Threshold of £9,100 per year per employee (2025/26). There is no upper limit — you pay 13.8% on all earnings above the threshold.
What is the Employment Allowance?▾
The Employment Allowance lets eligible employers reduce their NI bill by up to £5,000 per year. It is claimed through your payroll software and reduces your monthly NI payment until used up.
Who is eligible for Employment Allowance?▾
Most employers qualify, but you cannot claim if: your only employee is a director, your NI bill was over £100,000 in the previous year, you are a public body or local authority, or you do work for the public sector.
What is the true cost of an employee?▾
The true cost includes: gross salary + employer NI (13.8%) + employer pension (minimum 3%) + any other benefits. An employee on £30,000 salary costs approximately £33,685 before pension.
Do I pay employer NI on benefits in kind?▾
Yes. Employer NI (Class 1A) at 13.8% is payable on most benefits in kind, including company cars, private medical insurance, and gym memberships. This is paid annually via form P11D(b).
How is employer NI different from employee NI?▾
Employer NI is an additional cost on top of the salary — it does not reduce the employee take-home pay. Employee NI (8%) is deducted from the employee gross pay. Both are based on earnings but at different rates and thresholds.
Do I pay NI on pension contributions?▾
Employer pension contributions are not subject to employer NI. Salary sacrifice pension arrangements reduce both the employee salary and the employer NI liability, which is why many employers offer them.
What about NI for directors?▾
Directors NI is calculated differently — on an annual basis rather than per pay period. The annual NI calculation is done at year end, which can result in different monthly deductions compared to regular employees.
Can I reduce my employer NI costs?▾
Options include: salary sacrifice schemes (pension, cycle to work, EV), Employment Allowance, hiring apprentices (zero NI for under-25s up to £50,270), and the Veterans NI holiday for the first 12 months of employment.
When do I need to pay employer NI?▾
Employer NI is paid monthly to HMRC as part of your PAYE remittance, typically by the 22nd of the following month (or 19th if paying by post). Small employers may be able to pay quarterly.