Employer National Insurance calculator 2026/27
Enter up to five employee salaries to see the employer's National Insurance on each one, the Employment Allowance available against it, and the total cost of your payroll for the year. It uses 2026/27 UK rates.
2026/27 UK ratesRates checked 16/09/2026No sign-up required
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Employer NI by employee
National Insurance is worked out separately for each employee. The Employment Allowance is then set against the total, not against any one salary.
Salaries, NI and the allowance
Built and reviewed by Luvero Accounting
- Reviewed by Dan Edwards FMAAT
- AAT licensed accountancy practice, Bawtry, South Yorkshire
- Tax rates last reviewed 16/09/2026
- How the calculators work
What this calculator works out
It takes up to five annual salaries, works out the employer's National Insurance on each one, applies the Employment Allowance if you claim it, and adds the National Insurance that is left to the salaries to give the total cost of employing that payroll for the year.
How employer National Insurance works in 2026/27
Employer National Insurance is 15 per cent on each employee's earnings above the secondary threshold of £5,000 a year, £417 a month or £96 a week. Both the rate and the threshold are unchanged from 2025/26, when they were set at those levels on 6 April 2025. Before that, the rate was 13.8 per cent and the threshold was £9,100 a year.
The Employment Allowance is £10,500 a year. It is set against the company's total secondary Class 1 liability across the whole payroll, not against any one employee, and is claimed through your payroll software as part of the Employer Payment Summary (EPS) rather than worked out separately.
The allowance is not available where the only employee paid above the secondary threshold is a director: the single-director company exclusion. Connected companies, such as a group under common control, share one allowance between them rather than getting one each.
Higher secondary thresholds apply outside what this calculator models: £50,270 for under-21s, apprentices under 25 and veterans in their first 12 months of civilian employment, and £25,000 for employees in a Freeport or Investment Zone. Class 1A National Insurance on benefits in kind is a separate charge and is not included here.
Worked example: two employees at £30,000, 2026/27
Each salary sits £25,000 above the £5,000 secondary threshold.
| Employee 1: £25,000 above threshold at 15% | £3,750 |
|---|---|
| Employee 2: £25,000 above threshold at 15% | £3,750 |
| Employer NI before the allowance | £7,500 |
| Employment Allowance used | £7,500 |
| Employer NI payable | £0 |
| Total payroll cost | £60,000 |
Add a third employee at £45,000: £6,000 more NI, gross £13,500, allowance £10,500, payable £3,000.
A sole director at £12,570 with no other staff: £1,135.50 and no allowance.
Employer NI questions
What is the employer NI rate and threshold for 2026/27?
15 per cent on earnings above £5,000 a year, £417 a month or £96 a week. These figures are unchanged from 2025/26, when both were set at these levels on 6 April 2025. Before that, the rate was 13.8 per cent and the threshold was £9,100 a year.
Who can claim the Employment Allowance?
Most employers, up to £10,500 a year against their total employer Class 1 liability, claimed through payroll software as part of the EPS. It is not available where the only employee paid above the secondary threshold is a director, the single-director company exclusion. Connected companies, such as a group under common control, share one allowance rather than claiming one each.
Does a director's salary of £12,570 attract employer NI?
Yes, £1,135.50, unless the Employment Allowance applies. The secondary threshold is £5,000, not the £12,570 Personal Allowance, so £7,570 of that salary sits above it. Many sole directors choose a salary of £5,000 instead for this reason, or take £12,570 where the Employment Allowance is available and covers the NI in full.
Do I pay employer NI on dividends, pension contributions or benefits?
No on dividends and no on employer pension contributions. Benefits in kind carry Class 1A National Insurance instead, at 15 per cent, which is a separate charge from the Class 1 employer NI this calculator works out on salary.
Are there lower rates for young employees, apprentices or veterans?
Yes. Employees under 21, apprentices under 25, and veterans in their first 12 months of civilian employment have a higher secondary threshold of £50,270, so employer NI only starts above that. Freeport and Investment Zone employees have a threshold of £25,000. This calculator does not model any of these categories.
How and when is employer NI paid?
Through PAYE, alongside Income Tax and employee National Insurance, by the 22nd of the following month if you pay electronically, or the 19th if you pay by post. Employers with average monthly PAYE liabilities under £1,500 can pay quarterly instead of monthly.