Employer National Insurance rates 2026/27

Employers National Insurance: what do you pay?

Employer National Insurance contributions, often called employer NIC, are an extra cost on top of salary. Employee NI comes out of pay. The employer pays its own contributions separately.

For 2026/27, the standard employer NI contributions rate is 15% on earnings above the secondary threshold. This applies to standard category letters A, B, C and J.

Check the official GOV.UK rates and thresholds for employers when setting up payroll.

Employer NI thresholds for 2026/27

The secondary threshold is where standard employer Class 1 NI starts. Employee NI has a separate primary threshold. Do not use the employee threshold to work out the employer bill.

The employee upper earnings limit does not cap standard employer contributions. For standard categories, the National Insurance employer rate remains 15% above the secondary threshold.

How to calculate employer NI by hand

If you searched for an employer NI calculator, the steps below show how to check the figures by hand. For a standard category, use this approximate annual formula before Employment Allowance:

(Salary - threshold) x 15%

Only earnings above the threshold count. If salary does not exceed it, standard employer Class 1 NI is £0.

• £30,000 salary: (£30,000 - £5,000) x 15% = £3,750.
• £50,000 salary: (£50,000 - £5,000) x 15% = £6,750.
• £12,570 director salary, sole director, no Employment Allowance: (£12,570 - £5,000) x 15% = £1,135.50.

These examples are approximate annual figures. Payroll calculates per pay period using period thresholds, so totals can differ by a few pounds from an annual sum.

Employers NIC rates for younger workers and other categories

Some categories have an upper secondary threshold. For qualifying employees, the employer rate is 0% up to that threshold and 15% above it.

• Employees under 21: category M.
• Apprentices under 25: category H.
• Qualifying veterans: category V.

For these categories, the upper secondary threshold is £967 a week, £4,189 a month or £50,270 a year.

Using approximate annual figures, an under-21 employee on £30,000 has employer NI of £0. For an under-21 employee on £60,000: (£60,000 - £50,270) x 15% = £1,459.50.

Freeport and Investment Zone relief

For qualifying Freeport employees (categories F, I, L and S) and Investment Zone employees (N, E, D and K), the upper secondary threshold is £481 a week, £2,083 a month or £25,000 a year. The employer rate is 0% up to it and 15% above it. Check eligibility before applying a relief category.

How Employment Allowance reduces national insurance contributions for employers

Eligible employers can reduce their employer Class 1 NI bill by up to £10,500 per tax year. Check eligibility before deducting it from your budget.

For three staff on £30,000 each, the approximate annual calculation is:

3 x £3,750 = £11,250; less £10,500 Employment Allowance = £750.

A single-director company with no other employee paid above the secondary threshold cannot claim. That is why the sole-director example above includes the full employer NI cost.

Claim through payroll software using an Employer Payment Summary (EPS). Read our Employment Allowance guide and the GOV.UK claim guidance for details.

Class 1A and Class 1B employer NI

Salary contributions are only part of the employer NI picture. Class 1A NI on expenses and benefits is 15%. Class 1A on termination awards and sporting testimonial payments is also 15%. Class 1B NI is 15%.

Employment Allowance reduces eligible employer Class 1 contributions. Do not use it to reduce Class 1A or Class 1B bills.

Check your payroll before paying HMRC

Check each employee's NI category, the threshold for their pay period and whether your business can claim Employment Allowance. Keep employee deductions separate from the extra employer cost in your budget.

For the wider picture, see our National Insurance rates guide, PAYE payment dates and RTI reporting guide. Our payroll service can help you manage payroll.