Free Tool

Employer NI Cost Calculator

Calculate the true cost of employing staff, including employer National Insurance contributions and Employment Allowance for the 2025/26 tax year.

Employment Details

Based on 2025/26 employer NI rates. Employment Allowance is available to most employers but not to single-director companies with no other employees. For personalised advice, please book a free consultation.

Cost Breakdown

Total Employment Cost

£35,000

£35,000 per employee

Annual Salary (per employee)£35,000
Number of Employees1
Total Salary Cost£35,000
Employer NI (per employee)£4,500
Total Employer NI (before allowance)£4,500
Employment Allowance Saving-£4,500
Total Employer NI Payable£0
Total Employment Cost£35,000

Cost Breakdown

Salary Employer NI

2025/26 Employer NI Rates

DetailAmount / Rate
Secondary Threshold£5,000 per year
Employer NI Rate15% on earnings above threshold
Employment Allowance£10,500 per year (if eligible)

From April 2025, the employer NI rate increased to 15% and the secondary threshold reduced to £5,000. The Employment Allowance increased to £10,500 and the £100,000 NI threshold for eligibility was removed, so more businesses can claim it.

Need help managing payroll costs?

Our payroll specialists can help you optimise your employment costs, ensure you are claiming all available allowances, and keep you compliant with HMRC requirements.

Book Free Consultation