Employer National Insurance 2026/27
Employer NI is an additional cost on top of employee salaries. Understanding the rates and exemptions helps with budgeting.
2026/27 Rates
| Threshold | Rate |
|---|---|
| Secondary Threshold (ST) | £5,000/year |
| Rate above ST | 13.8% |
Calculation Example
Employee earning £40,000:
| Component | Calculation | Amount |
|---|---|---|
| Earnings above ST | £40,000 - £5,000 | £35,000 |
| Employer NI | £35,000 × 13.8% | £4,830 |
Total employment cost: £44,830
Employment Allowance
Eligible employers can reduce their NI bill by up to £10,500:
| Criteria | Requirement |
|---|---|
| At least one employee | Required |
| Previous year NI under £100,000 | Required |
| Not a single-director company | Required |
Exemptions
Under 21s
No employer NI on earnings up to Upper Secondary Threshold (£50,270).
Apprentices Under 25
No employer NI on earnings up to Upper Secondary Threshold.
Veterans
First 12 months of employment: No employer NI up to £50,270.
Related Calculators
- Employer NI Calculator - Calculate your costs
- Employment Allowance Calculator - Check eligibility