What is the employer NI rate for 2026/27?

15% on earnings above £5,000 per year (reduced from £9,100 in April 2025).

Is there a cap on employer NI?

No, unlike employee NI, there is no upper earnings limit for employer NI.

What is the Employment Allowance?

Up to £10,500 off your employer NI bill if eligible (most employers with NI under £100,000).

Do directors pay different rates?

Directors have the same rates but are calculated annually rather than per pay period.

Can I reduce employer NI?

Yes, through salary sacrifice, hiring under 21s/apprentices (zero rate to UEL), and Employment Allowance.

National Insurance2026/27

What is Employer's National Insurance? UK Definition 2026/27

Written by Waqas Sagar ACA, FCCA, FMAAT

•

Verified by ICAEW, ACCA & AAT

•Updated April 2026

Quick Answer

NI contributions paid by employers at 15% on earnings above £5,000.

Definition of Employer's National Insurance

Employers pay National Insurance Contributions (NICs) on employee earnings above the Secondary Threshold (£5,000 per year from April 2025). The rate is 15% with no upper limit. The Employment Allowance can reduce the bill by up to £10,500 for eligible employers.

Employer's National Insurance — Key Facts for 2026/27

Rate	15%
Threshold	£5,000/year
Employment Allowance	£10,500
No upper limit	Unlike employee NI

How Employer's National Insurance Works — Example

Employer NI on £50,000 salary

1Salary: £50,000
2NI threshold: £5,000
3NI-able earnings: £45,000
4Employer NI: £45,000 × 15% = £6,750
5Less Employment Allowance: £10,500
6NI payable: £0 (if eligible)

How Employer's National Insurance Affects Your Tax

Employer NI significantly increases the cost of employment. A £50,000 salary costs the employer an additional £6,750+ in NI. The increased rate to 15% from April 2025 adds £900+ per employee earning £50,000.

Official HMRC Guidance on Employer's National Insurance

For official guidance, refer to HMRC's documentation. Tax rules can change, so always verify current rates and thresholds on gov.uk.

HMRC: National Insurance rates

Frequently Asked Questions about Employer's National Insurance

Related Tax Terms

Employment Allowance

Up to £10,500 off your employer NI bill for eligible employers.

National Insurance

Contributions paid by employees and employers that fund state benefits.

PAYE

Pay As You Earn - the system for deducting income tax and NI from wages.

Salary Sacrifice

Give up salary in exchange for benefits, reducing tax and NI.

Accuracy Note

This information is for guidance only and is based on 2026/27 tax year rates. Tax rules are complex and your circumstances may differ. For personal advice, consult a qualified accountant or tax adviser.