Employer NI 2025-26 vs 2024-25
From April 2025, employer National Insurance rose from 13.8% to 15% and the secondary threshold dropped from £9,100 to £5,000. See the exact cost increase for every salary level.
What changed in April 2025
Employer NI cost by salary — 2024-25 vs 2025-26
| Salary | Employer NI 2024-25 | Employer NI 2025-26 | Annual increase | Monthly increase |
|---|---|---|---|---|
| £16,000 | £952 | £1,650 | +£698 | +£58/mo |
| £18,000 | £1,228 | £1,950 | +£722 | +£60/mo |
| £20,000 | £1,504 | £2,250 | +£746 | +£62/mo |
| £22,000 | £1,780 | £2,550 | +£770 | +£64/mo |
| £25,000 | £2,194 | £3,000 | +£806 | +£67/mo |
| £28,000 | £2,608 | £3,450 | +£842 | +£70/mo |
| £30,000 | £2,884 | £3,750 | +£866 | +£72/mo |
| £32,000 | £3,160 | £4,050 | +£890 | +£74/mo |
| £35,000 | £3,574 | £4,500 | +£926 | +£77/mo |
| £38,000 | £3,988 | £4,950 | +£962 | +£80/mo |
| £40,000 | £4,264 | £5,250 | +£986 | +£82/mo |
| £42,000 | £4,540 | £5,550 | +£1,010 | +£84/mo |
| £45,000 | £4,954 | £6,000 | +£1,046 | +£87/mo |
| £48,000 | £5,368 | £6,450 | +£1,082 | +£90/mo |
| £50,000 | £5,644 | £6,750 | +£1,106 | +£92/mo |
| £55,000 | £6,334 | £7,500 | +£1,166 | +£97/mo |
| £60,000 | £7,024 | £8,250 | +£1,226 | +£102/mo |
| £65,000 | £7,714 | £9,000 | +£1,286 | +£107/mo |
| £70,000 | £8,404 | £9,750 | +£1,346 | +£112/mo |
| £75,000 | £9,094 | £10,500 | +£1,406 | +£117/mo |
| £80,000 | £9,784 | £11,250 | +£1,466 | +£122/mo |
| £90,000 | £11,164 | £12,750 | +£1,586 | +£132/mo |
| £100,000 | £12,544 | £14,250 | +£1,706 | +£142/mo |
| £110,000 | £13,924 | £15,750 | +£1,826 | +£152/mo |
| £120,000 | £15,304 | £17,250 | +£1,946 | +£162/mo |
| £150,000 | £19,444 | £21,750 | +£2,306 | +£192/mo |
2024-25: 13.8% above £9,100. 2025-26: 15% above £5,000. Employment Allowance (up to £10,500) not applied — check eligibility separately.
Frequently asked questions
How much did employer NI increase in April 2025?
The rate increased from 13.8% to 15%, and the secondary threshold dropped from £9,100 to £5,000. For a £35,000 salary, employer NI rose from £3,574 to £4,500 — an extra £926/year per employee.
What is the employer NI secondary threshold in 2025-26?
£5,000/year (£416.67/month). Employers pay 15% on all earnings above this threshold. In 2024-25 the threshold was £9,100, so the effective burden has increased both from the higher rate and from the lower starting point.
Does this affect employee take-home pay?
No — employee take-home is unchanged. Income tax rates, employee NI rates, and the personal allowance are identical in 2025-26 vs 2024-25. The increase only affects what employers pay on top of salary.
What is the Employment Allowance in 2025-26?
The Employment Allowance rose from £5,000 to £10,500 in 2025-26. Eligible employers (most with employer NI liability under £100,000 in the prior year, excluding sole director companies) can deduct up to £10,500 from their employer NI bill, partially offsetting the rate increase.
Employer NI changes in April 2025: the full picture
The October 2024 Autumn Budget announced the largest increase in employer National Insurance in a generation. From April 2025, the rate rose from 13.8% to 15% — a 1.2 percentage point increase — while the secondary threshold (the annual earnings point at which employers start paying NI) dropped from £9,100 to £5,000. The combined effect means employers pay more on a wider range of earnings.
For a typical full-time employee on £35,000, the annual employer NI cost rose from £3,574 to £4,500 — an increase of £926 per employee per year, or £77 per month. Across a team of 10 employees at this salary level, that is an extra £9,260 per year in employer NI costs.
The government partially offset this for small businesses by increasing the Employment Allowance from £5,000 to £10,500. Eligible small employers can deduct the full allowance from their employer NI bill — effectively making the first £70,000 of their employer NI liability zero. However, the allowance eligibility rules remain strict, and the threshold change affects all salaries including lower earners who were previously below the secondary threshold.
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