Employer NI on £40,000 Salary
2025-26 vs 2024-25 — how much did employer National Insurance increase?
What changed in April 2025
The employer NI rate rose from 13.8% to 15%, and the secondary threshold (where employer NI kicks in) dropped from £9,100 to £5,000. On a £40,000 salary, employers now pay NI on £35,000 of earnings (vs £30,900 in 2024-25) at a higher rate. Employee take-home is unaffected.
Employer NI comparison — £40,000 salary
| Item | 2024-25 | 2025-26 | Change |
|---|---|---|---|
| Employer NI rate | 13.8% | 15% | +1.2% |
| Secondary threshold | £9,100/yr | £5,000/yr | −£4,100 |
| Employer NI (annual) | £4,264 | £5,250 | +£986 |
| Employer NI (monthly) | £355 | £438 | +£82 |
| Total cost to employer (annual) | £44,264 | £45,250 | +£986 |
Employer NI on £40,000 in 2025-26
For an employee on £40,000, the total employer NI cost in 2025-26 is £5,250/year (£438/month) — making the total cost to employ this person £45,250/year.
Compared to 2024-25, this is an increase of £986/year (£82/month per employee). Across a team of five employees on this salary, the annual employer NI increase totals £4,930.
The increase has two drivers: the rate rising from 13.8% to 15% accounts for roughly 60% of the increase, while the lower secondary threshold (from £9,100 to £5,000) accounts for the remainder. Both changes took effect from 6 April 2025. Employee take-home pay is unchanged — only the employer-side cost is affected.
Frequently asked questions
How much employer NI do I pay on a £40,000 salary in 2025-26?
In 2025-26, employer NI on a £40,000 salary is £5,250/year (£438/month). This is calculated at 15% on earnings above the £5,000 secondary threshold. The total cost to the employer is £45,250/year.
How much did employer NI increase on a £40,000 salary?
Employer NI on a £40,000 salary increased by £986/year (from £4,264 to £5,250) — an extra £82 per month per employee. This reflects the rate rise from 13.8% to 15% and the secondary threshold reduction from £9,100 to £5,000.
What is the total cost to hire someone on £40,000 in 2025-26?
The total cost to employ someone on £40,000 in 2025-26 is £45,250/year — the salary plus £5,250 in employer National Insurance. In 2024-25 the total cost was £44,264, so hiring costs rose by £986/year.
Does the April 2025 employer NI increase affect employee take-home pay?
No — the employer NI increase does not affect employee take-home pay. Income tax rates, employee NI rates (8% main, 2% above £50,270), and the personal allowance (£12,570) are unchanged in 2025-26. Employees on £40,000 take home the same amount as in 2024-25.
Related calculators: