Employer National Insurance on a £40,000 salary: 2025 rise and 2026-27
An employer pays £5,250 of National Insurance a year on a £40,000 salary, about £438 a month. That has applied since 6 April 2025 and is unchanged in 2026-27. In 2024-25 the bill was £4,264, so the cost rose by £986.
| Salary | £40,000 |
| 2024-25 (previous rate, above £9,100) | £4,264 |
| 2025-26 and 2026-27: 15% above £5,000 | £5,250 |
| Increase per year | £986 |
| Increase per month | £82 |
| Total cost to employer, 2026-27 | £45,250 |
How this is worked out
From 6 April 2025 the employer rate of Class 1 NI rose to 15% and the secondary threshold fell from £9,100 to £5,000 a year. The 2026-27 employer rates page keeps both figures, so the 2025 cost still applies.
Employer NI is 15% of pay above £5,000: (£40,000 - £5,000) x 15% = £5,250. It is paid on top of salary and is not deducted from the employee.
Assumptions: category A employee aged 21 or over, paid evenly through the year, no Employment Allowance. Eligible employers can use Employment Allowance to reduce their total bill.
Sources: Rates and thresholds for employers 2026 to 2027 (GOV.UK), Rates and thresholds for employers 2025 to 2026 (GOV.UK), Rates and thresholds for employers 2024 to 2025 (GOV.UK), Employment Allowance: check if you are eligible (GOV.UK)