Employer NI on £42,000 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 £42,000 salary, employers now pay NI on £37,000 of earnings (vs £32,900 in 2024-25) at a higher rate. Employee take-home is unaffected.
Employer NI comparison: £42,000 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) | £4,540 | £5,550 | +£1,010 |
| Employer NI (monthly) | £378 | £463 | +£84 |
| Total cost to employer (annual) | £46,540 | £47,550 | +£1,010 |
Employer NI on £42,000 in 2025-26
For an employee on £42,000, the total employer NI cost in 2025-26 is £5,550/year (£463/month), bringing the total cost to employ this person to £47,550/year.
Compared to 2024-25, this is an increase of £1,010/year (£84/month per employee). Across a team of five employees on this salary, the annual employer NI increase totals £5,050.
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 £42,000 salary in 2025-26?
In 2025-26, employer NI on a £42,000 salary is £5,550/year (£463/month). This is calculated at 15% on earnings above the £5,000 secondary threshold. The total cost to the employer is £47,550/year.
How much did employer NI increase on a £42,000 salary?
Employer NI on a £42,000 salary increased by £1,010/year (from £4,540 to £5,550), or £84 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 £42,000 in 2025-26?
The total cost to employ someone on £42,000 in 2025-26 is £47,550/year: the salary plus £5,550 in employer National Insurance. In 2024-25 the total cost was £46,540, so hiring costs rose by £1,010/year.
Does the April 2025 employer NI increase affect employee take-home pay?
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 £42,000 take home the same amount as in 2024-25.
Does salary sacrifice reduce employer NI on a £42,000 salary?
Salary sacrifice arrangements (pension, cycle-to-work, electric vehicle leasing) reduce the employee's gross pay for employer NI purposes. If an employee on £42,000 sacrifices part of their salary, the employer pays NI only on the reduced gross. At 15% employer NI in 2025-26, every £1,000 sacrificed saves the employer £150/year in NI. Many employers share some of this saving with employees, making salary sacrifice schemes more attractive post-April 2025.
How does the Employment Allowance affect the £42,000 employer NI figure?
If the employer qualifies for the Employment Allowance in 2025-26 (up to £10,500/year for eligible businesses), this reduces their total employer NI bill, but it applies at company level, not per employee. For a single employee on £42,000, the employer NI of £5,550/year still applies as calculated; the Employment Allowance simply offsets the employer's total NI liability across all employees. Employers with secondary Class 1 NI above the threshold and fewer than 250 employees typically qualify.
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