Employer National Insurance Rates 2025-26
From 6 April 2025, employer NI rose to 15% and the Secondary Threshold fell to £5,000. Here is everything employers need to know about the changes.
Key Changes from April 2025
| Parameter | 2024-25 (before) | 2025-26 (from April 2025) |
|---|---|---|
| Employer NI rate | 13.8% | 15% |
| Secondary Threshold (per year) | £9,100 | £5,000 |
| Secondary Threshold (per week) | £175 | £96.15 |
| Employment Allowance | £5,000 | £10,500 |
Both changes announced in the October 2024 Autumn Budget by Chancellor Rachel Reeves. The combined effect — higher rate plus lower threshold — represents the largest single increase in employer NI for decades.
Employer NI Cost per Employee 2025-26
Employer NI is calculated as: (Annual Salary − £5,000) × 15%
| Employee Salary | Employer NI 2024-25 | Employer NI 2025-26 | Additional Cost |
|---|---|---|---|
| £12,570 (NLW full-time) | £482 | £1,136 | +£654 |
| £20,000 | £1,503 | £2,250 | +£747 |
| £25,000 | £2,193 | £3,000 | +£807 |
| £30,000 | £2,882 | £3,750 | +£868 |
| £35,000 | £3,572 | £4,500 | +£928 |
| £40,000 | £4,262 | £5,250 | +£988 |
| £50,000 | £5,641 | £6,750 | +£1,109 |
| £70,000 | £8,400 | £9,750 | +£1,350 |
| £100,000 | £12,538 | £14,250 | +£1,712 |
Note: Old rates used 13.8% × (salary − £9,100). New rates use 15% × (salary − £5,000).
Employment Allowance 2025-26: £10,500
To offset the impact on smaller businesses, the Employment Allowance has been doubled from £5,000 to £10,500 for 2025-26.
- The allowance reduces your total employer NI bill by up to £10,500 per year
- It is claimed via your payroll software — automatically applied against your employer NI liability
- Available to businesses with an employer NI liability below £100,000 in the previous year
- Not available to single-director companies with no other employees
- Can be claimed by charities and community amateur sports clubs
Impact Example: Small Business with 5 Employees
5 employees all earning £25,000:
- Total employer NI: 5 × £3,000 = £15,000
- Less Employment Allowance: −£10,500
- Net employer NI: £4,500
- vs. 2024-25 (after £5,000 EA): 5 × £2,193 = £10,965 − £5,000 = £5,965
- Despite the rate rise, this business pays £1,465 less thanks to the higher allowance
Impact on Part-Time and Low-Paid Workers
The Secondary Threshold cut from £9,100 to £5,000 is particularly significant for part-time workers and those on low wages. A part-time worker earning £8,000 per year previously triggered no employer NI (below the £9,100 threshold). From April 2025, the employer pays 15% × £3,000 = £450 per year in NI for that worker.
This has raised concerns about incentives for employers to reduce hours rather than hire part-time staff, particularly in hospitality, retail, and care sectors.
Employer NI vs Employee NI: What Is the Difference?
| Employee NI (Class 1A) | Employer NI (Secondary) | |
|---|---|---|
| Who pays | The employee | The employer |
| Rate (2025-26) | 8% (£12,570–£50,270), 2% above | 15% on earnings above £5,000 |
| Threshold | £12,570 per year | £5,000 per year |
| Effect on take-home | Directly reduces take-home pay | No direct effect on take-home |
| Shown on payslip | Yes | No |
Employer NI Calculator
Use our Employer NI calculator to see the exact cost for any salary level, including before and after the April 2025 changes.
Frequently Asked Questions
What is the employer National Insurance rate in 2025-26?
15% on each employee's earnings above £5,000 per year (the Secondary Threshold). This increased from 13.8% from 6 April 2025, as announced in the October 2024 Autumn Budget.
How much more will employers pay in NI from April 2025?
For a typical employee on £30,000: employer NI rises from £2,882 to £3,750 — an increase of £868 per year. The Employment Allowance rising to £10,500 offsets this for smaller businesses.
What is the Employment Allowance in 2025-26?
£10,500 — doubled from £5,000. It reduces the total employer NI bill for eligible businesses. Not available to single-director companies with no other employees.
Does employer NI affect my take-home pay?
Not directly — employer NI is paid by the employer on top of your salary and does not appear on your payslip. However, it increases the total cost of employing you, which can indirectly affect pay growth and hiring decisions over time.