About the UK Employer NI Calculator
This UK employer NI calculator works out the secondary Class 1 National Insurance an employer pays on its staff for the 2026/27 tax year (6 April 2026 to 5 April 2027). List each employee’s annual salary, mark any who qualify for a relief category such as under-21s or apprentices under 25, and the calculator totals employer NI, deducts the Employment Allowance if you are eligible, and shows the net bill per year and per month.
It is meant for small business owners, finance teams and payroll bureaus budgeting the true cost of hiring, comparing salary levels, or checking how much of the bill the Employment Allowance wipes out. For 2026/27 employers pay 15% on earnings above the secondary threshold of £5,000 a year (£96 a week, £417 a month). For under-21s, apprentices under 25 and veterans in their first year of civilian work the rate is 0% up to £50,270, and in freeports and investment zones 0% up to £25,000 for eligible new employees.
The Employment Allowance reduces an eligible employer’s annual NI bill by up to £10,500. Companies whose only employee paid above the secondary threshold is a director cannot claim, and only one company in a connected group can. The calculator works on annual figures; real payroll calculates NI each pay period, so results can differ slightly when pay varies through the year.
With the default inputs, the employer ni to pay (year) is £11,250.00. Change any value above to recalculate instantly.
How to use the uk employer ni calculator
- 1Enter each employee’s annual gross salary on its own line.
- 2Add “, under21”, “, apprentice”, “, veteran” or “, freeport” after any salary that qualifies for relief.
- 3Switch on the Employment Allowance if your business is eligible.
- 4Read the net employer NI for the year and per month.
- 5Use the table to see what each employee costs in employer NI.
Formula and method
For a standard (category A) employee, employer Class 1 NI is 15% of annual earnings above the £5,000 secondary threshold. For relief categories the employer rate is 0% up to the relevant upper secondary threshold and 15% above it: £50,270 for under-21s (M), apprentices under 25 (H) and veterans in their first 12 months of civilian employment (V), and £25,000 for eligible freeport or investment zone employees (F).
The employer contributions for all employees are added together and, if you are eligible, the Employment Allowance of up to £10,500 is deducted from the annual total. The allowance cannot reduce the bill below zero. Payroll software applies the thresholds per pay period (e.g. £417 a month), so annualised figures are an estimate for irregular pay.
- ST
- Secondary threshold, £5,000 a year (2026/27)
- UST
- Upper secondary threshold for the relief category (£50,270 or £25,000)
- EA
- Employment Allowance, up to £10,500 a year
Worked examples
Five staff including an under-21, with Employment Allowance
Employer NI is 15% above £5,000: £3,450 on £28,000, £4,500 on £35,000, £5,550 on £42,000 and £8,250 on £60,000. The under-21 earning £19,000 is below £50,270, so the employer pays nothing on them. The £21,750 total falls to £11,250 after the £10,500 Employment Allowance — £937.50 a month.
One £30,000 employee, no allowance
£30,000 − £5,000 = £25,000 above the threshold; 15% of that is £3,750 a year, equal to 12.5% of the salary. A company whose only employee is its director could not use the Employment Allowance to cancel it.
Apprentice and freeport employee
For the apprentice under 25 the employer pays 0% up to £50,270 and 15% above: 15% × £4,730 = £709.50. For the freeport employee 0% applies up to £25,000, then 15% × £7,000 = £1,050. Together the employer NI bill is £1,759.50, far below the £11,550 it would be without the reliefs.
Frequently asked questions
What is the employer NI rate for 2026/27?+
Employers pay secondary Class 1 National Insurance at 15% on employee earnings above the secondary threshold of £5,000 a year (£96 a week or £417 a month) for 2026/27. There is no upper limit on employer NI for standard employees.
How much is the Employment Allowance in 2026/27?+
The Employment Allowance for 2026/27 is £10,500. It reduces an eligible employer’s annual Class 1 NI bill by up to that amount. Since April 2025 employers with NI liabilities above £100,000 can also claim it.
Who cannot claim the Employment Allowance?+
You cannot claim if your company’s only employee paid above the secondary threshold is a director, if you do more than half your work in the public sector (unless a charity), or for employees who are domestic staff such as nannies. Only one company in a connected group can claim.
Do employers pay NI for under-21s?+
Employers pay 0% NI on earnings of employees under 21 up to the upper secondary threshold of £50,270 a year, and 15% above it. The same relief applies to apprentices under 25 and to veterans in their first year of civilian employment.
Does employer NI apply above the upper earnings limit?+
Yes. Unlike employee NI, which drops to 2% above £50,270, employer NI stays at 15% on all earnings above the secondary threshold, with no cap for standard category employees.
Is employer NI charged on pension contributions?+
Employer pension contributions are not subject to NI, and pay sacrificed into a pension under a salary sacrifice arrangement reduces the earnings NI is charged on. Enter salaries after any sacrifice to reflect this.
Tax results are estimates based on published rules and simplified assumptions. They are not tax advice — check official guidance or a tax professional for your situation.