Guide
Employer National Insurance in 2026/27: rate, threshold, examples
Updated
Employer Class 1 National Insurance is the biggest employment cost after salary itself. Here is the 2026/27 position, with worked examples.
The 2026/27 rate and threshold
Employers pay Class 1 secondary National Insurance at 15% on each employee's earnings above the secondary threshold of £5,000 a year (£96.15 a week). Both were set in April 2025 and remain in force for the 2026/27 tax year (gov.uk: rates and categories).
Unlike employee NI, there is no upper limit: the 15% applies to all earnings above the threshold, however high the salary.
| Gross salary | NI-able earnings | Employer NI |
|---|---|---|
| £20,000 | £15,000 | £2,250 |
| £35,000 | £30,000 | £4,500 |
| £50,000 | £45,000 | £6,750 |
| £100,000 | £95,000 | £14,250 |
The Employment Allowance
Eligible employers deduct up to £10,500 a year from their total employer NI bill (gov.uk: Employment Allowance). From April 2025 the previous £100,000 eligibility cap was removed, so most businesses with employees other than a sole director can claim. It applies per employer, not per employee, which is why our calculator lists it as an assumption rather than a per-hire deduction.
Who attracts no employer NI
- Employees under 21 (category M) and apprentices under 25 (category H), no employer NI up to the upper secondary threshold of £50,270.
- New employees at freeport and investment zone sites, up to £25,000, for 36 months (categories F/N).
- Armed forces veterans in their first civilian job, up to £50,270 for one year (category V).
Verify the current thresholds on gov.uk before running payroll, this page states the position as of its updated date above, and we correct it in place when rates change.