Employer National Insurance Calculator (ENIC)
Employers pay Class 1 secondary National Insurance on top of each employee’s gross pay. In 2026/27 the rate is 15% on earnings above the £5,000 annual secondary threshold.
Enter the employee’s annual gross pay to see your employer NI cost, and apply the £5,000 Employment Allowance if your business is eligible.
How the calculation works
We believe numbers should be transparent. Here is the formula behind this calculator.
Worked example
Worked example: a £40,000 salary in 2026/27
Examples at common levels
See how the numbers change at typical input levels, using the updated for tax year 2026/27 rates.
| Scenario | Employer NI to pay | NI before allowance (15% rate) | Employment Allowance | Effective employer NI rate | Total employer cost |
|---|---|---|---|---|---|
| £40,000 salary Including the Employment Allowance | £250.00 | £5,250.00 | £5,000.00 | 0.6% | £40,250.00 |
| £40,000 salary Without the Employment Allowance | £5,250.00 | £5,250.00 | £0.00 | 13.1% | £45,250.00 |
| £100,000 salary Including the Employment Allowance | £9,250.00 | £14,250.00 | £5,000.00 | 9.3% | £109,250.00 |
Important assumptions
- Uses the standard Class 1 secondary (employer) rate for the selected tax year.
- The Employment Allowance is £5,000 a year per business and is capped at the employer NI bill.
- Does not include the Apprenticeship Levy, pension contributions or benefits in kind (Class 1A).
Rates & official sources
Every calculation is based on the official rates and rules published by GOV.UK and HMRC.
Frequently asked questions
What is the employer National Insurance rate for 2026/27?
Employers pay Class 1 secondary National Insurance at 15% on each employee’s earnings above the annual secondary threshold of £5,000.
What is the employer NI secondary threshold?
The secondary threshold is £5,000 a year in 2026/27. No employer NI is due on the first £5,000 of an employee’s gross earnings.
How does the Employment Allowance work?
Most businesses can reduce their employer NI bill by up to £5,000 a year through the Employment Allowance. You claim it on your payroll return, and it can only reduce the bill to zero, not create a refund.
Is employer NI tax deductible?
Yes. Employer National Insurance is an allowable business expense that reduces your profit, and for a limited company it reduces corporation tax.
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Read the guideThese calculations are estimates for guidance only and are not professional financial, tax or legal advice. UK rates and rules change, so always verify important figures with official GOV.UK / HMRC information or speak to a qualified professional. See our full disclaimer.