The Pay Packet

Employer NI calculator 2026/27

Hiring someone costs more than their salary. Enter a wage to see the employer’s National Insurance and the true cost of employment for 2026/27 — at 15% above the £5,000 secondary threshold.

2026/27. Shows salary + employer’s NI. Pension contributions and the Employment Allowance are not included.

Cost of employing at £30,000

2026/27
Salary
£30,000
Employer’s NI (15% over £5,000)
+£3,750

Total cost of employment

salary + employer’s NI, a year

£33,750

Employer’s NI adds 13% on top of the salary. An eligible employer may reduce this with the Employment Allowance.

Verified · 2026/27
21 June 2026
How this was calculated

We charge employer’s (secondary Class 1) National Insurance at 15% on the salary above the £5,000 secondary threshold, and add it to the salary to show the cost of employment. The Employment Allowance, which can reduce an eligible employer’s total NI bill, is described but not assumed — eligibility depends on your business. The 15% rate and £5,000 threshold are traced to the dated gov.uk employer rates page for 2026/27.

The full method and every source is on our methodology page.

Built & maintained by the Pay Packet team · methodology sourced from HMRC · last reviewed 21 June 2026. About our figures →

The cost behind the salary

When you employ someone, the wage is only part of the cost. On top sits employer’s (secondary) National Insurance — 15% of everything the employee earns above the £5,000-a-year secondary threshold. It is the employer’s cost, never taken from the employee, and it does not appear on their payslip as a deduction.

For many smaller employers the Employment Allowance takes a chunk off the total NI bill, which can wipe it out entirely for a single low-paid employee. It is not available to a company whose only employee is a director, which is why a one-person company feels the full 15% on a director’s salary — and why directors weigh salary against dividends. Larger employers with a paybill over £3 million also pay the 0.5% Apprenticeship Levy; almost all small businesses are well under that and pay nothing.

Thinking about how to pay yourself through your own company? See the limited company tax calculator. Want the employee’s side — what they take home from that salary? Use the take-home pay calculator.

The rate and threshold are on gov.uk’s employer rates for 2026 to 2027; the Employment Allowance rules are here.

Employer NI questions

How much is employer’s National Insurance in 2026/27?
Employers pay secondary Class 1 National Insurance at 15% on each employee’s earnings above the £5,000-a-year secondary threshold (about £417 a month). This is on top of the wage and is the employer’s cost, not deducted from the employee. The 15% rate and £5,000 threshold have applied since April 2025.
What is the real cost of employing someone?
The salary plus employer’s NI, plus any pension contributions and other costs. On a £30,000 salary the employer NI alone is £3,750, making the basic employment cost £33,750 before pension. This calculator shows the salary-plus-employer-NI figure.
What is the Employment Allowance?
Eligible employers can reduce their total employer’s NI bill by up to the Employment Allowance each year. It is aimed at smaller employers and is not available to a company whose only employee is a single director. If you can claim it, your actual employer NI cost can be lower than the headline figure here — check eligibility on gov.uk.
Do I pay employer NI on a director’s salary?
Yes — a company pays employer NI on a director’s salary above £5,000 just like any employee. Because a single-director company cannot claim the Employment Allowance, this is a real cost, which is why directors often set a salary around the Personal Allowance and take the rest as dividends.

An estimate for the 2026/27 tax year — guidance, not payroll or tax advice. It shows salary plus employer’s NI only; it excludes pension contributions, the Employment Allowance and the Apprenticeship Levy, which depend on your business. Check the detail with gov.uk/HMRC or your payroll provider.