Employer NI Calculator
Calculate employer National Insurance contributions, the Employment Allowance saving and the true cost of employing staff for the 2025/26 tax year.
Employment Details
Gross annual salary per employee
Employees all on the same salary
Available to most businesses with employer NI bill under £100,000. Not available to single-director companies.
Total Employer NI
£3,750.00
For 1 employee at £30,000 each
Per-Employee NI
£3,750.00
Employer NI per employee per year
Total Employment Cost
£33,750.00
Salaries (£30,000) + employer NI
Effective NI Rate
12.5%
Employer NI as a percentage of total salary
Per-Employee Total Cost
£33,750.00
Salary plus employer NI per employee
NI Calculation Breakdown (Per Employee)
| Band | Rate | Contribution |
|---|---|---|
| Employer NI at 15% on earnings above £5,000 | 15% | £3,750.00 |
| Total Per Employee | £3,750.00 | |
This calculator is for informational purposes only and does not constitute financial advice. Tax calculations are based on current HMRC rates and may not reflect your exact circumstances. Always consult a qualified financial adviser.
How much does an employee really cost?
When hiring staff in the UK, the cost to your business goes well beyond the salary you agree with your employee. On top of their gross pay, employers must contribute Class 1 National Insurance at 15% on all earnings above the secondary threshold, which is currently set at £5,000 per year. For an employee earning £30,000, that means an additional £3,750 in employer NI alone, bringing the true annual cost to £33,750.
The Employment Allowance can help reduce this burden. Eligible businesses can claim up to £10,500 off their total employer NI bill each year. This is especially valuable for small businesses, as it can completely eliminate employer NI for the first few employees. However, the allowance is not available to companies where the only employee is a director, or to businesses whose employer NI bill exceeded £100,000 in the previous tax year. Public sector bodies and companies that carry out functions of a public nature are also excluded from claiming.
Planning your employment costs accurately is essential for any growing business. Remember to factor in other costs beyond NI, such as workplace pension contributions (minimum 3% employer contribution under auto-enrolment), holiday pay, sick pay and any other benefits you provide. This calculator focuses on employer NI specifically, helping you see the tax impact of each hire and whether the Employment Allowance can save you money.
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