Employer NI Calculator 2026/27 and the True Cost of an Employee
Answer first. For 2026/27 you pay employer National Insurance at 15% on earnings above £5,000 a year.
- On a £30,000 salary that's (£30,000 − £5,000) × 15% = £3,750 a year (£312.50 a month).
- Add the minimum auto-enrolment pension (3% of qualifying earnings) and a typical employee costs about 1.15–1.25 times their salary before other benefits.
- Eligible employers can cut their NI bill by up to £10,500 a year with the Employment Allowance.
- Employer NI a year
- £3,750.00
- Employer NI a month / week
- £312.50 / £72.12
- Pension (employer)
- £712.80
- Cost per pay period
- £2,996.90
- Total cost per employee
- £35,962.80
- 1.20 times salary
- Team of 1: NI payable after the Employment Allowance
- £3,750.00
- Team total cost
- £35,962.80
Worked example: one employee on £30,000
| Cost | How it's calculated | Annual |
|---|---|---|
| Salary | £30,000.00 | |
| Employer NI | (£30,000 − £5,000) × 15% | £3,750.00 |
| Pension, employer minimum | 3% × (£30,000 − £6,240) | £712.80 |
| Laptop, software, other (your input) | £1,500.00 | |
| Total | £35,962.80 |
That is 1.20 times salary.
Small team: the Employment Allowance
Four employees on £30,000 each:
- employer NI = 4 × £3,750 = £15,000
- less the Employment Allowance of £10,500
- NI actually payable: £4,500
The allowance has eligibility rules; check them on GOV.UK.
Under 21s and apprentices under 25
For these employees you pay 0% employer NI on earnings up to £50,270. A 19-year-old on £22,000 costs £0 employer NI, compared with £2,550 for someone aged 21 or over on the same pay.
FAQ
How do I calculate employer NI?
Take the employee's earnings above the secondary threshold (£5,000 a year, £417 a month) and multiply by 15%. For under-21s and apprentices under 25, the rate is 0% up to £50,270.
How much does an employee cost in the UK?
Salary plus employer NI plus pension, plus any benefits and equipment. Usually about 1.15–1.3 times salary. Use the calculator for your numbers.
What is the Employment Allowance for 2026/27?
Up to £10,500 a year off your employer NI bill, if you're eligible.
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