Employer NI

UK Employer PAYE & Employment Cost Calculator (2026/27).

Employer NI — 2026/27

Employment cost

Total employment cost

£40,363

Employer NI at 15% above £5,000

Per month

£3,363.57

Gross salary
£35,000
Employer NI
£4,500
Employer pension
£863

Cost breakdown

  • Salary£35,000.00
  • + Employer NI (15% above £5,000)£4,500.00
  • + Employer pension (3%)£862.80
  • = Total cost£40,362.80

Most businesses can claim the £10,500 Employment Allowance to reduce their employer NI bill. Sole-director limited companies are not eligible. Auto-enrolment pension is modelled on full salary; the statutory minimum applies to qualifying earnings (£6,240–£50,270). Countify can confirm your eligibility.

Source: gov.uk NI rates. Rates for the 2026/27 tax year.

What this employee costs a year

Rates and rules from Rates and thresholds for employers 2026 to 2027 (HM Revenue & Customs).

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Questions

Frequently asked
questions.

What is the employer National Insurance rate for 2026/27?

Employer National Insurance is charged at 15% above the £5,000 secondary threshold. There is no upper earnings limit for employers.

What is the Employment Allowance and who qualifies?

The Employment Allowance is a £10,500 reduction against the employer National Insurance bill for eligible employers. It is not available to single-director companies with no other employees.

What is auto-enrolment minimum employer pension?

The auto-enrolment minimum employer pension contribution is 3% of qualifying earnings, using the £6,240 to £50,270 qualifying earnings band for 2026/27.

How is the total cost of employment calculated?

The total cost of employment is calculated as gross salary plus employer National Insurance plus employer pension contributions.

Do apprentices pay employer NI?

Under-25 apprentices on an apprenticeship standard are exempt from employer National Insurance.

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