Employer NI
UK Employer PAYE & Employment Cost Calculator (2026/27).
Calculate the true cost of employing someone in the UK for 2026/27, including employer National Insurance at 15%, auto-enrolment pension and the £10,500 Employment Allowance.
For 2026/27, employers pay Class 1 secondary National Insurance at 15% on each employee's earnings above the £5,000 secondary threshold, on top of gross salary. Most employers can offset up to £10,500 of this through the Employment Allowance. You must also pay at least the minimum auto-enrolment workplace pension contribution. This calculator adds these to gross pay to show the true cost of employing someone.
Reviewed by Kamran Ishaq FCCA, Founder & CEO · Last updated
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.
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Questions
Frequently asked
questions.
Employer National Insurance is charged at 15% above the £5,000 secondary threshold. There is no upper earnings limit for employers.
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.
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.
The total cost of employment is calculated as gross salary plus employer National Insurance plus employer pension contributions.
Under-25 apprentices on an apprenticeship standard are exempt from employer National Insurance.
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