Employer's National Insurance Calculator (UK)
Use this calculator to estimate Class 1 secondary (employer) National Insurance contributions for one or more employees.
This is an estimate tool for planning and budgeting. Actual payroll calculations can vary based on employee category letters, reliefs, directors' NIC methods, and HMRC updates.
What are employer National Insurance contributions?
Employer National Insurance contributions (NICs) are payments an employer makes to HMRC on top of an employee's gross wages. In payroll language, these are often called Class 1 secondary contributions.
In simple terms, once an employee's earnings exceed the relevant secondary threshold, the employer pays NIC at the applicable percentage rate on earnings above that threshold. This makes employer NIC one of the most important costs to include when hiring, salary benchmarking, and forecasting cash flow.
How this employers NIC calculator works
This calculator follows a clear process:
- Choose the tax year and pay frequency (annual, monthly, or weekly).
- Enter gross pay per employee for that period.
- Enter how many employees are paid at that level.
- Optionally apply an annual Employment Allowance amount.
- Calculate estimated employer NIC and total employment cost.
The tool returns:
- Estimated employer NIC per employee per pay period (before allowance).
- Total annual employer NIC before and after Employment Allowance.
- Estimated total payroll cost (gross pay + employer NIC).
Rates and thresholds used in this calculator
The assumptions below are built into the calculator for quick planning. Tax rules may change, so always verify current HMRC rates for live payroll.
| Tax Year | Employer NIC Rate | Secondary Threshold (Annual) | Secondary Threshold (Monthly) | Secondary Threshold (Weekly) |
|---|---|---|---|---|
| 2024/25 | 13.8% | £9,100 | £758 | £175 |
| 2025/26 | 15.0% | £5,000 | £417 | £96 |
Worked examples
Example 1: One employee on £3,000 per month (2025/26)
With a monthly secondary threshold of £417, employer NIC is charged on £2,583 (£3,000 - £417). At 15%, estimated NIC is about £387.45 per month for that employee.
Example 2: Five employees on £2,500 per month (2025/26)
Per employee, NIC is charged on £2,083 (£2,500 - £417). At 15%, that is about £312.45 per employee per month. For five employees, this is roughly £1,562.25 per month before any Employment Allowance.
Employment Allowance: why it matters
If your business is eligible, Employment Allowance reduces your annual employer NIC bill by a fixed amount. This can significantly reduce payroll overhead, especially for small and medium employers.
- Allowance is applied against annual employer NIC liability.
- It cannot reduce NIC below £0.
- Eligibility conditions apply and should be checked each tax year.
In the calculator, you can enter your expected annual allowance (or 0 if not eligible) to get a more realistic net employer NIC estimate.
Why employers use this calculator
- Hiring decisions: understand true salary cost, not just gross pay.
- Budget planning: model payroll scenarios monthly or annually.
- Pricing and margins: include statutory on-costs in service pricing.
- Cash flow forecasting: avoid surprises from rising payroll liabilities.
Common mistakes to avoid
- Budgeting only for gross wages and forgetting employer NIC.
- Using the wrong tax year threshold or rate.
- Ignoring Employment Allowance eligibility.
- Assuming all employees have identical NIC treatment.
- Not checking special categories (for example, age-related reliefs or apprentices).
Frequently asked questions
Is this the same as employee National Insurance?
No. This calculator is for the employer's NIC liability (secondary contributions), not the deductions taken from employee pay.
Does this include pension or apprenticeship levy?
No. This page calculates employer NIC only. Pension auto-enrolment costs, apprenticeship levy, bonuses, benefits-in-kind, and holiday accrual are separate costs.
Can I use this for director payroll?
Directors can be assessed differently depending on payroll method. Use this as a planning estimate, then verify with payroll software or your accountant.
Final note
A reliable employers national insurance contributions calculator helps you move from rough salary estimates to accurate employment cost planning. Use it early when setting compensation, opening new roles, or preparing annual budgets.