Employers NIC Calculator (UK)
Estimate Class 1 Secondary National Insurance Contributions for one employee or your team.
This calculator is for planning and education only. It does not replace payroll software or professional tax advice.
What is Employers NIC?
Employers NIC (National Insurance Contributions) is the amount a UK employer pays to HMRC on employee earnings above a specific threshold. In payroll terms, this is usually called Class 1 Secondary NIC. It is separate from the employee’s own NIC deduction and represents an additional employment cost for the business.
How this employers nic calculator works
This tool uses a simple and transparent formula:
Employers NIC = (Gross pay − Secondary threshold) × Employer NIC rate
- If pay is below the threshold, employers NIC is £0 for that period.
- If pay is above the threshold, only the amount above the threshold is charged.
- You can estimate total cost for one employee or multiple employees.
- You can optionally apply Employment Allowance to estimate annual NIC after relief.
Example
If monthly pay is £3,000, the threshold is £758, and the employer rate is 13.8%:
- NIC-able pay = £3,000 − £758 = £2,242
- Employer NIC = £2,242 × 13.8% = £309.40 per month (per employee)
Typical thresholds and rates
Payroll rules can change by tax year. The calculator includes presets you can adjust manually if needed.
| Tax Year Preset | Rate | Weekly Threshold | Monthly Threshold | Annual Threshold |
|---|---|---|---|---|
| 2024/25 | 13.8% | £175 | £758 | £9,100 |
| 2025/26 (example) | 15.0% | £96 | £417 | £5,000 |
Why employers use this calculator
- Hiring decisions: Understand true employment cost, not just salary.
- Budgeting: Forecast monthly payroll liabilities and cash flow.
- Scenario testing: Compare pay rises, bonuses, and staffing changes.
- Allowance planning: Estimate the impact of Employment Allowance.
Important notes before you rely on any estimate
1) Category letters and reliefs matter
Different National Insurance category letters, age-related rules, and apprenticeship conditions can change NIC outcomes. This simple calculator does not model all special cases.
2) Directors and irregular pay can be different
Directors may be assessed on a different basis, and irregular payroll patterns can produce different period outcomes versus annualized logic.
3) Always verify against HMRC guidance and your payroll software
Use this page for quick planning, then confirm with current HMRC rates and production payroll calculations.
Frequently asked questions
Does this include employee NIC deductions?
No. This page estimates employer NIC only.
Can I use it for weekly and annual payroll?
Yes. Pick the pay frequency and the tool will estimate per-period and annual values.
Can I override the threshold and rate?
Yes. After selecting a preset tax year, you can manually edit the threshold and rate to match your payroll policy or updated rules.