What are the employer NI rates for 2026/27?
For most category A employees in 2026/27, employers pay Class 1 National Insurance at 15% on earnings above the £5,000 annual secondary threshold. Eligible employers can reduce their annual liability by up to £10,500 through Employment Allowance; exclusions and special categories apply.
Last reviewed: 3 September 2026 · Editorial policy
Eligibility matters
Employment Allowance is not available to every employer. Company structure, public-sector work, single-director payrolls, and connected companies can affect eligibility.
Simple employer NI example
For a category A employee paid £30,000 evenly across the 2026/27 tax year, a simplified annual-threshold calculation gives £25,000 above the £5,000 secondary threshold. At 15%, that is £3,750 of employer Class 1 National Insurance before Employment Allowance or another relief.
Payroll calculates contributions by pay period and director calculations can work differently, so use payroll software for filed figures. Employees under 21, qualifying apprentices under 25, veterans, Freeport employees and Investment Zone employees can have different employer thresholds or category letters.
Employment Allowance is not automatic
An eligible employer can offset up to £10,500 against employer Class 1 National Insurance for 2026/27. Connected companies or charities generally share one allowance, and excluded employees cannot be used in the claim in the ordinary way.
A limited company cannot claim merely for a sole director who is its only employee liable for secondary Class 1 contributions. If another employee later becomes liable above the relevant threshold, eligibility may change. Check the current conditions rather than assuming a small payroll qualifies.
Budget beyond gross salary
Employer National Insurance is only one employment cost. A realistic hiring budget can also include workplace pension contributions, holiday and sick pay, payroll software, benefits, insurance, equipment and the Apprenticeship Levy for relevant pay bills. Model the full annual cost before agreeing salary.