Employer NI Calculator
Calculate the true cost of employing someone in the UK, including employer National Insurance and auto-enrolment pension.
| Salary | Employer NI | Total Cost |
|---|---|---|
| £25,000 | £2,194 | £27,944 |
| £35,000 | £3,574 | £39,624 |
| £45,000 | £4,954 | £51,304 |
| £60,000 | £7,024 | £68,824 |
| £80,000 | £9,784 | £92,184 |
| £100,000 | £12,544 | £115,544 |
How Much Does an Employee Really Cost?
The true cost of an employee is always more than their salary. On top of the gross salary, employers must pay employer's National Insurance at 13.8% on earnings above the secondary threshold (£5,000 per year for 2025/26), plus auto-enrolment pension contributions of at least 3%.
For an employee on £35,000, the total cost to the employer is approximately £39,600 — about 13% more than the headline salary.
Employer National Insurance Rates 2025/26
Employer NI is charged at 13.8% on all earnings above the secondary threshold of £5,000 per year. Unlike employee NI, there is no upper earnings limit — the 13.8% rate applies to all earnings above the threshold with no reduction at higher levels.
The Employment Allowance of £10,500 is available to eligible small businesses, which reduces the employer NI bill. Businesses with a total NI bill under £100,000 in the previous year may qualify.
Auto-Enrolment Pension
Employers must contribute at least 3% of qualifying earnings to an employee's workplace pension. Qualifying earnings are between £6,240 and £50,270 per year. Many employers contribute more than the minimum to attract and retain staff.
Other Employment Costs
Beyond NI and pension, employers may also face costs including holiday pay (28 days minimum including bank holidays), sick pay, maternity/paternity pay, employers' liability insurance, training costs, workspace and equipment, and HR and payroll administration.
Use our salary calculator to see what the employee actually takes home from their gross salary.