For employers and payroll — work out your Class 1 secondary NI liability for any employee
| Employee gross salary | £35,000.00 |
| Secondary threshold (2026/27) | £5,000.00 |
| Amount subject to employer NI | £30,000.00 |
| Employer NI rate | 15% |
| Employer NI due (per employee) | £4,500.00 |
An employer pays one employee a £35,000 salary. Employer NI is charged at 15% on earnings above the £5,000 secondary threshold:
| Earnings above threshold (£35,000 − £5,000) | £30,000.00 |
| Employer NI (15% of £30,000) | £4,500.00 |
| Less Employment Allowance (if eligible, up to £10,500/yr across all staff) | up to −£4,500.00 |
| Net employer NI payable | £0.00 (fully covered by allowance) |
Employer (Class 1 secondary) National Insurance is charged at 15% on employee earnings above the £5,000 secondary threshold, with no upper earnings limit.
The Employment Allowance lets eligible employers reduce their total annual employer NI bill by up to £10,500. It applies once per business (not per employee) and most small employers with total NI liability under £100,000 qualify, except single-director-only companies.
Yes, unless the Employment Allowance covers the full amount. Each employee's salary is assessed separately against the £5,000 threshold, but the Employment Allowance is deducted from your combined total employer NI bill.
No. Employer NI is an additional cost paid by the business on top of the employee's gross salary — it does not reduce the employee's take-home pay.
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Results are estimates based on 2026/27 HMRC rates and are intended as a guide only. They do not constitute financial or tax advice. Always verify with HMRC or a qualified accountant for your specific circumstances.