Employer national insurance contribution comparison calculator
From April 2025, employer national insurance contributions are increasing by 1.2% from 13.80% to 15%. The threshold above which employers pay national insurance on employee annual earnings is decreasing from £9,100 to £5,000. To see how these changes impact your small business, enter your employee salaries in the employer national insurance contribution calculator below.
On a positive note, the national insurance allowance, which is available to eligible employers is increasing from £5,000 to £10,500 annually. The allowance is deducted from the employer national insurance liability by your payroll software and is aimed to benefit smaller businesses.
Not all businesses are able to benefit from the NI allowance. You cannot claim if your company has just one director and that director is the only employee liable for secondary Class 1 national insurance. To check if your business is eligible to claim the national insurance allowance visit: Employment Allowance: What you’ll get – GOV.UK
Employer National Insurance Calculator
Calculation Results
| Salary | Current NI (2024) | April 2025 NI |
|---|---|---|
| Total NI Before Allowance | ||
| NI Allowance | £5,000 | £10,500 |
| Total NI After Allowance |
The decrease to the threshold above which employer’s pay national insurance means every employee earning over £9,100 annually, will cost employers an extra £615 a year from April 2025. This is partially offset by the increase to the national insurance allowance which may benefit smaller employers.
If you are a small employer with up to 10 employees, our sister website has a great resource to help you budget your annual staff costs.
