Employer NIC Calculator

Employers pay 15% on employee earnings above £5,000 per year (the secondary threshold). For an employee earning £35,000, employer NIC is (£35,000 - £5,000) × 15% = £4,500 per year.

The secondary threshold is £5,000 per year (2025/26). Employers pay 15% NI on all earnings above this amount. For employees under 21, apprentices under 25, and veterans, the threshold is higher at £50,270.

Yes. Employer NIC is an additional cost on top of the employee's gross salary. An employee earning £35,000 costs the employer £39,500 including NIC. This is why total employment cost exceeds the salary figure.

The Employment Allowance lets eligible employers reduce their annual NIC bill by up to £10,500. It's available to most businesses with employer NIC bills under £100,000. Single-director companies cannot claim it.

Most employers pay NIC on employees earning above £5,000/year. Exceptions include employees over state pension age (Category C = 0% NIC) and employers using the Employment Allowance to offset their bill.

Employer NIC is paid by the employer at 15% above £5,000 with no upper limit. Employee NIC is paid by the employee at 8% between £12,570 and £50,270, then 2% above £50,270. They are separate charges.