Employer National Insurance at 15%: what it really costs a small business in 2026/27

Employer National Insurance is now 15% on earnings above the £5,000 secondary threshold — in force from April 2025 and carried into 2026/27. That’s up from 13.8% above £9,100, and these figures are frozen until 2030/31.

What it costs in practice: an employee on a £30,000 salary costs you £3,750 a year in employer NIC — 15% of the £25,000 above the threshold. Against the old rules, that’s roughly £800–£900 more per employee per year.

A few things that are easy to miss:

• Employees under 21: 0% up to £50,270.
• Qualifying apprentices under 25: 0% up to £50,270.
• Class 1A on benefits in kind (company cars, private medical and the like): also 15%.

If you’re budgeting for 2026/27, work through your payroll now. With thresholds frozen until 2030/31, every pay rise pushes a bigger slice of pay into NIC.