Employer National Insurance in 2026/27
Employers pay 15% on each employee's earnings above £5,000 a year (£417 a month, £96 a week). There is no upper cap.
Example
An employee on £35,000: (£35,000 − £5,000) × 15% = £4,500 a year, before any Employment Allowance.
Employment Allowance
Eligible employers can take up to £10,500 a year off their total employer NI bill. It applies to the business, not each employee, and is claimed through payroll software.
Under 21s, apprentices under 25 and veterans
For categories M, H and V the employer rate is 0% up to £50,270 a year (£4,189 a month, £967 a week), then 15% above it. Freeport and Investment Zone employers have a 0% band up to £25,000.
Class 1A and 1B
Benefits in kind, such as a company car, carry Class 1A at 15%. PAYE Settlement Agreements carry Class 1B at 15%.
Source: Rates and thresholds for employers 2026 to 2027. Crown copyright, Open Government Licence v3.0.