How much is employer National Insurance in the UK?

Employer Class 1 National Insurance is 15% of an employee’s earnings above the secondary threshold of £5,000 a year (2025/26), with no upper limit. The Employment Allowance reduces an eligible employer’s total bill by £10,500.

What is the minimum employer pension contribution in the UK?

Under auto-enrolment the employer must contribute at least 3% of qualifying earnings (the band between £6,240 and £50,270 in 2025/26) for eligible employees, with total minimum contributions of 8%.

What is the total cost of employing someone in the UK?

Typically 12–20% on top of gross salary for employer National Insurance and pension, before recruitment, benefits, insurance and payroll costs.

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What does it cost to employ someone in the UK?

Salary is about four-fifths of it. Employer National Insurance at 15% and a compulsory workplace pension make up most of the rest. Enter a salary to see the full annual cost to your UK company.

Annual cost to the company

£0

Gross salary

Employer National Insurance

Employer pension

Not included: recruitment, benefits, equipment, employer’s liability insurance (compulsory), and our payroll service from £95 a month. Read the hiring guide.

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How the numbers work

Employer National Insurance. 15% of each employee’s earnings above the secondary threshold of £5,000 a year. Unlike employee NI, there is no upper limit. The Employment Allowance takes £10,500 off the employer’s total NI bill, once per group of connected companies.

Workplace pension. Employees aged 22 to State Pension age earning over £10,000 must be auto-enrolled. The legal minimum employer contribution is 3% of qualifying earnings — the band between £6,240 and £50,270 — though many employers pay more on full salary.

Apprenticeship Levy. 0.5% of the annual pay bill, less a £15,000 allowance, so it only applies once the pay bill passes £3m.

What it leaves out. Statutory sick pay, holiday (5.6 weeks, included in salary), employer’s liability insurance, benefits in kind and their Class 1A NI, and the cost of running payroll itself.