What changed with employer NI in April 2025?
From April 2025, the employer National Insurance rate increased from 13.8% to 15%, and the secondary threshold, the salary level above which employer NI is due, dropped from £9,100 to £5,000 per year. The Employment Allowance increased from £5,000 to £10,500 to partially offset the impact for smaller employers.
What is the Employment Allowance?
The Employment Allowance allows eligible employers to reduce their employer NI bill by up to £10,500 per year. Most employers with a previous year NI bill under £100,000 are eligible. It is claimed through your payroll software. The allowance applies to the total NI bill across all employees, not per employee.
What is the true cost of hiring someone at £30,000?
For a £30,000 salary in 2025/26, employer NI is £3,750, which is 15% on the £25,000 above the £5,000 threshold. Adding the minimum 3% pension contribution of approximately £713 on qualifying earnings, the true employment cost before Employment Allowance is approximately £34,463, around 15% above the headline salary figure.