When did the employer NI increase take effect?

The rate increased from 13.8% to 15% on 6 April 2025, and the secondary threshold dropped from £9,100 to £5,000 at the same time.

Does the NI increase apply to all employees?

Yes, the employer NI increase applies to all employees earning above the secondary threshold (£5,000). There is an enhanced Employment Allowance of £10,500 for small businesses.

How can I offset the employer NI increase?

Options include: adjusting pricing, improving operational efficiency, restructuring work patterns, claiming the Employment Allowance if eligible, or reviewing your benefits package.

Is employer NI tax-deductible?

Yes, employer NI contributions are an allowable business expense and reduce your corporation tax bill.

Pre-filled with typical Construction figures: 20 employees, £38,000 average salary. Adjust the sliders for your actual numbers.

Employer NI Impact Calculator

The employer NI rate rose from 13.8% to 15% in April 2025, and the secondary threshold dropped from £9,100 to £5,000. Enter your workforce details to see the exact cost increase.

Number of Employees

120500

Average Annual Salary

£10k£38,000£150k

Your Additional Annual Cost

£19,236

+24.1% increase in employer NI costs

Per employee increase£962

Old total NI cost£79,764

New total NI cost£99,000

Monthly Cash Impact

£1,603 /month

Rate Comparison

Metric	Before (2024/25)	After (2025/26)	Change
Employer NI Rate	13.8%	15.0%	+1.2pp
Secondary Threshold	£9,100	£5,000	-£4,100
NI per employee (your avg salary)	£3,988	£4,950	+£962
Total (20 employees)	£79,764	£99,000	+£19,236

What Should You Do?

Risk of Inaction

Every month you delay adjusting pricing or workforce planning, you absorb £1,603 in unrecovered costs.

If You Act Now

Adjust prices by 2.5% to fully offset the increase.

Decision Window

Already in effect. Every month costs you £1,603. The optimal action was Q4 2024. The second best time is now.

Construction — Key Concerns

Mix of employed and subcontracted labour complicates NI calculations
CIS deductions add another layer of payroll complexity
Business loan costs critical for project financing

Employer NI Calculator for Other Industries

Hospitality Retail Healthcare & Social Care Manufacturing Professional Services Technology & SaaS Education & Training Logistics & Transport Agriculture & Farming Financial Services

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Frequently Asked Questions

When did the employer NI increase take effect?: The rate increased from 13.8% to 15% on 6 April 2025, and the secondary threshold dropped from £9,100 to £5,000 at the same time.
Does the NI increase apply to all employees?: Yes, the employer NI increase applies to all employees earning above the secondary threshold (£5,000). There is an enhanced Employment Allowance of £10,500 for small businesses.
How can I offset the employer NI increase?: Options include: adjusting pricing, improving operational efficiency, restructuring work patterns, claiming the Employment Allowance if eligible, or reviewing your benefits package.
Is employer NI tax-deductible?: Yes, employer NI contributions are an allowable business expense and reduce your corporation tax bill.