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 Creative & Media figures: 6 employees, £40,000 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

16500

Average Annual Salary

£10k£40,000£150k

Your Additional Annual Cost

£5,915

+23.1% increase in employer NI costs

Per employee increase£986

Old total NI cost£25,585

New total NI cost£31,500

Monthly Cash Impact

£493 /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)	£4,264	£5,250	+£986
Total (6 employees)	£25,585	£31,500	+£5,915

What Should You Do?

Risk of Inaction

Every month you delay adjusting pricing or workforce planning, you absorb £493 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 £493. The optimal action was Q4 2024. The second best time is now.

Creative & Media — Key Concerns

Many freelancers and small studios operate near the VAT threshold
Mix of employed staff and freelance contractors complicates cost planning
MTD is a significant concern for sole-trader creatives

Employer NI Calculator for Other Industries

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

Recommended Tool

BrightPay

Payroll software trusted by 300,000+ businesses. Handles RTI, auto-enrolment, and the new NI rates automatically.

Try BrightPay Free for 60 Days →

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.