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 Healthcare & Social Care figures: 25 employees, £30,000 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

125500

Average Annual Salary

£10k£30,000£150k

Your Additional Annual Cost

£21,645

+30.0% increase in employer NI costs

Per employee increase£866

Old total NI cost£72,105

New total NI cost£93,750

Monthly Cash Impact

£1,804 /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)	£2,884	£3,750	+£866
Total (25 employees)	£72,105	£93,750	+£21,645

What Should You Do?

Risk of Inaction

Every month you delay adjusting pricing or workforce planning, you absorb £1,804 in unrecovered costs.

If You Act Now

Adjust prices by 2.9% to fully offset the increase.

Decision Window

Already in effect. Every month costs you £1,804. The optimal action was Q4 2024. The second best time is now.

Healthcare & Social Care — Key Concerns

Social care heavily reliant on minimum-wage workers — double hit from NI + NLW
Many healthcare services are VAT-exempt, limiting ability to reclaim input VAT
Recruitment crisis means absorbing costs rather than cutting headcount

Employer NI Calculator for Other Industries

Hospitality Retail Construction 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.