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.
110500
£10k£35,000£150k
Your Additional Annual Cost
£9,258
+25.9% increase in employer NI costs
Per employee increase£926
Old total NI cost£35,742
New total NI cost£45,000
Monthly Cash Impact
£772 /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) | £3,574 | £4,500 | +£926 |
| Total (10 employees) | £35,742 | £45,000 | +£9,258 |
What Should You Do?
Risk of Inaction
Every month you delay adjusting pricing or workforce planning, you absorb £772 in unrecovered costs.
If You Act Now
Adjust prices by 2.6% to fully offset the increase.
Decision Window
Already in effect. Every month costs you £772. The optimal action was Q4 2024. The second best time is now.
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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.