Employer NI Rise Impact Calculator (April 2025) Trending
Calculate the extra employer NI cost from the April 2025 rate rise (13.8% → 15%, threshold £9,100 → £5,000).
Last updated: April 2026 · Source: HMRC — Employer NI rates and thresholds 2025/26
Extra Employer NI Cost (April 2025)
+£8,658.00/year
+£721.50/month · +£865.80/employee
Before (13.8%, £9,100 threshold)
£28,842.00/yr
£2,884.20/employee
After (15%, £5,000 threshold)
£37,500.00/yr
£3,750.00/employee
After Employment Allowance (£10,500)
Net increase: £0.00/year
From April 2025: Employer NI rises from 13.8% to 15%. Threshold drops from £9,100 to £5,000. Employment Allowance increased to £10,500 (most small businesses). This is the largest employer tax rise in decades.
Disclaimer
This calculator is provided for informational purposes only and should not be considered as financial or tax advice. All calculations are performed locally in your browser — no personal data is collected or sent to our servers. Rates and thresholds are sourced from HMRC and GOV.UK and are updated for the current tax year. Always verify results with HMRC or consult a qualified professional before making financial decisions.
How It Works
From April 2025, the employer National Insurance rate increased from 13.8% to 15%. Simultaneously, the Secondary Threshold (the point at which employer NI becomes payable) dropped from £9,100 to £5,000 per year. This double change significantly increases the cost of employing staff, particularly for lower-paid workers.
The Employment Allowance was increased to £10,500 from April 2025 to partially offset the impact for small businesses. Eligible employers can deduct this from their total employer NI bill. Companies connected to other companies and those with a sole director and no other employees are not eligible.
This calculator models the cost impact per employee and across your total payroll. Enter each employee's salary to see the increase in employer NI versus the previous 13.8% rate and £9,100 threshold. It also shows whether the Employment Allowance covers the increase for your business.
Example: Employee on £30,000 salary
- Old rules: (£30,000 − £9,100) × 13.8% = £2,884.20
- New rules: (£30,000 − £5,000) × 15% = £3,750.00
- Increase per employee: £865.80 per year
- For a 10-person team at £30,000: total increase £8,658
- Less Employment Allowance (£10,500): net saving for small firms
Frequently Asked Questions
- What does the Employer NI Rise Impact Calculator (April 2025) do?
- Calculate the extra employer NI cost from the April 2025 rate rise (13.8% → 15%, threshold £9,100 → £5,000). All calculations are performed in your browser using official UK rates and thresholds.
- Is this calculator updated for the 2025/26 tax year?
- Yes. This calculator uses the latest HMRC rates and thresholds for the 2025/26 UK tax year, which runs from 6 April 2025 to 5 April 2026. Rates are verified against official HMRC publications.
- Do I need to tell HMRC about this?
- Whether you need to report to HMRC depends on your individual circumstances. If you are unsure, check GOV.UK or contact HMRC directly. This calculator provides estimates for guidance only.