Employer NI Contributions
Changes to Employers’ NIC
From April 2025, Employers’ National Insurance Contributions increase from 13.8% to 15%, with the threshold decreasing from £9,100 to £5,000.
The table below is an illustration of the changes to Employers’ NI Contributions before and after the increases taking place April 2025, provided that the wages remain the same year-on-year.
| 2024-25 | Annual Salary | Employers’ Threshold | Remaining: | Employers’ NI @ 13.8% | 2025-26 | Annual Salary | Employers’ Threshold | Remaining: | Employers’ NI @ 15% |
|---|---|---|---|---|---|---|---|---|---|
| Employee A | £24,000 | -£9,100 | £14,900 | £2,056.20 | A | £24,000 | -£5,000 | £19,000 | £2,850.00 |
| Employee B | £26,000 | -£9,100 | £16,900 | £2,332.20 | B | £26,000 | -£5,000 | £21,000 | £3,150.00 |
| Employee C | £28,000 | -£9,100 | £18,900 | £2,608.20 | C | £28,000 | -£5,000 | £23,000 | £3,450.00 |
| Employee D | £30,000 | -£9,100 | £20,900 | £2,884.20 | D | £30,000 | -£5,000 | £25,000 | £3,750.00 |
| Employee E | £32,000 | -£9,100 | £22,900 | £3,160.20 | E | £32,000 | -£5,000 | £27,000 | £4,050.00 |
| Employee F | £34,000 | -£9,100 | £24,900 | £3,436.20 | F | £34,000 | -£5,000 | £29,000 | £4,350.00 |
| Employee G | £36,000 | -£9,100 | £26,900 | £3,712.20 | G | £36,000 | -£5,000 | £31,000 | £4,650.00 |
| Employee H | £38,000 | -£9,100 | £28,900 | £3,988.20 | H | £38,000 | -£5,000 | £33,000 | £4,950.00 |
| Employee I | £40,000 | -£9,100 | £30,900 | £4,264.20 | I | £40,000 | -£5,000 | £35,000 | £5,250.00 |
| Sub-Total | £28,441.80 | Sub-Total | £36,450.00 | ||||||
| Employment Allowance | -£5,000.00 | Employment Allowance | -£10,500.00 | ||||||
| GRAND TOTAL | £23,441.80 | GRAND TOTAL | £25,950.00 | ||||||
| NIC DIFFERENCE | +£2,508.20 |
We hope you find this model of use, but if you are unsure of any issues to do with your payroll, please do not hesitate to contact our Payroll Department on 01384 376 964
Folkes Worton LLP Chartered Accountants
Accounting for the Future