Employer National Insurance Calculator
Estimate employer National Insurance contributions based on an employee's gross pay, pay frequency, secondary threshold and employer NI rate.
Overview
Use this Employer National Insurance Calculator to estimate how much employer NI may be due from an employee's gross pay. Enter the pay amount, choose the pay frequency, add the relevant secondary threshold and employer NI rate, and optionally apply an Employment Allowance amount to see both period and annual estimates.
How it works
The calculator first works out how much of the employee's gross pay is above the secondary threshold for the selected pay period. It then applies the employer NI rate to that amount to estimate the contribution for that period. To produce an annual estimate, it multiplies the period result by the number of pay periods in a year based on the chosen frequency. If Employment Allowance is selected, the calculator deducts the allowance amount from the annual employer NI estimate, but not below zero.
How to use this calculator
- 1Enter the employee's gross pay for the chosen pay period.
- 2Select whether the pay figure is weekly, monthly or annual.
- 3Add the employer NI secondary threshold for the same period.
- 4Enter the employer National Insurance rate that applies above the threshold.
- 5Tick Employment Allowance if you want to include it and enter the allowance amount.
- 6Review the estimated employer NI for the period and the annual total.
Example Calculation
Gross pay
$3,000
Pay frequency
monthly
Secondary threshold
$758
Employer NI rate
14%
Apply Employment Allowance
false
Employment Allowance amount
$5,000
Employer NI for selected period
$309.40
If an employee earns £3,000 per month, with a monthly secondary threshold of £758 and an employer NI rate of 13.8%, the estimated employer NI is about £309.40 for the month and about £3,712.80 for the year before any allowance.
Frequently asked questions
What does this Employer National Insurance Calculator estimate?
It estimates employer National Insurance contributions for a selected pay period and converts that figure into an annual estimate.
Do I need to enter the secondary threshold manually?
Yes. This calculator is designed to be flexible, so you can enter the threshold that applies to your payroll period and tax year.
Does this calculator include employee National Insurance deductions?
No. It estimates employer National Insurance only, not employee deductions from pay.
Can I use this for weekly and monthly payroll?
Yes. You can choose weekly, monthly or annual pay frequency so the estimate matches your pay figure.
How is Employment Allowance handled?
If selected, the calculator deducts the allowance amount from the annual employer NI estimate, up to a minimum of zero.
Will this calculator work for all NI category letters?
No. Different NI categories and special cases can change the calculation, so this tool is best used as a general estimate.
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Assumptions and warnings
Assumptions
- This calculator estimates employer National Insurance using a single pay figure, a user-entered threshold and a user-entered employer NI rate.
- It assumes the same gross pay is paid each period throughout the year when annualising results.
- It does not account for category letters, reliefs, exemptions, director-specific methods or changing rates during the year.
- Employment Allowance is treated as a simple annual offset against employer NI when selected.
- Results are estimates and should be checked against current HMRC rules and payroll software.
Warnings
- This calculator provides an estimate only and is not tax or payroll advice.
- National Insurance rules, thresholds and allowances can change, and eligibility for Employment Allowance depends on your circumstances.