National Insurance Calculator 2025
Monday 24th February 2025
Our 2025 National Insurance Calculator will help you navigate any changes to your NI contributions.
Simply enter your employee’s Gross Pay and NIC Category, and the tool will provide a clear breakdown of your annual and or monthly costs.
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To understand how the tool calculates the amount here’s how the formula would work for an employee earning £30,000 in NI category A.
Employer’s NI Contribution = (Employee’s Salary - NI Threshold) * Employer NI Rate (15%).
For example, if an employee earns £30,000, you’ll subtract £5,000 from their salary, resulting in £25,000, and then apply the 15% rate, which would give you an NI contribution of £3,749 annually.
What’s Changing in 2025/26?
Starting from April 6, 2025, the employer’s National Insurance rate will rise from 13.8% to 15%. Additionally, the secondary threshold (the point above which employers need to contribute) will drop from £9,100 to £5,000 annually (£417 monthly). This means employers will pay more NI for employees earning over £5,000 annually, which could impact businesses' payroll costs.
Understanding the National Insurance Contributions for Employers in 2025/26
If you’re an employer in the UK, it's crucial to stay updated with the National Insurance (NI) contribution rates and thresholds, especially with upcoming changes in the 2025/26 tax year:
• Employer NI Rate: 15% for earnings above £5,000 annually.
• Employee NI Rate: The employee rate will vary depending on their category but is typically set at 12% for most employees.
• Secondary Threshold: Reduced to £5,000 annually (£417 monthly).
• Annual Salary Examples: For a category A employee earning £30,000 annually, the employer would pay approximately £3,749 in NI, a significant increase from previous years.
Understanding National Insurance Categories
When calculating National Insurance (NI) deductions for your employees, it’s crucial to assign the correct NI category. This ensures that the right amount is deducted from their wages.
There are eight main National Insurance categories, and which one applies depends on personal circumstances like age, marital status, or employment history. Factors like whether the employee is an apprentice, a veteran, or holds another job can also influence their NI category.
NI Category |
Employee Group |
| A | Default category for all employees unless specified otherwise |
| B | Married or widowed women eligible for reduced NI contributions |
| C | Employees over the State Pension age |
| H | Apprentices under 25 |
| J | Employees paying NI contributions through another job |
| M | Employees under 21 |
| V | Army veterans in their first job post-service |
| Z | Employees under 21 also contributing NI via another job |
For most employees, NI Category A is used. This is the default and applies unless the employee fits into any of the other specific categories listed.
As you prepare for the 2025/26 tax year, understanding the changes in National Insurance rates and using tools like the NI calculator will help streamline your payroll processing and ensure you comply with the new regulations.