Employer NIC’s

From the 6th April 2025 the rate at which an employer must pay secondary national insurance on an employees earnings rises by 1.2% to 15%. The threshold at which secondary national insurance becomes payable also falls to £5,000 from £9,100. This change represents a big increase in employee cost for businesses and because of the reduction in the threshold means a disproportionate cost increase for employers employing staff at lower salaries. The national minimum wage also increases in April which in turn will increase the secondary NI payable. For employers only employing a small number of staff the increase will be offset by the rise in the Employment Allowance from £5,000 to £10,500. A business employing 4 people at the national minimum wage will therefore not be liable to pay employer NIC’s.