Monthly Employer NI 2026/27

For a standard category A employee paid the same gross amount every month, a simple monthly sense-check is max(monthly gross pay − £417, 0) × 15%. The £417 figure is the published monthly secondary threshold for 2026/27. It is not the exact mathematical twelfth of the £5,000 annual threshold, so small differences from an annual estimate can occur.

The official HMRC thresholds list the monthly, weekly and annual figures.

The calculation is an illustration of the stated monthly threshold. It should not be multiplied blindly to create a final annual liability: exact pay-period calculations, annual directors' methods and rounding can produce a different total. For a salary offer, see the employer NI on a salary guide.

Employer NI is normally due on NI-able salary, overtime, commission and bonuses in the period they are paid. If a £2,500 monthly salary is accompanied by a £1,000 bonus, the relevant monthly gross pay is £3,500 for that calculation, not £2,500. The threshold is used once for the pay period.

That is why an annual salary divided by 12 is not enough when pay changes. Keep the pay-period gross amount separate from costs that are not Class 1 earnings, and have payroll confirm any unusual payment before reporting it to HMRC.

The £417/15% check is for the normal category A case. A qualifying employee under 21, apprentice under 25 or veteran can have a 0% employer rate up to the upper secondary threshold. A qualifying Freeport or Investment Zone category can have a 0% rate up to its own upper secondary threshold.

A special category is not a discretionary discount. It depends on the correct HMRC letter, eligibility and evidence. See the employer NI category-letter guide before using a reduced estimate.

Employment Allowance does not change the £417 threshold or 15% rate. Instead, an eligible employer uses it to offset the running total of its Class 1 secondary liability, up to £10,500 in the tax year. One worker's monthly NI may be covered early in the year while the employer still has allowance remaining, but the underlying liability still exists.

For a payroll-wide view, calculate the NI first and then check eligibility and remaining allowance. Our Employment Allowance guide explains the main eligibility checks.

For a regular monthly category A employee, £417 is the 2026/27 secondary threshold and 15% applies above it. Use the calculation as a transparent sense-check, but do not use it as an alternative to payroll software. Check special categories, variable pay and Employment Allowance separately.