Employer National Insurance changes from April 2025

The Autumn Budget announced there is to be an increase in the rate of National Insurance Contributions (NIC) paid by employers in respect of the wages they pay to their employees.  

Currently, employers pay employer NIC at the rate of 13.8% on wages over £9,100.  From April 2025, the rate employers must pay NIC would increase by 1.2% from 13.8% to 15%. 

In addition, the threshold where employer contributions become payable will6 fall from £9,100 to £5,000. The threshold will then remain at £5,000 until 5th April 2028. The plan is to increase the threshold annually for inflation. 

To support businesses, the Government intends to make changes to the Employment Allowance. The Employment Allowance is available to eligible businesses to reduce their employer NIC each tax year. The allowance currently allows eligible businesses with employer NIC bills of £100,000 or less in the previous tax year to deduct £5,000 from their employer NIC bill.  

The Chancellor announced an increase in the Employment Allowance from £5,000 to £10,500, and plans to remove the £100,000 eligibility threshold, expanding this to all eligible employers with employer NICs bills from 6th April 2025. 

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