What Is Employers National Insurance?
Employers National Insurance (Class 1 Secondary) is a charge paid by employers on employee earnings above the Secondary Threshold. Unlike employee NI (deducted from wages), Employers NI is a cost borne entirely by the business. For the 2025/26 tax year the rate is 15% on employee earnings above £9,100 per year (£175 per week).
As a freelancer, you only pay Employers NI if you employ staff. Self-employed sole traders pay Class 2 and Class 4 NI on their own income — not Employers NI. See NI for freelancers for the self-employed NI picture.
Employers NI Rates 2025/26
| Threshold | Rate |
|---|---|
| Below Secondary Threshold (£9,100/year) | 0% |
| Above Secondary Threshold | 15% |
Source: HMRC / gov.uk · Rates correct for 2025/26 tax year.
The Employers NI rate was increased from 13.8% to 15% from April 2025 — a significant change for businesses with staff. At the same time, the Secondary Threshold was reduced from £9,100 to the same level, increasing the amount of wages subject to the charge. The Employment Allowance (see below) can offset some of this for smaller employers.
The Employment Allowance
The Employment Allowance reduces Employers NI liability by up to £10,500 per year (for 2025/26). If your total Employers NI bill is less than £10,500, the allowance covers the entire amount. This means small businesses can often avoid Employers NI altogether.
The Employment Allowance is available to most employers, but not to companies where the sole employee is also a director. This is the most common situation for freelancers running a single-director limited company — so many do not qualify. Businesses with multiple employees do qualify.