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Employer NIC Optimisation Calculator

Calculate employer National Insurance for 2024/25 or 2025/26 — with Employment Allowance and salary sacrifice pension saving.

Employer NIC Optimisation Calculator

2024/25 and 2025/26 — Employment Allowance & Salary Sacrifice

Salary Sacrifice Optimisation

Enter 0 to skip. Reduces NIC for both employer and employee.

NIC Summary

Total employer NIC (before sacrifice)£18,750.00
NIC after 5% salary sacrifice£17,625.00
NIC saving from salary sacrifice−£1,125.00
Employment Allowance deduction−£10,500.00

Net employer NIC payable£7,125.00

Per-Employee Breakdown

Emp.SalaryNICNIC (sacrifice)Saving
#1£30,000.00£3,750.00£3,525.00£225.00
#2£30,000.00£3,750.00£3,525.00£225.00
#3£30,000.00£3,750.00£3,525.00£225.00
#4£30,000.00£3,750.00£3,525.00£225.00
#5£30,000.00£3,750.00£3,525.00£225.00

Employment Allowance (£10,500) is claimed once — it offsets your total employer NIC bill, not per-employee.

Employer NIC rates 2024/25 vs 2025/26

Tax yearRateSecondary thresholdEmployment Allowance
2024/2513.8%£9,100/yr£5,000
2025/2615%£5,000/yr£10,500

Employment Allowance rules

  • Claimed once per employer regardless of headcount.
  • Not available to sole-director companies or employers whose NIC bill was £100,000+ in the prior year.
  • Offsets NIC payable in-year — cannot exceed total employer NIC liability.

Salary sacrifice & pension

Moving salary to employer pension contributions via salary sacrifice saves employer NIC on the sacrificed amount — a typical saving of £138–£150 per £1,000 sacrificed (2024/25 / 2025/26 respectively). The saving is in addition to employee income tax and NIC relief.

Disclaimer: This calculator is for guidance only. Seek professional advice for complex payroll arrangements.