Employment Costs10 min read
How Much Does It Cost to Employ Someone in the UK? (2026/27)
A complete breakdown of employment costs in the UK for 2026/27, including NI, pension, and hidden costs that employers often overlook.
National Insurance
National Insurance Rates 2026/27: 8% Employee, 15% Employer
All UK National Insurance rates and thresholds for 2026/27 — Class 1 primary (8%), secondary (15%), and self-employed Class 4.
7 min readPublished 1 April 2026•Updated 10 May 2026
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Class 1 Employee NI Rates (8% / 2%)
Employees pay 8% National Insurance on earnings between Primary Threshold and Upper Earnings Limit.
Class 1 Employer NI Rates (15%)
Employers pay 15% National Insurance on employee earnings above £5,000/yr.
2026/27 NI Thresholds Breakdown
Secondary Threshold: £5,000/yr; Primary Threshold: £12,570/yr.