Secondary Threshold
The earnings level above which employer NI is charged — £5,000/year in 2026/27. Below this, no employer NI is due.
The secondary threshold is the annual earnings level above which employer National Insurance contributions are payable at 15%. In 2026/27, this threshold is £5,000/year (reduced from £9,100 in 2024/25).
For umbrella contractors with day rates above £100/day, virtually all of their gross salary exceeds the secondary threshold — making the threshold a relatively minor consideration. The greater impact came from the threshold reduction in April 2025, which increased employer NI costs significantly.
The reduction from £9,100 to £5,000 was introduced alongside the rate rise from 13.8% to 15% in April 2025. Together these changes increased employer NI by approximately £3,455/year on a £500/day rate.
The threshold is unchanged in 2026/27.