Employer NI on a £12,570 Salary (2026/27)
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Estimate only. Independent tool, not affiliated with HMRC. Rates checked 20 October 2026. Real payroll rounds each pay period.
On a £12,570 salary, employer National Insurance is £1,135.50 a year in 2026/27, or £94.63 a month. That is 15% of the £7,570 above the £5,000 threshold. The employee pays no NI at all on this salary. The calculator above is set to £12,570.
In this guide13 sections
The sum, step by step
- Salary: £12,570
- Take away the Secondary Threshold: £12,570 − £5,000 = £7,570
- Multiply by 15%: £7,570 × 15% = £1,135.50 a year
- Divide by 12: £94.63 a month (rounded)
The total cost to the employer is £12,570 plus £1,135.50, which is £13,705.50 a year.
Why payroll may show a slightly different monthly figure
The sum above divides the yearly bill by 12. Payroll software works month by month instead. It takes the monthly pay of £1,047.50, subtracts the monthly threshold of £417, and charges 15% on what is left.
| Method | Working | Monthly NI | Yearly NI |
|---|---|---|---|
| Yearly, divided by 12 | £7,570 × 15% ÷ 12 | £94.63 | £1,135.50 |
| Payroll, month by month | (£1,047.50 − £417) × 15% | £94.58 | £1,134.90 |
The monthly threshold is rounded to a whole pound, which is why the payroll total is about £0.60 lower over a full year. Neither is wrong. HMRC uses the pay-period method for real payrolls, and the yearly method for directors.
Why £12,570 comes up so often
£12,570 is the income tax Personal Allowance. It is also the point where an employee starts paying National Insurance, called the Primary Threshold. So £12,570 is the most the employee can earn with no income tax and no NI to pay.
That makes it a popular figure for part-time staff and for company directors choosing a salary. The government has frozen both thresholds until April 2031.
An employee on £12,570 still earns a qualifying year for the State Pension. Anyone paid at or above the Lower Earnings Limit of £6,708 is treated as having paid NI, even when they pay nothing.
Employer NI and employee NI at £12,570
| Employer | Employee | |
|---|---|---|
| Starts above | £5,000 | £12,570 |
| Rate | 15% | 8% (2% above £50,270) |
| Bill on £12,570 | £1,135.50 | £0 |
For a full side-by-side look, see employer NI vs employee NI.
Does Employment Allowance cover it?
If your business can claim Employment Allowance, yes. The allowance takes up to £10,500 off the yearly bill, so one employee on £12,570 costs you nothing in NI. A company whose only paid person is the director cannot claim it. Read the eligibility rules before you assume you can.
With the allowance, a business could employ up to £9 people on £12,570 before paying any employer NI at all. The ninth person tips the bill over the allowance.
Real-life situations at £12,570
A part-time employee. A shop assistant works 25 hours a week and earns £12,570. You pay £1,135.50 in employer NI. The employee pays no NI and no income tax.
A company director. Many directors set their salary at £12,570 because it avoids employee NI and income tax. It does cost employer NI of £1,135.50, unless Employment Allowance applies. Compare it with the lower options on the director salary page.
A first employee. If you take on your first employee at £12,570, your yearly employer NI is £1,135.50. If you qualify for Employment Allowance, you pay nothing.
A student under 21. Employer NI is 0% up to £50,270 for under-21s, so a 19-year-old on £12,570 costs you no employer NI at all. See the under-21 relief.
An apprentice. An apprentice under 25 on an approved apprenticeship has the same 0% rate. See apprentice employer NI.
£12,570 against other pay levels
| Salary | Employer NI | Employee NI | Employee income tax |
|---|---|---|---|
| £6,708 | £256.20 | £0 | £0 |
| £12,570 | £1,135.50 | £0 | £0 |
| £15,000 | £1,500 | £194.40 | £486 |
| £20,000 | £2,250 | £594.40 | £1,486 |
Employee tax is at the basic rate of 20% above £12,570. Scottish rates differ.
When to pay more than £12,570
Above £12,570 the employee starts to pay both NI and tax. The employer cost goes up at the same 15% rate. Pay rises above this level are charged on both sides, which is why many small firms look at pension sacrifice or non-cash benefits. Read about salary sacrifice savings.
| Salary | Employer NI | Employee NI | Employee income tax |
|---|---|---|---|
| £12,570 | £1,135.50 | £0 | £0 |
| £13,570 | £1,285.50 | £80 | £200 |
A £1,000 rise above £12,570 costs the employer £1,150 and gives the employee about £720 in hand. For a business with several part-time staff, the line at £12,570 is a useful rule of thumb for budgeting.
What to check before you set a £12,570 salary
- Is the person an employee? Check their employment status.
- Do you qualify for Employment Allowance? See the rules.
- Does the National Minimum Wage rule limit their hours? A full-time worker on £12,570 would be paid below the minimum wage, so the hours must be part-time.
- Are they under 21 or an apprentice? If so, employer NI could be nil.
- Is this a director? Directors use an annual earnings period. See the director NI calculator.
How much does a team on £12,570 cost?
Small employers often hire several part-time staff on similar pay. This table shows the bill before and after Employment Allowance.
| Staff on £12,570 | NI before allowance | NI after £10,500 allowance |
|---|---|---|
| 1 | £1,135.50 | £0 |
| 4 | £4,542 | £0 |
| 8 | £9,084 | £0 |
| 12 | £13,626 | £3,126 |
| 20 | £22,710 | £12,210 |
The allowance clears the first eight people completely. From the ninth person onwards, you pay 15% on each pound above the threshold. For more mixed teams, use the employer NI by salary table and the monthly calculator.
Frequently asked questions
How much employer NI do I pay on £12,570?
£1,135.50 a year, or £94.63 a month, in 2026/27. The sum is £12,570 minus £5,000, multiplied by 15%.
Does an employee on £12,570 pay National Insurance?
No. Employee NI starts at £12,570 a year, so an employee earning exactly that pays none. They pay 8% on every pound above it.
Is £12,570 still the Personal Allowance in 2026/27?
Yes. It has been £12,570 since 2021/22 and is frozen until April 2031.
What is the employer NI on £12,570 a month?
A monthly pay of £12,570 is £150,840 a year. Employer NI is then £21,876 a year, or £1,823 a month. Check the pay frequency in the calculator before you enter your figure.
Is £12,570 a month a common salary?
No. £12,570 is a yearly figure. A monthly pay of £12,570 would be £150,840 a year.
Can I pay a full-time employee £12,570?
Not in most cases. The National Minimum Wage means a full-time employee must be paid more than that.
Is employer NI on £12,570 tax deductible?
Yes. Employer NI is generally an allowable business expense. See is employer NI tax deductible?.
Is employer NI on £12,570 the same every month?
Roughly. HMRC uses a monthly threshold of £417, so a monthly figure can differ by pennies.
Does the employee get a State Pension year at £12,570?
Yes. Pay above the Lower Earnings Limit of £6,708 counts as a qualifying year, even though no employee NI is paid on the first £12,570.
Do I still need to run payroll for an employee on £12,570?
Yes. You must report pay to HMRC through Real Time Information every time you pay, even when no tax or NI is due.
Related guides
- Employer NI by Salary 2026/27: Table and Calculator
- Director Salary 2026/27: £5,000, £6,708 or £12,570?
- Employment Allowance 2026/27: £10,500 Off Employer NI
- Employer National Insurance Calculator 2026/27
Official sources
- National Insurance rates and categories
- HMRC: Rates and thresholds for employers 2026 to 2027
This page is independent information, not tax advice, and has no link with HMRC. Figures were checked on 20 October 2026 for the 2026/27 tax year. Always confirm the final figures with HMRC or your payroll provider.