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Definition
Employer's National Insurance (secondary Class 1 NI) is the contribution a company pays on its employees' earnings above a threshold — a cost borne by the business, separate from the NI deducted from the employee's own pay.
In plain terms
When you pay someone, the wage is not the whole cost: on earnings above the secondary threshold the company also pays employer's NI to HMRC. It is one of the biggest reasons a hire costs more than the salary suggests.
Why it matters for your company
This charge makes the true cost of employment materially higher than gross pay, so factor it into pricing and hiring decisions. The Employment Allowance offsets it for eligible employers. It is also due on most benefits in kind as Class 1A.
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