Social security — employer

# Employer Social Security Contributions in the United Kingdom

Employer social security contributions in the United Kingdom are mandatory payments that employers must make to fund the national insurance system. These contributions support state pensions, unemployment benefits, sickness allowance, and other social security programmes. The current employer National Insurance contribution rate is 15% on earnings above the secondary threshold of £9,100 per annum, calculated on a weekly or monthly basis depending on payroll frequency.

The rules governing employer social security contributions are established under the Social Security Contributions and Benefits Act 1992 and administered by Her Majesty's Revenue and Customs (HMRC). Contributions must be calculated, reported, and paid in accordance with PAYE (Pay As You Earn) regulations and Real Time Information (RTI) requirements.

A significant statutory change takes effect on 6 April 2027: the UK will mandate payrolling of benefits in kind (PBIK). Currently, most benefits in kind are reported annually on P11D forms. From the 2027-04-06 effective date, employers must instead report and pay National Insurance contributions on the taxable value of benefits in kind through the payroll in real time, aligning with income tax treatment. This change will affect how employers account for company cars, fuel, accommodation, and other non-cash benefits.

Employers must ensure payroll systems are updated to accommodate PBIK payrolling requirements well before April 2027. Accurate calculation and timely payment of both standard employer contributions and future PBIK-related contributions remain essential compliance obligations. Failure to remit contributions correctly can result in penalties and interest charges from HMRC.