What's new
Key features
Updated NI calculation logic for Staff Contracts with a Pension, following the April 2025 Lower Earning Limit and Earning Threshold changes introduced in the 2024 Autumn Budget.
NI Calculation Changes
Due to the recent April 2025 Lower Earning Limit and Earning Threshold NI change as part of the 2024 Autumn Budget, we have identified the need to update the way the NI is calculated on Staff Contracts with a Pension.
Rates and thresholds for employers 2025 to 2026 — GOV.UK
Pay Related Factor / Budget Year | 2024-25 | 2025-26 |
Lower Earning Limit | 6,396 | 6,500 |
Earning Threshold | 9,100 | 5,000 |
Previous calculation
If the Salary is below the Lower Earning Limit of £6,500, the NI would be £0.
If the Salary is above the Lower Earning Limit of £6,500, the NI would calculate at Salary less Earning Threshold of £5,000 equals NI value.
Example: For an annual Salary of £6,000, the NI would be calculated as £0 as the Salary is below the Lower Earning Limit of £6,500.
Updated calculation
If the Salary is below the Earning Threshold of £5,000, the NI would be £0.
If the Salary is above the Earning Threshold of £5,000, the NI would calculate at Salary less Earning Threshold of £5,000 equals NI value.
Example: For an annual Salary of £6,000, the NI would be calculated as £150 (£6,000 less £5,000 Earning Threshold x NI Rate of 15% = £150).
📌Note:
This will only affect Working Scenarios in 2024/25 and 2025/26 Budget Year. Locked and Published scenarios will not be affected.
Staff Contracts with a Salary between the Earning Threshold of £5,000 and the Lower Earning Limit of £6,500 will now show an NI Calculation for April 2025 onwards.
After this release, when a Working Scenario is opened, the scenario will recalculate NI on Staff Contracts to update the values to reflect the NI changes.
The NI calculation on Staff Contracts without a Pension remains unchanged and is calculated as follows:
If the Salary is below the Earning Threshold of £5,000, the NI would be £0.
If the Salary is above the Earning Threshold of £5,000, the NI would calculate at Salary less Earning Threshold equals NI value.
How this version will be made available
This release will automatically be made available on 23rd June 2025.