Important - Employer National Insurance Contributions rising from 6 April 2025
Churches need to be aware that there are two changes to employers national insurance that will take effect from the 6 April 2025.
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Employers NI contribution will rise to 15% (previously 13.8%) and this includes those who are of pensionable age and still working.
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The earnings thresholds are dropping which means that employers will now need to pay NI contributions for any staff member who earns more than £5000 per annum (previously £9,100 per annum)
Both these changes involve significant extra costs for churches who have employed staff or appointed ministers.
You can find more information on this at Rates and thresholds for employers 2025 to 2026 - GOV.UK
Employers will need to make sure that these changes are included in payroll from April 6 2025 onwards, we would suggest that you also make staff aware of the two changes as these will effect the numbers they see on their payslips, even though the costs are met by the employer.
It is also important to note to members that the Employment Allowance is increasing in 2025-26 from £5,000 to £10,500, which will offset the first £5,500 of the rise in employer’s NI contributions for most churches - and may actually reduce the amount of NI paid in 2025-26 compared to 2024-25.