Employer’s National Insurance: How the 2025 rise will impact you

Who this article is for: If you are paid through an umbrella company and earned a gross daily (6.5 hours) rate of £104 or higher prior to 1st April 2025. If this is not you, please click here to find the article that is relevant to you.

Our mission at Zen is to help put money back into the education sector. This means ensuring teaching staff are always informed of how pay works, whether you work with Zen or not.

In April 2025, Employer’s National Insurance Contribution (NIC) rates will rise. In this article, we explain:

What the changes are;
What this might mean for you; and
If you work with Zen, what we are doing to make sure your pay is not negatively impacted.

What is the employer’s NIC rise?

Employer’s NIC will increase from 13.8% to 15% from April 2025.
The level at which employers start paying NICs will reduce from £9,100 to £5,000.

What does this mean for you?

If you are paid through an umbrella company, employer’s NICs are included in your gross pay rate. This is part of how umbrella companies enable you to work through multiple agencies and still get taxed correctly.

The rise in employer’s NIC means that if you are paid through an umbrella company, the employer’s NICs deducted from your gross pay will increase. If Zen or an agency you work through does not increase your gross pay rate, you will see a drop in your take-home pay because:

The employer’s NIC deduction from your gross pay will increase by 1.2%; and
The employer’s NIC deduction will kick in earlier, due to the reduction in the threshold.

But don’t worry - Zen Educate is adjusting your pay rate accordingly from 1 April 2025.

What will change in your pay rate?

Your gross pay will increase from 1 April 2025 so that your take home pay shouldn’t be affected. Your gross rate will be adjusted automatically in the Zen app - there is no action needed on your end.

If you have any questions regarding this, please complete this form. The team will aim to respond within 2-3 working days.

Not currently working with Zen?

If you're not currently working with Zen and are interested in discussing how these changes might impact your current take-home pay, we’d love to help! Click here to create an account with us.

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