Employees pay Class 1 National Insurance at 8% on earnings between £12,570 and £50,270 a year and 2% above that in 2026/27. Employers pay a separate 15% on everything above £5,000. The self-employed pay Class 4 at 6% on profits between £12,570 and £50,270 and 2% above, and no longer have to pay Class 2 unless they choose to. Unlike income tax, National Insurance is worked out on each payslip rather than on the year, stops at State Pension age, and is what builds the qualifying years behind the State Pension.
Employees: Class 1
| Earnings | Yearly | Monthly | Weekly | Rate |
|---|---|---|---|---|
| Up to the primary threshold | £12,570 | £1,048 | £242 | 0% |
| Primary threshold to upper earnings limit | £12,570 to £50,270 | £1,048 to £4,189 | £242 to £967 | 8% |
| Above the upper earnings limit | over £50,270 | over £4,189 | over £967 | 2% |
The thresholds are applied to each pay period on its own. A monthly-paid employee pays 8% on the part of that month’s pay between £1,048 and £4,189, whatever happened in other months, which is why a bonus month can be charged partly at 2% even when the annual salary is under £50,270. Company directors are the exception and are assessed annually.
| Salary | Employee NI a year | A month | Employer NI a year |
|---|---|---|---|
| £15,000 | £194 | £16 | £1,500 |
| £20,000 | £594 | £50 | £2,250 |
| £30,000 | £1,394 | £116 | £3,750 |
| £40,000 | £2,194 | £183 | £5,250 |
| £50,270 | £3,016 | £251 | £6,791 |
| £60,000 | £3,211 | £268 | £8,250 |
| £80,000 | £3,611 | £301 | £11,250 |
| £100,000 | £4,011 | £334 | £14,250 |
Because the rate drops to 2% at £50,270, National Insurance is regressive above that point: someone on £100,000 pays £4,011, only £800 more than someone on £60,000. The National Insurance calculator shows the figure for any salary and pay frequency, including the per-period effect of a bonus.
Employers: secondary Class 1
Employers pay 15% on each employee’s earnings above the secondary threshold of £5,000 a year (£417 a month, £96 a week), with no upper limit. For employees under 21, apprentices under 25 and veterans in their first year of civilian employment the rate is 0% up to £50,270 and 15% above. Eligible employers can set the Employment Allowance of £10,500 a year against their total bill. Employer contributions never appear as a deduction on the employee’s payslip, although some payslips show them for information. The employer cost calculator works out the bill for any salary and category.
The self-employed: Class 4 and Class 2
Self-employed profits are charged Class 4 National Insurance through Self Assessment: 6% on profits between £12,570 and £50,270 and 2% above. On £30,000 of profit that is £1,046 a year; on £50,000, £2,246; on £80,000, £2,857. Class 2 stopped being compulsory in April 2024. Anyone with profits of £7,105 or more receives National Insurance credits towards the State Pension without paying it; anyone with profits below that can pay Class 2 voluntarily at £3.65 a week, £189.80 a year, to protect their record. The self-employed National Insurance calculator shows both classes for any profit.
Voluntary contributions
Class 3 voluntary contributions fill gaps in a National Insurance record for anyone who is not working or earning below the threshold. They cost £18.40 a week in 2026/27, £956.80 for a full year, and each year bought adds £6.89 a week to the State Pension for life. The State Pension top-up calculator compares the cost with the gain, and our State Pension guide explains how qualifying years set the amount.
What National Insurance does and does not do
It builds qualifying years. A year counts towards the State Pension when earnings in a job reach the lower earnings limit of £129 a week (about £6,700 a year), even though no contribution is actually paid until earnings reach £12,570. Thirty-five qualifying years give the full new State Pension.
It is per job. Each employment is assessed separately against the thresholds, so two part-time jobs can each fall below £1,048 a month and pay nothing while a single job on the combined salary would pay hundreds of pounds a year. Our second job guide works through the numbers.
It stops at State Pension age. Employees and the self-employed pay no National Insurance on earnings once they reach State Pension age, although income tax continues. Employers keep paying their contribution.
It is not reduced by pension contributions, except under salary sacrifice, where the sacrificed pay is removed before National Insurance is calculated. That saving, 8% for a basic rate taxpayer, is the main advantage of salary sacrifice over other pension methods.
Common questions
What is the National Insurance rate for 2026/27? 8% for employees on earnings between £12,570 and £50,270 and 2% above; 15% for employers above £5,000; 6% and 2% for the self-employed on Class 4.
How much National Insurance do I pay on £30,000? £1,394 a year, about £116 a month, which is 8% of the £17,430 above the £12,570 threshold.
Did National Insurance change in April 2026? The employee rates and thresholds are unchanged from 2025/26. The employer rate of 15% and £5,000 threshold, introduced in April 2025, also continue.
Do I pay National Insurance on a second job? Each job is assessed separately. You pay in any job where pay is above £1,048 a month, and nothing in a job below it, whatever the other job pays.
Do the self-employed still pay Class 2? Not compulsorily. Profits of £7,105 or more earn credits automatically; below that, Class 2 can be paid voluntarily at £3.65 a week to protect the State Pension record.
Do I pay National Insurance after State Pension age? No. Employee and self-employed contributions stop at State Pension age, though the employer’s contribution continues and income tax is unaffected.
Information, not financial advice. Rates and thresholds are the published 2026/27 figures on gov.uk: National Insurance rates and categories and gov.uk: rates and thresholds for employers 2026 to 2027; salary figures are estimates from the site’s calculators. Check your own payslip or return before acting on them.