UK National Insurance Rates 2026/27: Employee & Employer Tables
Complete UK NI rates for 2026/27: employee NI is 8% on earnings £12,570–£50,270, 2% above. Employer NI is 15% above £5,000. Full threshold tables, worked examples, and combined cost per employee.
UK National Insurance Rates 2026/27: At a Glance
| NI Class | Who Pays | Rate | Earnings Band |
|---|---|---|---|
| Class 1 Employee | Employee | 8% | £12,570–£50,270 |
| Class 1 Employee | Employee | 2% | Above £50,270 |
| Class 1 Employer | Employer | 15% | Above £5,000 |
| Class 1A Employer | Employer | 15% | Benefits in kind |
Employee National Insurance Rates 2026/27
Employees pay Class 1 NI through PAYE on their earnings. The rate depends on which band their pay falls into — there is no NI on earnings below the Primary Threshold.
Employee NI Thresholds
| Threshold | Annual | Monthly | Weekly |
|---|---|---|---|
| Lower Earnings Limit (LEL) — NI credits, no charge | £6,396 | £533 | £123 |
| Primary Threshold (PT) — NI starts here | £12,570 | £1,048 | £242 |
| Upper Earnings Limit (UEL) — rate drops above here | £50,270 | £4,189 | £967 |
Employee NI Rates by Band
| Earnings Band | Rate |
|---|---|
| Below £6,396 (below LEL) | 0% — no NI, no credits |
| £6,396–£12,570 (LEL to PT) | 0% — earns NI credits, no charge |
| £12,570–£50,270 (PT to UEL) | 8% |
| Above £50,270 (above UEL) | 2% |
Employee NI at Common Salary Levels
| Annual Salary | Employee NI (year) | Employee NI (month) |
|---|---|---|
| £15,000 | £194 | £16 |
| £20,000 | £594 | £50 |
| £25,000 | £994 | £83 |
| £30,000 | £1,394 | £116 |
| £35,000 | £1,794 | £150 |
| £40,000 | £2,194 | £183 |
| £50,000 | £2,994 | £250 |
| £60,000 | £3,211 | £268 |
At £60,000 the 8% rate applies on £12,570–£50,270 (£3,016), then 2% on the remaining £9,730 above the upper limit (£195).
Employer National Insurance Rates 2026/27
Employers pay Class 1 NI on top of gross salary — it is not deducted from the employee's pay. It applies on each employee's earnings above the Secondary Threshold of £5,000 per year.
Employer NI Thresholds
| Threshold | Annual | Monthly | Weekly |
|---|---|---|---|
| Secondary Threshold (ST) — standard employees | £5,000 | £417 | £96 |
| Upper Secondary Threshold (UST) — under-21 / apprentice under-25 | £50,270 | £4,189 | £967 |
Employer NI Rates by Employee Category
| Employee Category | NI-Free Up To | Rate Above Threshold |
|---|---|---|
| Standard (age 21 and over) | £5,000 | 15% |
| Under 21 | £50,270 | 15% on earnings above £50,270 only |
| Apprentice under 25 | £50,270 | 15% on earnings above £50,270 only |
Employer NI at Common Salary Levels
| Annual Salary | Employer NI (year) | Employer NI (month) |
|---|---|---|
| £15,000 | £1,500 | £125 |
| £20,000 | £2,250 | £188 |
| £25,000 | £3,000 | £250 |
| £30,000 | £3,750 | £313 |
| £35,000 | £4,500 | £375 |
| £40,000 | £5,250 | £438 |
| £50,000 | £6,750 | £563 |
| £60,000 | £8,250 | £688 |
Combined NI Cost Per Employee 2026/27
The total NI generated by each employment relationship is the employee's contribution plus the employer's. These are separate charges — the employer bears both the employer NI on top of payroll and the administrative obligation to collect and remit the employee's NI.
| Annual Salary | Employee NI | Employer NI | Total NI |
|---|---|---|---|
| £15,000 | £194 | £1,500 | £1,694 |
| £20,000 | £594 | £2,250 | £2,844 |
| £25,000 | £994 | £3,000 | £3,994 |
| £30,000 | £1,394 | £3,750 | £5,144 |
| £35,000 | £1,794 | £4,500 | £6,294 |
| £40,000 | £2,194 | £5,250 | £7,444 |
| £50,000 | £2,994 | £6,750 | £9,744 |
| £60,000 | £3,211 | £8,250 | £11,461 |
Use our employer NI calculator or employee cost calculator to get exact figures for any salary, including pension costs.
How Employee NI Is Calculated
Employee NI is calculated on each pay period (weekly, fortnightly, or monthly) against the equivalent period threshold. The formula:
Employee NI = (Gross Pay − Primary Threshold) × 8%
For an employee on £30,000 per year (£2,500/month):
- Monthly earnings above PT: £2,500 − £1,048 = £1,452
- Employee NI: £1,452 × 8% = £116.16/month
- Annual total: £1,394/year
How Employer NI Is Calculated
Employer NI is calculated on annual earnings above the Secondary Threshold. It is an additional cost on top of gross salary — not a deduction from the employee's pay.
Employer NI = (Annual Salary − £5,000) × 15%
For the same £30,000 salary:
- Earnings above Secondary Threshold: £30,000 − £5,000 = £25,000
- Employer NI: £25,000 × 15% = £3,750/year
- Monthly: £312.50
Employment Allowance: Reduce Your Employer NI Bill
Eligible employers can offset up to £10,500 of their employer NI liability using the Employment Allowance in 2026/27. The previous £100,000 NI bill cap has been removed, so most businesses with employees can now claim regardless of payroll size. Companies where the only employee is also a director cannot claim.
See our Employment Allowance guide for eligibility rules and how to claim through payroll software.
Key Takeaways
- Employees pay 8% NI on earnings between £12,570 and £50,270, and 2% above
- Employers pay 15% on all employee earnings above £5,000
- Under-21s and apprentices under 25 attract zero employer NI on most salaries
- Employment Allowance can wipe out up to £10,500 of employer NI per year
- Combined employee + employer NI on a £30,000 salary is £5,144 per year
Related Guides
- Employer NI Rates 2026/27: Salary Tables & Examples — deeper guide to employer NI with business-size impact analysis
- Employment Allowance 2026/27: £10,500 Eligibility & How to Claim — how to reduce your employer NI bill
- How Much Does It Cost to Employ Someone in the UK? — NI, pension, recruitment and hidden employment costs
Free 2026/27 Employer Rates Cheatsheet
All rates in one printable card: NMW, employer NI, SSP, pension thresholds.