How much National Insurance do I pay as an employee?

In 2026/27, employees pay 8% NI on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. Below £12,570 (the Primary Threshold) no NI is due. For example, on a £35,000 salary: (£35,000 − £12,570) × 8% = £1,794.40/year or £149.53/month.

How much National Insurance does my employer pay?

Employers pay 15% NI on employee earnings above £5,000/year (the Secondary Threshold) in 2026/27. On a £35,000 salary: (£35,000 − £5,000) × 15% = £4,500/year employer NI. Eligible employers can reduce this by up to £10,500/year using the Employment Allowance.

How much National Insurance do self-employed people pay?

Self-employed people pay Class 4 NI: 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI was abolished from April 2024 — self-employed people with profits above £12,570 now get State Pension credits automatically through Class 4. Those with lower profits can pay voluntary contributions.

What is the NI threshold for 2026/27?

In 2026/27: Employee Primary Threshold = £12,570/year (£242/week). Employer Secondary Threshold = £5,000/year (£96/week). Upper Earnings Limit = £50,270/year. These thresholds determine when NI starts being paid and when the higher/lower rates switch.

Does National Insurance count towards my State Pension?

Yes — you need 35 qualifying years of NI contributions to receive the full new State Pension (£221.20/week in 2026/27). A qualifying year means earning above the Lower Earnings Limit (£6,396/year) in that tax year. Even if you earn below the Primary Threshold and pay no NI, you still get a qualifying year if earnings exceed the Lower Earnings Limit.

What is the Employment Allowance?

The Employment Allowance lets eligible employers reduce their employer NI bill by up to £10,500/year in 2026/27. Most employers with more than one employee qualify. It is claimed through payroll — your payroll software does this automatically. It cannot reduce your bill below zero.

Is National Insurance the same as income tax?

No — they are separate deductions. Income tax is calculated on earnings above the Personal Allowance (£12,570) at 20%, 40%, or 45%. National Insurance is calculated on earnings above the Primary Threshold (also £12,570 in 2026/27) at 8% or 2%. Both are deducted through PAYE but are separate payments to HMRC.

National Insurance Calculator 2026/27 | Employee, Employer & Self-Employed

National Insurance Calculator 2026/27

Calculate National Insurance for employees, employers, and the self-employed. Enter salary or profits to see exact NI due — including band breakdowns and effective rates. Updated for 2026/27.

Employee NI

Calculate 2026/27 National Insurance contributions

Annual Salary / Income*

NI Rates 2026/27

Below £12,570/yr0%

£12,570 – £50,270/yr8%

Above £50,270/yr2%

NI Contributions

£1,794.40

per year

£149.53

per month

Effective NI rate: 5.1% of income

Band Breakdown

Up to £12,570 (below threshold)

£12,570.00

£0.00

£12,570 – £50,270

£22,430.00

£1,794.40

Total NI£1,794.40

Annual NI

£1,794.40

5.1% effective rate

Monthly NI

£149.53

per month

Weekly NI

£34.51

per week

Email these results + free cheatsheet

Get your calculation breakdown plus the free 2026/27 employer rates cheatsheet — all key rates on one printable card.

National Insurance 2026/27: Rates, Thresholds and How It Works

National Insurance (NI) is a tax on earnings that funds the UK's state benefits — including the State Pension, Statutory Sick Pay, and Statutory Maternity Pay. It is paid by employees, employers, and the self-employed, each under different rules.

NI Rates and Thresholds 2026/27

Who Pays	Threshold	Rate
Employee (Class 1)	£12,570 – £50,270/yr	8%
Employee (Class 1)	Above £50,270/yr	2%
Employer (Class 1)	Above £5,000/yr	15%
Self-employed (Class 4)	£12,570 – £50,270/yr	6%
Self-employed (Class 4)	Above £50,270/yr	2%

Employee vs Employer NI — Who Pays What

When you are employed, both you and your employer pay NI on your wages. Employee NI is deducted from your gross pay — you never see it. Employer NI is an additional cost on top of your salary that the employer pays directly to HMRC. For every £35,000 salary, the employer pays an additional ~£4,500 in NI.

For employers managing multiple employees, our employer NI calculator and employee cost calculator give a full cost breakdown per employee.

Self-Employed NI: Class 4 Only from April 2024

Class 2 NI (the flat weekly rate) was abolished from April 2024. Self-employed people now only pay Class 4 NI — 6% on profits between £12,570 and £50,270, and 2% above that. State Pension entitlement is maintained automatically for those with profits above £12,570. Those with lower profits can pay voluntary contributions.

NI and Your State Pension

You need 35 qualifying years of NI contributions for the full new State Pension. A qualifying year requires earnings above the Lower Earnings Limit (£6,396/year in 2026/27) — even if you pay no NI (because you earn below the Primary Threshold of £12,570), you still build a qualifying year.

National Insurance Calculator 2026/27

National Insurance 2026/27: Rates, Thresholds and How It Works

NI Rates and Thresholds 2026/27

Employee vs Employer NI — Who Pays What

Self-Employed NI: Class 4 Only from April 2024

NI and Your State Pension

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