National Insurance Contributions in the UK (2026/2027)
National Insurance funds the State Pension and contributory benefits. Employees pay Class 1 primary contributions through PAYE, and employers pay Class 1 secondary contributions on top of wages. Both are reported to HMRC on a Full Payment Submission every payday.
For the standard category A, employees pay 8% on earnings between the Primary Threshold of £12,570 and the Upper Earnings Limit of £50,270, then 2% on anything above. Employers pay 15% on all earnings above the Secondary Threshold of £5,000, with no upper limit.
Category letters change the picture significantly. Employees over State Pension age (category C) pay no employee NI at all, though the employer still does. For apprentices under 25 (H), under-21s (M) and qualifying veterans (V), the employer pays 0% up to the Upper Secondary Threshold — a substantial saving worth checking against your payroll.
Frequently Asked Questions
How much National Insurance do employees pay?
On category A: nothing below £12,570 a year, 8% up to £50,270, then 2% above.
How much employer National Insurance do I pay?
15% on earnings above £5,000 a year, with no upper cap. Eligible employers can offset up to £10,500 using the Employment Allowance.
What is the Employment Allowance?
An annual reduction of up to £10,500 in an eligible employer's secondary NI bill, claimed via an EPS. Single-director companies with no other employees cannot claim it.
Why is NI not calculated cumulatively like Income Tax?
NI is assessed per pay period by design. If earnings spike in one month — a bonus, say — that month is charged on its own thresholds, which is why NI on a bonus can look disproportionately high or low.
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