For the 2026/27 tax year, most employees pay Class 1 National Insurance at 8% on earnings between £242 and £967 a week, then 2% above that. Self-employed people pay Class 4 at 6% on profits between £12,570 and £50,270, then 2% above, and can choose voluntary Class 2 at £3.65 a we
For the 2026/27 tax year, most employees pay Class 1 National Insurance at 8% on earnings between £242 and £967 a week, then 2% above that. Self-employed people pay Class 4 at 6% on profits between £12,570 and £50,270, then 2% above, and can choose voluntary Class 2 at £3.65 a week. Employers usually pay 15% on earnings above £96 a week. These figures run from 6 April 2026 to 5 April 2027 and come from GOV.UK.
National Insurance funds state benefits such as the State Pension and contributes to the NHS. This guide sets out the employee, employer and self-employed rates, shows worked examples, and points you to official pages so you can check a payslip or Self Assessment bill. To see how NI sits alongside income tax on a salary, use the free UK take-home pay calculator.
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If you are employed, your employer deducts Class 1 National Insurance from your wages through PAYE. For most people on category letter A, nothing is due on pay up to the primary threshold of £242 a week. You then pay 8% on the band up to the upper earnings limit of £967 a week, and 2% on anything above that.
| Weekly earnings | Monthly equivalent | Employee rate (letter A) |
|---|---|---|
| Up to £242 | Up to £1,048 | 0% |
| £242.01 to £967 | £1,048.01 to £4,189 | 8% |
| Over £967 | Over £4,189 | 2% |
The annual primary threshold is £12,570 and the upper earnings limit is £50,270. GOV.UK’s example for category A at £1,000 a week is £58 on the 8% band plus £0.66 on the 2% band, so £58.66 for that week. You can confirm the bands on the GOV.UK page on how much National Insurance you pay.
A lower earnings limit of £129 a week still matters for your National Insurance record even when the employee rate between £129 and £242 is 0%. Earnings at or above that limit usually count toward your contribution record for benefits, so a low earner can still build entitlement without paying employee NI in that gap.
Married women or widows with a valid certificate of election may pay a reduced employee rate instead of 8%. People who defer NI because they have more than one job may see letter J or a similar deferment letter, with 2% across the main band. Always read the letter on your payslip before you assume the standard 8% applies.
Employers pay a separate Class 1 secondary contribution. For category letter A in 2026/27 the secondary threshold is £96 a week (£417 a month, £5,000 a year), and the rate is 15% on earnings above that threshold. For a typical employee on letter A, that 15% applies across the bands above £96 a week.
Some category letters reduce or remove the employer charge up to higher thresholds, for example apprentices under 25, employees under 21, certain Freeport and Investment Zone roles, and veterans. Those reliefs still end at an upper secondary threshold of £967 a week in most of those cases, after which 15% applies. The full letter tables sit on the National Insurance rates and categories page.
Employers also pay Class 1A and Class 1B National Insurance at 15% on many taxable expenses and benefits, and on certain lump sums such as termination awards above £30,000. Eligible employers can claim Employment Allowance of up to £10,500 for 2026/27 to reduce their annual Class 1 liability.
When you compare job offers, remember that employer NI is a real cost on top of gross pay. A £40,000 salary on letter A attracts secondary NI on pay above £5,000, which is 15% of £35,000, or £5,250 a year, before any allowance. That figure does not reduce your net pay, but it shapes what an employer can afford to offer.
If you are self-employed and your profits exceed £12,570, you pay Class 4 National Insurance. For 2026/27 the rates are 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Most people pay Class 4 through Self Assessment with their income tax.
Class 2 is now voluntary for most self-employed people. The Class 2 rate for 2026/27 is £3.65 a week. Paying Class 2 can help protect your State Pension and some benefit entitlements if your profits are low or you have gaps in your record. HMRC explains both classes on the same “how much you pay” guidance.
If you are both employed and self-employed, your employer still takes Class 1 from wages, and you may also owe Class 4 on trading profits. HMRC works out any adjustment after you file Self Assessment, so keep both sets of figures ready.
Examiners, moderators and some invigilators cannot always pay Class 4 through Self Assessment in the usual way and may need to contact HMRC to arrange payment. Share fishermen and some property businesses also follow different National Insurance rules, so check the specialist GOV.UK pages if that is your trade.
These examples use the standard employee Class 1 rates for category A and ignore income tax, student loans and pensions so you can see NI alone. Figures are approximate annual totals based on the annual thresholds of £12,570 and £50,270.
| Annual gross pay | Approx. employee NI | Notes |
|---|---|---|
| £12,570 | £0 | At the primary threshold |
| £30,000 | £1,394.40 | 8% on £17,430 |
| £50,270 | £3,016.00 | 8% on the full main band |
| £60,000 | £3,210.60 | 8% to £50,270 then 2% on £9,730 |
On £30,000, earnings above £12,570 are £17,430. Eight per cent of that is £1,394.40. On £60,000, you pay 8% on £37,700 (£3,016) plus 2% on £9,730 (£194.60), which is £3,210.60. Your payslip will show the exact weekly or monthly deduction. For the combined effect of tax and NI on take-home pay, run the same salary through the take-home pay calculator linked in the introduction.
For a self-employed sole trader with £40,000 profit, Class 4 is 6% of £27,430 (£40,000 minus £12,570), which is £1,645.80. At £70,000 profit, Class 4 is 6% of £37,700 plus 2% of £19,730, which is £2,262 plus £394.60, or £2,656.60. Add income tax separately when you budget for January’s Self Assessment payment.
Weekly paid staff can mirror GOV.UK’s own example: at £1,000 a week you pay nothing on the first £242, 8% on the next £725 (which is £58), and 2% on the remaining £33 (which is £0.66), for a total of £58.66 that week.
Your payslip shows a National Insurance category letter. Letter A is the default for most employees. Letter B and related reduced-rate letters apply to some married women and widows with a valid certificate of election. Letter C and similar letters apply when the employee does not pay NI, for example many State Pensioners, though the employer may still pay secondary contributions.
Letters J, L, Z and D relate to deferment when you have more than one job and HMRC has approved a reduced employee rate so you do not overpay across jobs. Letters H, M and V cover apprentices under 25, under-21s and veterans for employer relief. Always check the letter on your payslip against the official tables if a deduction looks wrong.
Company directors can use an annual earnings period for NI, which changes the timing of deductions even when the same percentage rates apply. Landlords running a property business and share fishermen follow different rules, and HMRC publishes separate guidance for those groups.
If you think you have overpaid National Insurance across two jobs or after a mid-year change, you can ask HMRC to check your record and claim a refund where one is due. Keep P60s, P45s and Self Assessment calculations so the review is quick.
Employee NI usually appears as a line labelled National Insurance or NI, with a contribution letter and a National Insurance number. The deduction is taken before you receive net pay, alongside income tax and any student loan or pension contribution. Employers pay their secondary NI on top of your gross wage; that cost does not appear as a deduction from your net pay, but it does raise the total employment cost.
If you change jobs mid-year, each employer operates PAYE on the pay they give you. Overpayments or underpayments can arise when thresholds are applied separately, and HMRC may adjust after the year ends. Keep P60s and payslips so you can check the annual totals against the thresholds listed in this guide.
The official employer rates and thresholds for 2026 to 2027, including NI, statutory payments and student loan bands, are collected on HMRC’s rates and thresholds page. Payroll software should already use these figures from 6 April 2026.
Contractors who work through an umbrella company still see Class 1 deductions on the payslip the umbrella issues. The percentages match employee rates, but the taxable pay figure may already reflect umbrella margins, so compare contracts on net pay rather than headline day rates alone.
Salary sacrifice into a pension reduces the pay that counts for Class 1 National Insurance, which can lower both employee and employer contributions when the scheme qualifies. That is one reason many employers promote workplace pensions beyond the auto-enrolment minimum. Check how sacrifice changes your take-home pay and any salary-linked benefits before you sign up.
Freelancers who expect profits near £12,570 should watch the Class 4 threshold carefully. Paying voluntary Class 2 at £3.65 a week can be cheap protection for your contribution record in a thin year, but you should confirm current HMRC advice for your situation rather than assuming every low-profit year needs Class 2.
None of this replaces personalised tax advice. Thresholds and letters change, and directors, agency workers and people with complex benefits need to read the matching GOV.UK guide for their status.
Most employees pay 8% on earnings between £242 and £967 a week, then 2% on earnings above £967 a week, from 6 April 2026 to 5 April 2027.
For category letter A, employers usually pay 15% on earnings above the secondary threshold of £96 a week (£5,000 a year).
Class 4 is 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270, for 2026/27.
No. Class 2 is voluntary for most self-employed people. The 2026/27 rate is £3.65 a week if you choose to pay it.
£242 a week, £1,048 a month, or £12,570 a year in 2026/27. Employee NI at the main rate starts above this level.
Employees over State Pension age usually do not pay employee Class 1, but employers may still pay secondary contributions. Check your category letter.
Use GOV.UK’s how much you pay page, the rates and category letters page, and HMRC’s rates and thresholds for employers 2026 to 2027.
Enter your salary in a take-home pay calculator that applies the 2026/27 income tax and National Insurance bands together.
Last checked: 18 October 2026. Rates and rules can change, so confirm anything important with the official GOV.UK or NCSC source linked above.
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