National Insurance Rates 2025-26: Employee & Employer Contributions
Complete guide to National Insurance rates for 2025-26, covering Class 1 employee and employer contributions, and Class 4 for self-employed people.
Employee National Insurance (Class 1), 2025-26
Employees pay Class 1 National Insurance contributions on their earnings. NI is separate from income tax and is calculated on gross pay before pension deductions.
| Band | Annual Earnings | Weekly Earnings | Rate |
|---|---|---|---|
| Below Primary Threshold | Up to £12,570 | Up to £242 | 0% |
| Main rate | £12,570 to £50,270 | £242 to £967 | 8% |
| Above Upper Earnings Limit | Above £50,270 | Above £967 | 2% |
The Primary Threshold (£12,570) was aligned with the Personal Allowance in 2022 and has been frozen at this level since.
Employer National Insurance (Class 1 Secondary), 2025-26
Employers pay a separate NI contribution on top of employee pay. The employer NI rate and threshold changed significantly in April 2025.
| Threshold | Annual Earnings | Rate |
|---|---|---|
| Below Secondary Threshold | Up to £5,000 | 0% |
| Above Secondary Threshold | Above £5,000 | 15% |
Key changes from April 2025:
- The employer NI rate increased from 13.8% to 15%
- The Secondary Threshold fell from £9,100 to £5,000
- The Employment Allowance increased from £5,000 to £10,500 per year (for eligible employers)
These changes mean that for a typical employee earning £30,000, the employer's annual NI bill increased by approximately £900.
Self-Employed National Insurance, Class 2 & Class 4
Self-employed people pay different classes of NI than employees.
| Class | Profits | Rate | Notes |
|---|---|---|---|
| Class 2 | Above £12,570 | Voluntary / £3.45/week equivalent | Treated as paid via Self Assessment if profits above £12,570; relevant for State Pension entitlement |
| Class 4, main rate | £12,570 to £50,270 | 6% | Paid via Self Assessment |
| Class 4, upper rate | Above £50,270 | 2% | Paid via Self Assessment |
From 2024-25 onwards, Class 2 NI for most self-employed people with profits above the Small Profits Threshold is treated as paid automatically, it no longer needs to be paid separately but continues to count towards State Pension and benefits entitlement. Those with profits below £12,570 may make voluntary Class 2 contributions (£3.45 per week) to protect their NI record.
Worked Examples
Example 1: Employee earning £30,000
Annual employee NI on a £30,000 salary:
- Earnings below £12,570: £0 NI
- Earnings from £12,570 to £30,000 = £17,430 × 8% = £1,394.40
- Total employee NI: approximately £1,394 per year (£116/month)
Employer NI on the same salary: (£30,000 − £5,000) × 15% = £25,000 × 15% = £3,750 per year
See full breakdown: £30,000 after tax
Example 2: Employee earning £60,000
Annual employee NI on a £60,000 salary:
- Main rate band: (£50,270 − £12,570) × 8% = £37,700 × 8% = £3,016
- Above UEL: (£60,000 − £50,270) × 2% = £9,730 × 2% = £194.60
- Total employee NI: approximately £3,211 per year (£268/month)
Employer NI: (£60,000 − £5,000) × 15% = £55,000 × 15% = £8,250 per year
See full breakdown: £60,000 after tax
Example 3: Self-employed with £40,000 profit
Class 4 NI on £40,000 self-employed profit:
- Profits from £12,570 to £40,000 = £27,430 × 6% = £1,645.80
- Total Class 4 NI: approximately £1,646 per year
See full breakdown: self-employed tax calculator
National Insurance and the State Pension
You need 35 qualifying years of NI contributions to receive the full new State Pension (£221.20 per week in 2025-26). You need at least 10 qualifying years to receive any State Pension. A qualifying year is a tax year in which you have paid, or been credited with, enough NI contributions.
NI contributions also count towards other benefits including Maternity Allowance, Statutory Sick Pay, and contribution-based Employment and Support Allowance.
Frequently Asked Questions
What is the National Insurance rate for employees in 2025-26?
Employees pay 8% NI on earnings between £12,570 and £50,270 per year, and 2% on earnings above £50,270. There is no NI on earnings below the Primary Threshold of £12,570.
What is the employer National Insurance rate in 2025-26?
Employers pay 15% NI on each employee's earnings above £5,000 per year. This rate increased from 13.8% and the threshold fell from £9,100, both changes taking effect from April 2025. Eligible employers can offset up to £10,500 using the Employment Allowance.
How much National Insurance does a self-employed person pay in 2025-26?
Self-employed people pay Class 4 NI at 6% on profits between £12,570 and £50,270, and 2% on profits above £50,270. Class 2 NI is treated as paid automatically for those with profits above £12,570, preserving State Pension entitlement without a separate payment.