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.