National Insurance Rates 2025-26
National Insurance (NI) rates, thresholds, and classes for the 2025-26 tax year (6 April 2025 – 5 April 2026).
Class 1 — Employee (Primary) Contributions
Employee NI is deducted from your pay alongside income tax. The Primary Threshold is aligned with the Personal Allowance — you start paying NI from the same point you start paying income tax.
| Earnings band | Weekly | Monthly | Annual | NI rate |
|---|---|---|---|---|
| Below Lower Earnings Limit | Below £123 | Below £533 | Below £6,396 | 0% |
| LEL to Primary Threshold | £123 – £242 | £533 – £1,048 | £6,396 – £12,570 | 0% |
| Primary Threshold to UEL | £242 – £967 | £1,048 – £4,189 | £12,570 – £50,270 | 8% |
| Above Upper Earnings Limit | Above £967 | Above £4,189 | Above £50,270 | 2% |
Class 1 — Employer (Secondary) Contributions
Employer NI increased from 13.8% to 15% from 6 April 2025, and the Secondary Threshold was cut from £9,100 to £5,000/year. This significantly increased the NI cost per employee for employers. The Employment Allowance was doubled to £10,500 to compensate smaller employers.
| Earnings band (per employee) | Annual threshold | Rate |
|---|---|---|
| Below Secondary Threshold | Below £5,000 | 0% |
| Above Secondary Threshold | Above £5,000 | 15% |
Self-Employed NI — Class 2 & Class 4
Self-employed people pay Class 2 (flat rate, effectively voluntary in 2025-26) and Class 4 (profits-based). Class 4 rates were reduced in April 2024 and remain at those lower levels for 2025-26.
| Class | Threshold | Rate 2025-26 | Cost |
|---|---|---|---|
| Class 2 | Profits > £12,570 | £3.45/week | £179.40/year |
| Class 4 (main rate) | £12,570 – £50,270 | 6% | Up to £2,262 |
| Class 4 (upper rate) | Above £50,270 | 2% | 2% on excess |
Class 2 NI, while now technically voluntary for those with profits above the Small Profits Threshold, is still paid via Self Assessment for most self-employed people and counts towards State Pension entitlement. Use our self-employed tax calculator for a full NI and income tax breakdown.
NI comparison: employed vs self-employed at £40,000
| NI type | Employed (£40k salary) | Self-employed (£40k profit) |
|---|---|---|
| Class 1 employee (8%) | £2,216 | N/A |
| Class 2 (£3.45/week) | N/A | £179 |
| Class 4 (6%) | N/A | £1,648 |
| Total NI paid | £2,216 | £1,827 |
| Employer NI (not paid by worker) | £5,250 (employer cost) | £0 |
Self-employed workers pay less NI but get the same State Pension entitlement. The true NI cost difference is larger when you factor in employer NI that reduces what an employer can afford to pay. See our PAYE vs Self-Employed calculator.
National Insurance in 2025-26 — what changed
The Autumn Budget 2024 made significant changes to employer National Insurance from April 2025. The employer rate rose from 13.8% to 15%, and the Secondary Threshold — the earnings level at which employers start paying NI — was cut from £9,100 to £5,000 per year. This increased the NI cost per employee for most businesses. To offset the impact on smaller employers, the Employment Allowance was doubled from £5,000 to £10,500, and the £100,000 eligibility threshold was removed, making it available to more businesses.
Employee NI rates and thresholds were unchanged for 2025-26. The 8% main rate and 2% upper rate were introduced in January 2024 (reduced from 12% and 2%) and remain in place.
National Insurance and the State Pension
You need 35 qualifying years of NI contributions (or credits) to receive the full new State Pension (£11,502.40/year in 2025-26). You need at least 10 qualifying years to receive any State Pension. NI credits are available in periods of unemployment, illness, or caring responsibilities — meaning gaps in your NI record can often be filled.
Frequently asked questions
What are the National Insurance rates for 2025-26?
Employee NI: 0% below £12,570, 8% on £12,570–£50,270, 2% above. Employer NI: 15% on employee earnings above £5,000/year. Self-employed Class 4: 6% on profits £12,570–£50,270, 2% above. Class 2: £3.45/week.
What is the NI threshold for 2025-26?
The Primary Threshold (where employee NI starts) is £12,570/year — the same as the Personal Allowance. The Upper Earnings Limit (where the rate drops from 8% to 2%) is £50,270/year — the same as the Higher Rate income tax threshold.
Do I pay NI after State Pension age?
No. Once you reach State Pension age you stop paying employee Class 1 NI, even if you continue working. Employers still pay Class 1 secondary NI on your earnings. Self-employed people stop paying Class 4 NI from the start of the tax year following their State Pension age.