National Insurance Rates 2025-26
Complete National Insurance rates and thresholds for the 2025-26 tax year — employee Class 1, employer Class 1, and self-employed Class 2 and Class 4 NI contributions.
Employee Class 1 National Insurance 2025-26
Employees pay Class 1 National Insurance contributions on their earnings. The Primary Threshold (the point at which NI becomes payable) and the Upper Earnings Limit are both frozen for 2025-26.
| Earnings | Annual | Monthly | Rate |
|---|---|---|---|
| Below Primary Threshold | Up to £12,570 | Up to £1,047.50 | 0% |
| Primary to Upper Earnings Limit | £12,570 to £50,270 | £1,047.50 to £4,189.17 | 8% |
| Above Upper Earnings Limit | Above £50,270 | Above £4,189.17 | 2% |
NI is calculated on a pay-period basis (weekly or monthly), not annually. Your employer deducts NI through PAYE alongside Income Tax.
Employer Class 1 National Insurance 2025-26
Employers pay a separate Class 1 NI contribution on top of employee wages. April 2025 brought significant changes: the rate rose from 13.8% to 15%, and the Secondary Threshold (the point employers start paying NI) fell from £9,100 to £5,000 per year.
| Employee Earnings | Employer NI Rate |
|---|---|
| Up to £5,000 (Secondary Threshold) | 0% |
| Above £5,000 | 15% |
The Employment Allowance increased from £5,000 to £10,500 for 2025-26. Eligible employers (broadly those with employer NI bills below £100,000 in the previous tax year) can deduct this from their annual employer NI liability.
Self-Employed National Insurance 2025-26
Self-employed people pay Class 4 NI on their annual profits via Self Assessment. Class 2 NI (a flat weekly contribution) was effectively abolished for most self-employed from April 2024 — those with profits above the Small Profits Threshold of £6,725 automatically build State Pension entitlement through their Class 4 contributions.
| Class | Profits | Rate |
|---|---|---|
| Class 2 (voluntary) | Below £12,570 (if below Small Profits Threshold) | £3.45/week |
| Class 4 | £12,570 to £50,270 | 6% |
| Class 4 | Above £50,270 | 2% |
Note: Class 4 NI uses the same thresholds as employee NI (£12,570 Lower Profits Limit, £50,270 Upper Profits Limit) but at lower rates — 6% vs 8% employee rate on the main band.
How Much NI Do I Pay? — Examples
£30,000 salary (employee)
On £30,000, your NI-liable earnings above the Primary Threshold are £17,430 (£30,000 minus £12,570). You pay 8% on £17,430 = £1,394.40 per year in NI, or about £116.20 per month. Use the £30,000 after tax calculator to see your full take-home.
£60,000 salary (employee)
On £60,000: you pay 8% on £37,700 (£12,570 to £50,270) = £3,016, plus 2% on £9,730 (£50,270 to £60,000) = £194.60. Total NI: £3,210.60 per year (approximately £267.55/month).
£45,000 profit (self-employed)
On £45,000 self-employed profit: Class 4 NI is 6% on £32,430 (£12,570 to £45,000) = £1,945.80. No Class 2 NI is due if profits exceed £12,570. See the self-employed tax calculator for a full breakdown.
What Changed in April 2025
Key NI changes effective from 6 April 2025:
- Employer NI rate: rose from 13.8% to 15%
- Employer Secondary Threshold: cut from £9,100 to £5,000
- Employment Allowance: increased from £5,000 to £10,500
- Employee Primary Threshold: frozen at £12,570
- Upper Earnings Limit: frozen at £50,270
- Employee rates (8% / 2%): unchanged from 2024-25
- Self-employed Class 4 rates (6% / 2%): unchanged
Frequently Asked Questions
What is the National Insurance rate for employees in 2025-26?
You pay 8% on earnings between £12,570 and £50,270, and 2% on earnings above £50,270. There is no NI on earnings below the Primary Threshold of £12,570. NI is deducted by your employer through PAYE on each pay period.
What is the employer National Insurance rate in 2025-26?
Employers pay 15% NI on employee earnings above £5,000 per year (the Secondary Threshold). This is a separate cost to the employer — it does not come out of the employee's salary, but increases the total cost of employment. The Employment Allowance of £10,500 is available to eligible smaller employers.
How much NI do self-employed people pay?
Self-employed people pay Class 4 NI at 6% on profits from £12,570 to £50,270, and 2% above £50,270. This is paid via Self Assessment alongside Income Tax. Class 2 NI (£3.45/week) is now voluntary for those earning above the Small Profits Threshold — State Pension credit is automatically granted through Class 4 contributions.