Employee National Insurance Rates 2026/27

For a standard category A employee, the 2026/27 Class 1 thresholds are £129 a week / £559 a month for the Lower Earnings Limit, £242 a week / £1,048 a month for the primary threshold, and £967 a week / £4,189 a month for the Upper Earnings Limit. The primary threshold is £12,570 a year and the Upper Earnings Limit is £50,270.

The Lower Earnings Limit is important even though no employee NI is deducted below the primary threshold: qualifying earnings at or above that lower limit can still protect National Insurance credits. For a salary-specific estimate, use the National Insurance calculator.

PAYE payroll usually applies National Insurance thresholds in the pay period. A regular monthly category A employee therefore starts paying employee NI once monthly earnings exceed £1,048, while a weekly-paid employee uses the £242 weekly primary threshold. Bonuses, overtime and commission are included in the period in which they are paid.

That means an irregular bonus can move part of one month's pay into the 2% band even if the employee's annual average looks lower. Income tax is normally cumulative through the tax year; employee NI is generally calculated on the pay period. Check the period, category letter and gross NI-able pay on the payslip before comparing any manual calculation.

On a £30,000 annual salary, a standard category A employee has £17,430 above the annual primary threshold. At 8%, the broad annual employee NI estimate is £1,394.40. On £60,000, the calculation spans two bands: £37,700 at 8% (£3,016) plus £9,730 at 2% (£194.60), giving £3,210.60.

These are annual planning illustrations. A payslip can differ by a few pence because payroll works per period and applies HMRC tables and rounding. They also do not include income tax, pension deductions, student loans or salary sacrifice. Use the take-home pay calculator for a broader net-pay estimate.

Category A is common, but it is not the only employee category. For example, HMRC's 2026/27 table lists a 1.85% main employee rate for category B and some other reduced-rate categories, while deferment categories can use 2% in the main band. Employees above State Pension age can have no employee Class 1 deduction in the relevant category.

The category letter is shown on the payslip and reflects the employee's circumstances. It should not be guessed from age alone. If the letter or deduction looks wrong, ask payroll to check the employee record and compare it with HMRC's category-letter guidance.

Employee NI is deducted from gross pay. Employer NI is a separate Class 1 secondary contribution paid by the employer on top of salary. For a standard employee in 2026/27, the employer normally pays 15% above its £5,000 annual secondary threshold, but special employer category rules can apply to younger workers, apprentices, veterans, Freeport employees and Investment Zone employees.

Keeping the two sides separate avoids a common payslip error: employer NI should not reduce an employee's take-home pay. Employers budgeting a hire should start with the employer NI calculator and then use the employee cost calculator for salary, NI and pension planning.

First, identify the pay frequency, gross NI-able earnings and category letter. Then use the matching weekly or monthly thresholds rather than annualising an irregular payslip. Separate any pension salary sacrifice because it can reduce NI-able earnings, and remember that taxable benefits, student loans and income tax are different deductions.

If a discrepancy remains, keep the payslip and payroll calculation and ask payroll for the period-by-period explanation. This page is an educational guide, not personal tax advice. HMRC's figures can change in a future tax year, so always check the current official table before relying on a manual calculation.

The core 2026/27 category A employee rates are 8% in the main band and 2% above the Upper Earnings Limit. The relevant threshold is normally the threshold for the pay period, not a simple annual total. Category letters matter, and employer NI is not an employee deduction. For employer-side budgeting, continue to the employer NI guide; for a current calculation, use the National Insurance calculator.